1. A method for allocating channels in a cellular system, comprising the steps of: (a) generating one or more cost tables for the cellular system, wherein each entry in the cost tables is a cost value corresponding to a cost of allocating a particular channel to a first sector or cell in the cellular system assuming that the particular channel is already being used in a second sector or cell in the cellular system; (b) maintaining a busy channel table, wherein each entry in the busy channel table indicates whether a particular channel is currently being used in a particular sector or cell; (c) generating one or more cost of reusing channel (CORC) values based on the cost tables and the busy channel table, wherein the CORC values correspond to costs of assigning a candidate channel to a candidate sector or cell for a new call; and (d) determining whether the candidate channel is acceptable for the candidate sector or cell by comparing the CORC values to specified threshold values; and (e) using the candidate channel for the new call depending on the determination of step (d).