Job losses not a worry as data demand will keep telecom afloat in fiscal storm
ET Bureau|
Updated: Oct 07, 2017, 12.19 AM IST
NEW DELHI: Indian telecom industry’s current financial stress is temporary and there are no significant job losses, a top official said, adding that the government is bullish about the prospects of the sector in the medium to long term given the surging demand for data. “The current situation is a temporary phenomenon. We haven’t even begun to scratch the surface in terms of data. Data explosion has just begun.
The medium and long-term prospects of the industry are very robust,” telecom secretary Aruna Sundararajan said at a panel discussion at the India Economic Summit 2017 on Friday. She said the government was aware of financial strife in the industry but won’t intervene beyond a point. “The government will play the role of an enabler and make sure it’s a level playing field.
The rest will be left to the market players. But there is enough for everyone to grow.” Sundararajan also dispelled concerns of large scale job losses after reports that around 100,000 jobs are set to go as the industry consolidates and some companies shrink or close down operations. “There is consolidation. People are trying to merge. People are saying there is financial strife, but no one is saying there is huge joblessness in the sector,” said Sundarajan.
The telecom industry, struggling under a burden of nearly Rs 5 lakh crore of debt and in the midst of a brutal price competition, has been seeking government sops for some financial relief.
The government is set to increase tenure of payments for auctioned airwaves as well as lower interest to be paid on dues. But the industry wants more in the form lower annual license fees and spectrum usage charges, among others. “India is the fastest digitising nation and hungry for digitisation. But there is a lot to be done in terms of building information highways and super highways,” Sundarajan said.
She pointed to the BharatNet project under which 75,000 gram panchayats have already been linked through an optic fibre network, which will grow to 100,000 by end of this fiscal year through March 2018. “The government is in a hurry. We don’t have the luxury of time,” the senior official said.
The medium and long-term prospects of the industry are very robust,” telecom secretary Aruna Sundararajan said at a panel discussion at the India Economic Summit 2017 on Friday. She said the government was aware of financial strife in the industry but won’t intervene beyond a point. “The government will play the role of an enabler and make sure it’s a level playing field.
The rest will be left to the market players. But there is enough for everyone to grow.” Sundararajan also dispelled concerns of large scale job losses after reports that around 100,000 jobs are set to go as the industry consolidates and some companies shrink or close down operations. “There is consolidation. People are trying to merge. People are saying there is financial strife, but no one is saying there is huge joblessness in the sector,” said Sundarajan.
The telecom industry, struggling under a burden of nearly Rs 5 lakh crore of debt and in the midst of a brutal price competition, has been seeking government sops for some financial relief.
The government is set to increase tenure of payments for auctioned airwaves as well as lower interest to be paid on dues. But the industry wants more in the form lower annual license fees and spectrum usage charges, among others. “India is the fastest digitising nation and hungry for digitisation. But there is a lot to be done in terms of building information highways and super highways,” Sundarajan said.
She pointed to the BharatNet project under which 75,000 gram panchayats have already been linked through an optic fibre network, which will grow to 100,000 by end of this fiscal year through March 2018. “The government is in a hurry. We don’t have the luxury of time,” the senior official said.
