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Wireless Local Area Network (WLAN) is currently among the most important technologies for wireless broadband access. The IEEE 802.11 technology is attractive for its maturity and low equipment costs. The overall performance of a specific WLAN installation is largely determined by the network layout and the radio channels used. Optimizing these design parameters can greatly improve performance. In this paper, access point (AP) placement and channel assignment are optimized using mathematical programming. Traditionally, these decisions are taken sequentially; AP placement is often modeled as a facility location problem, channel assignment as an (extended) graph coloring problem. Treating these key decisions separately may lead to suboptimal designs. We propose an integrated model that addresses both aspects simultaneously and thereby balances the two optimization objectives. Computational results show that indeed the integrated approach is superior to the sequential one.