A system and method are provided wherein one or more femtocell base stations are deployed within a range of a cellular base station and utilize substantially the same frequency band as the cellular base station. Each femtocell base station may be configured to employ one or more interference avoidance techniques such that coexistence between the cellular and the corresponding femtocell base station is enabled. The interference avoidance techniques employed may include use of randomized time or frequency hopping; randomly selecting a predetermined number, or identifying one or more unutilized, frequency subchannels for signal transmission; using two or more transmit and two or more receive antennas; nulling one or more transmissions in a direction of a nearby cellular base station user; handing off at least one cellular user to one of the femtocell base stations and vice versa; and/or reducing the transmission power of at least one femtocell base station.