Having paid handsomely for 3G spectrum not to long ago, Indian telecom major Vodafone Essar announced its intention to launch 3G mobile services sometime between January-March 2011 in the country. The Mumbai based telecom operator had bought 3G spectrum rights in nine circles for Rs. 11,600 crore.

Nokia Siemens Networks has been assigned to set-up and administer Vodafone Essar's 3G network in six out of nine circles, which are Tamil Nadu, Gujarat, Maharashtra, Uttar Pradesh (East), West Bengal and Haryana. The 3G network in those circles has been contracted to Nokia Siemens Networks for three years.

According to the announcement, Mumbai and Delhi will be the first ones to get 3G service, while the other nine telecom circles will be upgraded with 3G infrastructure in a phased manner. All nine circles are expected to get 3G enabled by the end of the first quarter of 2011. The company intends to shore up its 3G networks by infusing Rs. 2,211 crore in a span of two years.

Considering the exorbitant premium the bidders had to pay, the competition has been kept under check with very few telecom players managing to secure the spectrum. This doesn't bode well for consumers, because with few players straddling over high investment costs, it seems unlikely for them to price 3G services reasonably.