For constructionof the next generation satellite B-ISDN/ATM networks considering integration with terrestrial information infrastructure networks, various high speed and wideband satellites with be launched and they will make used of frequency reue techniques for efficient management of limited frequency resource. Therefore, CCI(Co-Channel Interference) inherent in frequency reuse will be a dominant factor in performance degradation of satellite networks. This paper alanyzes the ATM cell transmission performance degradation caused by CCI. The satellite link, including up-link and down-link thermal noise, CCI, and nonlinear satellite transponder, is modeled and interleaving technique is used for compensating the ATM cell transmission performance degradation caused by burst error of satellite link. First, each satellite link subsystem is analyzed in detail and then end-to-end ATM cell transmission performance is evaluated with BER and CLR. Specifically, ATMcell transmission performance degradation caused by CCI is evaluated in detail.