Vodafone Essar plans to spend $400 million to $500 million on 3G electronic equipment before it launches these services in the first quarter of 2011.
The company will fund it through bank loans and by issuing new shares to its existing shareholders, the Vodafone Group and the Essar Group. Its services will be launched in a phased manner, beginning from metro areas Delhi and Mumbai to all circles including Chennai, Kolkata, Maharashtra, Gujarat, Tamil Nadu, Haryana, Uttar Pradesh (East) and West Bengal.
The operator is also in talks with long-term operators, such as Bharti Airtel and Idea Cellular, to offer 3G services in areas where it does not have spectrum. The end objective of these tie-ups will be to allow customers to seamlessly avail of 3G across the country, irrespective of whether it is a Vodafone circle or another operator.
Moreover, 3G services would be competitively priced according to use and location.
