Why is the IPhone Called 3G? wheres 1g +2g?

i was told a various sites that, iphone 3g is called 3g, because of its cellular network. and the 2g(older model) had the older network capabilities. (not because its 3rd and 2nd generation)

my friends argue that the 3g model is also called 3g because its 3rd generation iphone. (it uses around the same techonology as the ipod touch 3rd gen).(he related it to the ipod touch for some reason)

my argument was that, 3g has nothing to do with it being a 3rd generation iphone. and it only called 3G because of its network. Also i think the iphone 3g is 2nd generation iphone.

correct me if i wrong please.

🙂