We focus on the downlink of a cellular system, which corresponds to the bulk of the data transfer in such wireless systems. We address the problem of opportunistic multiuser scheduling under imperfect channel state information, by exploiting the memory inherent in the channel. In our setting, the channel between the base station and each user is modeled by a two-state Markov chain and the scheduled user sends back an ARQ feedback signal that arrives at the scheduler with a random delay that is

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... .i.d across users and time. The scheduler indirectly estimates the channel via accumulated delayed-ARQ feedback and uses this information to make scheduling decisions. We formulate a throughput maximization problem as a partially observable Markov decision process (POMDP). For the case of two users in the system, we show that a greedy policy is sum throughput optimal for any distribution on the ARQ feedback delay. For the case of more than two users, we prove that the greedy policy is suboptimal and demonstrate, via numerical studies, that it has near optimal performance. We show that the greedy policy can be implemented by a simple algorithm that does not require the statistics of the underlying Markov channel or the ARQ feedback delay, thus making it robust against errors in system parameter estimation. Establishing an equivalence between the two-user system and a genie-aided system, we obtain a simple closed form expression for the sum capacity of the Markov-modeled downlink. We further derive inner and outer bounds on the capacity region of the Markov-modeled downlink and tighten these bounds for special cases of the system parameters.