State-run MTNL is ready to roll out its 3G network within three months once the PSU gets spectrum from the government, company CMD R S P Sinha said.
"Our core network is ready... We are expecting formal allocation of spectrum from Department of Telecom. The indoor testing of 3G equipment from the trial spectrum has already been done in Delhi but outdoor trial is yet to be done as we have not got the spectrum and once this is completed, we should be able roll out the services in three months," Sinha said.
Only two private players, alongside a state-owned firm, would get licences for New Delhi and Mumbai due to shortage of spectrum there, as per the policy announced last week.
But government would initially permit up to five operators, including a state carrier, although that could be raised up to 10 later.
In Mumbai, Sinha said MTNL would be ready to roll out in maximum five months. In fact MTNL shares surged 4 per cent after government announced the reservation of spectrum for PSUs on Friday.
He said MTNL had floated the tender on 3G much earlier. The total investment incurred by it on 3G, Sinha said is about Rs 100 crore.
The government, which announced the broad guidelines of the 3G policy yesterday, said MTNL and BSNL would be allocated one block each in Delhi/Mumbai and rest of the country respectively. The spectrum would be reserved for them and they just would have to match the highest bid after the auction for private companies is completed. This would give the PSUs a first-mover advantage of a minimum four months over private sector rivals.
Sinha said the tariffs of the 3G service would be market-driven.
