Quadrature Amplitude Modulation(QAM) is well known a bandwidth efficient modulation scheme. However, its use for mobile communications has been limited due to noise and signal distortion. Recently, the QAM scheme is emerging as a new modulation scheme for a band-limited wireless system. In this paper, we propose an iterative decoding algorithm assuming QAM signal for a narrow-band mobile channel. The Algorithm is based on the EM(Expectation Maximization) Algorithm, and the performances of the proposed decoder are assessed using computer simulation. The simulation results show that the proposed decoder perform better compared to that of other schemes.