  Cloud radio networks coordinate transmission among base stations (BSs) to
reduce the interference effects, particularly for the cell-edge users. In this
paper, we analyze the performance of a cloud network with static clustering
where geographically close BSs form a cloud network of cooperating BSs.
Because, of finite cooperation, the interference in a practical cloud radio
cannot be removed and in this paper, the distance based interference is taken
into account in the analysis. In particular, we consider centralized zero
forcing equalizer and dirty paper precoding for cancelling the interference.
Bounds are developed on the signal-to-interference ratio distribution and
achievable rate with full and limited channel feedback from the cluster users.
The adverse effect of finite clusters on the achievable rate is quantified. We
show that, the number of cooperating BSs is more crucial than the cluster area
when full channel state information form the cluster is available for
precoding. Also, we study the impact of limiting the channel state information
on the achievable rate. We show that even with a practically feasible feedback
of about five to six channel states from each user, significant gain in mean
rate and cell edge rate compared to conventional cellular systems can be
obtained.
