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On a practical level, how does Bluetooth technology work in the Nokia Wireless Car kit?

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On a practical level, how does Bluetooth technology work in the Nokia Wireless Car kit?

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Bluetooth technology is based on a radio with a receiver and a transmitter that have been built into a tiny microship. One of these microchips is incorporated into the Handsfree Unit of the Nokia Wireless Car Kit, and another is integrated into the compatible mobile phone. The Bluetooth technology offers the ability to create automatic, wireless connections between the headset and mobile phone within a radius of up to 10 meters without a physical cable or line-of-sight connection.

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