State-run telecom service provider MTNL intends to launch its third generation (3G) services in Mumbai next month as it targets a user base of 1,00,000 for the third generation mobile service by the year end.

The company has already embarked Rs 200 crore for building optic fiber networks in Delhi and Mumbai for providing fiber-to-the-home, or FTTH services.

The company had recently launched its 3G services `Jadoo' in central and some of parts of South Delhi. The company plans to expand its 3G services to the remaining parts of Delhi in the next two-three months.

MTNL aims to spend Rs 1724 crore in the year through March 2010 to expand its mobile services business in India and to increase its broadband capacity.

MTNL, which operates only in two metropolitan cities, posted a net profit of Rs 507 crore on revenue of Rs 4729 crore for the fiscal year ended March 31, 2008.