Optimization of 5G Fronthaul Based on Functional Splitting at PHY Layer

5G is coming with a promise to provide ubiquitous coverage with high data rate availability. To do so, densification of access points to enhance the system capacity is anticipated. For managing such densely populated network, 5G will be employing Centralized Radio Access Network (CRAN), where most of the Radio Access Network (RAN) functionalities are centralized in a central processing unit. This centralization reduces operational costs and eases implementation of advanced technologies, such as, Cooperative multipoint (CoMP) and enhanced inter-cell interference coordination (eICIC), in a cost efficient way. However, CRAN imposes stringent requirements on the fronthaul, i.e. the link connecting access points to the central unit, in terms of capacity and latency. Furthermore, future fronthaul networks are expected to rely on wireless technologies, since wired options are costly, not scalable and not always suitable for all scenarios. Therefore, meeting the expected requirements of fronthaul network utilizing capacity-limited wireless technologies may become an inescapable bottleneck. In this paper, we study different functional splits at the PHY layer in terms of data rate requirements and operational cost, and discuss the combination of different splits aimed at minimizing the overall cost and maximizing the centralization gains, while keeping the capacity requirements below the limit of the fronthaul.