This invention provides a cellular network architecture in which traffic channel resources are centralized and dynamically allocated to remote cells according to the demand. The present invention provides a method for maximizing capacity resources by dynamically sectorizing cells in a CDMA (Code Division Multiple Access) cellular network. The present invention further provides a CDMA cellular communications network in which centralized traffic channel resources are distributed to remote cells by use of WDM (Wavelength Division Multiplexing) on optical fibers and remote cells are dynamically sectorized according to the traffic demand and the grade-of-service requirement. The primary advantage of the present invention is that it enables a cellular network to dynamically manage and optimally utilize its capacity resources without having to change its hardware design, in contrast to the static and passive nature of the prior art cellular networks. The present invention provides a cost-effective build-out strategy for cellular network operators.