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In a two tier cellular network - comprised of a central macrocell underlaid with shorter range femtocell hotspots - cross-tier interference limits overall capacity with universal frequency reuse. To quantify near-far effects with universal frequency reuse, this paper derives a fundamental relation providing the largest feasible cellular Signal-to-Interference-Plus-Noise Ratio (SINR), given any set of feasible femtocell SINRs. The authors provide a link budget analysis which enables simple and accurate performance insights in a two-tier network. A distributed utility-based SINR adaptation at femtocells is proposed in order to alleviate cross-tier interference at the macrocell from cochannel femtocells.
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