Sources, however, said that Airtel may start offering iPhones around Diwali to its over 65 million GSM-based subscribers.
Asked about the prices, they declined to give any details about the agreement, the company entered into with Apple Inc.
But in the grey market the devices are available in the range of $500 to 600 (about Rs 25,000), sources said, adding that these handsets procured from the grey market need to be unlocked.
Airtel's announcement comes on the heels of world's largest mobile phone operator Vodafone announcing last week to distribute iPhones worldwide including India.
iPhone is a mobile phone that allows its users to make calls by simply tapping a name or number in the address book.
It leads the customers to select and listen to voice-mail messages in whatever order the consumer wants. Apple Inc, the makers of the iPhone, has tied up with two leading players in the Indian market.
The move is likely to benefit the consumers who can now avail the products from legal channels and avoid opting for the grey market.
If Airtel launches the service around Diwali, ahead of Vodafone which also plans to launch the device by year-end then it would get the first movers advantage in the highly competitive Indian mobile market.
The UK telecom giant Vodafone would be selling the iPhone in India, besides nine other markets such as Australia, the Czech Republic, Egypt, Greece, Italy, Portugal, New Zealand, South Africa and Turkey.
iPhone -- the touch screen device which combines Apple's iPod music player, a video player and web browser is a huge hit with operators as well as consumers. It is currently available in the US, Germany, Ireland, UK, France and Austria.
