In this paper, the performance of cellular networks with joint multicell processing and dedicated relay terminals is investigated. It is assumed that each relay terminal is capable of full-duplex operation and receives the transmission of relay terminals in adjacent cells. Focusing on intra-cell time division multiple access and non-fading channels, a simplified relay-aided uplink cellular model is considered. Addressing the achievable per-cell sum-rate, two non-regenerative relaying schemes are considered. Interpreting the received signal at the base stations as the outcome of a two-dimensional linear time invariant system, the multicell processing rate of an amplify-and-forward scheme is derived and shown to decrease with the inter-relay interference level. A novel form of distributed compress-and-forward scheme with decoder side information is then proposed. The corresponding multicell processing rate, which is given as a solution of a simple fixed-point equation, reveals that the compress-and-forward scheme is able to completely eliminate the inter-relay interference, and it approaches a "cut-set-like" upper bound for strong relay terminal transmission power. The benefits of base-station cooperation via multicell processing over the conventional single site processing approach is also demonstrated for both protocols.
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