On day one of the 4G spectrum auctions, the government received bids to the tune of Rs 77,000 crore. As expected, no bids were received for spectrum in 700 and 2,500 megahertz (MHz) bands. Three telecom companies Jio, Airtel and Vodafone Idea are in the fray.

The bid is much higher than the overall market expectations which were above Rs 50,000-60,000 crore.

Therefore, going by the overall outgo, it’s negative for the telecommunication companies. The caveat, however, is that we do not know the specific bids and which spectrum lines they have bid for. But going by the number – it’s negative.

The positive for the government is that they are going to get more money than they had anticipated.

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Disclosure: Reliance Industries Ltd, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

(Edited by : Ajay Vaishnav)