The authors describe cross-correlation properties for compact urban base station antenna configurations, nearly all of which result in very low envelope cross-correlation coefficients of about 0.1 to 0.3. Specifically, polarization diversity systems are examined for their potential in improving link quality when hand-held terminals are involved. An expression is given for the correlation function of compound space and polarization diversity systems. Dispersion and envelope dynamic statistics are presented for the measured environments. For microcell applications, it is found that systems such as GSM having a bandwidth of 200 kHz or less can use narrowband cross-correlation analysis directly.>