Cellular Concept:

• Cellular concept deals with reduction of service area by employing high power transmitters that offer high capacity in a limited spectrum allocation.
• In a geographic region, each base station is assigned with different group of channels from the total number of channels available to the entire system.
• This distribution cochannels reduce the interference between the base stations and mobile users under their control.
• The channels can be reused until the interference between cochannel stations is at acceptable level.
• The number of base stations increase with increase in demand for service, hence, providing additional radio capacity within the radio spectrum.
• Cellular concept is responsible for manufacturing every piece of user equipment of large area such that any mobile can be accessed within the range.

Advantages of cellular system:

• Problem of spectral congestion  is solved by cellular system.
• It offers high capacity with limited spectrum.
• This high capacity is achieved by limiting the coverage area of each base station to a small geographic area termed as cell.
• In cellular system each high power transmitter is replaced with several low power transmitters.
• Each base station is allocated a  portion of channels and nearby cells are allocated completely different channels.
• All available channels are allocated to small number of  base stations.