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Macrocells may suffer serious uplink interference introduced by the deployment of co-channel femtocells. In this paper, an interference-aware pricing-based resource allocation algorithm for co-channel femtocells is proposed to alleviate their interference to macrocells without degrading the femtocell's capacity. The subchannel and power allocation problem is modeled as a non-cooperative game. A suboptimal subchannel allocation algorithm and an optimal power allocation algorithm are proposed to implement the resource allocation game. Simulation results show that the proposed algorithm not only improves the capacity of the macrocell but also the total capacity of the two-tier network, as compared with the unpriced subchannel allocation and Modified Iterative Water Filling (MIWF) power allocation algorithm.
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