Cellular Operators Association of India (COAI), the body representing GSM operators, on Thursday wrote to the department of telecommunications (DoT) secretary DS Mathur expressing concerns over the recent recommendations of Telecom Regulatory Authority of India (Trai) wherein a steep one-time charge has been proposed on grant of additional spectrum along with enhancing the subscriber base criteria.

Labeling the recommendations as flawed, based on incorrect assumptions and in several instances, legally untenable, COAI director general TV Ramachandran said they do not take into account the fundamental issue of a spectrum constraint that is being faced by the government, which was the backdrop against which the recommendations were sought.

?A no cap approach in the current regime where spectrum is admittedly bundled with license, would encourage arbitrage seekers, spectrum squatters and proxy holders, and potentially create an irreversible and irreparable situation, causing havoc in a performing sector,? he said.