To cope with ever growing mobile data traffic, we recently proposed a concept of cellular ultra-dense radio access network (RAN). In the cellular ultra-dense RAN, a number of distributed antennas are deployed in the base station (BS) coverage area (cell) and user-clusters are formed to perform small-scale distributed multiuser multi-input multi-output (MU-MIMO) transmission and reception in each user-cluster in parallel using the same frequency resource. We also proposed a decentralized interference coordination (IC) framework to effectively mitigate both intra-cell and inter-cell interferences caused in the cellular ultra-dense RAN. The inter-cell IC adopted in this framework is the fractional frequency reuse (FFR), realized by applying the channel segregation (CS) algorithm, and is called CS-FFR in this paper. CS-FFR divides the available bandwidth into several sub-bands and allocates multiple sub-bands to different cells. In this paper, focusing on the optimization of the CS-FFR, we find by computer simulation the optimum bandwidth division number and the sub-band allocation ratio to maximize the link capacity. We also discuss the convergence speed of CS-FFR in a cellular ultra-dense RAN.