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Although the first auctions for licences to the 3G spectrum in mobile communication were held in 2000, five years down the road, the use of

Although the first auctions for licences to the 3G spectrum in mobile communication were held in 2000, five years down the road, the use of products and services based on 3G technologies remained well below expectations. A new technology EDGE 2.5G was therefore introduced in 2005 by mobile companies that did not manage to gain access to the 3G licences and also by mobile companies who were finding it difficult to roll out services for the 3G technology. EDGE 2.5G was a hybrid containing elements of both 2G and 3G and offering a performance level above 2G but below 3G. This interim 'solution' offered almost all of the benefits that 3G had promised at a fraction of the cost and without the need for new spectrum licences and mobile infrastructure.

What was this an example of? Illustrate how this innovation would have changed the curve of technology improvement for 2G technology. A n s w r must be thoroughwith x @ m p 1 s where necessary.

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