  In two-tier networks -- comprising a conventional cellular network overlaid
with shorter range hotspots (e.g. femtocells, distributed antennas, or wired
relays) -- with universal frequency reuse, the near-far effect from cross-tier
interference creates dead spots where reliable coverage cannot be guaranteed to
users in either tier. Equipping the macrocell and femtocells with multiple
antennas enhances robustness against the near-far problem. This work derives
the maximum number of simultaneously transmitting multiple antenna femtocells
meeting a per-tier outage probability constraint. Coverage dead zones are
presented wherein cross-tier interference bottlenecks cellular and hotspot
coverage. Two operating regimes are shown namely 1) a cellular-limited regime
in which femtocell users experience unacceptable cross-tier interference and 2)
a hotspot-limited regime wherein both femtocell users and cellular users are
limited by hotspot interference. Our analysis accounts for the per-tier
transmit powers, the number of transmit antennas (single antenna transmission
being a special case) and terrestrial propagation such as the Rayleigh fading
and the path loss exponents. Single-user (SU) multiple antenna transmission at
each tier is shown to provide significantly superior coverage and spatial reuse
relative to multiuser (MU) transmission. We propose a decentralized
carrier-sensing approach to regulate femtocell transmission powers based on
their location. Considering a worst-case cell-edge location, simulations using
typical path loss scenarios show that our interference management strategy
provides reliable cellular coverage with about 60 femtocells per cellsite.
