New Delhi: In a fresh move that is set to the spectrum embroilment, India’s biggest mobile operator, Bharti Airtel has offered Rs 2,650 crore for commencing pan-Indian spectrum of 4.4 Mhz that it desperately needs to avoid network congestion.

The offer made by Bharti is Rs 1,000 crore higher than the amount of money paid by Reliance Communications (RCOM), operator of the rival CDMA technology for the same amount of spectrum to set up pan-India GSM operations.

In a major shift from the company's earlier standpoint, Mr. Akhil Gupta, Bharti's joint MD said that the company is also braced itself for auction of 2G spectrum.

In a letter written to DoT on Monday, Mr. Akhil said, “Bharti reserves the right to increase this bid in the event of an auction for such a pan-India GSM spectrum allocation, and this (Rs 2,650 crore offer) may be taken as our initial bid for the start-up pan-India spectrum.”

RCOM reacts quickly to Bharti's communication and said, "Bharti is not entitled to a second GSM licence in any condition. This is another ploy of Bharti to prevent competition. This is anti-consumer and anti-competitive behaviour."

Bharti has noticed that it was forced to make this bid because even as its requests for added 2G spectrum have been pending with the administration for more than 18 months, DoT was preparing to offer radio frequencies to RCOM to commence GSM services.

In his communication to DoT secretary D S Mathur, Mr. upta said, “While we will continue to agitate, represent and follow up our legitimate legal options for our rightful entitlement of spectrum, we are compelled to seek additional 4.4 MHz, or any such start-up spectrum decided by the department of pan-India GSM spectrum on a par with the dual allocation as is being sought to be given to the CDMA operators. Considering the urgency of the matter for us to attend to the quality of network needs of the customers both present and the massive future growth, we herewith offer a sum of Rs 2,650 crore, which is approximately Rs 1,000 crore over and above the current charge of a pan-India start-up spectrum of Rs 1,650 crore.”

Bharti's move comes at the same time as RCOM chairman Anil Ambani has looked for the involvement of Prime Minister Manmohan Singh to make sure that the licence charge for new GSM newcomers such as Reliance, be reduced from the existing Rs 1,651 crore.

Mr. Anil had also told the PM that new GSM starters cannot be allowed to made bid for 2G spectrum as telecom regulator (TRAI) had said that there should be no auction for second-generation radio frequency bands.