In order to allocate frequency channels to transmitter units, the transmitter units are grouped in zones, each zone having one or more transmitter units (10, 20, 30) therein. A system controller (40) calculates a zone priority value which is a function of the zone's message traffic level and message latency. The zone priority value determines the order in which a zone is assigned a frequency channel. A channel priority value is calculated for each channel or sub-channel that can be accessed by the transmitter units (10, 20, 10) in the zone based on a probability of success and a mean quality margin value wherein the priority value of a channel determines the order in which an available channel is considered for assignment to a zone. A proposed channel is assigned to a given zone only if the proposed channel passes a channel quality check. The channel quality check may be based on co-channel and adjacent channel interference values. Alternatively, the channel quality check may be based on a determination of whether a channel proposed for assignment to a given zone is currently in use by another zone that is correlated with the given zone. Zones are merged and divided in order to provide increasing system capacity and better channel quality as the customer demands grow.