Update: Tata Teleservices seems to have reacted immediately to the MTS announcement, and has also launched a CDMA Rev. B  network, capable of scaling up to speeds of 14.7 Mbps. The network has been launched in 27 Indian cities, including the metros. Although, the company will launch a Rev B capable Photon internet access device in the market in the second fortnight of September. We’ll update this post when Reliance Communications launches its Rev B network.

Sistema Shyam TeleServices (MTS India), the company that operates its telecom services under the MTS brand across India,  has launched a CDMA EV-DO Rev. B Phase II network deployment, capable of supporting data transfer speeds as high as 4.9 Mbps in single frequency carrier and 9.8 Mbps in two frequency carrier bundle through enhanced BTS cell capacity, spectrum efficiency and peak rate, and offers superior indoor penetration and outdoor coverage.

As part of a phased roll-out, the network has been launched first in the city of Jaipur (Rajasthan), and will be extended to more than 25 key Indian cities including the top metros, according to the company. However, nospecific timeline has been announced.

According to the company, this is the World’s first Phase II EV-DO Rev B deployment, although CDMA EV-DO Rev.B Phase-I networks are present in several countries including Japan, Norway, Indonesia, Sweden, South Korea and Ukraine among others.

The company has also launched a new data dongle, the MBlaze Ultra, that supports download speeds of 9.8 Mbps. The dongle is being offered at Rs. 2,499, while the data packs are available starting at a monthly rental of Rs 629. As an introductory offer, customers buying the data dongle in the first month of its launch will get 50% extra usage, for lifetime. MTS is also offering a bundled data option, wherein customers can pay Rs 4,599 and get 1 GB of free data transfer every month, for six months, along with the dongle.

At the recent Qualcomm IndiaOn event, Vsevolod Rozanov, President & CEO of MTS, had informed that the company had sold a million Evdo data dongles in India. During the quarter ended 31st March 2011,  non-voice revenues from both data and mobile VAS for the company reportedly went up by 33% Q-o-Q to Rs 58.8 crore, which was around 25% of the companys total revenue. The company says that it has so far invested Rs 135 billion in India, and plans to invest Rs 500 million in the state of Rajasthan during 2011.