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In street microcells, cochannel interference problem arises especially at the street intersections without base station site where interference level can go up very rapidly due to the possible line-of-sight interference. To guarantee contiguous service quality in the street crossings rather conservative reuse distances should be selected at the expense of lower system capacity. In this paper we show that at the street intersections a single interfering signal dominates suggesting that interference cancellation of the dominant interfering signal is a potential method to overcome the problem. Accordingly, we apply joint detection of the desired and dominant interfering signal in the GSM system and evaluate the potential advantage in the Manhattan microcell environment. The results indicate that this tecnique enables very low reuse distances in the future high capacity microcellular systems.