Abstract: | Co‐channel interference between macro–femtocell networks is an unresolved problem, due to the frequency reuse phenomenon. To mitigate such interference, a secondary femtocell must acquire channel‐state knowledge about a co‐channel macrocell user and accordingly condition the maximum transmit power of femtocell user. This paper proposes a pilot‐based spectrum sensing (PSS) algorithm for overlaid femtocell networks to sense the presence of a macrocell user over a channel of interest. The PSS algorithm senses the pilot tones in the received signal through the power level and the correlation metric comparisons between the received signal and the local reference pilots. On ensuring the existence of a co‐channel macrocell user, the maximum transmit power of the corresponding femtocell user is optimized so as to avoid interference. Time and frequency offsets are carefully handled in our proposal. Simulation results show that the PSS algorithm outperforms existing sensing techniques, even at poor received signal quality. It requires less sensing time and provides better detection probability over existing techniques. |