A major concern in a cellular mobile communication systems is how to efficiently utilize the limited number of frequencies. Various channel assignment methods and traffic sharing schemes have been used to improve system performance. However, these approaches suffer from additional installation cost, complicated software and hardware requirements, or increased amount of traffic control. In the thesis, we propose a new method for improving system performance by controlling the channel power of each cell site. This thesis first shows that the average number of blocked calls in a system is minimized when the traffic rates per unit time are identical for all cell sites in a system. This results and the relationship between the channel power and the service area are used to determine the appropriate channel power of each cell site. The proposed method does not require additional hardware cost nor increase the amount of traffic control, and is believed to be a useful alternative to the currently practiced methods.