Index coding (IC) is a source coding technique employed to improve spectral utilisation, where the source node aims to satisfy users' demands by making minimum transmissions. Non-orthogonal multiple access (NOMA) is integral to the radio access technique used in 5G networks. Index-coded NOMA (IC-NOMA) transmission scheme in Vehicular Adhoc Networks (VANETs) involves applying NOMA principles on index-coded data to avoid network congestion and to improve spectral efficiency compared to conventional IC systems. In this work, a spectral efficient transmission scheme called 3-Group IC-NOMA is proposed, and an innovative index code design that fits with NOMA decoding principles to obtain improved spectral efficiency is developed. Through exhaustive analytical studies, we demonstrate that the proposed transmission scheme always supports higher rates than the conventional IC systems and requires less power to achieve an information rate at least as good as conventional IC systems.

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