2.75 Lakh new jobs over next five years in Indian Telecom Industry

News Posted - 2010-03-21

BSNL thinking of hiring top talent from market

New Delhi, 02 May, 2010: Public sector telecom firm BSNL is contemplating recruiting top talent from the private sector to its management ranks to help prop up falling profits and stand up to competition and is willing to pay the chief executive as high Rs 10 crore a year.

The proposal, which also includes paying deserving board members up to Rs 5 crore annually, was discussed at a meeting at the Department of Telecom (DoT) last week to implement recommendations of the Sam Pitroda committee on improving BSNL's performance.

There is, however, a hiccup. This is possible only if BSNL is taken out of the purview of Public Enterprises Selection Board (PESB) and Department of Public Enterprises (DPE) as the PSU doesn't have power to recruit people to higher level positions like Chief General Managers.

The DoT meeting was chaired by Telecom Secretary P J Thomas and attended by BSNL CMD Kuldeep Goyal and other senior officials.

The Pitroda panel has recommended enhancing the quality of senior executives so that the management team and the decision making process could respond to the competitive business environment and the changing market realities.

The market is currently led by private player Bharti Airtel.

Although no final decision has been taken, many see even a discussion in this direction as a welcome move.

BSNL's profits declined to as low as Rs 175 crore in the first nine months of last fiscal and is expected to register net losses for the entire 2009-10 fiscal as against profits of over Rs 10,000 crore in 2004-05.

It was pointed out at the meeting that after implementing the second pay revision, persons at Board level can earn as much as 200 per cent of their basic as bonus and other fringe benefits. This is almost Rs three lakh per month or Rs 36 lakh a year besides other perks like housing, LTC and medical.

But this is far less compared to what top executives get in the private sector.

BSNL CMD Goyal, however, pointed out that in the past the PSU itself has performed quite well, even in the face of competition from private sector companies. "What is required is freedom of action by the Board," he said.

Goyal is understood to have told the DoT that in order to act as fast as competition, the Board needs to be given the freedom to act without questioning. If the Board and Management Committee have taken a decision, then it should not be questioned.

In private sector, decisions are taken across the table without going through an elaborate tendering process, whereas in public sector even after following an elaborate process, decisions are prone to questions and scrutiny from various government agencies like CVC, CBI and CAG etc, Goyal is understood to have informed the DoT.

The DoT is also considering to separate the post of Chairman and Managing Director into two so that the Chairman is not bogged down by day to day activities and can provide a broader perspective to the organisation.

Sources said that all these and other recommendations of the Pitroda panel came up for discussion and a decision is likely soon.

Source: Business Standard 02/05/10

2.75 Lakh new jobs over next five years in Indian Telecom Industry

Finding jobs in the telecommunication industry in India isn’t difficult. As new technology opens new doors and creates new telecom vacancies, making this sector a big employment generator.

The starting salary for telecom engineers is between Rs 3 lakh to Rs 5 lakh per annum. Customer management jobs could fetch a starting salary between Rs 2 lakh to Rs 3 lakh per annum. The new players in the market are trying to attract talent at 15-20% higher salaries. This has also led to poaching of talent at middle and top levels while robust hiring by the telecom companies at the entry level continues.

Finding suitable talent in this field has been the major reason for high salaries in this sector. Industry experts believe that the talent crunch in this sector will push salaries even further. There is a demand for qualified and skilled professionals with knowledge and technical know-how in these fields. Thus, the sector rewards talent in a big way and is on the lookout for talent to suit its ever growing demand.

Telecom is a vast industry and offers a wide range of career opportunities on both the hardware and software front. It includes mobile telephony, internet protocol media system, wireless communications, GSM, GPRS, CDMA, VoIP, data networks, optical networks and more.

Overview

Indian telecom industry has witnessed an upswing and is presently on a high speed growth path.

As per the data released by TRAI (Telecommunications Regulatory Authority of India) India now has 543.20 million telecom subscribers. With this, the overall Tele-density in India reaches 46.32.

As India targets a stable 6-8% annual economic growth, and regulatory policy fosters investment, this trend should continue. The TRAI targets 20 million broadband and 40 million total Internet subscribers by 2010.

Major contributors to this growth are the adoption of technologies like video-conferencing and TelePresence technology that are fast becoming popular tools of cost saving.

Telecom Growth Continues

India's telecom service industry revenue is projected to reach USD 54 billion in 2012, as compared with USD 31 billion in 2008 according to the CII Ernst & Young. Today, the telecom market in India enjoys a growth rate of around 45 % which is the highest in the whole world.

The Indian customers are embracing mobile technology in a big way and there are predictions that the country's telecom market will become a US$38 billion sector by 2010, contributing 5.4% to India's GDP.

Opportunities in India

Indian telecom industry manufactures a complete range of telecom equipment using state of art technology and there exist excellent opportunities for investors in this sector. The production of telecom equipments in value terms is expected to increase from Rs 412700 million (2007-08) to Rs 488000 million during 2008-09. India has potential to emerge as a global hub for telecom manufacturing. Favourable factors such as policy moves of the government, incentives offered, a large talent pool in R&D and low labour cost all provide a strong impetus to the industry.

Exciting times ahead

Apart from the basic telephone service, there is an enormous potential for various value-added services.

MVAS (Mobile Value Added Services) currently contributes around 9 % to the operator’s revenue. It is expected to increase to 10.4 % in the next 1 year and 12% by June 2010. Mobile VAS industry in India is undergoing a lot of structural changes and is poised to grow and contribute greater revenues to the telecom industry and job opportunity in the years to come. Also Indian telecom sector is set to see another boom after the mobile boom. This boom will be triggered by the IPTV (Internet Protocol TV) and broadband.

Source: info.shine.com 22/3/10