Like two way radios, though perhaps some were duplex (I know some two way
radios were designed for duplex, but never saw why).
There were a handful of dedicated channels per a given region. A central
tower, and an operator at that central tower. You'd call up the operator,
give them information and they'd dial. I think they dialed. The person you
want to talk to would answer, and you'd have your conversation. There must
have been tone signalling so someone could phone you in your car, a
specific set of tones causing your car phone to "ring".
It was very expensive. Big radios for much of the period that sat in your
trunk, I suspect they were rented but maybe one could buy. That would be
connected to a tiny box under the dashboard of the car, which had the
needed controls (very minimal) connected with an often thick cable
(because various lines had to run). And since there were only a few
channels available, there had to be a high charge, to pay for the
infrastructure spread only over a relative few who could afford it, and to
ensure nobody hogged the channels.
Most people couldn't afford them, and it couldn't be for the masses since
"bandwidth" was rapidly filled.
Cellphones fixed the problems. First, they got more channels allocated,
albeit at a higher frequency. That allowed for more users. But by
keeping signals weak, and multiple "cells" each frequency could be reused
once out of a small geographic area. (With one central tower as used by
car phones, since they had to have range for the full area, somebody on
the other side of town could not use that channel at the same time.) If
the range of each cellphone tower was about five blocks, for instance,
then a few blocks away the same channel could be reused. It's a lot more
complicated system, since each cell used a set of channels, move to the
next cell and a different set of channels were used, and they'd be
switched automatically as you moved. The fact that by the time cellphones
came along computers could be put in each phone helped a lot.
By adding a lot of infrastructure, all those cell towers, it allowed for a
lot more users. Taht dropped costs, which in turn meant more people could
afford it. Since it became a mass market item, rather than hand built
transceivers, production costs went down, making things cheaper again.
Once there was enough users, they could leverage more channels, and then
eventually go to even more efficient methods of using the frequencies,
allowing for even more users.
Michael