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In this paper, we propose a new multiple-input multiple-output (MIMO)communication system with movable antennas (MAs) to exploit the antennaposition optimization for enhancing the capacity. Different from conventionalMIMO systems with fixed-position antennas (FPAs), the proposed system canflexibly change the positions of transmit/receive MAs, such that the MIMOchannel between them is reconfigured to achieve higher capacity. We aim tocharacterize the capacity of MA-enabled point-to-point MIMO communicationsystems, by jointly optimizing the positions of transmit and receive MAs aswell as the covariance of transmit signals. First, we develop an efficientalternating optimization algorithm to find a locally optimal solution byiteratively optimizing the transmit covariance matrix and the position of eachtransmit/receive MA with the other variables being fixed. Next, we proposealternative algorithms of lower complexity for capacity maximization in thelow-SNR regime and for the multiple-input single-output (MISO) and single-inputmultiple-output (SIMO) cases. Numerical results show that our proposed MAsystems significantly improve the MIMO channel capacity compared to traditionalFPA systems as well as various benchmark schemes, and useful insights are drawninto the capacity gains of MA systems.

MIMO Capacity Characterization for Movable Antenna Systems