Just saw this news flashing on the telly…the Cellular Operators Association of India (COAI), which represents the GSM operators, has served a legal notice to the Department of Telecommunications (DoT): they want allocation of spectrum as per existing norms, and not according to the new norms recommended by the Telecom Regulatory Authority of India (TRAI). [via Moneycontrol.com]

The COAI has been rather active over the past few days: yesterday they had warned the DoT to watch out for spectrum squatters (something which we’d mentioned here). They had asked the DoT to investigate and establish the promoter groups behind new applicants like shippingstocks.com (reportedly, the Essar Group). The DoT is receiving three new applications every fortnight, and is hence considering opting for the auction system for offering new licenses. The defence is expected to vacate 20MHz of spectrum later this year. However, professors from MDI Gurgaon are of the opinion that fewer operators are better, citing efficiency brought about by economcies of scale. They believe 3 operators per circle is the optimal number, but don’t seem to have considered the formation of a cartel, though they do concede policy changes need to ensure competition.