A method and device for channel allocation using channel allocation tiering (CHAT), where radio resources are de-coupled from hardware resources and the available hardware resource units in a cell are divided into logical groups, "channel tiers". Each tier simultaneously utilizes, partly or fully, the same radio resources. There is a first tier and at least a second tier. In accordance with the invention terminals are allocated to the first tier until a radio resource load threshold close to but less than 100% is reached. Terminals are allocated channels on said at least second tier based upon a terminal's interference suppression capabilities, or the radio requirements of the service being used on the terminal, or the radio location of the terminal, or a combination of the above.