Abstract: A communication method and system for providing two-way radio communication links between fixed stations and mobile units, particularly suitable for use in mobile telephone communications. A geographical service area is sectionalized through the use of omnidirectional and directional antennas resulting in increased call capacity for a given number of available communication channels. An orderly, cost-effective manner for accommodating service area expansion, a dynamic channel assignment technique for accommodating variations in user density and a technique for maintaining an established call as a mobile unit moves throughout the sectionalized service area are also disclosed.