The present invention discloses a wireless telephone system using microphone arrays together with additional signal processing to suppress the background noise in the surrounding environment. The signal processing resources of a wireless telephone and multi-channel transmission capabilities of the Bluetooth transmission are used to suppress the background noise. The wireless telephone system includes a Bluetooth transceiver communicating to a wireless telephone through a multi-channel Bluetooth transmission, and an array of microphones coupled to the Bluetooth transceiver. The array of microphones includes a first microphone producing a first audio signal output and a second microphone producing a second audio signal output. The first audio signal output and second audio signal output are transmitted to the wireless telephone through the first channel and second channel of multi-channel Bluetooth transmission respectively. The system and method of the present invention allows using low cost Bluetooth transceiver(s) with multiple microphone arrays to provide the background noise suppression.