India's MTNL Expects Up to 300,000 3G Subscribers by Year-End

India's Mahanagar Telephone Nigam Ltd. (MTNL) has set a fairly wide target of between 200,000-300,000 3G subscribers by the end of the year, the company's chairman and managing director said at a press conference to launch a new PrePay tariff. So far though, the company has signed up just 400 subscribers to its 3G network.

The network operator was granted a 3G license in advance of the commercial auction and launched its first network in the Delhi metro area last December, with a second commercial launch in Mumbai yesterday. The network capacity will initially support 750,000 subscribers, but radio spectrum limits could limit that to 400,000 subscribers.

The company has also today launched a new lower cost PrePay tariff for 3G services with an initial start up fee of Rs. 300, and then video calls costing Rs 1.8/minute and data download at Rs 3/MB.

The oft-delayed 3G license auction for the private operators will occur by the end of this year, the telecoms minister re-confirmed on Monday. The delay gives state controlled operators, MTNL and BSNL at least a year's lead over their private rivals, although they will later be required to match the 3G license fees paid by the private networks.

Posted to the site on 2nd June 2009