India's telecom story over? Top honchos hunting new jobs

NEW DELHI: Six top executives of mobile phone companies are hunting for new jobs, signalling bad times for a sector that was once touted as the symbol of India's growth story. Those looking for a career change include the CEO of one of India's largest telecom operators and the heads of two new entrants.

"India's telecom story is over. Industry revenues have not gone up in two years," admitted the promoter of one of the largest mobile phone companies.

Funds have dried up, expansion is on hold, profits and customer additions have slowed even as the 14-player industry battles to recover from the fallout of the 2G spectrum scam.

"Most companies are battling high debt and stagnant revenues. Banks have refused to lend. 3G is making very slow progress. Many top executives are looking at changing sectors," a chief executive of the mobile phone company told to ET.

Three independent sources, including two of the six officials mentioned above, confirmed their intention to move out of the respective companies if alternatives became available.

A leading headhunter, who is aware of three CEOs heading telecom companies looking for new jobs, said these officials now faced new challenges as the focus of their companies had shifted to cutting costs and increasing efficiencies, triggering job culls across the board.

"Instead of managing growth, expansion and rolling out new service offerings, most chief executives are confronted with reducing head count, restructuring exercises, merging verticals and businesses," this headhunter added. He declined to be named as he is working with some of these CEOs who are looking for greener pastures.

The two officials looking for new jobs who head new entrants face an additional complication because these firms bagged mobile permits in 2008 under controversial circumstances. Most of the companies that received their licences during the tenure of the former telecom minister A Raja have put their expansion plans on hold as they are battling high debt and also face the possibility of the Supreme Court cancelling their permits.

From: http://ping.fm/QzfKO