This Chapter focuses on co‐channel interference in cellular TDMA networks. Both the generation of co‐channel interference and the appropriate interference suppression methods are considered. Contributions of frequency reuse,spatial filtering and time domain interference cancellation on the residual interference are described. Effects of variable propagation parameters (especially lognormal shadowing),cluster sizes and interference parameters to the outage probability are illustrated. Furthermore, the spectrum efficiency examples are shown in the form of the Erlang capacity at variable cluster sizes and quality‐of‐service criteria.