The present invention teaches a hands free headset of small size. With the headset is a base transceiver unit which connects to the cell phone or other device having audio input and output. The base transceiver unit may advantageously contain a rechargeable battery to allow for mobile operation, the headset transceiver unit may also use a small rechargeable battery ("coin size") for reduced size and easy recharging. The base transceiver unit may communicate with the headset via half or full duplex transmission and reception. This may also be achieved in alternative embodiments by digitally encoding one or both of the signals and transmitting them as digital data. The antenna of the headset unit may be located on or within the microphone tube, thus allowing a reduced headset size. The base transceiver unit, which may be plugged into electrical power wiring continuously or may be completely mobile may also save energy in the form of electricity by avoiding an unnecessary "trickle current". The battery in the base transceiver unit, and the battery in the headset, may both be inductively recharged in the present invention. Another space, weight and cost saving feature of the present invention is the ability to automatically control volume. Automatic volume control allows elimination of external volume control structure yet still allows volume control to occur. In the present invention, volume is controlled by the base device attached to the base transceiver unit. By this means, battery life may be extended yet without the cost and bulk of an external control device such as a switch of a size suitable for a user's fingers to operate.