The GSM operators have alleged that high speed Internet services offered by rival CDMA players without paying for spectrum has caused a revenue loss of over Rs 14,800 crore to the government.

In a letter to DoT Secretary, the Cellulars Operators Association of India (COAI) has raised concerns that CDMA operators are offering high speed Internet access (known as EV-DO) without paying auction fee, like in the case of 3G services.

"As per the intention of DoT/Trai to apply pro-rata 3G rate, assuming a single carrier of 1.25 MHz in 800 MHz being used for EVDO services, would have fetched the government around Rs 14,823 crore," COAI said.

COAI said dual spectrum operators are able to offer EVDO services taking advantage of the large quantum of combined spectrum (GSM and CDMA), while continuing to pay lower spectrum usage charges on the otherwise "arbitrary and unjustified basis" of separate streams of spectrum.

Leading CDMA operators, include Reliance Communications, Tata Teleservices and state-owned BSNL.

Citing DoT guidelines of August 2008, COAI has alleged that spectrum was to be auctioned in the 450 MHz band, 800 MHz band for EVDO services, and in the 1900 MHz band when it becomes available.

The reserve price for the auction of one block of 2x1.25 MHz spectrum in 800 MHz band was to be priced at 25 per cent of the reserve price for 2x5 MHz in 2.1 GHz band (3G).

Also, Trai in its response dated January 23, 2009 had suggested that in case 800 MHz band is auctioned after the 2.1GHz auctions, the reserve price for the 2X1.25 MHz spectrum should be 25 per cent of the highest successful bid amount obtained in the auction.

"However, the operators continue to offer EVDO services without paying these charges...This has not only given the dual spectrum operators a significant anti-competitive advantage but has also caused a huge loss to the ex-chequer," COAI said.

Last year, the government had garnered over Rs 67,000 crore through the auction of 3G spectrum in the country.

Operators Airtel, Aircel, Reliance Communications, Vodafone, Tatas and Idea had bagged 3G spectrum in different circles by participating in the 3G auction.