Indian operator Aircel plans to invest $500 million for the initial roll out of 3G mobile services.

Indian operator Aircel plans to invest $500 million for the initial roll out of 3G mobile services. The company had won 3G spectrum in 13 circles and is expected to launch in the first quarter of 2011.

The company will initially launch 3G services in the top 10 cities of each circle and then will roll out to other parts. Aircel is currently finalising equipment vendors for supplying 3G network equipments and is expected to announce a deal next week.

With current subscriber base of 45 million, Aircel is targeting 75 million users by next year, out of which 10 per cent is expected to come from 3G services.

Malaysia’s Maxis Communications Bhd. holds a 74% stake in Aircel and Apollo Hospitals group owns the rest. 

Aircel had bagged eight circles in India’s BWA spectrum auction in June for Rs 3,438.01 crore, however it has yet to declare the technology path WiMAX or LTE. The compnay is expected to announce selection of standard next month.