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This paper presents a policy-based radio resource management model for decision sharing between the network and the mobile terminals in the context of composite networks. One of the key issues discussed in this paper is the distribution of Radio Resource Management (RRM) decision making between the network and the mobile terminal. IEEE P1900.4 standard project proposes a policy-based radio resource usage scheme, where the decision-making is shared between the network and the mobile terminals. The network orients the mobile terminals decisions by sending rules and constraints. Mobile terminals choose the most appropriate action to their own Quality of service (QoS) objectives, within the action set allowed by the network. We define detailed scenarios illustrating this model. In addition, we propose a model where policies are chosen automatically act aiding to the variations of the environment conditions and the operator strategy. For this purpose, we define a policy database that stores the different environment configurations matched with the appropriate policies. Environment configurations are first classified. Then for each environment class an optimization algorithm finds the policy that fits the operator objectives.