Indian Network "Soft-Launches" 3G Coverage in Delhi

India finally launched a 3G network today as state-controlled operator, Mahanagar Telecom Nigam Limited (MTNL) launched a WCDMA network in the capital city, Delhi. The company is only offering a "soft-launch" though, and coverage is limited to the main business and political districts, Connaught Place, Sanchar Bhawan, Rajaji Marg, India Gate, Pragati Maidan, Delhi Gate, and Minto Road.

The company is currently not charging customers to use the service - and will announce commercial tariffs shortly. The service is being branded as "MTNL 3G Jadoo".

A second soft-launch will happen in Mumbai within a couple of months. J. Gopalan, executive director, MTNL (Mumbai) said that the coverage would be limited to areas between the Airport and Prabhadevi. The second phase would include South Bombay. The company has earmarked network capacity for 1.5 million lines between the two cities.

Rival state owned operator, BSNL is expected to launch its 3G network in January - covering Chennai.

MTNL and BSNL were both granted 3G licenses in advance of the main auction to private operators - and will be required to pay the same license fee as is finally agreed on when the private auction is completed.

The Department of Telecommunications has also fixed the reserve price for the licenses at Rs 160 crore (US$37.6 million) for metros and category A circles, Rs 80 crore (US$18.8 million) for category B, and Rs 30 crore (US$7 million) for C circles. The reserve price for a pan-India license is Rs 2,020 crore (US$475 million).

India has 60 MHz of 3G spectrum available, and will allow both WCDMA and CDMA based 3G services.

A recent study from iSuppli said that  IndiaĆ's mobile-phone demand is expected to rise to 136 million units in 2009, up 23.9 percent from 110 million in 2008. This compares to 16.8 percent growth in 2008. The surge would be largeley due to the rollout of 3G and WiMAX networks and the implementation of Mobile Number Portability (MNP)

iSuppli forecasts 3G and WiMAX will garner subscriber bases of 250 million and 19 million respectively by 2012.

Posted to the site on 11th December 2008