An analytical model is developed for the performance of a microcellular radio network in the presence of cochannel interference and additive white Gaussian noise. The modulation schemes considered are binary phase-shift keyed (BPSK), binary frequency-shift keyed (BFSK), and quadrature phase-shift keyed (QPSK). The multiple-access channel is statistically modeled by one Rician-distributed desired signal and several uncorrelated Rayleigh plus log-normally shadowed interfering signals, propagating according to dual path loss law with a turning point. The performance is determined in terms of bit error rate (BER), outage probability, block error probability, crosstalk probability, and spectrum efficiency, considering both fast and slow multipath fading. The effect of error correction codes, consisting of blocks with equal number of bits, on the performance parameters is also studied. The computational results show that the propagation loss exponents, Rician factor, turning point, and cell size all plays a major role in the design of an efficient microcellular system.>