Indian state-owned operator Mahanagar Telephone Nigam Ltd (MTNL) is to test launch a 3G network in New Delhi later this month and has hinted the service could be fully live by year-end, reports India’s Economic Times. According to an official statement from India’s Department of Telecommunications (DOT), MTNL will turn on the network initially in the Connaught Place area of the city. A second network in Mumbai is scheduled to launch early next year.

Last month, both MTNL and its state-owned rival BSNL were each awarded a block of 5MHz spectrum in the 2.1GHz band for 3G services, ahead of the auction for privately-owned operators. However, both state-owned enterprises will eventually be required to pay a license fee equivalent to the highest price paid in the private auction. The auction is scheduled to close in December and could ultimately lead to as many as ten Indian 3G operators. BSNL reportedly became the first Indian mobile operator to switch on 3G services last month, unveiling a 2Mb/s free pilot service to 2,000 subscribers in the city of Pune. BSNL plans to launch commercial 3G services by January next year.