Any 2-n subspace is locally distinguishable

A subspace of a multipartite Hilbert space is said to be locally indistinguishable if any orthonormal basis of this subspace cannot be perfectly distinguished by local operations and classical communication. Previously it was shown that any m - n bipartite system with m>2 and n>2 has a locally indistinguishable subspace. However, it has been an open problem since 2005 whether there is a locally indistinguishable bipartite subspace with a qubit subsystem. We settle this problem in negative by showing that any 2- n bipartite subspace contains a basis that is locally distinguishable. As an interesting application, we show that any quantum channel with two Kraus operators has optimal environment-assisted classical capacity.