A rotary dial is a component of a telephone or a telephone switchboard that implements a signaling technology in telecommunications known as pulse dialing. It is used when initiating a telephone call to transmit the destination telephone number to a telephone exchange. On the rotary dial, the digits are arranged in a circular layout, with one finger hole in the finger wheel for each digit. For dialing a digit, the wheel is rotated against spring tension with one finger positioned in the corresponding hole, pulling the wheel with the finger to a stop position given by a mechanical barrier, the finger stop.

Source: Wikipedia