1. A cellular telephone system, comprising: (a) a plurality of cells, each of the cells being comprised of a plurality of zones, each of the cells having an assigned set of identification codes, and each of the identification codes being used to encode radio frequency (RF) signals communicated to a mobile telephone within the cell; (b) at least one antenna suitably arranged and positioned within each zone and configured to limit propagation of radio frequency (RF) signals radiated therefrom to substantially within pre-defined boundaries of the zone; (c) means, within each cell and coupled to the antenna, for transmitting and receiving the RF signals at assigned frequencies to communicate with mobile telephones within the zone, wherein a plurality of the mobile telephones simultaneously use an identical assigned frequency and a different one of the identification codes assigned to the cell; (d) means, within each cell and coupled to the means for transmitting and receiving, for maintaining communications with the mobile telephones by activating and deactivating transmissions to the mobile telephones as they move from zone to zone while using the same identification codes for each of the mobile telephones; and (e) means, within each cell and coupled to the means for transmitting and receiving, for maintaining communications with the mobile telephones by changing the identification codes for each of the mobile telephones as they move from cell to cell.