Ipad 3G works like a charm in Chennai, India.
Needed a Copy of photo id / address proof and two photos, went to a BSNL franchisee in Chennai
Sim cost Rs 59 (US$1.25!). First recharge coupon Rs 120 (< US$3) . Gives a 6 month validity. (you can get the sim free - refer Chennai Telephones-free 3G gift)
Put the SIM into a non-3G phone, waited for the activation of the sim - make sure you can make outgoing calls and receive incoming calls
Once activated - recharged Rs 275 (US$6) - (0.5GB prepaid data plan validity 30days)
Balance check through *123# received two replies - one a message about talk time balance and connection validity - another message from 50030 about 100 local SMS free + approx 700 MB free for GPRS usage (500 MB I paid for and 200MB BSNL gives free for the first recharge) and 100 minutes local video call free)
Then went through the process of cutting the BSNL sim to the microsim size. The SIM BSNL gave me was larger than most other normal sims! Cut in such a way to make sure that none of the golden color contact area is damaged. Refer following link with photos
Convert Mini SIM in to Micro SIM for iPad 3G iPhone 4 | iPad
How To Convert a SIM to a MicroSIM with a Meat Cleaver!
Put it in the microsim tray of ipad
Go to Settiings --> cellular data --> APN enter bsnlnet
Leave username and password blank
Takes a few seconds to search for the BSNL network. You see Cellone 3G and signal strength bars
Open Safari and start surfing. Very decent speeds. Tested in T.nagar, Adyar & Thiruvanmiyur. Works well.