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Area coverage simulation results for LMDS or PMP systems inmillimeter waveband are presented in this paper. Area coveragesimulations were performed according to ITU-R P.1410 model, whereRayleigh statistical distribution with g = 7.95 is used to model thebuilding heights. Morphological data of the city of Prague were used tocalculate a new set of values g. The model was optimized to localconditions. Area coverage prediction results using the new set ofvalues g are also presented. Accuracy of the model was increased due tosuggested modification.