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That said, 3G is to make a greater appearance during the second half of 2010, with a number of operators announcing contracts with vendors to deploy 3G networks, and could help to counter some of the impact that low-spending prepaid subscriber are having on ARPU.
Tata Teleservices announced in September 2010, it had selected Chinese telecoms equipment and solutions vendor Huawei Technologies to supply infrastructure equipment and deploy 3G networks in five of its nine telecom circles in India. In August 2010, Reliance Communications agreed to launch a mobile music service on its 3G network in partnership with Universal Music. In announcing the deal, Reliance has confirmed that it will be launching 3G in at least part of its 13-circle 3G territory before the end of 2010.
In July 2010, Vodafone Essar announced that it is targeting the launch of its 3G services in the country by the end of 2010, according to its CEO and managing director, Marten Pieters. He added that the company will launch 3G services in all nine telecoms circles of Delhi, Mumbai, Kolkata, Chennai and Tamil Nadu, Maharashtra and Goa, Gujarat, Haryana, Uttar Pradesh (East) and West Bengal for which it secured 3G licences. The firm is waiting for the allocation of 3G spectrum that would enable it to roll-out its services.
In the case of the deal between Tata Teleservices and Huawei Technologies, it also represents a step forward for the 3G sector after progress in installing the necessary infrastructure was delayed due to security concerns over allowing foreign vendors to establish networks on behalf of operators in the country.