NEW DELHI: Telecom service provider Vodafone Essar will launch its third generation (3G) services in the first quarter of 2011 in 10 circles in which the company has won spectrum.

We will launch the services by the first quarter of the year 2011," said Sanjoy Mukerji, director, business operations, here. The rollout will take place in a phased manner in all the 10 circles in quick succession.

The operator has won spectrum in Delhi, Mumbai, Chennai, Kolkata, Maharashtra, Gujarat, Tamil Nadu, Haryana, Uttar Pradesh (East) and West Bengal. The company expects to upgrade over 10 percent of its existing customers to 3G users very shortly, Mukerjee added.

Vodafone is also exploring opportunities to tie up with other operators to provide 3G services in other circles as well, Mukerji added.

About the affordability factor, Mukerji said the prices will definitely be higher then the second generation services but the company will try to compete with all other operators on the issue in the market.

The company also said that its likely that the ARPU (average revenue per user) will rise with the launch of the 3G services and it purely depends on the pricing models of different services and packages offered.

3G services will give customers an all-new experience with faster Internet access and speedy data download on their finger tips. Through the roll out of this latest technology, customers will be able to experience video calling, live mobile TV and better gaming experience.