We determine the call blocking performance of channel-allocation algorithms where every channel is available for use in every cell and where decisions are made by mobiles/portables based only on local observations. Using a novel Erlang-B approximation method, together with simulation, we demonstrate that even the simplest algorithm, the timid, compares favorably with impractical, centrally administered fixed channel allocation. Our results suggest that an aggressive algorithm, that is, one requiring call reconfigurations, could provide a substantially reduced blocking probability. We also present some algorithms which take major steps toward achieving the excellent blocking performance of the hypothetical aggressive algorithm but having the stability of the timid algorithm.>