Reliance Communications chairman Anil Ambani said that the country's telecom sector has cut 10,000 jobs last year and the ongoing stress will further lead to reducing 30,000-40,000 jobs more this year.
Ambani, while addressing media, said that India's telecom sector is heavily burdened with tax and telcos' total bank loans stand at Rs 2.8 lakh crore. He urged the Indian Government should consider providing a three-year moratorium on increased Goods and Services Tax (GST), which is scheduled for July 1 rollout.
"High prices of 900 Mhz spectrum in 2015 resulted in financial pressure...hyper-competitiveness in telecom that started in September led to 'free plan' wars," he said.
Over the past few days, Fitch, CARE, ICRA and Moody's have all downgraded ratings of the company's bonds because of its debt obligations, and the competition it face in the Indian telecom market.
Disappointed with credit rating downgrades of RCom, Ambani said that the company will make efforts to restore ratings.
The company's plan for firm's strategic transformation has been accepted by lenders, he said, adding that RCom has time till December 2017 to complete Aircel and Brookfield transactions.