Bluetooth is a rapidly growing low power and low cost technology in the industrial environment. It operates in 2.4GHz ISM band using the 79 RF channels spaced 1MHz apart. It uses FHSS technology to transmit the packets with a slot time of 1micro sec pseudo-randomly. The frequency interference (packet collision) occurs due to the operational increase of the Bluetooth device in a certain domain at certain time. The device address and the clock of the piconet master are used by the frequency hop selection kernel to determine the frequency channel for packet transmission. That channel may be occupied by an other piconet at that time in certain domain and packet collision will occur. A simulation model is developed to realize a physical scenario where i have investigated.