A dynamic channel allocation method and system for use in a wireless network operates by monitoring at least the allocated channel allocated to a particular network node to generate one or more channel metrics relating to radio conditions on the channel. The metrics generated are Received signal power, signal to noise ratio of transmissions on the network and long-term mean square of the equaliser error used in each terminal. The generated metrics are communicated back to the cell access point or the network control server over a signalling channel, and a new frequency is allocated to the cell if it is determined from the metrics that the presently allocated channel is suffering interference. The signalling channel is preferably an ATM VPI/VCI pair, such that signalling messages are transmitted as ATM cells which can be communicated across the wireless channel using the sane signalling frame as is used for payload cells.