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Femtocell Networks: A Survey

Vikram Chandrasekhar and Jeffrey G. Andrews, The University of Texas at Austin

Alan Gatherer, Texas Instruments

June 28, 2008

Contact: jandrews@ece.utexas.edu

Abstract

The surest way to increase the system capacity of a wireless link is by getting the transmitter and receiver

closer to each other, which creates the dual benefits of higher quality links and more spatial reuse. In a

network with nomadic users, this inevitably involves deploying more infrastructure, typically in the form

of microcells, hotspots, distributed antennas, or relays. A less expensive alternative is the recent concept

of femtocells—also called home base-stations—which are data access points installed by home users to

get better indoor voice and data coverage. In this article, we overview the technical and business

arguments for femtocells, and describe the state-of-the-art on each front. We also describe the technical

challenges facing femtocell networks, and give some preliminary ideas for how to overcome them.

1 Introduction

The demand for higher data rates in wireless networks is unrelenting, and has triggered the

design and development of new data-minded cellular standards such as WiMAX (802.16e),

3GPP’s High Speed Packet Access (HSPA) and LTE standards, and 3GPP2’s EVDO and UMB

standards. In parallel, Wi-Fi mesh networks also are being developed to provide nomadic high-

rate data services in a more distributed fashion [1]. Although the Wi-Fi networks will not be able

to support the same level of mobility and coverage as the cellular standards, to be competitive for

home and office use, cellular data systems will need to provide service roughly comparable to

that offered by Wi-Fi networks.

The growth in wireless capacity is exemplified by this observation from Martin Cooper

of Arraycomm: “The wireless capacity has doubled every 30 months over the last 104 years”.

This translates into an approximately million-fold capacity increase since 1957. Breaking down

these gains shows a 25x improvement from wider spectrum, a 5x improvement by dividing the

spectrum into smaller slices, a 5x improvement by designing better modulation schemes, and a

whopping 1600x gain through reduced cell sizes and transmit distance. The enormous gains

reaped from smaller cell sizes arise from efficient spatial reuse of spectrum, or alternatively, a

higher area spectral efficiency [2].

The main problem to this continued micro-ization of cellular networks is that the network

infrastructure for doing so is expensive. A recent development are femtocells, also called home

base-stations, which are short range, low cost and low power base-stations, installed by the

consumer for better indoor voice and data reception. The user-installed device communicates

with the cellular network over a broadband connection such as DSL, cable modem, or a separate

RF backhaul channel. While conventional approaches require dual-mode handsets to deliver

both in-home and mobile services, an in-home femtocell deployment promises fixed mobile

convergence with existing handsets. Compared to other techniques for increasing system

capacity, such as distributed antenna systems [3] and microcells [4], the key advantage of

femtocells is that there is very little upfront cost to the service provider. Table 3 provides a

detailed comparison of the key traits of these three approaches.

Studies on wireless usage show that more than 50% of all voice calls [Airvana, 5] and

more than 70% of data traffic originates indoors [Picochip, 5]. Voice networks are engineered to

tolerate low signal quality, since the required data rate for voice signals is very low, on the order

of 10 kbps or less. Data networks, on the other hand, require much higher signal quality in order

to provide the multi-Mbps data rates users have come to expect. For indoor devices, particularly

at the higher carrier frequencies likely to be deployed in many wireless broadband systems,

attenuation losses will make high signal quality and hence high data rates very difficult to

achieve. This raises the obvious question: why not encourage the end-user to install a short-

range low-power link in these locations? This is the essence of the win-win of the femtocell

approach. The subscriber is happy with the higher data rates and reliability; the operator reduces

the amount on traffic on their expensive macrocell network, and can focus its resources on truly

mobile users. To summarize, the key arguments in favor of femtocells are the following.

Better coverage and capacity. Due to their short transmit-receive distance, femtocells

can greatly lower transmit power, prolong handset battery life, and achieve a higher signal-to-

interference-plus-noise ratio (SINR). These translate into improved reception—the so-called

five-bar coverage—and higher capacity. Because of the reduced interference, more users can be

packed into a given area in the same region of spectrum, thus increasing the area spectral

efficiency [2], or equivalently, the total number of active users per Hz per unit area.

Improved macrocell reliability. If the traffic originating indoors can be absorbed into

the femtocell networks over the IP backbone, the macrocell BS can redirect its resources towards

providing better reception for mobile users.

Cost benefits. Femtocell deployments will reduce the operating and capital expenditure

costs for operators. A typical urban macrocell costs upwards of $1K per month in site lease, and

additional costs for electricity and backhaul. The macrocell network will be stressed by the

operating expenses, especially when the subscriber growth does not match the increased demand

for data traffic [Airvana, 5]. The deployment of femtocells will reduce the need for adding

macro-BS towers. A recent study [6] shows that the operating expenses scale from $60K per year

per macrocell to just $200 per year per femtocell.

Reduced subscriber turnover. Poor in-building coverage causes customer

dissatisfaction, encouraging them to either switch operators or maintain a separate wired line

whenever indoors. The enhanced home coverage provided by femtocells will reduce motivation

for home users to switch carriers.

The goal of this article is to provide an overview for these end-user deployed

infrastructure enhancements, and describe in more detail how the above improvements come

about. We also describe the business and technical challenges that femtocells present, and

provide some ideas about how to address them.

2 Technical Aspects of Femtocells

The capacity potential of femtocells can be verified rapidly from Shannon’s law, which relates

the wireless link capacity (in bits/second) in a bandwidth W Hz to the Signal-to-Interference plus

Noise ratio (SINR). The SINR is a function of the transmission powers of the desired and

interfering transmitters, path losses and shadowing during terrestrial propagation. Path losses

cause the transmitted signal to decay as Ad

-α

, where A is a fixed loss, d is the distance between

the transmitter and receiver, and α is the path-loss exponent. The key to increasing capacity is to

enhance reception between intended transmitter-receiver pairs by minimizing d and α.

Simultaneously, additional benefits in the network-wide spatial reuse can be obtained by—but

not restricted to—exploiting diversity, and employing interference cancellation, interference

suppression and interference avoidance techniques.

Femtocells enable a reduced transmit power, while maintaining good indoor coverage.

Penetration losses insulate the femtocell from surrounding femtocell transmissions. Assuming a

fixed receive power target with a path-loss propagation model (no fading), and denoting α (resp.

β) as the outdoor (resp. indoor) path-loss exponent, overlaying an area L

with N femtocells

results in a transmit power reduction of the order of [10(α-β) log

L + 5 β log

N] dB.

For

example, choosing a cell dimension of L=1000 meters and N=50 femtocells, with equal path-loss

exponents α=β=4, femtocells give a transmit power saving of nearly 34 dB. When the indoor

path-loss exponent is smaller, say choosing β=2, the transmit power savings increase to nearly 77

dB.

To summarize, the capacity benefits of femtocells are attributed to:

1. Reduced distance between the femtocell and the user, which leads to a higher received signal

strength.

2. Lowered transmit power, and mitigation of interference from neighboring macrocell and

femtocell users due to outdoor propagation and penetration losses.

3. As femtocells serve only around 1-4 users, they can devote a larger portion of their resources

(transmit power & bandwidth) to each subscriber. A macrocell, on the other hand, has a

larger coverage area (500m-1 km radius), and a larger number of users; providing Quality of

Service (QoS) for data users is more difficult.

Points 1 & 2 illustrate the dual improvements in capacity through increased signal strength and

reduced interference. Point 3 shows that deploying femtocells will enable more efficient usage of

precious power and frequency resources. The assumption here is that the wired broadband

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