Concept
In a cellular radio system, a land area to be supplied with radio service is divided into regular shaped cells, which can be hexagonal, square, circular or some other regular shapes, although hexagonal cells are conventional. Each of these cells is assigned multiple frequencies (f1 - f6) which have corresponding radio base stations. The group of frequencies can be reused in other cells, provided that the same frequencies are not reused in adjacent neighboring cells as that would cause co-channel interference.
The increased capacity in a cellular network, compared with a network with a single transmitter, comes from the fact that the same radio frequency can be reused in a different area for a completely different transmission. If there is a single plain transmitter, only one transmission can be used on any given frequency. Unfortunately, there is inevitably some level of interference from the signal from the other cells which use the same frequency. This means that, in a standard FDMA system, there must be at least a one cell gap between cells which reuse the same frequency.
In the simple case of the taxi company, each radio had a manually operated channel selector knob to tune to different frequencies. As the drivers moved around, they would change from channel to channel. The drivers knew which frequency covered approximately what area. When they did not receive a signal from the transmitter, they would try other channels until they found one that worked. The taxi drivers would only speak one at a time, when invited by the base station operator (this is, in a sense, time division multiple access (TDMA)).
Read more about this topic: Cellular Network
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