This paper presents and discusses various aspects of the radio performance of the Digital European Cordless Telecommunications (DECT) system. The radio receiver parameters are optimised, and it is shown by simulation that a simple receiver can be used for DECT with excellent co-channel performance, thus allowing the high re-use factors desired. The DECT performance in Rayleigh fading dispersive channels is also considered, as this will be of vital importance for the operation of DECT in outdoor environments, and particularly in Telepoint networks. It is shown in particular that DECT links without diversity will be significantly affected if the delay spread exceeds 100 ns, and that RSSI-driven diversity may extend this upper bound to about 200 ns.