The invention relates to a radio system and a method for managing radio resources in a radio system. The method comprises receiving radio capacity information of the radio cell, receiving transport capacity information on transport network, the transport network being used for connecting the base stations of the radio network to a core network. The method further comprises determining a transport capacity limit for the radio cell based on the transport capacity information; signalling the transport capacity limit of the radio cell to the base station; adjusting in the base station the radio capacity information based on the transport capacity limit; signalling from the base station the adjusted radio capacity information on the radio cell; and managing radio resources of the radio network by using the signalled adjusted radio capacity information on the radio cell.