Cellular Operators Association of India on Friday said it will challenge the government's decision to allow CDMA players to offer GSM services also.

The COAI decision comes in the wake of Anil Ambani group company Reliance Communications [Get Quote] and two other CDMA players receiving approvals to offer GSM services in their respective circles of operation from the Department of Telecom on Friday.

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

Anil Ambani group company Reliance Communications along with two other CDMA players, has received approvals to offer GSM services in their respective circles of operation from the Department of Telecom.  

Reliance Communications has been allowed to offer GSM services on nationwide basis under DoT's existing Unified Access Service Licences, the company informed the Bombay Stock Exchange on Friday.

RCoM offers its services in different circles across the nation, while Mahendra Nahata-promoted HFCL is a operator in Punjab and Shyam Telecom operates in Rajasthan circle.

RCoM had approached DoT last year seeking spectrum to start GSM-based mobile services in all states other than the eight in the eastern region where the company already has GSM operations.

One of the CDMA operators reacted sharply to COAI's move saying the government had also allowed GSM players to offer data and other value-added services while the same was permitted as per their license agreement.

The association of existing GSM players, COAI has strongly opposed Department of Telecom's decision saying it is illegal to give the permission to these players and amounts to favouring a few.

In a letter to Telecom Secretary yesterday, COAI said, 'Without prejudice to our submissions that such crossover/dual allocation of spectrum cannot and should not be permitted, it is submitted that even if the same were to be allowed, it can only be done through change in both policy as well as license as also after following the process of law.'