3G technology allows for broadband mobile communications including voice, video, graphics, and other multimedia services. It uses packet-switched networks for digital data transmission which can achieve speeds up to 2 Mbps. This packet-switched approach allows for more efficient use of available spectrum and supports more users and applications like web browsing compared to previous circuit-switched 2G networks. 3G networks divide coverage areas into hierarchical cells like macro, micro, and pico cells to allow for higher user density and transmission speeds in smaller areas.