In an effort to develop a complete DSRC system for ITS application, the authors have studied a lot of experimental facts which they are exploiting for the design. The wireless technology has been chosen properly which Is capable of tackling the severe interferences present in the open road. For road to car communication, a combined digital technology like spread spectrum along with diversity reception will help a lot in this regard. Accordingly, the choice is for FHSS based space diversity system which will utilize carrier frequency around 5.8 GHz ISM band with available bandwidth of 80 MHz and no license. For efficient design , the radio channel is characterized on which the design is based. To have the full DSRC system, a fixed wireless connectivity at Ku band is also explored for road side base station to Master Switching Center connectivity. © 2006 IEEE.