Effective intercarrier interference (ICI) mitigation for multiple-input-multiple-output orthogonal frequency-division multiplexing (MIMO-OFDM) requires accurate channel estimation, which is very challenging due to the large number and fast time-varying nature of the channel parameters to be estimated using scattered pilots. We present a novel space-frequency block coding OFDM (SFBC-OFDM) scheme for doubly selective channels and a reduced-complexity channel-estimation algorithm, which exploits the banded and sparse structure of the channel in the frequency and time domains, respectively. Furthermore, we design a finite-impulse-response minimum-mean-square-error (FIR-MMSE) ICI cancellation algorithm for mobile SFBC-OFDM and demonstrate its effectiveness for digital video broadcasting-handheld (DVB-H) systems.