In this paper, the average area spectral efficiency (ASE) in bits/sec/Hz/Km2 of a variable transmission rate, high capacity cellular communication system is studied in a correlated shadowed environment. The effect on average ASE of the normalised reuse distance, shadowing variance, correlation between radio signals, coverage radius and cell sectorization is investigated by computer simulations. It is shown mathematically that the average ASE of an interference limited mobile radio channel increases with the increased shadowing variance. Downlink simulation results indicate that, the increase in shadowing correlation between the desired and the sum of the undesired signals reduces the average ASE whereas mutual correlation between individual interfering signals increases the average ASE. The variation of cell size on average ASE is also investigated. The results suggest small cell sizes in heavily shadowed areas are well suited for high-speed variable data rate transmissions.
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