A cellular network is a radio network made up of a number of radio cells (or just cells) each served by at least one fixed-location transceiver known as a cell site or base station. These cells cover different land areas to provide radio coverage over a wider area than the area of one cell, so that a variable number of portable transceivers can be used in any one cell and moved through more than one cell during transmission.
Cellular networks offer a number of advantages over alternative solutions:
increased capacity
reduced power usage
larger coverage area
reduced interference from other signals
An example of a simple non-telephone cellular system is an old taxi driver's radio system where the taxi company has several transmitters based around a city that can communicate directly with each taxi.