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In this paper, downlink performance of WCDMA system with site selection diversity transmission power control (SSDT) during soft handover mode is analysed. Signal to interference ratio (SIR) power control techniques are modelled and used in simulations. The study is focused on finding the optimum soft handover margin in terms of maximum system capacity under Eb/N0 quality requirements. The capacity and resources allocated (number of codes required) using SSDT is compared to usual soft handover technique.