With limited frequency spectrum and a tremendous growth in the demand for mobile communication services, the problem of channel assignment becomes increasingly important. Efficient channel assignment allows for an increased utilization of the limited frequency spectrum available for land mobile radio-telephone service.In this paper, a new traffic-adaptive non-uniform COMPACT PATTERN based dynamic assignment algorithm is presented, which can be exploited in a PCS cellular environment with highly mobile users. The proposed dynamic channel assignment scheme copes with the handoff originated call demands problem, as well as focusing on reducing the blocking probability of the new calls. Computer simulation results on a 49-cell network conducted in a different manner and environment compared to previous studies indicate superior teletraffic performance of the proposed strategy over its predecessors. By using a discrete time step model traffic simulator, the effect of user mobility on the grade of service also comes under study in this research.