comscore 150,000 employees may soon lose jobs in telecom sector; here's why
News

150,000 employees may soon lose jobs in telecom sector; here's why

Telecom sector is under stress.

  • Updated: October 6, 2017 12:17 PM IST
telecom-industry

Nearly 150,000 direct and indirect jobs in India’s debt-ridden and loss-making telecom sector face “clear and present danger” of corporate downsizing, as per estimates by industry sources. At present, the sector is burdened with astronomical debt — to the tune of nearly Rs 8 lakh crore by some estimates — and heavy losses due to a slew of freebies which are being doled out by incumbent telecom players to retain their customer base. Also Read - Vi prepaid recharge plans July 2021: List of all Vi recharge plans under Rs 500 with benefits, validity

Also Read - Airtel vs Jio vs Vi: Best prepaid plan offering 2GB of daily data and other benefits

The grim reality that the sector faces can be gauged by the comments made by Communications Minister Manoj Sinha at the recently held India Mobile Congress: “The government is aware of the stress in the sector… earlier also we have intervened, and if needed we will do so again.” Also Read - FIR filed against Twitter India again, now over child pornography content

“We will make sure that the sector does not die,” said the minister. In April, the Reserve Bank of India (RBI) had also cautioned commercial banks about loans given to companies in the telecom sector. “The telecom sector is reporting stressed financial conditions, and presently interest coverage ratio for the sector is less than one,” the RBI note had said.

According to industry observers, telecom companies have no option left but to initiate “severe cost-cutting” measures — including downsizing — to sustain operations. Facing the axe are between 20,000-25,000 direct jobs, many of which will be due to planned mergers between incumbent players. Mergers alone will lead to over 15,000 job losses as existing portfolios and profiles are duplicated. As per industry sources, major player Idea Cellular has axed around 1,800 jobs in the lead-up to its planned merger with Vodafone. A further reduction of 5,000-6,000 employees is on the cards as and when the merger fructifies, perhaps next March.

On the other hand, Vodafone has laid-off 1,400 people from its side as part of the merger plans with Idea, the sources said. Although industry sources pointed towards job losses in telecom major Bharti Airtel, the company has denied the same. Reliance Communications has also laid off some 1,200 people over the last year in the lead-up to the merger with Sistema and its now-called-off merger with Aircel, which, too, is learnt to have let go of 800 employees, estimates show. ALSO READ: Telecom Commission likely to consider BSNL bid for mobile towers in North East

However, industry estimates place a far larger number of around 125,000 indirect jobs that will be wiped out due to the turbulence being faced by the sector. “In the larger scheme of things, with the economy slowing down and most industry sectors seeing flat or negative growth, the impact is going to be ‘telling and bloody’, with jobs not being created across sectors, and re-employment becoming a tough task,” an industry analyst told IANS.

Besides the sector, the Union government, which has come under criticism from various quarters for slow economic growth and lower-than-expected job creation, will also find it hard to provide substantial alternative opportunities to the unemployed. Till some time back, the sector was amongst the top five largest employment opportunity generators in the country. It supported direct employment of over 20 lakh in the country during 2015-16. “As per some estimates, the mobile industry in India currently contributes 6.5 percent ($140 billion) to the country’s GDP, and employs over four million people (direct and indirect),” said the Annual Report 2016-17 of the Department of Telecommunications.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: October 6, 2017 12:05 PM IST
  • Updated Date: October 6, 2017 12:17 PM IST



new arrivals in india

Xiaomi Redmi Note 10T 5G
Xiaomi Redmi Note 10T 5G

13,999

Samsung Galaxy F22
Samsung Galaxy F22

12,499

Xiaomi Mi 11 Lite
Xiaomi Mi 11 Lite

21,999

Infinix Note 10 Pro
Infinix Note 10 Pro

16,999

Infinix Note 10
Infinix Note 10

10,999

Vivo Y73
Vivo Y73

20,990

OnePlus Nord CE 5G
OnePlus Nord CE 5G

22,999

iQOO Z3
iQOO Z3

19,990

Realme C25s
Realme C25s

9,999

Poco M3 Pro 5G
Poco M3 Pro 5G

13,999

Realme X7 Max 5G
Realme X7 Max 5G

26,999

Oppo F19
Oppo F19

18,990

Motorola Moto G40 Fusion
Motorola Moto G40 Fusion

13,999

POCO M2 Reloaded
POCO M2 Reloaded

9,499

OPPO A74 5G
OPPO A74 5G

17,990

Oppo A53s 5G
Oppo A53s 5G

14,990

Vivo V21 5G
Vivo V21 5G

29,990

Realme C25
Realme C25

9,499

Realme C21
Realme C21

7,999

Realme C20
Realme C20

6,799

Motorola Moto G60
Motorola Moto G60

17,999

iQOO 7
iQOO 7

31,990

Samsung Galaxy M42 5G
Samsung Galaxy M42 5G

21,999

Xiaomi Mi 11 Ultra
Xiaomi Mi 11 Ultra

69,999

Xiaomi Mi 11X Pro 5G
Xiaomi Mi 11X Pro 5G

39,999

Xiaomi Mi 11X
Xiaomi Mi 11X

29,999

Realme 8 5G
Realme 8 5G

13,999

Samsung Galaxy F02s
Samsung Galaxy F02s

8,999

Samsung Galaxy F12
Samsung Galaxy F12

10,999

POCO X3 Pro
POCO X3 Pro

18,999

Realme 8 Pro
Realme 8 Pro

17,999

Realme 8
Realme 8

14,999

Vivo X60 Pro Plus
Vivo X60 Pro Plus

69,990

Vivo X60 Pro
Vivo X60 Pro

49,990

Vivo X60
Vivo X60

37,990

OnePlus 9 Pro 5G
OnePlus 9 Pro 5G

64,999

OnePlus 9R 5G
OnePlus 9R 5G

39,999

OnePlus 9 5G
OnePlus 9 5G

49,999

Samsung Galaxy A72
Samsung Galaxy A72

34,999

Samsung Galaxy A52
Samsung Galaxy A52

26,499

Micromax In 1
Micromax In 1

10,499

Asus ROG Phone 5
Asus ROG Phone 5

49,999

Samsung Galaxy M12
Samsung Galaxy M12

10,999

Motorola Moto G30
Motorola Moto G30

10,999

Motorola Moto G10 Power
Motorola Moto G10 Power

9,999

Oppo F19 Pro Plus 5G
Oppo F19 Pro Plus 5G

25,990

Oppo F19 Pro
Oppo F19 Pro

21,490

Xiaomi Redmi Note 10 Pro Max
Xiaomi Redmi Note 10 Pro Max

18,999

Xiaomi Redmi Note 10 Pro
Xiaomi Redmi Note 10 Pro

15,999

Xiaomi Redmi Note 10
Xiaomi Redmi Note 10

11,999

Realme Narzo 30A
Realme Narzo 30A

8,999

Realme Narzo 30 Pro
Realme Narzo 30 Pro

16,999

Infinix Smart 5
Infinix Smart 5

7,199

Samsung Galaxy F62
Samsung Galaxy F62

23,999

Samsung Galaxy A12
Samsung Galaxy A12

12,999

Nokia 5.4
Nokia 5.4

13,999

Nokia 3.4
Nokia 3.4

11,999

Realme X7 Pro 5G
Realme X7 Pro 5G

29,999

Realme X7
Realme X7

19,999

Vivo Y31
Vivo Y31

16,490

Oppo Reno5 Pro 5G
Oppo Reno5 Pro 5G

35,990

Samsung Galaxy S21 Ultra 5G
Samsung Galaxy S21 Ultra 5G

1,05,999

Samsung Galaxy S21 Plus 5G
Samsung Galaxy S21 Plus 5G

81,999

Samsung Galaxy S21 5G
Samsung Galaxy S21 5G

69,999

Vivo Y12s
Vivo Y12s

9,990

Vivo Y51A
Vivo Y51A

17,990

Samsung Galaxy M02s
Samsung Galaxy M02s

8,999

Xiaomi Mi 10i
Xiaomi Mi 10i

21,999

Oppo A15s
Oppo A15s

11,490

Tecno Spark 6 Go
Tecno Spark 6 Go

8,499

Vivo V20 2021
Vivo V20 2021

24,990

Vivo Y20A
Vivo Y20A

11,490

Xiaomi Redmi 9 Power
Xiaomi Redmi 9 Power

11,999

Motorola Moto G9 Power
Motorola Moto G9 Power

11,999

Motorola Moto G 5G
Motorola Moto G 5G

20,999

Vivo V20 Pro
Vivo V20 Pro

29,990

Xiaomi Mi 10T
Xiaomi Mi 10T

35,999

Xiaomi Redmi 9i
Xiaomi Redmi 9i

8,299

Xiaomi Mi 10T Pro
Xiaomi Mi 10T Pro

39,999

Infinix Hot 10
Infinix Hot 10

9,999

Vivo V20 SE
Vivo V20 SE

20,990

Vivo V20
Vivo V20

24,990

Micromax In 1b
Micromax In 1b

6,999

Micromax In Note 1
Micromax In Note 1

10,999

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

13,999

Oppo F17
Oppo F17

16,990

Samsung Galaxy M51
Samsung Galaxy M51

22,999

Best Sellers