Cingular now has 3G network on some phones, what do they do with the former 2G network?
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Typically they phase out the older equipment and install new. 2G was very slow in accommodating the data packets that people are starting to use more common place today.
2G uses mostly TDMA or CDMA networks, which originally was an improvement from analog to digital signal, but 3G works better with GSM networks, and GPRS requirements.
Some companies like AT&T/Cingular kept both equipment installed 2G & 3G. But when new towers went in, only 3G/GSM towers were going up. All the TDMA towers were left in place, but eventually people carrying TDMA cell phones, noticed their signal strength was not near what someone else carrying a GSM phone would receive. And then as phones broke down or upgrade new contracts went into effect, the only new equipment you could buy was GSM.