Recently it was reported that telecom sector which is burdened with astronomical debt, will affect nearly 1, 50,000 direct and indirect jobs in India. However, Telecom Secretary, Aruna Sundararajan in a panel discussion at the Indian Economic Summit 2017 said that the medium and long-term prospects of telecom industry are very robust. She further shared on the platform that the current financial losses are temporary, and there are no significant job losses.
Sundararajan was mentioned in media saying, “The current situation is a temporary phenomenon. We haven’t even begun to scratch the surface regarding data. Data explosion has just begun.” She also dismissed the reports that claims of job losses in the industry arising out of consolidations and business shut-downs.
However, the current reports of Tata Teleservices exiting the industry has another story to tell. The debt-laden telecom company will is preparing an exit plan for most of its 5,000-odd employees.
As earlier reported in People Matters, the industry is burdened by a debt of nearly Rs. 8 lakh crore. Further, the Telecom Regulatory Authority of India (TRAI) recently issued a regulation to cut Interconnect Usage Charges (IUC) by 57% cut. IUC is paid by a mobile carrier originating a call to the mobile network where it terminates.