In this paper, we studied channel assignment and handover schemes for the indoor microcell systems. For efficient frequency spectrum reuse we proposed the high quality reassignment (HQR) scheme. Proposed HQR scheme tries to keep the reuse distances small by monitoring C/I of channels being used. To assign a channel for a new or handove call, the scheme checks C/I of all available channels. Then HQR assigns the channel that has C/I near the threshold value, A_TH. The scheme also checks C/I of ongoing calls and continuously reassigns a new channel when needed. It attempts handover not only when C/I gets below a handover threshold value, HO_TH, but also when C/I becomes above a high quality reassignment threshold, H_TH. The performance of the proposed HQR scheme was analyzed by a computer simulation configuraed. The performance of the scheme was also analyzed for various threshold values selected and the results are presented in this paper. The results show that HQR scheme perfomrs better than the scheme adopted for DECT.