Cellular operators have said they would oppose any move to legitimise Reliance Infocomm's reported plans to become a full-fledged cellular service provider by paying an entry fee of Rs 1,400 crore (Rs 14 billion).

They said the Reliance offer could not be accepted unless the government, apart from making spectrum available, proved that there was a need for more competition in the cellular sector.

"The Reliance offer vindicates the cellular industry's stand. We had maintained that Reliance was never interested in offering limited mobility; all along they wanted to offer full-fledged cellular services. They tried getting into the cellular turf through the back door without paying an entry fee. But now that they are caught in the TDSAT (Telecom Dispute Settlement Appellate Tribunal) order, they are prepared to pay up,' said a cellular operator.

The operators said the government would have to prove the need and timing of allowing a fifth cellular operator, and even after that there should be a bidding process for the new licence.

"The government cannot open up the cellular sector only for Reliance. There has to be a legislation in place which will outline the process to be followed," a cellular operator said.

Senior cellular industry officials said there was neither a lack of competition, nor were the tariffs high in the industry.

With BSNL around, there was no chance of cartelisation. "There is no requirement for introducing more players. The government will have to do a lot of explanation if they bring in more operators," said an industry official.

Cellular service providers pointed the government had been maintaining that there was no additional spectrum available, even for the existing operators.

"How could, then, the government accommodate more operators," they asked.

The Telecom Regulatory Authority of India and the department of telecom had earlier said there was not enough spectrum available for more operators and had shelved plans to bring in the fifth and sixth mobile operators for the same reason.