  Communication systems are usually designed by assuming perfect channel state
information (CSI). However, in many practical scenarios, only a noisy estimate
of the channel is available, which may strongly differ from the true channel.
This imperfect CSI scenario is addressed by introducing the notion of
estimation-induced outage (EIO) capacity. We derive a single-letter
characterization of the maximal EIO rate and prove an associated coding theorem
and its strong converse for discrete memoryless channels (DMCs). The
transmitter and the receiver rely on the channel estimate and the statistics of
the estimate to construct codes that guarantee reliable communication with a
certain outage probability. This ensures that in the non-outage case the
transmission meets the target rate with small error probability, irrespective
of the quality of the channel estimate. Applications of the EIO capacity to a
single-antenna (non-ergodic) Ricean fading channel are considered. The EIO
capacity for this case is compared to the EIO rates of a communication system
in which the receiver decodes by using a mismatched ML decoder. The effects of
rate-limited feedback to provide the transmitter with quantized CSI are also
investigated.
