microwaves go about 10% further than the horizon, barring any tropospheric ducting - which cell towers shouldn't, in general.
The issue you have with long distances is multipath, which can throw off the complex timing required to have multiple users in realtime on a single radio.
I've heard that US spy satellites used to eavesdrop on soviet telephone calls transmitted between line-of-sight ground-based microwave relay towers. The relay towers used directional microwave antenna aimed at each other, but satellites in space could pick up those signals.
This [1] may help but I'm wholely unfamiliar with the field. A guy at Defcon did a talk about how HAM radio in Florida allocates their bandwidth and goes into the nitty details of propegation.
Isn't that primarily because of the Earth's curvature and obstructions/hills?