The premises cordless telephone (PCT) system provides a full function access to PSTN (public switched telephone network) subscriber lines via an existing PBX (private branch exchange) and/or a single controller or a network of controllers. The system enhances corporate communications by giving callers direct dial-through access to executives on the move and engineers and technicians working out of reach of wired telephones. The system offers similar benefits for offices, hotels, hospitals, building maintenance services, department stores, shopping malls, trade fairs, etc. Base stations configure the microcell structures with location registration and handoff features which will enable system planners to tailor the system economically to the diverse needs of traffic density and to eliminate the shadowing effects of building structures, walls, etc. The system features are described, including uses of the dynamic frequency assignment and flexible base station arrangement (irregularly located) within a microcell (or picocell) structure to ensure user-friendly operations, full extension of system flexibility, and significant increase in the traffic capacity within a highly dense traffic area. >