Full-dimension MIMO (FD-MIMO) using planar active antenna systems (AAS) is considered a critical technology for fifth-generation (5G) cellular systems to improve network capacity. An AAS is typically subject to hardware impairments that negatively impact network capacity. Hence, this paper focuses on impairments that cause phase and magnitude errors between radio frequency (RF) chains and shows why they are particularly difficult to avoid in practical AAS. Although previous investigations show these impairments to degrade performance, they are not useful in deriving measurable impairment margins for practical FD-MIMO deployments. Knowing impairment limits are critical for system designers to make hardware design tradeoffs such as AAS configuration, component selection, implementation complexity, and cost. Moreover, it also helps set conformance limits for critical lab verification. Therefore, the paper first investigates the impact of the impairments and derives their practical limits for FD-MIMO by explicitly considering the cumulative effects of the channel model, inter-cell interference, link adaptation, and channel aging due to feedback delays. It is shown that a lower number of digitized RF chains can be a better choice under lower impairments. Next, the sources of impairments are investigated by using measurements carried out in the lab and the field during live operation in a commercial LTE network. Phase drift from local oscillators (LO) and internal temperature variations are identified as two significant sources. The tradeoffs and shortcomings of some of the existing solutions in massive MIMO literature are discussed. Finally, in order to address the shortcomings, a novel and practical coherent LO distribution architecture and array calibration mechanism are proposed. This solution is shown to be applicable to both TDD and FDD FD-MIMO. Measurement results are provided to prove the high degree of coherency and stability achieved on a unique array architecture called high definition active antenna system (HDAAS). INDEX TERMS Massive MIMO, FD-MIMO, calibration, phase and magnitude error, array coherency. I. INTRODUCTION M ASSIVE multiple-input and multiple-output (MIMO) using large active antenna arrays are viewed as a critical solution to solve capacity demands in Fifth Generation New Radio (5G-NR) cellular networks operating in sub-6 GHz bands. Full-dimension MIMO (FD-MIMO) defined in the 3rd Generation Partnership Project (3GPP) [1] has adopted principles of massive MIMO. It specifies the use of planar rectangular active antenna arrays at the base station (BS) to support simultaneous data transmission to multiple user equipment (UE) terminals (referred to as multiuser MIMO or MU-MIMO) to achieve significant improvement in network capacity. This topic is of active research in academia and industry [2]. A. CHALLENGES IN FIELD OPERATION DUE TO HARDWARE IMPAIRMENTS AND RELATED WORK Antenna installations on tower tops and buildings for a macro-cell network are typically limited in space and weight due to win...