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This work presents a new resource allocation optimization framework forcellular networks using neighborhood-based optimization. Under thisoptimization framework resources are allocated within virtual cellsencompassing several base-stations and the users within their coverage area.Incorporating the virtual cell concept enables the utilization of moresophisticated cooperative communication schemes such as coordinated multi-pointdecoding. We form the virtual cells using hierarchical clustering given aparticular number of such cells. Once the virtual cells are formed, we considera cooperative decoding scheme in which the base-stations in each virtual celljointly decode the signals that they receive. We propose an iterative solutionfor the resource allocation problem resulting from the cooperative decodingwithin each virtual cell. Numerical results for the average system sum rate ofour network design under hierarchical clustering are presented. These resultsindicate that virtual cells with neighborhood-based optimization leads tosignificant gains in sum rate over optimization within each cell, yet may alsohave a significant sum-rate penalty compared to fully-centralized optimization.

Optimal Resource Allocation for Cellular Networks with Virtual Cell Joint Decoding