After the telephone was developed in the mid-1870s, and radio at the
turn of the century, it was natural to seek ways to combine the two,
merging radio's mobility with the telephone's person-to-person
capability and extensive network. Ship-to-shore radiotelephones were
available as early as 1919, and the next decade saw the arrival of two-
way radios for police cars, ambulances, and fireboats. These public-
safety radios were mobile, but they were limited by the range (usually
small) of the transmitter, and they connected only with fellow users,
not with every telephone subscriber. Also, like all radio equipment of
the day, they were big and clunky; Dick Tracy's two-way wrist radio
existed only in the funny pages.

http://www.americanheritage.com/articles/magazine/it/2007/3/2007_3_8.shtml


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