With the limited frequency spectrum and an increasing demand for cellular communication services, the problem of channel assignment becomes increasingly important. However, finding a conflict free channel assignment with the minimum channel span is NP hard. The innovations are cellular concept, dynamic channel assignment and hierarchical network design. We consider the frequency assignment problem and the base station placement simultaneously. Our model takes the candidate locations emanating from this process and the cost of assigning a frequency, operating and maintaining equipment as an input. Hierarchical network design using genetic algorithm is the first three-tier (Macro, Micro, Pico) model. We increase the reality through applying to Electromagnetic Compatibility Constraints. Computational experiments on 72 problem instances which have $15{sim}40$ candidate locations demonstrate the computational viability of our procedure. The result of experiments increases the reality and covers 90% of the demand.