Regardless of the much-delayed auction for India's 3G spectrum, Indian state-owned telecom operators MTNL (Mahanagar Telecom Nigam Ltd.) has rolled out 3G services in central New Delhi, making the company the first to launch 3G services in India, the Nikkei reported on February 26. Additionally, the company stated that the investment in 3G rollout - which covers New Delhi and Mumbai - will be valued at five billion Rupees (US$98.3 million; US$1= 50.82 Rupees), according to the same source. MTNL's 3G service package will be priced at 599 Rupees (US$11.8) per month, focusing on the middle and high income groups.

Meanwhile, another state-owned telecom operator BSNL (Bharat Sanchar Nigam Ltd.) also has began delivering 3G services in 11 cities. BSNL's 3G network coverage is expected to further expand to other cities across India later, except New Delhi and Mumbai, which are served by MTNL. Furthermore, BSNL stated that it has spent 27 billion Rupees (US$531.3 million) in 3G rollout. 11 cities include Agra, Ambala, Jalandhar, Jaipur, Dehradoon, Shimla, Lucknow, Ranchi, Durgapur, Haldia and Patna.

MTNL and BSNL have been awarded 3G and WiMAX spectrums across most telecom circles in India without auctioning.