A method and apparatus for beamspace processing in a radio access node are proposed. A channel estimate, which characterizes a radio channel between the antenna elements of an antenna array and a user equipment for a given time and a given frequency, is transformed using multiple distinct sets of spatial orthonormal basis functions to obtain transformed channel estimates. Each one of the distinct sets of spatial orthonormal basis functions defines a respective one of beamspace transformations. Based on measures of quality of beamspace transformation, a set of spatial orthonormal basis functions is selected from the sets of the spatial orthonormal basis functions to satisfy a beamspace reduction criteria for the radio channel. Data streams are encoded, based on a selected transformed channel estimate, into encoded data streams. The encoded data streams are then transmitted through the antenna elements of the antenna array.