System and method embodiments are provided to optimize uplink multiple-input-multiple-output (MIMO) beamforming for uplink and compression for fronthaul links transmission in cloud radio access network (C-RANs). In an embodiment, cloud-computing based central processor (CP) obtains channel state information for a mobile device (MD) being served by a plurality of access points (APs) in a C-RAN, and generates a channel gain matrix in accordance with the channel state information. A weighted sum-rate maximization model is then established using the channel gain matrix in accordance with power constraints of transmission from the MD to the APs and capacity constraints of fronthaul links connecting the APs to the CP. The CP calculates a transmit beamforming vector for the MD and a quantization noise covariance matrix for the APs jointly by applying a weighted minimum-mean-square-error successive convex approximation algorithm, or separately by applying an approximation algorithm, to solve the weighted sum-rate maximization model.