An iterative multiuser decoding algorithm for co-channel BPSK/QPSK users in a multibeam system is presented. The approach can be applied to the return link of multibeam satellites and to terrestrial systems with sectored base-station antennas. It allows the reuse of the same spectrum in each beam. The algorithm is based on the extension of turbo-decoding techniques to the iterative decoding of parallel users. Simulation results show one can asymptotically achieve single user performance in a high multiuser interference environment; often this includes some diversity gain. The complexity of the algorithm is approximately O(2/sup K/+2/sup /spl kappa//) operations per bit per iteration where K is the number of co-channel users and /spl kappa/ is the constraint length of the forward error correction code.