Recent work by Lee has produced equations describing spectrum efficiency for modulation schemes operating in cellular environments, Here we consider the performance of a range of multilevel modulation schemes when these spectrum efficiency equations are applied. We then proceed to adapt these efficiency equations for use in microcells before considering the performance of multilevel modulation within this environment, Our results show that the preferred modulation scheme depends on the BER required, with 4 level PSK being preferred in conventional cells, and variable 16 level QAM, or 32 or 64 level QAM being suitable in microcells, particularly when a high SNR is available.