Generations
In the 1990s, 'second generation' (2G) mobile phone systems such as GSM, IS-136 ("TDMA"), iDEN and IS-95 ("CDMA") began to be introduced. The first pre-commercial digital cellular phone call was made in the United States in 1990, in 1991 the first GSM network (Radiolinja) opened in Finland. 2G phone systems were characterized by digital circuit switched transmission and the introduction of advanced and fast phone to network signaling. In general the frequencies used by 2G systems in Europe were higher though with some overlap, for example the 900 MHz frequency range was used for both 1G and 2G systems in Europe and so such 1G systems were rapidly closed down to make space for 2G systems. In America the IS-54 standard was deployed in the same band as AMPS and displaced some of the existing analog channels.
Coinciding with the introduction of 2G systems was a trend away from the larger "brickle" phones toward tiny 100–200g hand-held devices, which soon became the norm. This change was possible through technological improvements such as more advanced batteries and more energy-efficient electronics, but also was largely related to the higher density of cellular sites caused by increasing usage levels which decreased the demand for high transmit powers to reach distant towers for customers to be satisfied.
The second generation introduced a new variant to communication, as SMS text messaging became possible, initially on GSM networks and eventually on all digital networks. The first machine-generated SMS message was sent in the UK in 1991. The first person-to-person SMS text message was sent in Finland in 1993. Soon SMS became the communication method of preference for the youth. Today in many advanced markets the general public prefers sending text messages to placing voice calls.
2G also introduced the ability to consume media content on mobile phones, when Radiolinja (now Elisa) in Finland introduced the downloadable ringing tone as paid content. Finland was also the first country where advertising appeared on the mobile phone when a free daily news headline service on SMS text messaging was launched in 2000, sponsored by advertising
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The first pre-commercial trial network with 3G was launched by NTT DoCoMo in Japan in the Tokyo region in May 2001. NTT DoCoMo launched the first commercial 3G network on October 1, 2001, using the WCDMA technology. In 2002 the first 3G networks on the rival CDMA2000 1xEV-DO technology were launched by SK Telecom and KTF in South Korea, and Monet in the USA. Monet has since gone bankrupt. By the end of 2002, the second WCDMA network was launched in Japan by Vodafone KK (now Softbank). In March the first European launches of 3G were in Italy and the UK by the Three/Hutchison group, on WCDMA. 2003 saw a further 8 commercial launches of 3G, six more on WCDMA and two more on the EV-DO standard.
During the development of 3G systems, 2.5G systems such as CDMA2000 1x and GPRS were developed as extensions to existing 2G networks. These provide some of the features of 3G without fulfilling the promised high data rates or full range of multimedia services. CDMA2000-1X delivers theoretical maximum data speeds of up to 307 kbit/s. Just beyond these is the EDGE system which in theory covers the requirements for 3G system, but is so narrowly above these that any practical system would be sure to fall short.
By the end of 2007 there were 295 Million subscribers on 3G networks worldwide, which reflected 9% of the total worldwide subscriber base. About two thirds of these are on the WCDMA standard and one third on the EV-DO standard. The 3G telecoms services generated over 120 Billion dollars of revenues during 2007 and at many markets the majority of new phones activated were 3G phones. In Japan and South Korea the market no longer supplies phones of the second generation. Earlier in the decade there were doubts about whether 3G might happen, and also whether 3G might become a commercial success. By the end of 2007 it had become clear that 3G was a reality and was clearly on the path to become a profitable venture.
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