In this paper, it has been shown that link adaptation and power control can improve performance of the future wireless packet networks. Realizing the expected performance gain of these techniques requires accurate prediction of future interference power. This paper proposes a new method based on Kalman filtering for interference estimation. The new method is devised by observing - it is possible to identify fairly accurately the number of active co-channel interferers in the cellular networks and interference power is positively correlated with the number of active interferers. The new technique uses a two-dimensional Kalman filter to exploit that correlation to enhance prediction accuracy.
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