A new subspace-based blind method for channel estimation in nearly saturated downlink multicarrier code division multiple access systems is proposed. In this method, the authors exploit the subspace structure of the received signal to estimate the channel directly in the frequency domain irrespective of the length of the finite impulse response (FIR) channel, thus allowing operation in nearly saturated systems (number of users can be one less than process gain). The method is shown to outperform some earlier blind channel estimation methods, whereas at the same time avoiding the limitations in the number of users that these methods suffer from.