Correct Answer - Option 2 : Number of times a cluster is replicated
Concept:
To understand the frequency reuse concept, consider a cellular system which has a total of S duplex channels available for use.
If each cell is allocated a group of k channels (k < S), and if the S channels are divided among N cells into unique and disjoint channel groups which each have the same number of channels, the total number of available radio channels can be expressed as
S = kN
The N cells which collectively use the complete set of available frequencies is called a cluster.
If a cluster is replicated M times within the system, the total number of duplex channels, C, can be used as a measure of capacity and is given by
C = MkN = MS
If the cluster size N is reduced while the cell size is kept constant, more clusters are required to cover a given area, and hence more capacity is achieved.
Conclusion:
The capacity of a cellular system is directly proportional to the number of times a cluster is replicated in a fixed area.