Abstract: A method for computer simulation of the channel propagation characteristics in mobile radio setups is described. It mainly simulates the Rayleigh-distributed and Rice-distributed non-frequency-selective fading channel. With this method are studied the channel propagation characteristics fo BPSK, QPSK and SPSK modulated signals in the channel having different Rice fading factor K. Fading margin and error floor affected by the Rice fading factor K and the maximum Doppler frequency shift fd are analyzed. According to the statistics of envelope and phase distributions of the fading signals and error rate of the binary sequence, close agreement is shown between the simulation and theoretical analysis.