Orthogonal Frequency Division Multiplexing (OFDM) and Multiple Input and Multiple Output (MIMO) are two main techniques employed in 4 th Generation Long Term Evolution (LTE). In OFDM multiple carriers are used and it provides higher level of spectral efficiency as compared to Frequency Division Multiplexing ( FDM). In OFDM because of loss of orthogonality between the subcarriers there is intercarrier interference (ICI) and intersymbol interference (ISI) and to overcome this problem use of

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... prefixing (CP) is required, which uses 20% of available bandwidth. Wavelet based OFDM provides good orthogonality and with its use Bit Error Rate (BER) is improved. Wavelet based system does not require cyclic prefix, so spectrum efficiency is increased. It is proposed to use wavelet based OFDM at the place of Discrete Fourier Transform (DFT) based OFDM in LTE. We have compared the BER performance of wavelets and DFT based OFDM.