The document discusses key concepts in cellular system design including frequency reuse, cell size, system capacity, and handoff strategies. The cellular concept allows efficient reuse of a fixed number of channels across a large coverage area by dividing the area into smaller cells and reusing frequencies in cells sufficiently distant from each other to prevent interference. System capacity is determined by the number of available channels, cluster size which impacts frequency reuse distance and interference levels, and the number of times a cluster can be replicated across the coverage area. Handoff strategies aim to transfer calls seamlessly between cells as users move and involve monitoring signal levels, assigning priority to handoffs over new calls, and reserving guard channels.