Abstract: A method and apparatus for operating a frequency division multiplexing (FDM) transmitter within a common communication channel is disclosed. The carrier frequency for each separate channel is adjusted for minimizing intermodulation interference. The system randomly allocates each separate channel within the available bandwidth to provide an initial set of separate channel allocation and corresponding carrier frequencies. Thereafter carrier to intermodulation ratio (C/IM) on each channel is measured and the worst channel with the lowest carrier to intermodulation ratio (C/IM) is removed. The system then repeatedly inserts a channel in available unoccupied bandwidth to produce the largest minimum carrier to intermodulation ratio (C/IM). The deletion and insertion continues until no improvement in minimum carrier to intermodulation ratio (C/IM) can be achieved for said random allocation of separate channels.