Uplink and downlink cloud radio access networks are modeled as two-hop ${K}$ -user ${L}$ -relay networks, whereby small base-stations act as relays for end-to-end communications and are connected to a central processor via orthogonal fronthaul links of finite capacities. Simplified versions of network compress–forward (or noisy network coding) and distributed decode–forward are presented to establish inner bounds on the capacity region for uplink and downlink communications, that match the respective cutset bounds to within a finite gap independent of the channel gains and signal to noise ratios. These approximate capacity regions are then compared with the capacity regions for networks with no capacity limit on the fronthaul. Although it takes infinite fronthaul link capacities to achieve these “fronthaul-unlimited” capacity regions exactly, these capacity regions can be approached approximately with finite-capacity fronthaul. The total fronthaul link capacities required to approach the fronthaul-unlimited sum-rates (for uplink and downlink) are characterized. Based on these results, the capacity scaling law in the large network size limit is established under certain uplink and downlink network models, both theoretically and via simulations.
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