A packet switched wireless cellular system with wide area coverage and high throughput is proposed. It is designed to be cost effective and to provide high spectral efficiency. The high performance is achieved by the use of long term channel predictions, in both time and frequency, scheduling among users, and smart antennas combined with adaptive modulation and power control. Calculations of the spectral efficiency of the downlink, based on reasonable simplifying assumptions, indicate that a tremendous capacity can be attained for moderate numbers of users and terminal antennas. We also briefly discuss other means for performance improvements such as alternatives to standard TCP, interlayer interaction/communication, and the use of positioning information.