bile service created a demand by carriers for rights to more spectrum to handle the growing traffic. Analog Cellular Service Analog cellular service, which was put into operation in 1984, uses spectrum more efficiently than earlier, noncellular systems by enabling networks to reuse the same frequencies in different cells within cities and towns. The reuse of frequencies within nonadjacent cells was a creative innovation that added capacity to cellular networks. AT&T's Bell Laboratories (now part of Alcatel Lucent) created this first generation of cellular service. The United States Federal Communications Commission (FCC) set aside radio spectrum for cellular service and decided that each metropolitan and rural service area was to have two cellular providers. The local wireline telephone company was assigned, at no charge, to one block of frequencies; a nontelephone company got the other block. The FCC hoped to foster competition by having two providers in each area. Frequencies in the nonwireline block were allocated by an FCC lottery to qualified operators such as McCaw Cellular (later purchased by AT&T). Two network operators in each city proved not to be a competitive enough environment; thus, high per-minute rates resulted. Cellular, Wireless, Cordless, and Mobile The terms "cellular," "wireless," "cordless," and "mobile" have different meanings. Some services fall into multiple definitions. For example, services can be cellular, mobile, and wireless. The following are definitions of each. Finite Spectrum for Wireless Networks Cellular Any service in which the spectrum allocated to a carrier is broken up into geographic areas called cells. Cells next to one another use different frequencies. Noncontiguous cells reuse the same frequencies. Wireless Any service that uses radio waves instead of wires or fiber optics to carry electrical signals. Cordless A service that uses unlicensed spectrum and is restricted to a small coverage area within a home or private premises. Mobile wireless A service that can be used 