Cellular Operators Association of India, a lobby group of GSM players, moved telecom tribunal TDSAT on Tuesday challenging the government's new telecom policy that allows CDMA service providers entry into GSM segment.

The petition filed by a host of GSM operators along with COAI also sought quashing of department of telecommunication's decision, dated October 19, to allow enhanced subscriber-linked criterion for spectrum allocation.

They also sought non-implementation of these decisions terming them unfair, unjust, illegal, arbitrary and violative of level-playing field and principles of natural justice.

COAI had earlier accused DoT of acting with malafide intentions to favour a particular CDMA operator. Although COAI officials did not name the company, it is understood that the GSM lobby is opposing permission granted to Reliance Communications [Get Quote] for offering GSM services.

Within hours of government's nod to offer GSM-based mobile service along with the CDMA technology, Reliance Communications had paid Rs 1,651 crore (Rs 16.51 billion) to DoT towards fee for the spectrum.

The other two companies to have received the approval along with RCom are Mahendra Nahata-promoted HFCL and Shyam Telecom [Get Quote].

Tata Teleservices [Get Quote], another CDMA player, has also approached DoT seeking permission to start GSM services across the country.

DoT's decision to increase the subscriber limit for allocation of existing spectrum would hurt the interest of incumbents including Bharti Airtel [Get Quote], Vodafone-Essar and Idea Cellular [Get Quote].