Device-to-device (D2D) communication is a promising new feature in LTE-Advanced networks. It is brought up to enable efficient discovery and communication between proximate devices. With D2D capability, devices in physical proximity could be able to discover each other using LTE radio technology and to communicate with each other via a direct data path. This thesis is concerned with the design, coordination and testing of a hybrid D2D and cellular network. Design requirements and choices in physical and MAC layer functions to support D2D discovery and communication underlaying LTE networks are analyzed. In addition, a centralized scheduling strategy in base station is proposed to coordinate D2D data communication operating in LTE spectrum. The scheduling strategy combines multiple techniques, including mode selection, resource and power allocation, to jointly achieve an overall user performance improvement in a cell. Finally the performances of D2D data communication underlaying LTE system are calibrated in a multi-link scenario via system-level simulation.
