A cellular network is a radio network made up of a number of radio cells (or just cells) each served by a fixed transmitter, known as a cell site or base station. These cells are used to cover different areas in order to provide radio coverage over a wider area than the area of one cell. Cellular networks are inherently asymmetric with a set of fixed main transceivers each serving a cell and a set of distributed (generally, but not always, mobile) transceivers which provide services to the network's users.
Cellular networks offer a number of advantages over alternative solutions:
reduced power usage
A good (and simple) example of a cellular system is an old taxi driver's radio system where the taxi company will have several transmitters based around a city each operated by an individual operator.