Government is unlikely to impose administrative charges on the successful bidder of 3G spectrum. The Telecom Regulatory Authority of India has earlier proposed to levy administrative tax of 2% of the highest bid amount as fees to use 3G frequencies. 3G spectrum auction process is scheduled to start on January 16. However, the Department of Telecommunication said that the proposed administrative charges would reduce the government's revenue by about Rs 5,000 crore. The regulator would discuss the stand taken by department of telecommunication in its next meeting.

3G technology is a high data rate technology which would increase data transmission rate many folds. It would allow video conferencing, internet telephony and fast transmission of data in audio and video form. The state run telecom giant MNTL has recently launched 3G services in some parts of Delhi and Gugaon. Union communication minister, A Raja hopes revenue of about Rs 40,000 crore from the auction of 3G frequencies.

Meanwhile, the Cellular Operators Association of India (COAI) has criticized the TRAI's move to impose administrative charges. The body termed it as a setback for Indian as well as foreign bidders. The director general of COAI, T V Ramachandran said, "The Indian telecom sector is already burdened with a plethora of duties and levies adding up to as much as around 30% of the revenues of the industry... The last thing the industry needs is yet another levy in the form of an administrative charge. We expect that the burden would not be increased in such an unwarranted manner as is being recommended by TRAI ".