This paper proposes a radio channel assignment scheme called repacking on demand (RoD) for two-tier wireless local loop (WLL) networks. A two-tier WLL overlays a macrocell with several microcells. When a new call arrives at a two-tier WLL with RoD, if no idle channel is available in both the microcell and the macrocell, repacking is performed (i.e., a call in the macrocell is moved to its corresponding microcell), and then the reclaimed macrocell channel is used to serve the new call. An analytic model is proposed to compute the call blocking probability of the two-tier WLL with repacking. This analytic model is validated against simulation experiments. We prove that the blocking probability is not affected by the call holding time distributions, but is only dependent on the mean of the call holding times. Compared with some previous proposed schemes, RoD has low blocking probability and significantly reduces repacking rate.