If I understand your objective correctly, you're looking to place two subfigures side by side. In order to maximize their size, while also maximizing the available distance between them, don't specify a scale option in the \includegraphics instructions. Instead, specify a large value for the width of each subfigure environment -- e.g., 0.48\textwidth -- and use the width=\linewidth option when executing \includegraphics. And, be sure to use an instruction such as \hspace{\fill} to maximize the separation between the subfigures.
The following image shows the resulting look. The thin horizontal line on top is drawn just to illustrate the width of the text block.

\documentclass{report}
\usepackage{subcaption} % for 'subfigure' environment
\usepackage[demo]{graphicx} % omit 'demo' in your real document
\begin{document}
\hrule % just to illustrate the width of the text block
\begin{figure}[h!]
%%\centering % not needed as the subfigures are maximally separated
\begin{subfigure}{0.48\textwidth}
\includegraphics[width=\linewidth]{fig/cdf_rate11a.eps}
\caption{11a's TX rate}
\label{fig:cdf_rate11a}
\end{subfigure}
\hspace*{\fill}
\begin{subfigure}{0.48\textwidth}
\includegraphics[width=\linewidth]{fig/cdf_rate11n.eps}
\caption{11n's TX rate}
\label{fig:cdf_rate11n}
\end{subfigure}
\caption{Coverage comparison in various locations}
\label{fig:coverage_comparison}
\end{figure}
\end{document}
hspaceadds space and\hspace{0pt}adds no space, comparehello\hspace{0pt}worldwithhello\hspace{3cm}world(At the start of a paragraph, as you had used it it does nothing at all) – David Carlisle May 16 '14 at 13:21\hspace{-1cm}– Tymric May 16 '14 at 13:22subfigurepackage is considered deprecated, usesubfigorsubcaptioninstead. Second, a line break inserts a space, so you need to for example add%at the end of some lines (see e.g. Where are the necessary places to be appended with%to remove unwanted spaces?). – Torbjørn T. May 16 '14 at 13:24