A method and system for bandwidth allocation in a wireless communication system, by assigning at least one specific frequency, called hand-off frequency, to one or more base station called as hand-off base station (HBS) located within the service area, for handing off subscriber stations between at least two cells, wherein the said hand-off frequency is not used by the base station of the said two cells for serving subscriber stations and wherein, hand-off is triggered when received signal strength at serving base station, hand-off base station or at subscriber station is below acceptable value and assigning frequencies, other than the hand-off frequency, to the base stations called as serving base stations (SBS) located within the cells of the service area, for serving the subscriber stations within the cell. The method further comprising of regulating the signal transmission strength of the serving base station.