First generation analog cellular systems begin
The Bahrain Telephone Company (Batelco external link) in May, 1978 began operating a commercial cellular telephone system. It probably marks the first time in the world that individuals started using what we think of as traditional, mobile cellular radio. The two cell system had 250 subscribers, 20 channels in the 400Mhz band to operate on, and used all Matsushita equipment. (Panasonic is the name of Matsushita in the United States.) [Gibson]Cable and Wireless, now Global Crossing, installed the equipment.
In July, 1978 Advanced Mobile Phone Service or AMPS started operating in North America. In AT&T labs in Newark, New Jersey, and most importantly in a trial around Chicago, Illinois Bell and AT&T jointly rolled out analog based cellular telephone service. Ten cells covering 21,000 square miles made up the Chicago system. This first equipment test began using 90 Bell System employees. After six months, on December 20th, 1978, a market trial began with paying customers who leased the car mounted telephones. This was called the service test. The system used the newly allocated 800 MHz band. [Blecher] Although the Bell System bought an additional 1,000 mobile phones from Oki for the lease phase, it did place orders from Motorola and E.F. Johnson for the remainder of the 2100 radios needed. [Business Week2] This early network, using large scale integrated circuits throughout, a dedicated computer and switching system, custom made mobile telephones and antennas, proved a large cellular system could work.
Picture originally from http://park.org:8888/Japan/NTT/MUSEUM/html_ht/HT979020_e.html
"The car telephone service was introduced in the 23 districts of Tokyo in December 1979 (Showa 54). Five years later, in 1984 (Showa 59), the system became available throughout the country. Coin operated car telephones were also introduced to allow convenient calling from inside buses or taxis." NTT
Worldwide commercial AMPS deployment followed quickly. An 88 cell system in Tokyo began in December, 1979, using Matsushita and NEC equipment. The first North American system in Mexico City, a one cell affair, started in August, 1981. United States cellular development did not keep up since fully commercial systems were still not allowed, despite the fact that paying customers were permitted under the service test. The Bell System's impending breakup and a new FCC competition requirement (external link) delayed cellular once again. The Federal Communication Commission's 1981 regulations required the Bell System or a regional operating company, such as Bell Atlantic, to have competition in every cellular market. That's unlike the landline monopoly those companies had. The theory being that competition would provide better service and keep prices low. Before moving on, let's discuss Japanese cellular development a little more.
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Resources:
Blecher, Franklin H. "Advanced Mobile Phone Service." IEEE Transactions on Vehicle Communications, Vol. VT-29, No. 2, May, 1980
[Business Week2]"Fewer busy signals for mobile phones" Business Week, Industrial Edition, August 7, 1978 Number 2546: 60B
Gibson, Stephen W., Cellular Mobile Radiotelephones. Englewood Cliff: Prentice Hall, (1987): 141, quoting information from the company Personal Communications Technology. You can view the table I cite from this book by clicking here for the low resolution version first (85K), and, if you are still interested, try your luck with the original TIFF image file, an astounding 2.2 megabytes!
