Updated below
(Posted on Oct 19) This just in: CNBC-TV18 has reported that Reliance Communications (RCOM), a CDMA operator, has been allowed to offer GSM services. The company has to pay a Rs. 1500 crore fee in next 15 days. PTI adds that HFCL and Shyam Telecom, both existing CDMA operators, are also being allowed to offer GSM services in their circle of operation. Not surprisingly, COAI, the body representing existing GSM operators, has said that they will oppose the move.

Update: The Department of Telecommunications works in strange roundabout ways—RCOM says that the company has paid Rs. 1651 crore as a fee for its GSM initiative. The company will now be considered for allocation of GSM spectrum from the date of payment of the fee - October 19th. Business Standard adds that RCOM has planned to roll out services in 100 cities in 6 months, investing $2 billion over two and a half years. The 15 circle launch of GSM services is expected to be completed in 12 months. Not wanting to be left out, the other large CDMA operator, Tata Indicom, has plans for applying for GSM spectrum for 19 circles that they operate it. More here. PTI reports that MTNL and BSNL don’t have to pay any licence fee, unlike private operators. How’s that for a level playing field?

I find it rather strange that the same CDMA operators that have been making all that noise about CDMAs greater spectral efficiency, and trying to get more spectrum for themselves (and less for existing GSM players) are now rushing for the same less-efficient GSM spectrum.