Rank Indication is one of the important input to eNB , in selection of the transmission layer in downlink data transmission. Even though the system is configured in transmission mode 3 (or open loop spatial multiplexing) for a particular UE and if the same UE report the Rank Indication value 1 to eNB, eNB will start sending the data in Tx diversity mode to UE . If UE report Rank Indication 2 , eNB will start sending the downlink data in MIMO mode (Transmission Mode 3).

I tried to explain here , please let me know if we can explore more .

http://lte-question.blogspot.in/2013/07/rank-indicaton-in-lte.html

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