Pilot power optimization in UMTS networks is a crucial engineering issue which has received an increasing interest during the last several years. In previous works, it has been shown that the optimization approach to assigning the P-CPICH power levels facilitates coverage control and improves significantly radio resource utilization in UMTS networks. Combined with optimization of radio base station antenna tilts, this becomes a powerful tool that allows us to significantly reduce the total interference level in the network and to improve the network capacity in a very efficient way. The paper addresses the pilot power and antenna tilt optimization problem and presents an efficient algorithm that optimizes the antenna downtilt setting in the network such that the total P-CPICH power is minimized. A case study has been done for a network scenario based on real data for the city of Lisbon. The numerical results demonstrate that the optimized antenna tilting can give a reduction of up to 50 % in the optimal pilot power levels.