In a significant move, UK-based Virgin Mobile and B. K. Modi-promoted Spice Group submitted bids to market Mahanagar Telephone Nigam (MTNL) 3G services in two telecom circles.

Confirming the development, Kuldip Singh (Director Technical, MTNL) said: "We have received bids from both the firms on it. This bid will evaluate both the technical as well as financial bids. The firm offering better price points will be selected."

Singh further informed the media persons that the successful bidder will be announced within a month.

It is learnt that two other players viz. AT&T and France Telecom were also interested to submit their bids for this purpose.

The state-owned MTNL, in July this year, invited bids for a franchise deal to sell its 3G mobile services on a revenue-sharing basis.

3G services will facilitate the users to enjoy voice, video, data and downloading facilities on their mobile phones.

It should be noted here that private mobile service providers in India are still not allowed to roll out their 3G services.

Earlier in 2008, the government of India plans to sell 3G radio bandwidth was twice delayed after the union finance ministry wanted the base price to be raised from the earlier-decided INR20.20 billion for pan-India license.