In this paper, we develop a performance model of a cell in a wireless commu
nication network where the effect of handoff arrival and the use of guard c
hannels is included, Fast recursive formulas for the loss probabilities of
new calls and handoff calls are developed. Monotonicity properties of the l
oss probabilities are proven. Algorithms to determine the optimal number of
guard channels and the optimal number of channels are given. Finally, a fi
xed-point iteration scheme is developed in order to determine the handoff a
rrival fate into a cell, The uniqueness of the fixed point is shown.