A method of channel allocation in a cellular communication network wherein a radio channel is to be selected for establishment of a connection in an environment with potentially interfering signals, the method comprising: establishing a radio channel candidate; processing the radio channel candidate with potentially interfering signals and calculating a carrier to interference ratio (CIR) for the selected carrier frequency of the radio channel candidate and the potentially interfering signals; calculating a dominant interference ratio (DIR) being the ratio of the strongest potentially interfering signal with respect to the other potentially interfering signals; and using criteria based on at least one of the dominant interference ratio and the carrier to interference ratio in a selection process for selecting a channel for the connection to be established.