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effort to determine the regulatory structure of the market they were attempting to create. Three options emerged from their discussions. The first was preservation of the monopolistic, single-operator concept, while the second advocated an open market, in which competition was opened to all comers and the market would sort itself out. The third involved a duopoly approach, in which two systems would be allowed in each major market area. After long debate, regulators and lawmakers decided on the duopoly concept, with two 20-MHz systems (A frequencies and B frequencies) allocated in each market. The A frequencies were allocated to the nonwireline company, whereas the B frequencies went to the wireline carrier. The first commercial cellular telephone system became operational in October of 1983. By 1985, there were 340,000 cellular subscribers; today there are over 16 million, with annual revenues of nearly $11 billion. It s interesting to note that in 1982, AT&T proudly predicted that there would be over 100,000 cellular subscribers by 1990.
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As modern as cellular telephony is considered to be, it was originally conceived in the 1940s at Bell Labs as part of a plan to overcome the congestion and poor service issues associated with mobile telephone systems.
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Figure 5-12 An array of low-power cells in a cellular network. Notice how the coverage areas overlap, allowing handoff of a call to occur from one cell to another. Also, because of low power and distance, frequencies can be reused.
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Cellular systems have four key design principles, shown in Figure 5-12, which are the same today as they were in the 1940s. These design principles consist of the use of many low-power, small coverage area transmitters instead of a single, powerful, monolithic transmitter to cover a wide area; frequency reuse; the concept of cell splitting; and central control and cell-to-cell handoff of calls. These concepts are fairly straightforward. The first relies on the philosophy that the whole is greater than the sum of its parts. By using a large number of low-power transmitters scattered across a broad coverage zone, each capable of handling multiple simultaneous calls, more users can be supported than with a single, monolithic transmitter. The second, frequency reuse, takes into account the fact that cellular telephony, like all radio-based services, has been allocated a limited number of frequencies by the FCC. By using geographically small, low-power cells, frequencies can be reused by non-adjacent cells. When usage areas become saturated by excessive usage, cells can be split. When traffic engineers observe that the number of callers refused service because congestion reaches a critical level, they can split the original cell into two cells by installing a second site within the same geographical area that uses a different set of non-adjacent frequencies. This has an extended impact; as the cells become smaller, the total number of calls that the aggregate can support climbs dramatically. Because of cellular geometry, if the radius of the cell is halved, the number of supported calls is quadrupled. The smaller the cell, therefore, the larger the total number of simultaneous callers can be accommodated. Of course, this also causes the cost of deployment to climb dramatically. Although the architectural goal of most cellular providers is to create a mosaic of thousands of very small cells, called microcells or picocells, that s an expensive proposition and will not happen immediately. Finally, cellular systems rely on a technique called cell-to-cell handoff, which simply means that the cellular network has the capability to track a call (using relative signal strength as an indicator) as the user moves across a cell. When the signal strength detected by the current cell is perceived by the system to be weaker than that detected by the cell the user is approaching, the call is handed off to the second cell. Ideally, the user hears nothing. Cell handoff and other cellular system capabilities are under the central control of a Mobile Telephone Switching Office or (MTSO, sometimes pronounced Mitso ).
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