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Anything to do with broadcasting and sending a radio or television message out over the airwaves comes under Federal Communications Commission (FCC) regulation. A cell phone is a type of two-way radio. In 1947, AT&T proposed that the FCC allocate a large number of radio-spectrum frequencies so that widespread mobile telephone service would become feasible and AT&T would have a incentive to research the new technology. We can partially blame the FCC for the gap between the initial concept of cellular service and its availability to the public. The FCC decided to limit the amount of frequencies available in 1947, the limits made only twenty-three phone conversations possible simultaneously in the same service area - not a market incentive for research. The FCC reconsidered its position in 1968, stating "if the technology to build a better mobile service works, we will increase the frequencies allocation, freeing the airwaves for more mobile phones." AT&T and Bell Labs proposed a cellular system to the FCC of many small, low-powered, broadcast towers, each covering a 'cell' a few miles in radius and collectively covering a larger area. Each tower would use only a few of the total frequencies allocated to the system. As the phones traveled across the area, calls would be passed from tower to tower.

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