Does it provide phantom power to mics?

No, you need the SKP500 (or you need to use a mic that has it's own battery power or is a type that does not need phantom). I posted information about this a while ago as I went through the same loop (and the Sennheiser website was, at least at that time/not checked recently, highly ambiguous about certain feature differences between their various G2 products). I have the SKP500 and it's very easily switchable on or off as one of the menu options. SKP500 works with the 100 series Receivers well (another thing I learn't in the thread below in mid-2008 but not from the Senny website....).

Edit: Adding link

http://www.dvinfo.net/conf/all-things-audio/126085-audio-kit-upgrading-advice-please.html