We consider a cellular CDMA system in which blocking is enforced when the r
elative interference exceeds a certain threshold level. This paper addresse
s a radio network design problem in such a CDMA system. Given the data of c
all-traffic distributed over the service area and potential sites of base s
tations, the objective of the problem is to locate base stations so as to m
inimize the associated cost for establishing base stations while keeping th
e probability of blocking under control. We develop an efficient algorithm
for solving the design problem. Computational experiments with real-world d
ata are conducted to show both the efficiency and the practicality of the p
roposed design method.