Coverage and capacity are significant issues in the planning process for cellular mobile networks. Scarcity of the frequency band is acting as a bottleneck to the tremendous advancement in the field of mobile communication. Nowadays Cellular Technology is being invariably employed in mobile communication to maximize the spectral efficiency. Due to the frequency reuse, there comes the problem of Co-channel interference into picture, due to which we have to restrict the frequency reuse factor. This paper gives an analysis of co-channel interference under all possible propagation environment condition with all possible values of cells in a cluster. Knowledge of the propagation characteristics of a mobile radio channel is essential to the understanding and design of a cellular system. An appropriate propagation model is required when designing or estimating the link budget of a cellular system.