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Mobile phones send and receive radio signals with any number of cell site base stations fitted with microwave antennas. These sites are usually mounted on a tower, pole or building, located throughout populated areas, then connected to a cabled communication network and switching system. The phones have a low-power transceiver that transmits voice and data to the nearest cell sites, normally not more than 8 to 13 km (approximately 5 to 8 miles) away.

The first commercial mobile phone service was launched in Japan by NTT in 1978. By November 2007, the total number of mobile phone subscriptions in the world had reached 3.3 billion, or half of the human population (although some users have multiple subscriptions, or inactive subscriptions), which also makes the mobile phone the most widely spread technology and the most common electronic device in the world.

The first mobile phone to enable internet connectivity and wireless email, the Nokia Communicator, was released in 1996, creating a new category of expensive phones called smartphones. In 1999 the first mobile internet service was launched by NTT DoCoMo in Japan under the i-Mode service. By 2007 over 798 million people around the world accessed the internet or equivalent mobile internet services such as WAP and i-Mode at least occasionally using a mobile phone rather than a personal computer.

The most commonly used data application on mobile phones is SMS text messaging, with 74% of all mobile phone users as active users (over 2.4 billion out of 3.3 billion total subscribers at the end of 2007). SMS text messaging was worth over 100 billion dollars in annual revenues in 2007 and the worldwide average of messaging use is 2.6 SMS sent per day per person across the whole mobile phone subscriber base. (source Informa 2007). The first SMS text message was sent from a computer to a mobile phone in 1992 in the UK, while the first person-to-person SMS from phone to phone was sent in Finland in 1993.

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The other non-SMS data services used by mobile phones were worth 31 Billion dollars in 2007, and were led by mobile music, downloadable logos and pictures, gaming, gambling, adult entertainment and advertising (source: Informa 2007). The first downloadable mobile content was sold to a mobile phone in Finland in 1998, when Radiolinja (now Elisa) introduced the downloadable ringing tone service. In 1999 Japanese mobile operator NTT DoCoMo introduced its mobile internet service, i-Mode, which today is the world's largest mobile internet service and roughly the same size as Google in annual revenues.