A discrete memoryless channel is specified by discrete input and output alphabets and a transition probability , with and . Its successive outputs are conditionally independent given the inputs, with the same transition rule at every use:
Operationally, its channel capacity is the supremum of communication rates in bits per use attainable by increasingly long block codes with decoding error probability tending to zero. For finite alphabets, the equivalent Shannon characterization is
where is Shannon entropy, is classical conditional entropy, and the maximization is over the input probability distribution.
For the channel in question, the transition matrix, with input symbols indexing rows, is
Every row has the same Shannon entropy, namely the binary entropy . Consequently for every input probability distribution. Since the output has three symbols, the maximum entropy on a finite alphabet gives
Choose a uniform input. Each column of sums to one, so for every output symbol and the upper bound is attained. Finally
Thus the cyclic ternary channel capacity is
achieved by a uniform input probability distribution. This is a weakly symmetric channel capacity calculation: the matrix rows are permutations and the column sums agree. The channel is not the usual ternary symmetric-error channel, since an error has only one possible changed output for each input.

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