A method of operation of a mobile telecommunication system includes: measuring a measured target power and a measured server power; predicting a future target power and a future server power for a prediction tap number from when the measured target power and the measured server power are measured; computing an estimation error and a prediction error associated with the future target power and the future server power; determining a handoff hysteresis level based on the estimation error and the prediction error; and sending a handoff trigger for transferring a mobile station from a server station to a target station when the future target power minus both the future server power and the handoff hysteresis level is greater than zero.