Channel capacity in cellular systems

By applying information theory to the analysis of a cellular system, it has been shown that it is a useful idea to reuse all the frequency bands in the adjacent cell (frequency reuse factor 1) and use the most robust modulation scheme at the cell boundary. This is not a surprising result since this is done in LTE and other systems like WIMAX and DTT. How this was derived by means of simple formulas is hopefully original and should provide some useful insights. The analysis has been done for the up link which is normally more critical than down link. As expected, the capacity of the cell increases as the propagation exponent increases since there is less interference between the cells using the same frequency and only the interference from other cells using the same frequency limits the capacity - not the thermal noise. The analysis presented is not limited to a particular system like LTE.