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The capacity of differential pulse position modulation (DPPM) 60 GHz impulse radio (IR) systems is studied in this paper.We derive the capacity of DPPM 60 GHz IR systems over AWGN channels.These results are then extended to Nakagami fading channels.Performance results show that DPPM is superior to pulse position modulation (PPM) in terms of capacity in 60 GHz IR systems.