In this project, we propose highly innovative basic optimal research in signal processing for communications with very ambitious objectives. We aim at producing high impact results in the field of signal processing for communications and also envisage con tributions in related areas such as mathematics, game theory, wireless communications, and information theory. A unique research group with internationally reputed experts in the area was gathered by Hjørungnes (UNIK - University Graduate Center), and wil l be constituted by two post doctoral fellows (UNIK), three Ph.D. students (UNIK/University of Oslo), and 7 international guest researchers. The project will be operated from UNIK. For a duration of 12 months, the 3 Ph.D. students will be sent abroad to c ooperate with world-leading researchers. This research project will focus on advanced signal processing solutions with applications to new generations of wireless communications systems for high-speed data-oriented applications. The research goals are str uctured in four work-packages (WP): WP1: Complex-Valued Matrix Derivatives. WP2: Fundamental Limits of Multi-User Mobile Flexible Networks. WP3: Secrecy Capacity for Mobile Flexible Networks. WP4: Code Design for Multi-User Mobile Flexible Networks. The project manager completed his doctorate in 2000, has over 14 years of research experience in signal proc., wireless com., and information theory and expects to have a major and strategic experience in managing leading international research projects with the THEFONE project. He intends to provide expert training and create a leading research group within the area of signal processing for communications. This will result in highly qualified Norwegian personnel in an area extremely appealing both from a sci entific perspective and an industrial point of view. International cooperation and exchanges of project participants will provide a promising and fertile ground for the achievement of this challenging goal.