Although it seems that Government 2.0 will finally deliver the promise of a truly transparent government, many practitioners around the globe (particularly those in the developing world) are reluctant or unable to develop strategies and allocate resources to Government 2.0. As a result, governments around the world ignore or mishandle the opportunities and threats presented by Government 2.0. The primary reason underlying this behavior is the lack of understanding regarding Government 2.0. The purpose of the study is to address this gap in knowledge and understanding by presenting and illustrating fundamental concepts of Government 2.0. A web survey of 200 government websites from 40 countries (20 each from advanced and developing countries) and 45 Web 2.0 initiatives across the globe was used to present and illustrate fundamental concepts of Government 2.0. We suggested a three stage Government 2.0 Utilization Model (GUM) starting from information socialization (stage 1), and then moving on to mass collaboration (stage 2), and social transaction (stage 3). Based on the web survey, we also suggested three Government 2.0 implementation scenarios (i.e., standalone, nested, and hybrid implementation). The study will help researchers and practitioners in understanding the Government 2.0 phenomenon and the opportunities presented by it.