In a microcellular personal communication service (PCS) it is required to minimize the paging and location updating signals. We propose a multi-layered location registration scheme to reduce the paging and updating signals. In this scheme the subscribers are grouped by their characteristics (velocity and call arrival rate) and are served by appropriately sized location registration area. In order to group the subscriber, we define subscriber grouping problem (SGP). Proposition are examined to solve the grouping problem. The performance of the proposed subscriber grouping algorithm is tested with examples. Simulation results indicate that the subscriber grouping procedure is effective for designing the multi-layered location registration scheme.