In this thesis, we analyze the performance of a variable spreading factor (VSF) OFCDM employed in femtocells, with OFDM used in macrocells in a hybrid heterogenous network. Orthogonal subcarriers are assigned to macro users and for femtocell users, non-contiguous subcarrier grouping is employed. We derive the analytic expression of the BER for uplink VSF-OFCDM femto and OFDM macro users for the case of maximal ratio combining receiver. We evaluate the performance of femto/macro users in VSF-OFCDM system through numerical and Monte Carlo simulation studies. Improvement in BER of the femtocell users is also noted. The relationship between the femto spreading factor and femto/macro BER is analyzed. We present, the relationship between the channel load and optimum spreading factor employed by femtocell users for the energy efficient performance of macro users. Femto wall penetration loss, that is the important parameter to evaluate the femto performance, is also taken into account. Also, effect of femto wall penetration on macro BER is evaluated for various spreading factors.Following our study, we find that interference-limited system favors increased time spreading especially when number of subcarriers is limited and noise-limited system favors increased frequency domain spreading. When large number of subcarriers are available, optimum spreading (from macro perspective) favors increased frequency domain spreading regardless of the femto-macro loads, or whether operating environment is noise or interference limited. Once the optimum spreading factor is determined, increase or decrease in the femto Eb/No does not matter. Also, femto wall penetration factor not only effects the femto BER directly, but also reduce the potential interference faced by macro user equipment (UEs). As a result macro BER is improved, but the choice of optimal spreading factor for macro UEs remain unaffected with the variation in femto wall penetration loss.