In this contribution, we investigate a coarsely quantized Multi-User
(MU)-Multiple Input Single Output (MISO) downlink communication system, where
we assume 1-Bit Digital-to-Analog Converters (DACs) at the Base Station (BS)
antennas. First, we analyze the achievable sum rate lower-bound using the
Bussgang decomposition. In the presence of the non-linear quanization, our
analysis indicates the potential merit of reconsidering traditional signal
processing techniques in coarsely quantized systems, i.e., reconsidering
transmit covariance matrices whose rank is equal to the rank of the channel.
Furthermore, in the second part of this paper, we propose a linear precoder
design which achieves the predicted increase in performance compared with a
state of the art linear precoder design. Moreover, our linear signal processing
algorithm allows for higher-order modulation schemes to be employed
