  A new class of folded subspace codes for noncoherent network coding is
presented. The codes can correct insertions and deletions beyond the unique
decoding radius for any code rate $R\in[0,1]$. An efficient interpolation-based
decoding algorithm for this code construction is given which allows to correct
insertions and deletions up to the normalized radius $s(1-((1/h+h)/(h-s+1))R)$,
where $h$ is the folding parameter and $s\leq h$ is a decoding parameter. The
algorithm serves as a list decoder or as a probabilistic unique decoder that
outputs a unique solution with high probability. An upper bound on the average
list size of (folded) subspace codes and on the decoding failure probability is
derived. A major benefit of the decoding scheme is that it enables
probabilistic unique decoding up to the list decoding radius.
