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This paper proposes a novel satellite channel allocation algorithm for a demand assigned multiple access (DAMA) controller. In satellite communication systems, the channels' total bandwidth and total power are limited by the satellite's transponder bandwidth and transmission power (satellite resources). Our algorithm is based on multi-carrier transmission and adaptive modulation methods. It optimizes channel elements such as the number of sub-carriers, modulation level, and forward error correction (FEC) coding rate. As a result, the satellite's transponder bandwidth and transmission power can be simultaneously used to the maximum and the overall system capacity, i.e., total transmission bit rate, will increase. Simulation results show that our algorithm increases the overall system capacity by 1.3 times compared with the conventional fixed modulation algorithm.