The telecommunications industry in Somali provides communication and information services such as, delivery of voice and data over different networks, including mobile networks. GSM (Global System for Mobile Communication) has grown to become one of the most used communication system in Somalia compared to fixed lines (landlines) because of instability in the country. The mobile subscribers have rapidly increased in the last five years. On the other hand, service qualities provided by the GSM operators in Somalia have remained extremely bad, and the service quality suffering from a high drop calls rate, mostly due to lack of resources. Handover process is a very essential process in the GSM. It’s one of the major key performance indicators in every GSM network, and it’s linked to the quality of service which each service provider strives to attain. The failure of the handover process is regarded as the drop of quality of service which in turn dissatisfies the customers. This thesis, contributes more on improving call drop rate in general, in order to reduce handover failure rate and thus save on upgrade costs. This will be beneficial to GSM service providers to easily optimize their network performance relating to the resource management. This work is focused on Somali Telecommunication Company where data was collected, as a sample representation of the whole region. In this thesis, dynamic guard channel algorithm is presented that was developed using JAVA Software. The algorithm then prioritizes the handover calls over the new calls. All handover calls are ongoing calls and if they are dropped it causes frustrations. Matlab was used to compare real data to the simulated results by use of graphs and charts. From this thesis we were able to establish and come up with a definitive solution to the handover crisis befalling telecommunication companies. Through the Dynamic Guard Channel Algorithm we were able to propose a means of raising the standards of the region get it to adhere to the set International benchmark of communication. Furthermore, there were no additional costs on upgrades incurred and being able to modify and advance an existing system making it operate more efficiently.