On a day when 3G auction finally came to an end after 34 day long process State-owned Mahanagar Telephone Nigam Ltd (MTNL), India’s first 3G mobile service operator has crossed the landmark of one lakh 3G customers in Mumbai circle. In delhi MTNL had already achieved this milestone much earlier.

MTNL which posted a net loss more than 1573 cr in the last quarter, started its 3G journey in May 2009 with limited 3G network in Mumbai. Initial lackluster response to its 3G services forced MTNL to offer 3G services like video calling and mobile internet at rock bottom prices. It offers video calling at the price of voice and mobile internet at just 1p/10 KB. But now that  it has become  clear that MTNL will have to shell out Rs 6215 cr as 3G spectrum fee for both the circles, will it continue with same pricing strategy ? .   Given its poor brand image and lack of sales and marketing MTNL intended to outsource its 3G network and was in talks with Virgin Mobile and Spice group but the deal could not come through. Regular offers like free activation of 3G for its existing customers and reduction in 3G activation has helped MTNL to show some numbers on the board but for now it has last 6-8 months of open field before private players make their presence felt.