In this paper, we consider the extension of a cellular system by means of s
atellite channels. Specifically, we consider an area covered by a number of
cells, that is also covered by a number of spot beams. We consider connect
ion-oriented service, and call durations are assumed to be exponentially di
stributed. Also, users are mobile and, as such, they may cross cell and/or
spot-beam boundaries, thus necessitating handoffs, We incorporate the possi
bility of call dropping due to unsuccessful hand-off attempts, in addition
to satellite propagation delays along with the probability of new call bloc
king, and formulate a specific multifaceted cost function that must be ulti
mately minimized. The minimization is to be carried out by choosing: 1) the
optimal partitioning of channels between the cellular and the satellite sy
stems, and ii) the call admission and assignment policy, subject to the con
straints of a demand vector that consists of an exogenous (new-call) genera
tion process and an internal (handoff-based) process that results from the
mobility model, Two subproblems of this complex optimization problem are so
lved by means of numerical techniques and by means of so-called standard cl
ock simulation techniques. In this solution method, we employ the ordinal o
ptimization approach which focuses on preserving the performance rank, rath
er than the performance prediction of the different control policies. We fi
nd that the "double" coverage, through both cellular and satellite resource
s, results in substantial improvement over pure terrestrial or pure satelli
te systems for parameter values that correspond to practical environments.