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In wireless network, a femtocell, a device with small coverage, becomes an inevitable technology due to the increasing demand for high data rate. However, at present, femtocells are not sufficiently reliable. Thus, it is a critical issue to provide good protocols for diagnosing and managing faults in femtocells. In this paper, we contribute to satisfying these requirements by suggesting a queuing model including faulty handover to analyze a dynamics of an indoor network and proposing an efficient cell selection algorithm that minimizes handover failure and achieves a load balancing between neighboring cells when the femtocell generates a fault. Simulation results reveal that mobile users of a faulty femtocell can handover successfully to neighboring cells when the proposed algorithm is used.