This paper addresses the problem of allocating frequencies in a GSM-based home base station (HBS) system. A novel solution called total frequency hopping (TFH) is presented in order to overcome the frequency allocation and the inter-HBS synchronisation problems. The HBS system will use the same frequency band as the overlaying GSM network and thus creates more interference to it. The simulation results reveal that the negative impact of the underlying HBS system on the GSM network performance is minimal provided that the HBS transmission (TX) power is reasonable low. The TX power cannot be arbitrarily low, however, since the HBS system must be able to function in the presence of the interference from the overlaying high power GSM network. When the power ratio between GSM base station and HBS is around 40 dB, the both networks can co-exist at the same frequency band.
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