The emergence of broadband wireless access (BWA) and mobility poses significant challenges to the future telecommunications landscape. Multiple input multiple output (MIMO) is a potential technology that can be used to improve system performances such as coverage, capacity and data rates for broadband wireless networks. Although this technology has proved to be beneficial for both current and future services by many research results, it is not clear how these benefits can be practically achieved with a MIMO system. Fundamental issues on capacity enhancement and performance limits need to be addressed before operators will be willing to deploy MIMO systems in their networks. This paper addresses some of the key issues that remain open regarding MIMO technology for BWA. The paper focuses on MIMO channel modelling and capacity analysis.