Aircel has become the latest Indian operator to launch 3G, rolling-out services in the southern city of Chennai. According to a Dow Jones Newswires report, the operator plans to spend US$3 billion over the next three years building out the 3G network to the 13 service areas where it has licences. “Our commitment to the market is underlined by the investment of over US$8 billion we have made already and a further US$3 billion we plan to spend in the next three years,” said Maxis Communications CEO Sandip Das. Maxis – a Malaysian firm – owns 74 percent of Aircel. The operator paid INR65 billion (US$1.44 billion) for 3G licences last year and INR34.38 billion (US$759.5 million) for so-called BWA spectrum. Its strategy appears to be based on rolling out 3G in rural areas as it avoided acquiring spectrum in the more expensive Mumbai and Delhi metro areas. ZTE and NSN are among the vendors that have been awarded contracts to build Aircel’s new network. 

According to the report, Aircel is India’s eighth largest mobile network with just over 50 million subscribers and a 9.3 percent market share. Many of its larger rivals – including Bharti Airtel, Tata Teleservices and Reliance – have already launched 3G services. Dow Jones Newswires reported separately yesterday that Reliance expects to complete its Indian 3G rollout by the end of this year. It plans to launch services in 13 areas by the end of its current fiscal year (March) and expects to cover the remaining areas through tie-ups with other 3G licensees.