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Get set and wait, precisely this is what the private operators in India have been doing, awaiting 3G spectrum auction to happen for a long time now. It seems the waiting period may end this year as the reappointed Union Minister of Communications and Information Technology A Raja swears by his priority of rolling-out 3G by year-end.

While the private players are still awaiting release of spectrum as the government is yet to decide on the pricing and other aspects of spectrum allocation, the state-run MTNL is playing on its magic with its Jadoo 3G services in Delhi and Mumbai. Besides, the private operators' eagerness on 3G is also evident from Reliance Communication's recent campaign calling its GSM network as '3G ready'.

The market sentiment is beginning to change to more optimistic for 3G. Finally, things that got stalled during the general election, have at least begun crawling again. In a bid to garner more users for its third generation mobile service, MTNL launched a new prepaid scheme for its 3G services wherein subscribers will be offered lifetime validity for Rs 300. Interestingly, an existing 2G user can upgrade to 3G services without having to buy a new SIM. Simple SMS request can put an existing 2G subscriber under the 3G user category, but there is a condition that at the time of sending the request the user must have a minimum balance of Rs 350. Once registered, the user can chose any one of the four data plans ranging from Rs 99 to Rs 2500 based on their usage and need and may or may not use 3G services like video call and data download.

Reliance Communications says is launched it nation-wide service early this year. By calling its GSM network 3G ready, the operator says it is trying to tell the consumer that their network is based on the latest infrastructure which is readily scalable to 3G. “Like any other operator we are keen to cash on 3G, but there are so many other things besides being ready with the right infrastructure,” a Reliance Communication Spokesperson said.

This strategic move by the PSU to target prepaid users is likely to attract more users who would occasionally like to use 3G services. When MTNL first launched 3G services six months back, the services were available in select areas of Delhi and Mumbai and services were available to postpaid subscribers. This launch is by the teleocm giant is also an attempt correct some steps taken earlier, like it reduced the 3G registeration fee for its postpaid operator.

MTNL had nearly 2.1 million mobile customers in the capital at the end of April this year, about 95% of whom use pre-paid services, thus this new service offer is definitely help the service pull more users. MTNL has an ambitious target of multiplying the number of 3G users from existing 400 to 300,000 in the first year. Its network capacity will initially support 750,000 3G subscribers, but radio spectrum limits could limit that to 400,000 subscribers. Similar prepaid services launch will be announced later in Mumbai as well.

The government-run operator's move to open services to its prepaid user is a clear indication that MTNL is armouring itself with as many as lifetime 3G users for the competition that it is like to face once the private players join in the race.

According to Canadian provider of market intelligence services IEMR's research 'India Mobile Operator Forecast, 2008 – 2013', total subscribers is likely to reach 840.8 million in 2013. It is expected that 90% of these subscribers will continue to be prepaid subscribers rather than post-paid subscribers over the forecast period.

The handset manufacturers have now long been selling the 3G concept. However, it is the first time an operator like Reliance is communicating its 3G preparedness to the consumer directly. The idea is seems to pose a teaser to the consumer , build some hype around the high-speed technology. More action is sure to follow from other operators as well. But real game will begin only when the government gives a go ahead.