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The paper provides a new statistical propagation model that addresses a number of gaps in the area of peer-to-peer radio channel modelling in an urban microcellular environment. The paper focuses on the 2.1 GHz (UMTS) and 5.2 GHz (HIPERLAN/2 and 802.11a/e/h) bands and makes use of a detailed three-dimensional ray-tracing tool. Propagation analysis reveals that the standard deviation of shadowing is actually a function of the separation distance between the transmitter and receiver. Path loss increases with lower terminal heights, as does the probability of a line-of-sight. Statistical channel models are derived that combine standard parameters, such as separation distance, operating frequency and terminal height, with more advanced and innovative parameters, such as distance dependent shadowing and LOS probability.