State-owned Mahanagar Telephone Nigam Limited (MTNL) will launch 3G services on 11 December in Delhi - the first operator in the country to do so.

Initially, the service will be provided free to MTNL’s existing customers. MTNL operates in Mumbai and Delhi and will offer basic 3G services, including high-speed internet, audio and video, and streaming in addition to live television channels on mobile phones, reports Business Standard. The telco has the facility to service 750,000 customers in Delhi. MTNL plans to launch the service in Mumbai in March 2009.

MTNL has already teamed up with various content providers, and is in discussions with several others for a variety of services. It aims to offer a variety of value added services. A scheme to provide surveillance services such as the facility to view home security cameras using the phone is being discussed with a content developer. MTNL has already tested its services with channels such as Neo Sports and Star News. The telco hopes to launch more services and channels on the 3G platform by March 2009, after assessing customer feedback.

The cost of the services will be determined based on the value of the spectrum. Auction of 3G spectrum to private players will be completed by end of February 2009. However, state-owned operators Bharat Sanchar Nigam Ltd (BSNL) and MTNL were allotted the spectrum earlier. They will have to pay the price paid by the highest bidder in the auction. MTNL considers the spectrum price to the determining factor for pricing as rest of the cost is incremental. MTNL already has got most of its equipment in Delhi ready for the launch. MTNL has nearly 750 bases in Delhi and is planning to enhance it by a similar number for the 3G services.

The delay in 3G auctions is expected to provide a boost for MTNL, as it will give the company a chance to establish itself in the market before the private players are ready. BSNL is expected to launch its 3G services in January 2009. X

Check Out
Minister confirms 3G auction in January 2009
MTNL-Aksh launch 'Fibre To The Home’
MTNL’s net profit slides
MTNL readies for 3G launch
BSNL targets December, for 3G service launch
MTNL cuts broadband charges by half, launches mobile TV
BSNL says it has no advantage in 3G allocation
BSNL in trouble, MTNL plans big