An embodiment method of network node operation includes indicating, by a first network node, to a first UE, a first number of REs in a first set of RBs for a first reference signal, transmitting, by the first network node, to the first UE, the first reference signal in accordance with the first number of REs and a first precoding in a first subframe, receiving, by the first network node, from the first UE, a report indicating a first MCS in accordance with a level of signal and interference measured by the first UE, wherein the measurement is restricted to the first reference signal, and transmitting, by the first network node, a first data with the indicated first MCS and the first precoding in a second subframe, the first data being transmitted on a second number of REs in the first set of RBs in the second subframe.