Two-Way Interference Channel Capacity: How to Have the Cake and Eat it Too

Abstract: Two-way communication is prevalent and its fundamental limits are first studied in the point-to-point setting by Shannon [1]. One natural extension is a two-way interference channel (IC) with four independent messages: two associated with each direction of communication. In this work, we explore a deterministic two-way IC which captures key properties of the wireless Gaussian channel. Our main contribution lies in the complete capacity region characterization of the two-way IC (w.r.t. the forward and backward sum-rate pair) via a new achievable scheme and a new converse. One surprising consequence of this result is that not only we can get an interaction gain over the one-way non-feedback capacities, we can sometimes get all the way to perfect feedback capacities in both directions simultaneously. In addition, our novel outer bound characterizes channel regimes in which interaction has no bearing on capacity.