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In this paper we investigate the channel correlation of a MIMO-femtocell (multiple-input multiple-output) system constructed with MIMO that is adapted to a tiered femtocellular network. The MIMO-femtocell system deployed with home BS (base station) in a single floor indoor environment is proposed. According to the analyses of both theoretical and simulation results, channel correlation definitely degrades the overall system performance of a MIMO-femtocell system, especially in indoor channels. Moreover, the coverage area of a MIMO-femtocell deployment is reduced because of channel correlation occurring in the propagation channel. Some analyses of closed forms are utilized to discuss the phenomenon of channel correlation that exists in MIMO-femtocell systems. Certainly, the analytical results match well with the experimental results obtained from the software package. Furthermore, some numerical results validate the performance of outage probability and the BER (bit error rate). It is noteworthy to remember that there is a degradation factor in the X1-X4 differences of the BS coverage area as the channel correlation phenomenon is not ignored in the performance evaluation of the MIMO-femtocell system and the Rayleigh statistical model.