The need for more capacity in GSM networks is increasing. Using random frequency hopping and fractional loading is a potential way to obtain more capacity. In this paper the optimal reuse scheme for a GSM system with random frequency hopping is presented along with some methods to increase the capacity and to improve the link quality, like using DTX and fractional loading. The 1/3 reuse scheme appears to be best if the capacity is determined by looking at the distribution of signal to interference (CIR) values, while the 3/9 reuse scheme seems best if the focus is at the percentage of dropped calls (with the used dropped call, power control and handover algorithm). The 1/3 reuse scheme has the advantage over the 3/9 reuse scheme that it is able to profit from fractional loading, which gives better quality to the individual user.