The capacity of the current cellular mobile telephone networks has the potential to be doubled by adapting transmission power control strategies into the control stations. We propose a new channel assignment method, which combines power control and distributed balancing algorithm. In contrast with centralized control methods, the proposed algorithm has much less communication overhead and requires simpler computations to be executed in parallel on different cells. Conventional processors can be used to perform these calculations reside within the algorithm. However, we propose using simple specialized hardware, which outperforms conventional processors in mathematical intensive algorithms and large number of I/O operations. The dedicated hardware allows all channels within the cell to be balanced at the same time, resulting in optimal channel utilization.