A channel management process (68) is performed by a parent base station (36) of a radio telecommunications system (20) that exchanges channel usage data with neighbor base stations (38) within its local group (34). When channel usage data indicates a channel assignment conflict, that conflict is resolved in the base station (22) having the lesser loading of the pair of conflicting base stations (22). Channel usage requests received by a base station (22) are prioritized and sequentially processed, channels (58) being assigned for inter-cell handoff requests, then intra-cell handoff requests after inter-cell handoff requests, even when that assignment creates a conflict, and then channels (58) being assigned to new call requests after handoff requests if that assignment does not create a conflict.