Contributed by: SaradAbstract: Orthogonal frequency division multiple access (OFDMA) is becoming a popular technology choice for leading next generation wireless networks. The IEEE 802.16e based systems are the first standardized wireless networks which have incorporated OFDMA. We investigate the use of interference diversity in IEEE 802.16e based networks by considering subchannel formation in different cells. We propose a method for quantifying the interference diversity using suitable arguments and results. Based on these results, a new method for forming subchannels in an 802.16e system is presented.