The Telecom Regulatory Authority of India (Trai) has recommended the imposition of annual administrative charge for 3G technology, which would be 2% of the highest 3G spectrum bid amount. Companies will have to pay the administrative charges in the one year moratorium period from the date of the allocation of spectrum. The regulator has proposed to the standalone 3G players and the new entrant companies to share an additional 3% of their annual gross revenues with the government for using the frequency spectrum.  

3G technology is expected to roll out in February, which would ensure high data transmission rate for audio and video signals. TRAI has recommended more number of players for 3G technology, using the entire available spectrum in 2.1GHz range. TRAI chairman Nripendra Misra, while explaining the regulator's stand said, "Going forward, most radio frequencies will be allotted via the auction route, where it may not be possible to specify usage charges for different technologies — the solution is to have an administrative charge based on the bid amount."

Meanwhile, telecom companies have criticized the move of levying administrative charges. The director general of the Cellular Operators Association of India, TV Ramachandran said, "This will impact the 3G bids — all operators will factor this additional levy and place lower bids for 3G spectrums. The finance ministry may therefore object to the TRAI proposal."

TRAI has also asked to hike the spectrum usage charges for all existing operators who are currently paying 2-6 percent spectrum usage charges to the government.