—In this paper, we investigate the performance of adaptive beamforming while using subcarrier permutation PUSC in WiMAX cellular network. In the literature, it has been shown that frequency reuse 1 is possible for beamforming capable WiMAX networks but with partial resource utilization or base station coordination. In this paper, we show however that using distributed subcarrier permutation (PUSC) offers sufficient diversity to allow full resource utilization without the need of coordination. We study an IEEE 802.16e cellular network employing adaptive beamforming per PUSC Major Group. Performance is evaluated in terms of radio quality parameters and system throughput. Results are based on Monte Carlo simulations performed in downlink. The simulation results show that even with reuse 1 and full load conditions, outage probability can be reduced to an acceptable value.