What does it mean by 3G (iphone)?

3G refers to the third generation of developments in wireless technology, especially mobile communications. The third generation, as its name suggests, follows the first generation (1G) and second generation (2G) in wireless communications.

3G includes capabilities and features such as:

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Enhanced multimedia (voice, data, video, and remote control).
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Usability on all popular modes (cellular telephone, e-mail, paging, fax, videoconferencing, and Web browsing).
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Broad bandwidth and high speed (upwards of 2 Mbps).
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Roaming capability throughout Europe, Japan, and North America.

3G offers the potential to keep people connected at all times and in all places. Researchers, engineers, and marketers are faced with the challenge of accurately predicting how much technology consumers will actually be willing to pay for. Another challenge faced by 3G services is competition from other high-speed wireless technologies, especially mobile WiMAX, and ability to roam between different kinds of wireless networks.

3G is the value that the telephone transmits documents. the different iPhone, the older one, is side. It transfers documents as much as 236.8 kbps. This "3G" iPhone transmits documents at as much as 3.6 MBPS, or 3600kbps. 3G in simple terms is the value of the telephone. 3G is the quickest out on the instant.

It means 3rd Generation
XD

no is not that less memory but more good application like GPS and more.