A communication system economically mitigates the frequency-selective multipath effects and co-channel interference in wireless LANS. The communication system comprising a wireless local area network (LAN) formed by a plurality of spacially separated transceivers (TR, TR). Each of the transceivers has a transmitting section (10) for transmitting data by a combination of dual code spread spectrum techniques and a receiving section (12) for recovering the data. The receiving section (12) comprises a plurality of diversity antennas (ANT 1 to ANT n), an adaptive forward equal gain combiner (60) having a plurality of branches (62 to 74 and 62 to 74), each branch being coupled to a respective one of the diversity antennas. The adaptive forward equal gain combiner (60) selects a signal in one of the branches as a reference signal and co-phases the signals in the remaining branches with the reference signal.