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In typical deployments of wireless and cellular networks, traffic hotspots can arise from the non-uniform geographic distribution of the mobile users, and the heavy-tailed nature of their network usage patterns. These hotspots of activity can degrade system performance, by increasing network uti-lization, wireless interference, call blocking, and even call dropping from failed handoffs for mobile users. One ap-proach for network providers is to deploy a picocell as a tar-geted solution for a specific geographic region of interest. In this paper, authors develop an analytical model to characterize the performance of a wireless/cellular network augmented with picocells. The numerical results illustrate several trade-offs between network cost, call blocking, and call dropping. the model provides insights on how many picocells to de-ploy, where to place them, and their performance impacts.
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