The radio channel assignment problem (CAP) is classified as an NP‐complete binary optimization problem, which creates the need for faster, yet optimal optimization algorithms to reduce the time of computation when solving such a complex problem. Simulated annealing (SA), a powerful optimal combinatorial search algorithm, was found to be very suitable for CAP. This paper extends the standard capabilities of SA and proposes a new CAP‐oriented, quicker binary SA, the binary dynamic SA (BDSA) algorithm, as part of a newly proposed radio channel assignment approach. Simulation results proved that the proposed BDSA has very fast convergence as a stand‐alone algorithm and even faster convergence with the newly proposed radio channel assignment approach. © 1998 John Wiley & Sons, Ltd.