Videocon Telecom: All Is Not Well!

Company sources at Videocon Telecommunications Ltd. indicate that employees have been informally told to explore employment options as the company is unsure about continuing its operations.

"While no pink slips have been given yet, we have been told to explore possible employment opportunities outside the company," says a senior executive of the company. There has been no official confirmation from Videocon's management on the issue, though.

Videocon was one of the nine companies whose 2G licenses were canceled after the Supreme Court judgment earlier this year. The company's CEO and Director Arvind Bali, along with the top executives of other leading telecom companies, met the Telecommunications Minister, Kapil Sibal recently to disregard the suggestions of the Telecom Regulatory Authority of India (TRAI) on spectrum pricing for the auction. Executives state that the high base price will pose tough challenges for operators to make any profitable business case, and this will impact the tariffs.

The telecom sector, once considered lucrative and an exciting prospect for management graduates, is slowly turning into a disappointment for the job seekers and telecom professionals. Videocon is not the only company which is feeling the heat. Post the 2G verdict, there were a few other telecom companies such as Nokia Siemens Networks, Etisalat and S-Tel that reported job cuts or hiring freeze.

Earlier this month, there was news that Augere Holdings, a BWA license holder, had also decided to shut down its operations in India. The company has asked its employees in the country to resign.

More related stuff on the topic:

• Hiring Slump Hits New Grads
• Mounting Uncertainty Over Job Losses
• Rumor: Augere India In Trouble
• A Disappointing Year!
• Policy Paralysis Hits Telecom Sector
• Telecom Uncertainity To Hit Bharti's Fortunes
• Policy Paralysis Hits Telecom Sector
• 2G Verdict: An Easy Exit Route or Fresh Troubles?

- Jatinder Singh, Principal Correspondent, Light Reading India