The present invention relates to a method and an arrangement for determining a hot spot of telephone traffic in a cell. The invention uses simultaneously two basic measurements of digital radio systems; timing advance and adjacent cell measurement. Timing advance informs the distance of the mobile station from the base station but not the direction. On the basis of the measured signal strengths of adjacent cells it is possible to determine a set of possible locations of the mobile station when there is information about the coverage area of individual adjacent cells. When these measurements are used simultaneously, they exclude the inaccuracies of each other and enable very accurate location determination for monitoring traffic distribution. Timing advance is utilized to determine a set of circular, base-station-centric areas and adjacent cell measurements are utilized to determine the direction of the mobile station to the base