A new type of intelligent drilling communication system is proposed based on capacitance coupling in order to realize signal transmission in the downhole environment. A system model is established and the dispersion equation is derived. Group velocity, propagation constant, attenuation factor, and the terminal matching condition of the system are discussed according to theoretical derivations. Simulations of a large number of drill pipe units in the time domain, based on the fourth-order Runge-Kutta method, are described to verify the mathematical derivations. An experimental system of lumped parameter components has been established, which verifies the effectiveness of the simulation. Analytical and simulation results show that the carrier frequency can be as high as 0.843 MHz, and that the bandwidth of the proposed system can reach up to about 406 kHz. The results can provide a theoretical basis and comprehensive design guidance for the frequency, communication rate, and bandwidth budget of intelligent drilling communication systems.