India today made its tryst with 3G mobile services with the launch of ‘Jadoo’, a service to be provided by the state-owned Mahanagar Telephone Nigam Ltd (MTNL).

The service is currently available to select high-end users of MTNL mobile services in Delhi, while the commercial launch is expected in February.

“The customers will have to buy a separate SIM card for 3G services. Existing customers will be able to retain their number,” said an MTNL official.

“This service is much faster than what the subscribers have experienced. Compared with the GPRS services on phones or broadband, video and audio streaming here is much faster and also makes for a better viewing,” the official added.

MTNL has already built a capacity to service 7,50,000 customers in Delhi. The company plans to launch the service in Mumbai in March 2009. “We expect to get around 200,000 3G customers in the coming year,” said RSP Sinha, chairman and managing director, MTNL.

3G networks allow telecom operators to offer a wide range of more advanced services as well as achieve more efficient use of the spectrum available to them.

Asked about the tariffs, Sinha said, “We are still working on it. But I can assure you that the tariffs would be affordable.” Sinha added that the service would be available free-of-cost to the MTNL subscribers for the first one month.

Qualcomm, India and South Asia, president Kanwalinder Singh said, “A data USB device, which is attached to the computer, is expected to come at a retail price of Rs 3,500 with a tariff of Rs 550 per month.”

“We see the prices of entry-level handsets coming down to about Rs 4,000-Rs 5,000,” he said.

MTNL will have the first-mover advantage in the 3G space in Delhi and Mumbai, while Bharat Sanchar Nigam Ltd will enjoy the dominance in the rest of the country. The auctions for the 3G spectrum for the private players are likely to be completed in February 2009.

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