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The authors analyze the benefits of using a decision feedback equalizer (DFE) in the indoor radio environment and examine the results of performance predictions for different channel modelings. It is found that a QPSK/DFE modem with second-order diversity can operate at a data rate that is an order of magnitude higher than a QPSK (quadratic-phase-shift-keying) modem without equalization. A given set of measured profiles of the channel impulse response is interpreted using continuous and discrete channel models. The continuous channel model is represented by the delay power spectrum and the discrete channel model by the envelope delay power spectrum and the arrival rate of the paths. The sensitivity of the performance to the shape of the delay power spectrum, and the arrival rate of the paths is analyzed.