Second generation

In the 1990s, 'second generation' (2G) mobile phone systems such as GSM, IS-136 ("TDMA"), iDEN and IS-95 ("CDMA") began to be introduced. 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 than those in America, though with some overlap. For example, the 900 MHz frequency range was used for both 1G and 2G systems in Europe, so the 1G systems were rapidly closed down to make space for the 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. This decreased the demand for high transmission 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 access media content on mobile phones, when Radiolinja (now Elisa) in Finland introduced the downloadable ring 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