This study investigates the system capacity of dual-polarized orbital angular momentum (OAM) multiplexing that employs single-carrier with frequency domain equalization (FDE) in urban street canyon environments. To overcome the impact of multipaths, two types of FDE, designed with and without the consideration of the cross-polarization interference (XPI), are introduced. We derive the effects of the residual inter-mode interference (IMI), inter-symbol interference (ISI), and XPI when applying such FDE and incorporate their impacts into the system capacity analysis. Moreover, we adopt the urban street canyon model based on a ray-tracing simulation, which enables performance evaluation in a realistic multipath environment. The numerical results show that although the computational complexity is increased, the consideration of the XPI in the FDE weight design improves the system capacity, and its effectiveness is remarkable in the cases of short link distances.
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