The introduction of cells for mobile phone base stations, invented in 1947 by Bell Labs engineers at AT&T, was further developed by Bell Labs during the 1960s. Radiophones have a long and varied history going back to the Second World War with military use of radio telephony links and civil services in the 1950s, while hand-held cellular radio devices have been available since 1983. Due to their low establishment costs and rapid deployment, mobile phone networks have since spread rapidly throughout the world, outstripping the growth of fixed telephony.

In 1945, the zero generation (0G) of mobile telephones was introduced. 0G mobile telephones, such as Mobile Telephone Service, were not officially categorized as mobile phones, since they did not support the automatic change of channel frequency during calls, which allows the user to move from one cell (the base station coverage area) to another cell, a feature called "handover".

In 1970, Bell Labs invented such a "call handoff" feature, which allowed mobile-phone users to travel through several cells during the same conversation. Motorola is widely considered to be the inventor of the first practical mobile phone for handheld use in a non-vehicle setting. Using a modern, if somewhat heavy portable handset, they made the first call on a handheld mobile phone in April, 1973.

The first commercial cellular network was launched in Japan by NTT in 1979. Fully automatic cellular networks were first introduced in the early to mid 1980s (the 1G generation) with the Nordic Mobile Telephone (NMT) system in 1981.

The first "modern" network technology on digital 2G (second generation) cellular technology was launched by Radiolinja (now part of Elisa Group) in 1991 in Finland on the GSM standard which also marked the introduction of competition in mobile telecoms when Radiolinja challenged incumbent Telecom Finland (now part of TeliaSonera) who ran a 1G NMT network. A decade later, the first commercial launch of 3G (Third Generation) was again in Japan by NTT DoCoMo on the WCDMA standard.

Until the early 1990s, most mobile phones were too large to be carried in a jacket pocket, so they were typically installed in vehicles as car phones. With the miniaturization of digital components, mobile phones have become increasingly handy over the years.