It has also capped 5G spectrum per bidder at 100 Mhz each to prevent monopolisation.
The government, in August-end, had announced it will invite bids for selection of agency that will conduct spectrum auctions in various bands, including 5G.
The move will ease spectrum allocation to government agencies like railways, defence, department of space, public utility entities, like metro rails, Doordarshan, All India Radio etc.
In its earlier meeting in June, the panel had approved the penalties but asked TRAI to revisit the quantum of fines taking into account the financial stress in the sector.
Any decision on either issue will have significant consequences for the industry, which has been struggling to maintain margins amidst a prolonged price war and high capex requirements.
Interoperability will enable users to login for the facility once and stay connected with the wireless internet service across the country without any need for refilling entire details again.
India, which is in the initial stage of moving towards the 5G technology, is yet to take a call on whether it intends to stop Huawei or allow it.
Trai's recommendation came on a complaint by RJio that over 75 per cent of calls on its network were failing as incumbents were not releasing sufficient number of PoIs.
The penalty on Airtel and Vodafone works out to about Rs 1,050 crore each, while in case of Idea Cellular it comes to about Rs 950 crore.