Abstract: We study the capacity of multiple-antenna fading channels. We focus on the scenario where the fading coefficients vary quickly; thus an accurate estimation of the coefficients is generally not available to either the transmitter or the receiver. We use a noncoherent block fading model proposed by T. L. Marzetta and B. M. Hochwald [see ibid. vol.45, 139–157 (1999; Zbl 0946.94002)]. The model does not assume any channel side information at the receiver or at the transmitter, but assumes that the coefficients remain constant for a coherence interval of length T symbol periods. We compute the asymptotic capacity of this channel at high signal-to-noise ratio (SNR) in terms of the coherence time T, the number of transmit antennas M, and the number of receive antennas N. While the capacity gain of the coherent multiple antenna channel is min{M, N} bits per second per Hertz for every 3-dB increase in SNR, the corresponding gain for the noncoherent channel turns out to be M* (1 - M*/T) bits per second per Hertz, where M*=min{M, N, [T/2]}. The capacity expression has a geometric interpretation as sphere packing in the Grassmann manifold.