AbstractIntroduced in 1993, turbo codes can achieve high coding gains close to the Shannon limit. In order to design power and bandwidth‐efficient coding schemes, several approaches have been introduced to combine high coding rate turbo codes with multilevel modulations. The coding systems thus obtained have been shown to display near‐capacity performance over additive white Gaussian noise (AWGN) channels. For communications over fading channels requiring large coding gain and high bandwidth efficiency, it is also interesting to study bit error rate (BER) performance of turbo codes combined with high order rectangular QAM modulations. To this end, we investigate, in this paper, error performance of several bandwidth‐efficient schemes designed using the bit‐interleaved coded modulation approach that has proven potentially very attractive when powerful codes, such as turbo codes, are employed. The structure of these coding schemes, termed ‘bit‐interleaved turbo‐coded modulations’ (BITCMs), is presented in a detailed manner and their BER performance is investigated for spectral efficiencies ranging from 2 to 7 bit/s/Hz. Computer simulation results indicate that BITCMs can achieve near‐capacity performance over Rayleigh fading channels, for all spectral efficiencies considered throughout the paper. It is also shown that the combination of turbo coding and rectangular QAM modulation with Gray mapping constitutes inherently a very powerful association, since coding and modulation functions are both optimized for operation in the same signal‐to‐noise ratio region. This means that no BER improvement is obtainable by employing any other signal constellation in place of the rectangular ones. Finally, the actual influence of the interleaving and mapping functions on error performance of BITCM schemes is discussed. Copyright © 2002 John Wiley & Sons, Ltd.