Sushobhan Mukherjee

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Market Mystery

After Reliance JIO launch on October 2016, the entire telecom market in India is under some kind of turbulence. JIO had worked silently over last 3years to lay fibers even in remotest part of the country and using the gigabyte last mile capacity, introduced voice over data (volte). Not only that , they had introduced all possible services through these high capacity backbone like on demand video, live TV and literally became India’s only full-fledged streaming platform. Being an ex-telecom practitioner, I had personally experienced visionary steps by Tata Indicom way back in 2004, as I was also the part of the journey. However, the vision of triple play services using DSL /Metro Ethernet/Wireless last mile and backbone fiber data network could not be successful due to several strategic decisions. However, that is not the discussion point today and may be elaborated through a separate blog later. The point I was trying to make that JIO had not only shaken up their competitors, but also created a market disruption. The competitions are not facing challenges in offerings, but also prices. In effect, lot of different initiatives evolved like Vodafone and Idea planning for joint movement (either merger, or JV or some other strategy), Uninor and Aircel are moving out of the market by selling spectrum. Swan Telecom, Systema Shyam Telecom were already resigned from the market way. More precisely Telecom market is going a consolidation, convergence. This in effect will influence employment. Operators will look for low budget employment and less in quantity. In effect, the jobs of several senior resources in high salaries will become vulnerable. Today or tomorrow job retrenchment is bound to happen and new requirements will gradually be evaporated. Not only for telecom, but also for the telecom ancillaries like ZTE, Huawei, Ericsson etc. will experience the similar impact due to the change in demand for their customers. Gradually, the JIO launch is bound to affect television, cable TV, dishtv market as well. In effect same telecom disease is bound to influence there as well.
My discussion today is about employment situations today and tomorrow. In effect, I was forced to explain market situation as an introduction, before we drill down further.
This kind of situations are not new in the country. Trust you remember problems at aviation industry, Kingfisher, Air Deccan, Sahara collapsed, Jet Airways did optimizations. There was huge impacts due to money market Fiasco. In West Bengal, there were more than 300 money market companies with wide presence. There were minimum 1 lakh unemployment with the sudden shut down after Sardha, MPS, Rose Valley incidents.
We keep on herring job cuts, pink slips almost every now and then from the biggies. With the tremendous rise of internet-based media, there has been a severe impact in print media as well. The turbulence there, would surely affect employment.
My concern, consideration, doubt with the outcome of these completely unstable job situations. With the illustrations, till now in the previous sections, trust it is quite eminent fact that there are lot of people got unemployed in recent past. The numbers are not at all thin. More precisely, lot of unemployment happened in the top level (people with 40+ age) in senior positions. So the market is bound to be flooded with eligible candidates. Will the emergence of many institutions, there are huge numbers of freshly passed out candidates with the pool of retrenched senior employees.
However, it seems a vapor wire. While companies search for suitable candidates for employment, they hardly get people interested for job. Mostly aspiring employees are interested to get monthly thick ATM top-ups without much of tension, hard work, and struggle. In case job life is not easy going, free flowing, more accountability required with more ownership, people prefer leaving jobs and keeping the search on for the next launch pad. They are not bothered to stay back at home with lot of liabilities before they find one more stopgap engagement.
With the so much uncertainty in the market, why there is no hungry, desperate, job seekers?
I do not know the answer. Do you?