This paper proposes a two-stage maximum likelihood estimation (TSMLE) technique suited for multitone code division multiple access (MT-CDMA) system. Here, an analytical framework is presented in the indoor environment for determining the average bit error rate (BER) of the system, over Rayleigh and Ricean fading channels. The analytical model is derived for quadrature phase shift keying (QPSK) modulation technique by taking into account the number of tones, signal bandwidth (BW), bit rate, and transmission power. Numerical results are presented to validate the analysis, and to justify the approximations made therein. Moreover, these results are shown to agree completely with those obtained by simulation.