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The performance of time division multiple access (TDMA) is affected by various factors. Accurate coverage prediction, modulation and coverage control techniques can significantly improve the capacity. Spectrum efficiency and good coverage are the main objectives of radio system planning. The capacity of a cellular system is directly related to spectrum efficiency and is directly proportional to the cluster size, so that any decrease in the size indicates that co-channel cells are located much closer together. This allows more frequency channels to be reused taking into account minimum co-channel interference (CCI). The above factors have an impact on the capacity, it is therefore crucial to include them in the evaluation to minimize the assumptions made. This paper shows development of a model, which includes these factors, to accurately estimate the system capacity. This paper is related directly to Al-Akaidi et al. (2001).