The spectrum war seems all set to hit the next level, reports CNBC-TV18 reports, quoting sources.

CDMA player Tata Telecom is gearing up to file a petition with the telecom tribunal Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against the department of telecom. The petition, the report says, will challenge the DOT''''s decision to award spectrum to CDMA players in a 2:1 ratio

The petition also says that GSM operators who have occupied more than 6.2 MHz (megahertz), which is more than the contractual limit they are entitled to occupy should be made to vacate it.

It is not only the Tatas but even Anil Ambani of Reliance Communications who has raised this issue several times and even wrote to the PM on this issue. The petition would also ask DoT to continue processing CDMA applications, sources said.

Tata Telecom had applied for GSM spectrum for 20 circles, they add. The petition would be to challenge DoT''''s 2:1 spectrum allocation for CDMA operators, sources said.

The GSM industry has for long been averse to the idea of bidding for spectrum, but a changing regulatory environment has made India''''s largest GSM operator shift stance.

In a letter to the DOT secretary, D S Mathur, Bharti''''s joint MD Akhil Gupta says that the company is willing to offer Rs2,650 crore for 4.4 mhz of GSM spectrum across all circles. This is the same amount of spectrum that was given to CDMA major Reliance Communications for Rs1,650 crore.

The price of Rs1,650 crore was discovered through an auction in 2001. But Bharti says it is willing to pay a minimum of Rs1,000 crore over and above the 2001 price. The company says its offer for Rs2,650 crore be treated as an initial bid.

That could well put pressure on the DOT to reconsider its criteria for allocating spectrum.

Telecom minister A Raja though has ruled out auctions for 2G spectrum even though he claims to be in favour of it because it is not legally tenable. But that notwithstanding Bharti''''s move will raise the decibel levels and may be a trigger for a potential bidding war for spectrum. Not surprisingly the opposing CDMA lobby says Bharti''''s move is an attempt to mislead. Reliance Communications issued a statement saying Bharti seems to be pushing for a second license even though its not entitled to it.

The next hearing of this case is slated at the TDSAT on Wednesday and that could well give an indication of how long it will take to restore some balance in the sector.