A method of constructing a micro- or pico-cells and a virtual macro-cell hierarchical cellular system structure comprising contiguous cells each containing a base station and sectors, wherein a virtual cell comprising three surrounding FDD macro-cell base stations over underlay the TDD micro- or pico-cells. In the proposed TDD/virtual FDD hierarchical cellular structure, a method of locating underlay cells' base station and macro-cells' base station to keep a least interference distance and a method of aligning the TDD micro-or pico-cells' sectors antenna beam direction with the FDD macro-cells' sectors beam direction are proposed, such that this system can suppress the additional inter-system interference and adjacent channel interference. The algorithm of utilising and borrowing the underused FDD macro-cells' resource and the mechanism of deciding the feasible resource borrowing region and smart antenna applicable region is proposed in such a way that the radio network controller and TDD micro- or pico-cell base stations can build up and decide the preference list of which sector, users, and resource to be served, which eventually resulting in the flexible and adaptive radio resource management of the RNC and achieving the optimal utilisation of the overall system resource.