A method for operating an interference coordinating entity (ICE) includes partitioning, by the ICE, a cloud radio access network (CRAN) cluster by grouping transmission points (TPs) serving user equipments (UEs) in accordance with a partitioning criterion into at least one virtual transmission point (V-TP) to produce a V-TP set. The UEs to be served are preferably offset from a V-TP boundary. The method also includes saving, by the ICE, V-TP information to a memory.