2G stands for 2nd Generation. It came
to be known as 2G when carriers switched from the old
and out dated analog networks to digital networks. Digital
capabilities allow many people to connect to one base
station tower at the same time. This allows for faster
and noise/interruptions free calling.
2G is capable of handling both voice
and data information and each call made passes through
a "data call" These data calls take up a lot
of network capacity and where thus costly. However, the
newer 2.5G and 3G standards allow for less network capacity
usage, faster communcation and transfer of data between
networks.