A wireless local loop (WLL) uses radio signals to connect customer premise equipment (CPE) to a public switched telephone network (PSTN). It has the potential to help the telephony providers overcome the “last mile” problem in delivering telephony services. A typical WLL consists of a base station controller (BSC), a base station (BS), and subscriber terminals (STs). A WLL can be single-tier, two-tier, or threetier, based on the configuration of the cells within it. There are numerous channel allocation algorithms for two-tier WLLs. These algorithms include no repacking, always repacking, repacking on demand— random, repacking on demand—least load, and repacking on demand—subscriber terminal. This paper provides a decision-tree approach to analyzing these channel allocation algorithms for designing two-tier WLLs. The generated decision-trees can not only help us understand these channel allocation algorithms better, but can also serve as a basis for constructing simulation models and eventually implementing simulation programs for the purpose of comparing the performance of the different network designs.