The Inter-System handover is one of the key features in the third generation cellular systems. The compressed mode, with variable transmission gaps and power levels, is standardized to support the inter-frequency system handover. To minimize the use of system resources while maintaining the border-cell handover quality, a capacity-based compressed mode control method of the present invention is proposed. Considering the tradeoff between the capacity and the communication quality, the control method can adaptively manage the compressed mode operation based on the potential impacts on the capacity and the effectiveness of the compressed mode measurement. The present invention will improve the effectiveness and performance of the compressed mode operation.