Earlier definitions of capacity for wireless networks, e.g., transport or transmission capacity, for which exact theoretical results are known, are well suited for ad hoc networks but are not directly applicable for cellular wireless networks, where large-scale basestation (BS) coordination is not possible, and retransmissions/ARQ under the SINR model is a universal feature. In this paper, cellular wireless networks, where both BS locations and mobile user (MU) locations are distributed as independent Poisson point processes are considered, and each MU connects to its nearest BS. With ARQ, under the SINR model, the effective downlink rate of packet transmission is the reciprocal of the expected delay (number of retransmissions needed till success), which we use as our network capacity definition after scaling it with the BS density. Exact characterization of this natural capacity metric for cellular wireless networks is derived. The capacity is shown to first increase polynomially with the BS density in the low BS density regime and then scale inverse exponentially with the increasing BS density. Two distinct upper bounds are derived that are relevant for the low and the high BS density regimes. A single power control strategy is shown to achieve the upper bounds in both the regimes. This result is fundamentally different from the well known capacity results for ad hoc networks, such as transport and transmission capacity that scale as the square root of the (high) BS density. Our results show that the strong temporal correlations of SINRs with PPP distributed BS locations is limiting, and the realizable capacity in cellular wireless networks in high-BS density regime is much smaller than previously thought. A byproduct of our analysis shows that the capacity of the ALOHA strategy with retransmissions is zero.

A shorter version to appear in WiOpt 2017