State-run telecom giant, Mahanagar Telephone Nigam Ltd (MTNL) would be the first telecom company to launch 3G services in India. Prime Minister, Dr Manmohan Singh is expected to launch the third generation technology during the Indian Telecom Summit in New Delhi on Thursday. MTNL would initially provide free of cost services to high spending customers and soon extend to the general mobile users.

3G technology enables high rate audio and video data transmission to provide speedy downloads and high picture quality at 2 megabits per second. The country is currently using 2G and 2.5G services for telecom network. Telecom companies, in some foreign countries, are already providing 3G services.

3G services would be first available in Delhi followed by Mumbai in two months. New Delhi Municipal Corporation area and National Capital Region of Gurgaon are all set to experience the new technology tomorrow.

MTNL expects large revenue from the new services such as IPTV and broadband. MTNL chairman said, "Broadband service is already generating an income of Rs 400 crore annually. We are getting good response for IPTV and VoIP services too and by this time next year, MTNL should get significant revenue from these new services."

Meanwhile, Bharat Sanchar Nigam Ltd is also expected to launch 3G services outside Delhi and Mumbai.