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Communications Minister Manoj Sinha today sought to play down concerns over job losses in the telecom sector, saying the perception of job cuts was "not true" and that the consolidating industry will stabilise in coming days.
"There is no difficulty or problem of jobs," the minister asserted, responding to a specific query on job losses in the telecom sector.
Billionaire Anil Ambani-led Reliance Communications has plans to shut down its loss-making wireless telephony business by November 30 and concentrate only on 4G Internet services, according to sources.
An executive director of the debt-laden firm has asked its 1,500-2,000 employees to look for jobs as 2G and 3G cellphone services business will be shut down from November 30, the sources said.
Moreover, the spate of ongoing merger and acquisitions have triggered fears that potential job losses could be in the offing.
Asked about the likely job losses in the sector against the backdrop of consolidation, operators combining forces or acquiring smaller players, the minister said: "To say that jobs are reducing is not true and far from reality."
He cited the case of newcomer Reliance Jio that is opening multiple stores.
"The consolidation process is on and I feel that industry will stabilise in coming days," Sinha said.