Abstract: Background and Objective: MTC traffic cannot access radio channels reserved for HTC traffic even if the channels are idle and vice versa which leads to the underutilization of the radio channels. Therefore, the objective of this study was to model an improved channel allocation scheme, where portions of the radio channels are reserved for each of MTC and HTC traffic but each traffic can access channels reserved for the other traffic when not in use. Methodology: To overcome the above challenge, this study proposed a channel allocation scheme to increase the channel utilization. The proposed channel allocation scheme was then analyzed basing on the blocking probability. Queuing theory was employed to derive expressions for blocking probability of MTC and HTC traffic. The performance of the improved radio channel allocation scheme was compared to the channel allocation scheme where MTC traffic cannot access channels reserved for HTC traffic when not in use and vice versa using MATLAB. Results: Numerical results showed that the improved radio channel allocation scheme reduces the blocking probability of packets which in turn improves the system performance. It was further noted that the threshold values of channels set for HTC and MTC traffic have an effect on the blocking probability. In addition, channel utilization and blocking probability are observed to increase with increase in arrival rate and packet sizes. Conclusion: The improved channel allocation scheme reduces the blocking probability of traffic which in turn improves system performance.