INTERNSHIP REPORT

Internship Report

Submitted by:
Mahwish Zamman

Roll #
MB09151

Session 2009-2011

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TABLE OF CONTENTS
o Executive summary 3
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Presidents Message .....5

o Vision Statement....6 o Mission Statement..7 o Core Competencies.8 o Registered Offices 9 o Auditors of PTCL..10 o Bankers of PTCL...10 o Hierarchy .......11 o Introduction of PTCL 12 o Introduction to the organization .14 o Brief history of PTCL....16 o PTCL is born...19 o Slogan of PTCL...20 o Goals &objectives21 o Services of PTCL....22 o Competitor of PTCL....26 o New competitor ..27 o Regulatory environment of PTCL..29 o Historical background.30 o Company overall view.34 o Company profile..48
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o Nature of business....49 o PTCLs privatization50 o PTCL subsidiaries...50 o Key accomplishment50 o Field of activities.51 o Departmentalization....52 o Business strategy53 o Centralization & Decentralization...55 o Formalization..55

o Infrastructure ..56 o Porter five forces for PTCL..58 o Analysis of the environment 58 o Entrepreneurship ..64

o SWOT analysis.59 o Practical work...54 o Conclusion & Recommendations.....99 o Glossary101 o Bibliography 102

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Executive summary:
Necessity is the mother of invention. With the passage of time the mediums of communications have been modified. With the development of new technologies communications have become easy and fast. Telecommunication sector is now considered a fast way of communication locally and internationally. No country can progress without the information and implementation of telecommunication. All of the developed countries are familiar and enriched with the telecommunication network. Now the world has been changed into Global Village.

Telecommunication is a basic need of any country. To seek the need of telecommunication in Pakistan the Posts & Telegraph Department in 1947 and Pakistan Telephone & Telegraph Department in 1962 were established. Pakistan Telecommunication Corporation (PTC) was established in December 1990. Following a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of PTCL in two separate positions. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996. In 1995, Pakistan Telecommunication Ordinance formed the basis for PTCL monopoly over basic telephony in the country. In 1996 Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan. The telecom sector of Pakistan has also entered into a new era. The monopoly of PTCL is now over and the sector is moving towards
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liberalization. While liberalization and competition are synonymous, the future scenario also poses some challenges to the market control of PTCL. The Company is ready to face this challenge and maintain its dominating position, while guarding its revenue streams in the face of forthcoming competition. This Report is about the history, vision, mission, management affairs and management hierarchy, HR policies, about the organizational structure, swot analysis of PTCL and Marketing tools and techniques. PTCL is the largest and solely line based communication system in Pakistan. The purpose of this project is to practically know about all the aspects of marketing activities of PTCL. This is a report on PTCL (Pakistan Telecommunication Company Limited). In this report there is a detailed introduction of the PTCL and its management, marketing activities and their functionality as well services. V fone PAK Net Smart Service Broad Bank

We also discussed its financial aspects. We got information about PTCL business strategies, Motivations procedures and its internal and external resources and departmentalization, (engineering finance, marketing and also the HR department of the PTCL. It also includes the functions of HRM e.g. selection, training and development, motivation, maintenance and other functions of HR department. At the end of this project we have written down the SWOT analysis of PTCL Company and HR department.

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President's Message
I have taken immense pride in assuming the duty as President and CEO of PTCL, which is a great opportunity for me to execute my responsibilities a team leader. To me Pakistan and PTCL are synonymous with an opportunity for growth. The potential of this growth is visible to me as it is about the human capital we have in the form of talented and experienced employees. I can assure you that with the traditional dedication and determination of PTCL workers we will transform this company into a world class ICT company.

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I am proud of my fellow colleagues who have been leading the market so far and have been adapting to changing technological advancements. After the deregulation in the telecom sector of Pakistan, PTCL is now again ready to face new challenges in a competitive environment. We are poised to retain our leadership position by giving PTCL a new and improved look. The new colors of the Logo are in context with every Pakistanis sense of identity and patriotism; green and white being the colors of purity and honesty, the colors of trustworthiness and integrity, the colors of Pakistans flag and the colors of every Pakistanis passion. Be assured that PTCL will remain the peoples first choice of communication in the future. Promising you the best of our services, at all times. Best Wishes,

Vision:

The PTCL Training and Development wing will be a center of excellence in training services and consulting that works in close partnership with its internal/external clients to build competencies that achieve business goals. To be the leading information and communication technology service

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provides in the region by achieving customer satisfaction and maximizing shareholders value

MISSION:

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To provide a learning environment and tools to help our customers reach their full potential. To achieve our mission by having:

An organizational environment that fosters professionalism; Motivation and quality. Quality and time conscious customer service. Sustained growth in earnings and profitability.

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Core Values:

Open and free exchange of information at all levels. Continuous learning. Learners are active participants in all aspects of the training. Search for innovative PEOPLE DEVELOPMENT solutions.

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Company information:
REGISTERED OFFICE PTCL Headquarter Block-E, sector G-8/4, Islamabad, Pakistan MAIN OFFICES

The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4, Islamabad, which is headed by the President. Besides, it has Regional Headquarters like: Islamabad Telecom Region, Rawalpindi Telecom Region, Hazara Telecom Region Abottabad, Northern Telecom Region-I Peshawar, Lahore Telecom Region (South), Lahore Telecom Region (North), Multan Telecom Region, Faisalabad Telecom Region Southern Telecom Region-I Hyderabad Southern Telecom Region-II Karachi Southern Telecom Region-V Sukkur Western Telecom Region Quetta Switching network Central region Lahore
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These Regions provide Telecommunications services to the customers in their respective areas. Apart from these, PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber System Islamabad, each headed by a General Manager to install, operate and look after optic fiber systems/cables.

AUDITORS OF PTCL
Auditors of PTCL are the fallowing. A.F. FERGUSON & CO. Chartered Accountants Chartered Accountants

KPMG TASEER HADI & CO.

BANKERS OF PTCL
Habib Bank Limited United Bank Limited MCB Bank Limited National Bank of Pakistan Askari Bank Limited Citibank N.A.

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Management Hierarchy of PTCL:

President & CEO

Business Zone
North, Islamabad SEVP Regional GM NTR-I

Business Zone
Central, Lahore SEVP

Business Zone
South, Karachi SEVP Regional GM STR-II Karachi Regional GM STR-III Karachi Regional GM STR-IV Karachi Regional GM STRI Hyderab ad Regional GM STRV Sukkur Regional GM WTR Quetta

Regional GM

Regional GM LTRSouth Regional GM LTR North Lahore Regional GM CTRRaiwind

Regional GM FTR -

ITR-

Islamab ad Regional
GM RTRRawalpin di Regional GM HTRAbbottba d

Peshaw ar
Regional GM NTR-II D.I.Khan Regional GM AJK / NAMuzaffarabad

Lahore

Faisalab ad
Regional GM

GTR Gujranwal a Regional GM MTR Multan

GM Support functions BZ-N, Islamabad

GM Support functions BZ-C, Lahore

GM Support functions BZ-S, Karachi

Introduction of PTCL:
PTCL is the largest telecommunication company in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite arrival of a dozen including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA and Internet are other
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resources of PTCL, making it a gigantic organization. The government of Pakistan sold 26% shares and control of the company in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public. PTCL has become the first company in Pakistan to provide Broadband services in over 100 cities across the country, whereas before PTCLs entry into the Broadband market in 2007, Broadband was primarily only available in the 3 major cities of the country. PTCL is spearheading the spread of broadband culture in Pakistan, where till a couple of years back there was little awareness in the market about the broadband & multimedia technologies, nor were there any significant players entering the field to cater for the mass market with high speed internet access. Since its Broadband launch in May 2007, PTCL has made the broadband technology affordable by lowering the barriers to entry and also by geographically bringing the service within the reach of a common user across Pakistan hence, quadrupling the subscribers that was acquired over a long period of 5 years by the entire lot of ISPs before PTCLs entry into the market. With a true vision and clear objectives, PTCL has now successfully provisioned broadband services in over 119 major cities and towns i.e. Karachi, Hyderabad, Mirpurkhas, Hala, Sukkur, Jacobabad, Khairpur, Larkana, Multan, Bhaipheru, Okara, Pakpattan, Sahiwal, Faisalabad, Lahore, Islamabad, Rawalpindi, Abbottabad, Attock, Gujar Khan, Jhelum, Peshawar, Quetta alongside other small towns and cities across Pakistan. Expansion of PTCL broadband network will continue, providing more of its landline subscribers an opportunity to experience the latest in broadband and related technologies.

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One of the main reasons for growth in PTCL Broadband services has been its customer segmentation and geographical reach. For example PTCLs broadband facilitates the segment that relies most on high speed connectivity i.e. the students. Special packages for this segment along with services such as free dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas and cricket matches, educational and religious content for its Broadband customers - branded under PTCL BUZZ, this complete web infotainment content portal is made exclusive only to PTCL Broadband subscribers. In addition to these value additions, from now PTCL is also offering a free personalized e-mail account exclusively to its broadband users. Living up to its legacy of innovation and using its Broadband network, PTCL on 14th August 2008, entered the media sector by launching an interactive television service for the first time in Pakistan. Branded under PTCL Smart Line, the service includes Interactive Television, Broadband and voice Telephony all at the same time on PTCLs telephone line. Currently PTCL Smart TV offers its viewers over hundred live channels and a Video on Demand service. The Brand PTCL Smart was introduced for PTCL products that have functions that are more intelligent than their normal versions, such as Smart Line and Smart TV. PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network.
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Introduction to Organization: PAKISTAN TELECOMMUNIUCATION COMPANY LIMITED

With employee strength of 35,000 and 5.7 million customers, PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 1.1 million V-fone customers. Pakistan Telecommunication Company Limited (PTCL) is proud to be Pakistans most reliable and largest converged services carrier providing all telecommunications services from basic voice telephony to data, internet, video-conferencing and carrier services to consumers and businesses all over the country. PTCL is the largest telecommunications provider in Pakistan. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is being expanded to meet the increasing demand of International traffic. With the promulgation of Telecommunication (Re-Organization) Act 1996, the Pakistan Telecommunication Authority was established as the Telecom Regulatory body. Following the open licensing policy in BUY @ PKR 45.40 accordance with the instructions of Government of Pakistan and in exercise of powers conferred by Pakistan Telecommunication (Re-Organization) Act 1996, the basic telephony was put under exclusivity and PTCL was given a seven years monopoly over basic telephony which ended by December 31, 2002. The year 2006-07 in the telecom sector witnessed a phenomenal
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growth in the mobile phone sector in Pakistan, which doubled its subscriber base to 60 million. The Teledensity increased from 26% to 40%, helping to spread the benefits of communication technology across the country. PTCL's mobile phone subsidiary Ufone's subscriber base grew by more than 87%, from 7.49 million to 14 million. The year also witnessed the entry of major telecom companies, most notably China Telecom and SingTel, into the market. Restructuring and re-engineering are in their final stages along with the implementation of ERP system. From the end customer's perspective, a major initiative was put in place in the shape of 'Broadband Pakistan' service launch as a first step towards providing its customer with more value added service and convenience. The company also continued to invest in infrastructure development and addition of network capacity with a view to enhance services and to expand its reach across the country.

History of PTCL:
From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. In 1990 T&T transformed into a wholly-owned Government corporation i.e. Pakistan Telecommunication Corporation (PTC) under the Pakistan Telecommunication Corporation Ordinance issued on December 15, 1990. Proper legislative action being taken in 1991 through the promulgation of the Pakistan Telecommunication Corporation Act (Act XVIII of 1991).The primary objective of this structural change was to create an entity financially independent of the Government. This was achieved by two main elements of the Telecommunication Act whereby, on the one hand, PTC was required to pay to the Government on a fixed minimum basis for the assets transferred to it from the T&T
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department and not converted into paid-up capital and on the other, Restriction on excessive cash withdrawal from the Corporation through the imposition of a 7% limit on dividend declaration. Based on the outcome of that activity, it was decided that PTC would be sold as a single company with a monopoly on basic telephony services and through a transfer of minority shareholding but with control of the management of the company. This recommendation later crystallized in the form of a 7 year monopoly and a strategic sale of 26% with management control. 1. In mid-1994, primarily to inject an element of continued commitment to the privatization process, the Government decided to float 2% of the company in the domestic and international markets immediately. In July 1994, Khadim Ali Shah Bokhari/Merrill Lynch was awarded the mandate for the 2% floatation. Consequently, 1 million vouchers (equivalent to 100 shares each) issued by the Government but convertible into PTCL shares (once PTCL was formed) were pledged in August 1994. The offer was fully subscribed within Pakistan and was massively over-subscribed abroad. The overwhelming success of the sale of 2% equity of PTC encouraged the Government to look at the possibility of a further sale through a second tranche. 2. While the sale of 2% equity in the first tranche was performed primarily to gain popular support for the privatization process, the impetus for the second tranche appeared to have come from the budgetary support viewpoint. Some of the key commitments made, and met, by the Government in the information packages for the two tranches were:

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PTCL would be created out of PTC and shares of PTCL would be listed on the three stock exchanges of the country within 2 years of the issue of the vouchers/GDRs. In case the above does not take place as stipulated, the Government will buy back the vouchers at Rs. 3,840 each, the maximum number of fully paid-up shares in PTCL at the time shares are listed will not exceed 5.1 billion ordinary shares of Rs. 10 each, PTCL will take over a "large majority" of the assets, liabilities, employees and operations of PTC. Also in 1995, a comprehensive "Pakistan Telecommunication

(Reorganization) Ordinance" was promulgated which established the framework for the creation of Pakistan Telecommunication Authority (PTA) as an independent regulator of all telecommunication activity in the country, the Frequency Allocation Board (FAB), the National Telecommunication Corporation (NTC) as a second carrier in Pakistan exclusively for public sector communication needs and the Pakistan Telecommunication Employees Trust (PTET). The Ordinance provided details of the establishment, constitution, powers and rights of PTA, FAB, NTC, PTCL and PTET and defined the terms of the monopoly of PTCL, the mechanisms of transfer of assets, liabilities, employees, rights and obligation from PTC to PTCL, NTC, PTA, FAB and PTET. This law also covered issues such as rights of employees transferred from PTC to the other entities and national security.

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PTCL is born:
In exercise of the powers stated under the Ordinance, PTCL was created on January 1, 1996 and took over all the business of PTC minus about 5% of the assets and much of the Government business which went to National
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Telecommunication Corporation (NTC). The carving out of NTC from PTCL was performed in response to the national security concerns, although it was indeed a very unique arrangement. A minor portion of the assets and employees were also transferred to PTA, FAB and PTET. PTC stands effectively dissolved from January 1, 1996. Under the law, the 7 year monopoly granted to PTCL commences from this date. By February 1996, substantially all the activities required for the preparation of PTCL for sale had been completed. These include the preparation of various draft agreements, draft licenses, policy guidelines, valuations, financial model; perform accounts, long form reports, information memorandum, road shows, lender consents etc. Two Data Rooms had also been established and fully furnished with all documents and requisite support equipment for due diligence. On October 17, 1996, the new Pakistan Telecommunication (ReOrganization) Act (Act XVII of 1996) became effective providing permanency to the Presidential Ordinance in effect prior to that date. This law is a very comprehensive legislation and includes key provisions for reform of the telecom sector within the country and includes provisions required for the transfer of assets from PTC to PTCL, formation of NTC, formation of the regulatory body, PTA, Powers of Federal Government, National Security issues, creation of pension trust for PTC employees and other employee protection issues, etc. After a competitive bidding process, the mandate for financial advisory services for privatization of PTCL was awarded to Goldman Sachs International (GSI) in September 1998.

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SLOGAN OF PTCL

Hello to the Future Hello to the Future is an amalgam of our vision, brand philosophy, brand values and strategy. The essence is futuristic approach. The positioning statement Hello to the Future is basically comprised of two words Hello and Future that provides the inward communication through the word Hello, i.e. PTCL welcomes its customers and the future. Also it offers the outward communication through the word Future by promising customers the futuristic ideas and products. The first key word Hello captures the essence of the whole telephony network that is the backbone of PTCL. Hello is a Everyday most conversations and relationships start with the word Hello, hence it portrays the relationship building of PTCL with its customers. The second key word Future translates PTCL philosophy in a nutshell to provide planned and proactive solutions and products to its customers. PTCL is constantly evolving and taking its customers into the future. The word Future holds the promise that PTCL is committed to, by providing complete customer satisfaction through innovative and futuristic services and products. PTCL is breaking the stereotypical perception launching into the Future embracing it as the mission to transform the world of telecommunication and the way its customers communicate. PTCL establishes itself as a futuristic entity which is working constantly towards inventing paramount solutions for its customers. The font style selected is bold, straight and modern. The font depicts the brand values that PTCL fosters.

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Been used ever since and will be used in future. This word expresses the welcoming nature of the PTCL brand, its customer oriented approach and warm environment.

Company's Goals and Objectives:

Being a public limited Company whose majority shares are controlled by GOP (through Ministry of IT) PTCL is responsible to provide telecommunication services in the country on affordable price while ensuring that the telecom services become accessible throughout the country. Since exclusivity of PTCL has ended on 01st Jan 2003, the telecom sector of Pakistan has entered into a new era and PTCL is slowly moving towards competition in basic telecom services. The Company's policy objectives are as follows: Increase service choice for all consumers of telecom services at competitive and affordable prices. Increase private investment in the telecom sector and encourage local telecom manufacturing/service industry. Enhance long-run benefits to the Government's financial position by expanding the taxable revenue base. Accelerate expansion of telecom infrastructure to extend telecom services to unnerved and underserved areas. Encourage fair competition among service providers, while maintaining leadership in the telecom sector.

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Maintain consistency with the Pakistan IT and Internet promotion policy of tow prices for BW and Internet access.

SERVICES OF PTCL:
Pakistan Telecommunication Company Limited not only Provide Conventional telephone facilities, it also offers optical fiber services to the private sector. We will briefly discuss below the product line being offered by the PTCL. PTCL divide their services into two categories.

Service for customers Service for corporate customers

Service for customers

These services are basically for the common users (individual/ home

users) those use telephone in their home/ work place and they are New telephone connections
CLI( caller line identification) Prepaid calling card E-Bill Payment Digital Facilities

Service for corporate customers

PTCL is striving hard to facilities its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suite the needs of the Corporate Customers. The list of Corporate Customers Services is given as under.
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INTERNSHIP REPORT Universal Access Number Voice Messaging Services PTCL Messaging Plus Co- Location center Universal Internet Number Virtual Private Network ISDN BRI/PRI

Services for Consumers

These services are basically for the common users (Individual/home users) those use Telephone in their home/work place and they are basically non business users.

a) New Telephone Connections

As mentioned earlier, PTCL is presently the only telecom company, who provided fixed-line telephony in the country. So whenever, any Private business concern or any individual needs a new telephone connection for provision of telephone service basically non business users.

check on obnoxious calls complete record of incoming and outgoing calls with time and date

b) Value Added Services: CLI (Caller's Line Identification)

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Caller Line Identification (CLI): Calling line Identification (CLI) allow customers to identify the caller before picking up the phone receiver. To subscribe to CLI services, a Customer needs a telephone set with display capability or a CLI device attached to the Phone.

Advantages
PREPAID CALLING CARD PTCL calling card is the most popular choice of millions of customers all over the Country. It is now available with balance transfer facility and follow on call facility.

Comes in easily affordable denominations of Rs. 100, 250, 500, 1000 and 2000. Easily available throughout the country Easy to use from any PTCL digital phone (Dial 1010) Fast and easy, nationwide and international access No line rent and no Phone bills 24 hours customer services through toll free number (0800-80800)

How to use it:

Scratch off the security coating on the indicated strip to get your card Pin Number.

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Dial PTCL's toll free number 1010 from any digital phone. Dial 1 for Urdu & 2 for English Instructions, Enter your card Number & Press #.

E-BILL PAYMENT
Billing system is a part of customer services so providing connivance to its valuable customers PTCL launched a new billing service which is available through " PTCL Card" This is another service from PTCL. This service is basically providing Billing solutions for the users.

How to use it:

The basic concept of the service is to provide billing solution to PTCL customer. The Same PTCL Calling cards are used for this purpose. Through these cards customer can pay his bill on phone. No additional charges for bill Payment transaction.

Advantages
Customer can save his time by paying his bill on phone Customer can pay his bill whenever he wants

DIGITAL FACILITIES:
PTCL offers a variety of features to digital exchange customers like: Hotline

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Abbreviated Dialing Wake up call Absent Subscriber Code Barring

SERVICES FOR CORPORATE CUSTOMERS

PTCL is striving hard to facilitate its valued corporate customers at each level of Service. PTCL offers a host of unmatched services to suit the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the following services, PTCL Corporate Customer Centers can be contacted.

Universal Access Number (UAN)

UAN (Universal Access Number) service is ideal for organizations Engaged in Marketing of products or services. Here is a list of business that can avail UAN Service. Call Transfer on (a) Busy (b) No Reply (c) Immediate

Competitors of PTCL:
There is no meager competitor of PTCL in landline but with the growth of telecommunication industry of Pakistan competition increasing specially in mobile phone sector. In total there are more than 800 million subscribers of mobile phone. There are 03 big players in mobile phone industry but 3 of them are the competitor of PTCL.

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MOBILINK
Is a largest mobile phone company of Pakistan.Mobilink is currently

having more then31, 9 58, 5 97 users base which is the 36% of total cellular industry of Pakistan. Mobilink is basically competing U-fone which is subsidiaries of PTCL.

TELENOR
Is another cell phone company it have 17, 84, 107 4 subscribers which is 20 % of total Mobile industry.

WARID
Is also providing cell phone facilities in

Pakistan.Waridtel having more then15, 1 14, 678 subscribers which is17 % of Pakistan mobile industry.

NEW COMPETITORS: WATEEN

PTCL competitors is WATEEN which is providing most popular product against the PTCL .WATEEN is now a days leading company in Pakistan. It not only provides landline
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service but also providing GSM service like 23 WARID telecom. Its providing grant package against the PTCL and making problem for PTCL. WATEEN different product which is as..

Telephony:
It is providing faster landline service agents the PTCL with the low rate of call Rs call 1.20per 30sec it price little low rather than PTCL.

Broadband:
WATEEN provide different types of broadband services according to the customer want and need. Rather than the PTCL provide different packages. It price and services is high against the PTCL Brand. Its not provide Student package which make little down against PCL

WATEEN TV:
Agent the PTCL smart TV WATEEN also loach V service with the DVD picture quality and provide 100 TV channel with demand. It price very aging the PTCL TV. But this is available only in Lahore not all over Pakistan.

WATEEN WIMA
WATEEN WIMA a new services of WATEEN internet answer for you. No busy phone lines, no more waiting and no problems.Our 'always-on' highspeed Wireless connection 24.

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Regulatory Environment of PTCL:

The telecommunication industry is regulated by the Pakistan

Telecommunication Authority - an autonomous body established under section 3 of the Pakistan Telecommunication Re-Organization Act, 1996, an Act of the Parliament to regulate the telecommunication industry in Pakistan, including matters relating to protecting consumers' interest, licensing regime, tariff regulation, type approval of equipment and interconnection arrangements. The Authority has the following major objectives and functions: a) regulate the establishment, operation and maintenance of telecommunication systems and the provision of telecommunication services in Pakistan; b) promote and protect the interests of users of telecommunication services in Pakistan c) Promote the availability of a wide range of high quality, efficient, cost effective and competitive throughout Pakistan. telecommunication services

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d)

promote rapid modernization of telecommunication systems and telecommunication services;

e)

(e) Make recommendations to the Federal Government on policies in the telecommunication sector.

f)

The Authority has been vested with the necessary powers by the federal government to effectively perform its functions. Frequency Allocation Board (FAB): The FAB has the exclusive authority to allocate and assign portions of the radio frequency spectrum to the Government, providers of telecommunication services and systems, radio and television broadcasting operations, public and private wireless operators, and others. The objective of the FAB is the efficient management of the spectrum.

Historical background:
From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telecommunication Company Limited, to this very day, ours is a story of commitment and vision.

PAKISTAN POST & TELEGRAPH (P&T)

The postal and telecommunication services were performed by a single department known as Pakistan Post & Telegraph (P&T). This department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. This department continued its business up to 1962. The Government of Pakistan adopted the Government of India Telegraph act 1885 to control and direct the activities of telecommunication.

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PAKISTAN

TELEGRAPH

AND

TELEPHONE

DEPARTMENT (T&T)
Pakistan Telegraph and Telephone Department inherited a small

telecommunication network consisting of only 12,000 lines in 1947. It was the sole Department responsible for providing telecommunication facilities to whole country. In fact postal services were also included in its responsibilities. The Pakistan Postal Department was separated from Pakistan Telegraph and Telephone Department in the year 1962. Like all other field of newly born nation, there was no established system of telecommunication, available in the country. However the present system, as well as new installations was managed by the T&T quiet efficiently.

PAKISTAN TELECOMMUNICATION CORPORATION (PTC)

The erstwhile Telegraph and Telephone (T&T) Department was converted into a Statuary Corporation on 15-12-1990. It has its own legal identity totally separated from Government of Pakistan.

RE-STRUCTURING OF PTC
The P.T.C. was further segregated into four separate units in 1996.

P.T.C.L. P.T.A. N.T.C.

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F.A.B.

The summary is as under:

1947 Posts & Telegraph Dept established 1961 Pakistan Telegraph & Telephone Deptt. 1990-91 Pakistan Telecom Corporation 1995 About 5% of PTC assets transferred to PTA, FAB & NTC. 1998 Mobile (Ufone)& Internet(PakNet)subsidiaries established 2000 Telecom Policy Finalized 2003 Telecom Deregulation Policy Announced 2006 Etisalat Takes Over PTCL's management

PAKISTAN

TELECOMMUNICATION

COMPANY

LIMITED (PTCL)
PTCL was incorporated on December 31st 1995 and commenced business on January 1st 1996. The idea behind this was to provide better services to its customers. This was established to undertake the telecommunication business formally carried out by Ex-PTC. It was responsible for carrying out all kinds of telecommunications activities in the country. It was required to look after the existing telecom installations and their automation and development. It was also to undertake development program in telecom field. All properties, assets, obligations and liabilities of PTC were accordingly transferred to the PTCL on the January 01st1996. P.T.C.L. is a
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prestigious organization and telecom services in the country are getting better and better, since its incorporation.

TELECOM AUTHORITY (PTA)

Pakistan Telecom Authority (PTA) was established in 1996. It falls under the preview of Government of Pakistan. It issues licenses to various companies for carry out certain activities. This authority is responsible to monitor the establishment of telecom related firms, companies, the import of telecom equipments etc in the country. It is a regulatory body formed to accomplish rules and regulations relating to the telecommunication matters.

NATIONAL TELECOM CORPORATION (NTC)

It has been established for installation of telecommunication facilities to the Governmental organizations. A portion of working lines was initially transferred to N.T.C. from the P.T.C.L. but now they have established their network. They are totally independent in providing telephones connections, their look after and generation of revenue there from.

FREQUENCY ALLOCATION BOARD (FAB)

This organization has been established to allocate Radio and Wireless telecom frequencies to various organizations/companies within the country. The latest development in this regard is that F.A.B. is establishing Monitoring Stations in order to check the validity and legality of the utilization of circuits.

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Company Overall View:

The telecommunication sector around the world is going through a process of rapid change in information technology and convergence with focus on mobile internet and value added services. In line with global trends and for meeting the emerging demand, major initiatives have been taken by the Company to upgrade its network, introduce a range of new value added
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services and develop a portfolio of information technology, internet and bandwidth related services to enhance the revenue potential of the Company. Internationally, the current decade has seen restructuring and growth of the telecom industry. The Company's two new subsidiary companies, Pak Telecom Mobile Limited (PTML) and Paknet Limited are progressing according to plan. PTML has become operational in Islamabad, Lahore and Karachi and had started to provide cellular services from January 2001. It has employed GSM 900 technology with the latest features for its operations. The technology selected will be migrating able to 3rd generation. A turnkey contract has been awarded to Nortel Canada for the supply of equipment and technology. A team of professionals has been deployed for its implementation and operations. As of June 2000, Paknet has acquired a customer base of over 30,000 in its 6 months of operation. An annual growth of about 60% is expected in the mobile business while the information technology and Internet services may grow even faster (close to about100% per annum). PTCL will ensure full accounting separation with its subsidiaries to maintain a level playing field for fair competition with the other operators.

Company profile:

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PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is being expanded to meet the increasing demand of International traffic. PTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, for millions of people, we demand instant access to new products and ideas. More importantly we want them for their better living standards with increased values in this ever-shrinking globe of ours. We are setting free the spirit of innovation. PTCL is going to be your first choice in the future as well, just as it has been over the past six decades.

Business & Corporate Users:

For clear communication the first choice of business circles is PTCL telephone for local, nationwide and international calling. Today businesses can have 10-100 lines with modern day services to meet their needs. Now you get options like Caller-ID, call-forwarding, call-waiting, Call Barring, to name a few.

Other business specific services include:

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0800-Toll free number, 0900-Preminum rate services, VPN-Virtual Private Network, Audio Conference Service, Digital Cross Connect (DXX), ISDN (Policy), Teleplus(ISDN/BRI), Digital Phone Facilities/ Modification Charges, UAN, UIN.

Nationwide Infrastructure:
We have the largest Copper infrastructure spread over every city, town and village of Pakistan with over million installed lines. The network has over 0.5 million POTS ports with more than 250,000 Broadband ports in 13 major cities.

National Long-haul Core Network:

We have over 10,400 km fully redundant, fiber optics DWDM backbone network. It connects over 840 cities and towns with 270G bandwidth.

Carriers Services:
As carriers-carrier, we provide the core infrastructure services to the cellular, LDIs, Local Loop operators, ISPs, Call Centers and payphone operators. We provide all carrier services, right from inter-connects and telehousing to DPLC and IPLC connectivity. Our interconnect services are provided from our 3200 exchange locations that connect your carriers networks domestically, in addition to providing IPLC bandwidths to connect you internationally through our four international gateways and SEA-MEWE3 and SEA-ME-WE4 international submarine, also IMWE submarine cable will be added by the end of the year.

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Furthermore to provide connectivity to operators in the extreme remote areas of the country, PTCL launched its state of the art satellite service (Sky link).PTCL satellite service (Sky link) is provided using the Intelsat Satellite System, an undisputed leader in satellite communications.

White Label Services:

PTCL customers can now provide uninterrupted services to their clients without undertaking large scale investment in infrastructure or developing expertise in their own network. PTCL White Label Services are focused on speed and simplicity at minimal capex. This will enable our customer to offer their own branded WLL, DSL etc to customers nationally, together with an array of key support services.

Broadband Pakistan:

PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. In less than two years of it launch, PTCL has acquired over 150,000 Broadband customers in over 150 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan.

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With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user across Pakistan and by continuous improvements in customer care for the service. Unique offers that makes PTCLs Broadband unmatchable are special packages for the student segment, FREE modem and installation, FREE dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas, cricket matches, gaming, educational and religious content on PTCLs entertainment portal BUZZ, (made exclusive only to PTCL Broadband subscribers). PTCL also offers multiple FREE personalized e-mail accounts exclusively to its broadband users. In addition, PTCL recently doubled its broadband speed for all its existing and new customers at the same price, making 1 MB as its minimum offered speed. For a connection you simply dial 0800 8 0800 or visit www.ptcl.com.pk

IPTV Service (Smart TV):

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Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few countries across the globe that offers this state of the art interactive TV service to its subscribers. Branded under PTCL Smart Line, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCLs Telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to rewind and pause live TV channels, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content. Currently PTCL Smart TV offers its viewers over hundred live channels and over 350 local and international Movie titles on Demand. The service for now is available in four cities Karachi, Lahore and Rawalpindi Islamabad however is planned to be expanded to all the major cities and towns across Pakistan during the year 2009.

Pak Internet Exchange:

It is the only IP enabled network with 40 (number increase) point-ofpresences (POP) in 26 cities. The existing 16G active bandwidth is used for internet, data, and video and video-conferencing services and for voice of LDI. All PTCL Broadband users, narrow band users, corporate, mobile operators, and ISP are connected to this network.

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V-fone:

PTCL also continues to be the largest CDMA operator in the country with approximately 1.25 million V-fone customers. It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology, ours is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO Broadband. V-fone can be bought from our franchises or by dialing 1236 and it will be delivered within 48-72 hours.

International Network:

SEAMEWE-3 Submarine Cable System:

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PTCL is a member of SEAMEWE 3 Cable Consortium with its Cable Landing Station at Karachi. SMW-3 cable connects 39 cable landing stations in 33 countries and four continents. SMW-3 is the longest system of the world with a total length of 39,000 Km.

SMW-4 Submarine Cable System:

SMW-4 is a relatively new submarine cable system (inaugurated in December 2005) and links 14 countries with 16 landing stations across Europe, Middle East and Asia. The system is using Terabit DWDM technology to achieve. The link between any two destinations is STM-1. SMW-4 is designed for relatively higher traffic volumes.

I ME WE cable details and Status with Map:

IMEWE Submarine Cable is a Tera bit capacity submarine cable system connecting India to Western Europe through Middle East. The Cable system is 13,000 km long with 10 landing points in 8 countries.

Satellite Communication:
PTCL has Intelsat Standard Earth Stations near Karachi and Islamabad. These installations provide the diversity for International voice connectivity and also work as Hub for domestic satellite users. There are four Intelsat Standard B Earth Stations at Islamabad, Gilgit, Skardu and Gwadar.

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NATURE OF BUSINESS
Pakistan Telecommunication Company Limited (PTCL) was incorporated in Pakistan on December 31, 1995 and is listed on Karachi, Lahore and Islamabad stock exchanges. It was established to undertake the telecommunication business firmly carried on by Pakistan Telecommunication Corporation (PTC). The business was transferred to the company on January 1, 1996 under the Pakistan Telecommunication (Reorganization) Act, 1996 at which date PTCL took over all the properties, rights, assets, obligations and liabilities of PTC except those transferred to National Telecommunication Corporation (NTC) , Frequency Allocation
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Board (FAB), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET). The company commenced business on January 1, 1996. The registered office of the company is situated at Block-E, PTCL Headquarter, G-8/4 Islamabad. Pakistan Telecommunication Company Limited (PTCL) is the main provider of Telecommunication services in Pakistan. It owns and operates a substantial part of the telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan.

PTCLs Privatization: The Biggest Financial Scam in Pakistans History?

By Atif Tahir on September 4, 2007 under Companies, Foreign Investment, Government Regulations, Investment, PTCL, Pakistan, Strategy & Policy, Telecommunications. The fall of corporate giants like ENRON and WORLDCOM left many learning impressions for both public and private sector enterprises besides stakeholders including governments, employees, Board of Directors and strategic partners. In both of the above mentioned
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historical cases, the core reason was fraudulent conduct by the corporate level management. The top officers consistently kept hiding the true financial facts and figures bearing losses and public reports kept displaying healthy financial results and profitability, which strengthened the trust of shareholders and partners to keep investing besides helping the share price to grow further in the stock market.

Unfortunately, we might have another big financial scandal in Pakistan in upcoming days this is about privatization of PTCL. As you may recall Etisalat acquired a 26% strategic stake along with management control in 2006 after months of deals and bargaining on the actual value of the deal. Now the scandal reported in the papers claims that PTCL was worth a lot more. PTCL no doubt is one of the strongest corporate enterprises not only in Pakistan but also in the continent known as Asia. Therefore, if the news story becomes true, it will have a devastating effect on the Pakistans Telecom market, Economy and Pakistans political stability. Pakistans image, which already is in crisis, will be hurt further. The business schools around the world surely will have another good case study. Jang, one of leading Urdu newspaper in Pakistan, has highlighted news on the secret contract over privatization of PTCL as shown above. An ex-Senior Vice President has claimed the privatization as Pakistans Biggest Financial Scandal. PTCL former official further commented that the deal was closed on 2.6 billion dollars including U-fone & Paknet, however only
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U-fone had enterprise value of more than 6 billion dollars which does not include assets of U-fone. Moreover, pricing decisions were made through old records instead of determining current market value, which means, it was like Buy One Get 2 Free offer. It has been reported further that in September 2006, when Etisalat had refused to honor the deal, they were offered a secret price discount of 394 million dollars along with commitment to lay off 20,000 employees and to bear the 50% cost of layout. Supreme Court of Pakistan has already given decision against the privatization of PSO and Pakistan Steel and if PTCLs privatization gets challenged on true facts, it will bring horrifying results. Now this brings another example to Corporate Governance books and poses immense need to improve upon corporate governance practices. Corporate Governance is the set of policies, procedures, practices, processes, customs, laws and institutions affecting the way in which a corporation or enterprise is controlled or administered. It further involves shareholders, stakeholders, management and the enterprise goals and objectives i.e. profitability, organizational growth, share price stability for which a company is governed. The two main aspects of corporate governance are Accountability and Economic efficiency for the welfare of the shareholders. Being state owned enterprise, it was Governments critical responsibility to measure the scope and feasibility of privatization. PTCL was and is one of the oldest & strongest corporate enterprises and revenue contributor in Pakistan. The key objective of any business entity is to earn profit. So, why there was a need to privatize such a Giant, Whatever PTCL is doing after privatization could also have done before privatization. When there is no major change in organizational structure and policies and even new owners have still not been able to even lay off those 20,000 employees for which our Government has agreed to bear 50% cost of layoff.

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Marketing, Corporate Level, Business level strategies and new product launch could also be carried on without risking a profitable business. All PTCL needed was good corporate governance through accountable and economically feasible process with holistic approach towards growth besides integrity & ethical behavior, transparency and control by the BODs (Board of Directors). Corporate governance practice includes a set of internal and external controls, which, if applied properly can bring growth results in all operational activities. These controls include Internal Controls such as Monitoring by the Board of Directors, Human Resource Development, and Transparent & Accurate Disclosure of Financial Results. Then there are External Controls such as Debt Covenants, Government regulations, Media pressure, Competition etc.

PTCLS SUBSIDIARIES:

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Pak Telecom Mobile Limited (PTML) PTML is a wholly owned subsidiary of PTCL established to operate cellular Telephony under the brand name of UFONE. The companys performance during the current year has been very encouraging despite the stiff competition in Pakistans cellular market especially after the emergence of two new international players in the last quarter of the year. Throughout the year, UFONE pursued a growth strategy and managed to almost double its revenue compared to last year. The company successfully increased UFONEs market share from 16% to 22%, a significant achievement. On June 30, 2007 the total number of subscribers of UFONE was 4.6 million versus 2.8 million at the same year. During the year PTML successfully launched its Phase-IV network expansion project costing more than US$ 160 million. UFONE now covers more than 200 cities and towns, prominent highways and caters for international roaming with 135 operators worldwide.

Pak net Limited:

The fully owned subsidiary of PTCL owns the largest ISP network spread over 2,900 cities/locations with 43 POPs. It has extensive data transmission capabilities but has been incurring losses due to poor business orientation and excessive overheads. During the year Paknet recorded sales revenue of Rs. 213.9 million, which is 19% lower than last year. The company posted a loss of Rs. 42.2 million vs. a loss of Rs. 111.5 million last year. The quantum of loss is lower as compared to last year mainly due to reversal of provisions against doubtful debts of Rs.44.1 million made in prior years and reversal of deferred tax asset of Rs. 34.9 million in the last year. PTCL as the sole shareholder of Paknet is highly concerned with the poor performance of this subsidiary and is currently undertaking a strategic reviews of this ISP subsidiary of determine the future course of action In spite of these subsidiaries there are following product lines.

Fixed Telephone (Analog & Digital) DSL (Digital Subscriber Line) IN Products (Pre-Paid Cards, Calling Cards, Apna Das Calling Card, Phone Bill Card etc.) PTCL Wireless.
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U Fone

DSL (Digital Subscriber Line):

Now PTCL offers Pakistan's First Entertainment Portal completely free for its DSL Customers. Experience true broadband entertainment, listen or download melodies, songs, watch classic movies, Cricket Matches, PTV Plays, Online learning, Gaming, listen to religious Naats and lots of fun. Now your DSL connection is much more than just speed, it is entertainment and fun! PTCL BUZZ is an entertainment portal which is free and exclusively available only for PTCL broadband users. PTCL Buzz has a huge library of content including the best of English and Urdu movies, dramas, Sports, Live radio, Religious programs and over 10,000 songs to choose from.

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Broadband Pakistan (Unlimited):

PTCL is now the leader in consumer broadband in Pakistan, leading the country into 21st century. PTCL management pleased to announce the following tariff for broadband internet facilities for its valued customers, with effect from March 23rd 2009. The existing package of 512Kbps will not be offered to new customers. Existing 512Kbps packages customers will be upgraded to 1MB package, 1MB to 2MB and customers of 2MB will be upgraded to 4MB. Experience the Internet at its fastest with high-speed access from Broadband Pakistan, simultaneously, enjoy Voice service over the same telephone line without any extra cabling connections! Broadband Pakistan offers DSL service

Broad band :

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We have already reviewed on PTCL Broadband (DSL) service, now PTCL has launched a new 3G broadband internet service in Pakistan with the name Wireless Broadband onthego, this service is based on worlds proven CDMA 2000 technology. Now you can enjoy up to 3000 kbps high speed internet at home, office or on the road, wherever you want. PTCL EvDO (Evolution Data Optimized) offers this 3G Wireless broadband internet through PCMCIA adapters directly to your laptop. USB adapters will be available soon for your desktop computers. Right now PTCL broadband on the go internet service is available in the following cities Karachi, Lahore, Islamabad, Rawalpindi and Mirpur. By introducing the broad-band on the go, PTCL is providing an opportunity for the people of Pakistan to experience advanced technology and became familiar with this type of services. In return company will earn huge amount of profit.

Who are users?

1- Students/Workers who resides in hostels 2- Business executives 3- Field workers 4- Home Users 5- Users who have not access to PTCL land line

Advantages:
User will enjoy folloswing benefits from this broad-band service like: Speed up to 3000 Kbps (3.1 Mbps) Free 20 Mb email account
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Real time applications Video conferencing Unlimited data downloads Download heavy files and email attachments Get connected with offices and work places anytime Secure connection for all wireless networks in Pakistan PTCL Launches USB Device for EvO Connections:

Finally after a long wait PTCL has launched USB Base device for EvO Connection removing one of the major gripe I had about the service as I mentioned in the previous post. Cost of USB EvO Device from PTCL is 6000 Rs and monthly charges as mentioned earlier are 2000 Rs.For subscription you need to take you ID Card copy and a copy of PTCL Bill in which you want the recurring monthly charge to appear.

V-fone:
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Over the mountains and across the plains; in deserts and through cities, Vfone is the countrys largest WLL network. So whether its unparallel voice quality, network reliability, affordability or unsurpassed presence; the answer will always be Vfone---No one Else!! With Vfone, we make sure you never lose touch with your dear ones.Vfone lets you connect wirelessly to the whole world. Its easy to use and economical too! With Vfone you can enjoy wireless connectivity and freedom of movement within your premises. You can use your Vfone to connect to the internet and enjoy a world of information and entertainment. And thats not all; we are continuously enhancing our range of Value Ads to make your Vfone experience even more fun. Using CDMA2000 1X technology, we already have built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVO Broadband.

Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operations on
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provider. Since the outset, it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of the cellular industry is a direct result of the successful implementation of the telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications (MOIT&T) and the support, guidance and timely enforcement of regulatory process by the Pakistan Telecommunication Authority (PTA).

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Key Accomplishments:
Ufone has always played a pivotal role in the development of the cellular market in Pakistan. For the most part, it has been a step ahead in introducing innovative products to the market. Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market. As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact that two new international players also entered into the market in 2005. Subsequently the growth in subscriber base caused a healthy trend in revenues which have doubled. Brand: While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the upcoming competition and market dynamics, Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand.

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By designing market focused products, Ufones brand team launched aggressive campaigns, which further increased the brand equity. The new brand image gained huge popularity amongst the targeted market.A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufones Prepay brand is now considered to be one of the most favored brands by the youth market and is followed by other mobile operators launching their respective brands for the youth market.

In PTCL different activities are performing by different departments. Different specialized individual person carrying out specific task is an act, which is perhaps the minutest subunit that exists in a company. Employees acts are linked to one another in chains of acts called activities. Like jobs, activities can be continuously improved throughout the organization as well. Each improvement to an activity releases fresh energy and makes the organization more effective. Therefore, reviewing the major activities in a company is a highly worthwhile endeavor following are different departments in PTCL which are
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indulge in different activities and paying important role in organization overall performance and toward achieving organizations short run as well as long run profit oriented plans and goals. Marketing and sales department Finance Department Human Resource Department Development and Special Project department Multimedia and broadband Switching Department Transportation Department MM & BB Department Quality Assurance Department Optical Fiber Division

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Marketing department is concerned to create the value for the customer and capture value in return. In any Organization either its providing services or relate to manufacturing concern Marketing Department play important role in increasing revenue and in generation of maximum profit.

It is overall duties of marketing department to make proper advertisement for the promotion of the product. Advertisement really makes a great difference in demand of product .PTCL make it possible through, o Television o Newspaper o Sign boards, etc
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CUSTOMER RELATIONS;
Its main responsibility of marketing Department to creates a customer responsive organization. Because CUSTOMER IS KING And make it possible to provide easy access for the customer to its product and services.

Differentiat e

MARKETING MIX
PRODUCT

Easy access

PLACE

PRICE

Suitable

PROMOTION

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Different media

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PRODUCTS: Product Planning

In PTCL, so far products had been planned and developed by the engineering department and marketing pro fissional had no role in product planning as there was no marketing department in the Company. But now marketing professionals have been inducted in the Company and they will definitely have a close co ordination with engineering department in planning and development of products to satisfy customers desires. It should also be kept in mind that PTCL is a technical organization enjoying state-of-the-art telecom
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technology. The services offered by PTCL are built in the technology and with the passage o f time; PTCL rolls out these products in the market even many products, which have become obsolete in developed countries, are launched as new products by PTCL. But we cannot deny the fact that being monopolist, PTCL is depriving customers of many digital services that are available free in many other countries. However, as the Marketing department has been established now, it is expected that in future there will be close coordination and liaison between marketing professionals and engineers for planning and developing customers oriented pro ducts. PTCL is also in the process of hiring brand Managers to manage its different products.

PTCL landline
Since the deregulation of the telecom sector. A large number of foreign investors opted for licenses in LL. LDI and cellular operations, identifying Pakistan as an emerging market. Investors entered the market forcefully in the cellular segment, including heating competition for PTCL. In this situation PTCLs counter strategy for landline services, during the years 2007-08 was aimed to increase ARPU, acquire new subscriber and contain churn.

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To increase operations, PTCL shifted from its conventional duration based charging system to value based options, like Pakistan Package that offered 5,000 minutes for on net nationwide calls at RS. 199/month. PTCL also launched International Plus package to facilitate cost effective International calls at unmatchable rates

PTCL V-fone:PTCL also continues to be the largest CDMA operator in the country with approximately 1.25 million V-fone customers. It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology, ours is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO Broadband. V-fone can be bought from our franchises or by dialing 1236 and it will be delivered within 48-72 hours.

U-fone:
Ufone is a wholly owned subsidiary of PTCL and is a means of mobile telecom sector of PTCL. PTCL successfully increased Ufones market share from 16% to 22%, a significant achievement. Ufone now covers more than 200 cities and towns, prominent highways and caters for international roaming with 135 operators worldwide.

PTCL Broadband services:PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. In less than two years of it launch, PTCL has acquired over 150,000 Broadband customers in over 150 cities and towns across Pakistan,

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leading the proliferation and awareness of Broadband services across Pakistan. With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user across Pakistan and by continuous improvements in customer care for the service.

Smart services:Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few countries across the globe that offers this state of the art interactive TV service to its subscribers. Branded under PTCL Smart Line, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCLs telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to rewind and pause live TV channels, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content. Currently PTCL Smart TV offers its viewers over hundred live channels and over 350 local and international Movie titles on Demand. The service for now is available in four cities Karachi, Lahore and Rawalpindi Islamabad however is planned to be expanded to all the major cities and towns across Pakistan during the year 2009.

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Pak Internet Exchange:

It is the only IP enabled network with 40 (number increase) point-ofpresences (POP) in 26 cities. The existing 16G active bandwidth is used for internet, data, and video and video-conferencing services and for voice of LDI. All PTCL Broadband users, narrow band users, corporate, mobile operators, and ISP are connected to this network.

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PRICE: PTCL EVO -3G

Standard Price Charges Description (Rs.) Device Cost(OTC) 3,999 (Rs.) 2,800 (%age) 30 Description Plain EVO 3G With 5Gb Service Charges(MRC) 2,000 1,200 40 (Download-upload limit) Service Charges(MRC) Device Cost (OTC) Service Charges(MRC) 2,000 6,999 2,000 1,500 5,599 1,600 25 20 For Wi-Fi Cloud 20 Unlimited Offered Price Discount Device-Package

OTC: one time charges

MRC: monthly recurring charges

The contract period for the agreement will be (03) three months starting from the date of 1st July 2011. Virtual University employees/students will provide the NIC copy, Department card/Student card copy upon ordering.

o Any connection(s) availed within the mentioned stipulated time by VU, will be treated as perpetual offer by PTCL even after the expiry of the MoU.
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PROMOTIONS:
PTCL use different promotional tools for Advertising and promotions for bringing a service to get the attention of potential and current customers. Advertising and promotions are best carried out by implementing advertising and promotions plan. The goals of the plan should depend very much on the overall goals and strategies of the organization, and the results of the marketing analysis, including the positioning statement. PTCL plan usually includes what target markets you want to reach, what features and benefits you want to convey to them, how convey it to them (this is often called your advertising campaign), who is responsible to carry the various activities in the plan and how much money is budgeted for this effort. Successful advertising depends very much on knowing the preferred methods and styles of communications of the target markets that you want to reach with your ads. A media plan and calendar can be very useful, which specifies what advertising methods are used and when. Different techniques are used for promotions such as PTCL broadband customers will get a free for life personalized email account with 50mb of space.

Broadband keeps you connected to high speed internet all the time. Economical packages for students Special packages for corporate and individuals

Access to free movies, music, classical Pakistan plays, famous cricket matches, educational and religious contents exclusively for PTCL broadband customers.

PTCL achieving the important milestone of taking broadband into

over 414 cities/towns across Pakistan

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Advertising
In pro motional mix, PTCLs main stress is on advertising in print and electronic media PTCL periodically p laces its advertisements in print media on services (CLI), like H/Qs hotline Messaging 0800-44544, Caller line identification Voice Service Digital Facilities,

PTCL Prepaid Calling Cards, Inquiry 17, Complaint 18 phone bill cards prepaid telephone etc. to remind the customers o f these services. Sometimes, corporate ads are also released to print media to mark special occasions PTCLs Commercials on Prepaid Calling Card, CLI, Voice Messaging , Digital Facilities etc. are also broadcast immediately on electronic media as reminders to Customers.

Sales Promotion
PTCL charges 1/3r d rates on national calls from 06:00 pm 07:00 am and local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom network. Moreover, PTCL offers special rate packages on special occasions like Ramada Package and EID package, which offer customer reduced rates for specific timings. For Example, In EID Package PTCL charges half rates from 6:00am - 6:00pm and quarter from 6:00pm 6:00 am to attract customers to use its telephone service. These rates result in increased revenue for PTCL and also facilitate the customers to talk to their near and dear ones on these special occasions on affordable rates. Personal Selling: As PTCL is enjoying monopoly in fixed-line telephony, the Company has

no Professional sales force because the company has no t felt any

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strong need to use the Services of a sales force for increasing the sale o f its products. At the moment, PTCLs Customer Services Centers are playing the role of sales outlets. Customers can make telephone calls; send fax messages from these Customer Services Centers. They can also get connected their telephone bills and get duplicate bills from these outlets. However, with the establishment of Marketing Department in PTCL, The marketing professionals are no w in the process o f inducting professional sales force for the . Calling Card Promotion

Promotional Tariff features

For NWD callers first minute will be charged and subsequent two

minutes will be free similarly 4th minute will be charged and 5th and 6th minute will be free and so forth. (From 9PM to 7AM) Callers to mobiles shall avail reduced Tariff of Rs1.50/minute. (From 9PM to 7AM)

Reduced tariff will be applicable for thirteen international destinations (given in press add).

Prepayment telephony Services Target Market Target market for the services can be segmented as follow
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Budget conscious subscriber Subscriber avoiding bill-depositing hassles

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People requiring casual connections (on short term bases) Subscriber not meeting documentation requirement Students living in hostels Defaulters

Finance and Accounts Department:Financial analysis of any organization is very necessary for the evaluation and assessment of a firm.Principally the finance and accounts department of PTCL is centralized to headquarter and it monitors and executes the major functions regarding funds and resources maintenance. At regional level, the major function of finance and accounts department of PTCL involves the disbursement of salaries and funds of employees in their respective accounts and executes the requests for equipment maintenance and issuance. Current Ratio
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Current Ratio is an indicator to determine the short term debt paying ability or thr liquidity of a company. It tells us that how many current assets are available to pay for the current liabilities of the company. Current ratio of the company in 31 Mar 2008 is 1.67& is favorable for a company. Profitability Position PTCL posted a net profit of Rs.15.64 billion (EPS Rs 3.07) in FY07 against last year figures, PTCL maintained its leading market share in the fixed line, there was a decrease in revenues by 5.5% mainly due to substitution impact of mobile expansion. There was also an increase in operating expenses by 11.7% mainly due to prudent provisions for doubtful debts and long term systematic improvements in operations and customer services. In spite of decline in profit, the PTCL managed to increase its operating cash flows to Rs 35.54 billion compared to Rs 35.19 billion last year. Considering the cash requirements for restructuring and development plan, the company declared a final dividend of Rs 2.00 per share for the financial year ended June 30, 2007. The total revenue for FY 2006-07 stood at Rs 65.28 billion against Rs 69.09 billion of FY 2005-06. The decrease in revenue was mainly in the domestic segment due to competition and reduction in tariffs. However, PTCL is making all efforts to boost revenue by improving customer service and launching new services to turn around the situation.

Activity Position
The DSO of PTCL witnessed an upward trend throughout the period under analysis, except in FY05 when an improvement was marked. The ratio jumped up considerably in FY06, completely nullifying the effect of the decline in FY05, and exacerbating the already long collection period of the
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company. However, DSO showed a decline in FY07 showing that management of PTCL is constantly striving for improvement and enhancement despite stiff competition. As a result, the operating cycle has also decreased in FY07. The total assets turnover and sales to equity ratio of the company also declined in the FY'06 as revenues shrunk during the period. Sales/equity declined with the increase in equity of the company

The first and foremost functions of HR regarding employee selection, training and recruitment and these are all functions are monitored and controlled by headquarter of PTCL. The HR department at regional level operates with the employee salary imbursement matters by using different SAP modules. HR department also deals with certain other employee compensation affairs which also involves legal issues and also deal with the medical facility given to their permanent and contractual employees of PTCL.

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Key functions Human Resources may set strategies and develop policies, standards, systems, and processes that implement these strategies in a whole range of areas. The following are typical of a wide range of organizations:

Recruitment, selection, and on boarding (resourcing) Organizational design and development Business transformation and change management Performance, conduct and behavior management Industrial and employee relations Human resources (workforce) analysis and workforce personnel data management

Compensation, rewards, and benefits management Training and development (learning management)

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Revenue and collection department of PTCL deals with the issuance and as semblance of bills from its customers. It also pays some incentive to its bankers and distributors for the division of bills and collection of payments from the customers. Following Heads are deals by this department
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Cash A/R
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Allowance for Doubtful Accounts Sales Revenue Sales returns and allowance Bad Debt Expense

Bill Printing & Distribution The printing is basically carried out by regional billing computer center at every regional headquarter. These printed bills are handed over to Post Office after sorting & stapling by the Assistant Revenue Officers staff at Distance level. Issuance of Duplicate Bills
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In case o f missing or damaged bills received to customers the correction is also Revenue departments responsibility. For this purpose the revenue office deputes its staff for each Tehsil level PTCL office during the bill payment dates normally from 18 to 34% of each month. Error Correction of Bills In case of late payment o r any other discrepancy due to missed collection by banks the previous amount is also included in the new bill. The revenue office is responsible for such kind of correction. Collection of Defaulter Amounts The amounts defaulted by the customers o r the bad debts are also collected through revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target of bad debts collection on monthly bases. Now days as incentive is also offer Dunmore than 100% recovery each month.

The fundamental function of multimedia and broadband (MM & BB) of PTCL is to provide latest and modernized internet services to its customers.
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The first major product initiative taken towards a changing PTCL during the year 2006-07, was the launch of PTCLs Broadband service under the theme of Broadband Pakistan by the Prime Minister of Pakistan. The service was launched on PTCLs new state of the art Broadband infrastructure that was added to our network during the last three quarters of 2007 with the initial capacity of over 100,000 subscribers.

PTCL achieved unprecedented success as it added over 10,000 customers within the first 120 days of its launch while historically it had taken four years collectively for all the other operators to achieve 30,000 customers in Pakistan! The hallmark of PTCL service was the removal of the traditional barriers such as the upfront costs of installation and customer premises equipment and added bandwidth download. This high customer take up also reflected on the Companys trusted image in the eyes of the nation. The service is already available in the five largest cities of Pakistan and will be expanded into another dozen cities during the coming year

Switching department of PTCL involves networking of cables for assigning connections to its customers. This department is present in certain exchanges of PTCL to provide customer service. Switching Department perform following functions 1. Domestic counter for local and international calls
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2. Design and implementation of digital private automatic branch exchange (PABX) 3. Study the capability of connecting different types of switches to public service switching telephone network (PSTN).
4. Remote control of devices using the global system of mobile.

Communications (GSM) networks.

5. Calls payment system for calls voice over Internet protocols (VoIP)

technique. With these different switching technologies PTCL is running its huge network and providing different communication functions to its customer Remote control unit for telephone set. Switching department deals with all activities regarding to these techniques.

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The department related to purchase of land and construction of buildings of

PTCL, implantation of new towers in any region of Pakistan and maintenance of equipments are monitored by this department of PTCL. Development and special project completion passes through different stages.
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Quality assurance, or QA for short, refers to a program for the systematic monitoring and evaluation of the various aspects of a project, service, or facility to ensure that standards of quality are being met. It is important to realize also that quality is determined by the program sponsor. QA cannot absolutely guarantee the production of quality products, unfortunately, but makes this more likely. Quality assurance department of PTCL tests and analyses the quality standards of its products and services provided to its customers

Optical Fiber Division Optical fiber division assists those customers of PTCL using IPTV, wireless telephone service and DSL services of PTCL. This Department deals with all functions relating to optical fibers.

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Transmission department of PTCL deal with the working and maintenance of electrical equipments involving transmitters and other materials required to provide effective services to its customers.

Transportation department deals with the maintenance and fueling of transport provided for official use of its employees. The vehicles are collected in the form of a transportation pool which is monitored by an in charge of this department.

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Culture and Environment:

The Pakistan Telecommunication Company Limited (PTCL) has decided to introduce a new bill format for its customers, effective February 2009. This decision was taken to ensure that PTCL stir towards adopting environmentalfriendly and customer-friendly policies in line with the government of Pakistan's efforts, which recommends companies and institutions to go green.

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This initiative of PTCL also coincides with the Governments decision to celebrate 2009 as the "Environment Year". PTCL's decision to reduce the number of billing pages is an environment friendly initiative and is a way forward towards becoming a paperless enterprise. According to Dr. Sadik Al-Jadir, SEVP Commercial PTCL, preceding bill format comprising multiple pages, would be replaced with a new one-page bill format, thus packing all the essential billing details on a single page. This single page bill format would help save, at least 12 million papers every month that are being used for printing the billing details. To facilitate the customers, itemized billing details would remain obtainable and accessible. Customers would be able to obtain their itemized billing details by visiting any customer service centre of PTCL and would also be able to access essential billing details through IVR by dialing 1200. PTCL Call center is also expected to start taking orders from customers for their itemized billing details. Subsequently, these details would be delivered to the customers through courier within a certain time frame. Dr. Sadik said, PTCL is determined to improve and build good relationship with its customers by providing novel and superior telecom products and services to its valued customers and is striving hard to meet their expectations.

BUSINESS STRATEGIES: As part of the Companys vision of maintaining and growing its position as the leading ICT service provider and a profit leader, a five year Strategic Master Plan for the Company, with defined corporate KPI targets, timelines and ownerships was developed by the PTCL management. Defining yearly
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targets on market shares for various voice and data services, introduction of a corporate KPI based performance measurement system, Restructuring of the organization, formulation of IPTV, Triple Play and converged services, migration to an end to end IP based network, Investment strategies such as Assets Management for risk diversification and improved Return on Investments, were all part of the master plan. The five year master plan will be reviewed and updated on an annual basis. PTCL chose August 14th, the Independence Day, to launch its new logo and theme of feel the difference. To support the new spirit and to reinforce its commitment, PTCL offered free nationwide calls to the people of Pakistan. The traffic on 14th August 2007 jumped to 4 times the level on a similar holiday to give credence to our hypotheses that the good old telephone Company is still the trusted landmark of the people of Pakistan. This unprecedented response to free calls on 14th August was a heartwarming experience as it reassured the faith of our customers in our services, making us even more aware of our responsibilities towards putting our customer first. Fixed Line Telephony PTCLs fixed line segment has witnessed decline in numbers in 2007-08 as against last year with a decrease of 452K lines during the past year. The market for the FLL segment has least amount penetration primarily due to the major inclination towards cellular and wireless segments by users. PTCLs fixed line potential is anticipated to remain stable with its having the largest network, coverage and better quality service as compared to WLL and cellular networks. The fixed line segment is anticipated to cater the needs of the business community at large and as expected is to be driven by the countrys future economic growth. Strategies: Marketing strategy of PTCL Market segmentation of PTCL Marketing mix of PTCL Promotional strategy of PTCL
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1-Marketing Strategy of PTCL: For understanding the marketing department work flow and its function we must have clear picture of the PTCLs marketing strategy. For developing clear understanding of marketing strategy of PTCL there is no one line statement or clear vision of marketing department so we have to move traditionally. Classically, Marketing has been all about the four Ps: Product, Place, Price and Promotion. The marketer identifies a target market, defines the product and Pricing to appeal to this market and a strategy to deliver the product to the market. Thus the marketer is the steward of the value proposition, ensuring that the firm is delivering maximum value to its customers. We will briefly discuss below the marketing strategy, product planning, development & management, Pricing strategy, distribution strategy and promotional strategy: A) Marketing Strategy: Normally, a marketing strategy identifies the target markets, the desired position in each market and the marketing mix that will persuade those target markets to part with their money. Market is targeted through market segmentation. Segmentation can be done on four types i.e. Demographic Segmentation (age, gender, race/ethnicity, household type, home ownership, education, employment, income etc.), Geographic segmentation. Positioning oneself by product can do positioning differentiation, positioning by product usage, positioning against a particular competitor, positioning against an entire product category, positioning by association and positioning by problem, Marketing Mix includes Ps i.e. Product, Price, Promotion and place.

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B) TARGET MARKET: PTCLs 80% revenue comes from just 20% customers, who are corporate customers and other big and small business organizations. The main focus of PTCL marketing efforts is on retaining and satisfying that 20% chunk of key customers at any cost. For this purpose, PTCL is now established Corporate Customer Services Centers in major cities to take care of these vital customers. Apart from these important customers, PTCL targets general public and other small business companies for sale of its landline telecom services like telephone, fax, Internet, as well as other services like CLI, VMS, and Digital Facilities etc. 2. Market Segmentation: Basically PTCL segmented its market on two bases: To better implement customer services features, segment the market on a customer basis:

Corporate Residentional on the basis of services Telephony Data Video

PTCL has segmented its market for its services and products to effectively deal with its customers. Some of its services like Universal Access Number, Co-Location centers and virtual private network are specially targeted at
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corporate customers and business concerns. The other services like new telephone connections, digital services etc. are meant for mass market. The services like Internet, fax facility etc. are targeted at both the corporate and general customers.

A) POSITIONING STRATEGY: As PTCL is the sole provider of the landline telecom services in the country; it is the market leader in providing these services because there are no competitors to challenge its market leader status. Thus presently PTCL is facing no problems in positioning its services in the market as a market leader because it enjoys monopoly in the industry. However, with the deregulation of telecom sector PTCL is gearing up itself to maintain this market leader position, on the other hand competitors are doing to challenge it. 3- MARKETING MIX A) Product Planning: In PTCL, so far products had been planned and developed by the engineering department and marketing professionals had no role in product planning as there was no marketing department in the Company. But now marketing professionals have been inducted in the Company and they will definitely have a close coordination with engineering department in planning and development of products to satisfy customers desires. It should also be kept in mind that PTCL is a technical organization enjoying state-of-the-art telecom technology. The services offered by PTCL are built in the

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technology and with the passage of time; PTCL rolls out these products in the market. Even many products, which have become obsolete in developed countries, are launched as new products by PTCL. But we cannot deny the fact that being monopolist, PTCL is depriving customers of many digital services that are available free in many other countries. However, as the Marketing department has been established now, it is expected that in future there will be close coordination and liaison between marketing professionals and engineers for planning and developing customers oriented products. PTCL is also in the process of hiring brand Managers to manage its different products in a thorough professional way. B) Pricing Strategy: Being a government organization, PTCL is not authorized to determine the prices of its products itself; the Telecom Regulator Authority viz. Pakistan Telecommunication Authority (PTA) fixes the prices of telecom services. The process is such that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls consumers representatives, journalists and other interested groups for discussion on the proposal. After listening to the viewpoints of all the interested parties, PTA gives its decision. If PTA approves PTCLs proposal, the new rates are enforced. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. PTCL also rationalizes its tariff with the passage of time. 4. PROMOTIONAL STRATEGY

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PTCL is using following components of promotional mix for the promotion and Publicity of its product/services. A) Advertising: In promotional mix, PTCLs main stress is on advertising in print and electronic media. PTCL periodically places its advertisements in print media on services like H/Qs hotline 0800-44544, Caller line identification (CLI), Voice Messaging Service, Digital Facilities, PTCL Prepaid Calling Cards, Inquiry 17, Complaint 18, phone bill cards prepaid telephone etc. to remind the customers of these services. Sometimes, corporate ads are also released to print media to mark special occasions. PTCLs Commercials on Prepaid Calling Card, CLI, Voice Messaging, Digital Facilities etc. are also broadcast immediately on electronic media as reminders to Customers. B) Sales Promotion: PTCL charges 1/3rd rates on national calls from 06:00 pm 07:00 am and local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom network. Moreover, PTCL offers special rate packages on special occasions like Ramadan Package and EID package, which offer customer reduced rates for specific timings. For Example, In EID Package PTCL charges half rates from 6:00am - 6:00pm and quarter.

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PTCL EID

Pakistan Day

CENTRALIZATION & DECENTRALIZATION The term centralization describes where the decision making authority is. In PTCL, organization decision making is highly centralized at upper levels of management. Problems flow up to senior executives, who decides what, should be done. In some cases, decentralized policy is used and decision making is delegated to lower levels of management. Which is not correct and creates problems in the creation of long term value aided strategies. FORMALIZATIONS The degree to which an organization relies as rules and procedures to direct the behavior of employees is formalization. The PTCL organization structure operates with standardized guidelines, rules and regulations. Each officer/official knows his/her responsibilities of what he has to do. Due to these strict rules and regulations the PTCL organizations structure is more formalized.
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Infrastructure:
However, through the vast infrastructure and being the carriers carrier, PTCL with diversification of its various services has enjoyed well-built position and posses immense potential for growth, while need for telecom services is on rise as economy continues to grow on the right track. The telecom De-regulation and Cellular Mobile Policies announced by the Federal Government place certain obligations on Pakistan Telecommunication Company Limited (PTCL) to facilitate market liberalization. PTCL is bound to comply with these obligations within a stipulated time frame. These obligations are of paramount importance for successful implementation of the policy and failure or any deviation thereof may

results in substantial damage to the deregulation process/liberalization program. Similarly Defense, NTC and SCO also depend on PTCL for many facilities. Therefore, PTCL has important obligations towards Defense of the country and other existing operators. In addition, PTCL has been declared SMP operator. Under the status of SMP also, PTCL has certain obligations. PTA, as regulator, has to ensure that new management of PTCL fulfils all these obligations.

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PORTERS FIVE FORCES FOR PTCL

Porter five forces for Pakistan Telecommunication Company limited are as follows 1. Threat of new entrant 2. Power of suppliers 3. Power of buyers 4. Threat of substitutes
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5. Competitive Rivalry The five forces for Pakistan Telecommunication Company limited are now discussed in detail.

Threat of New Entry:

As government of Pakistan is showing liberalism in case of

telecommunication sector and opened its policies to award new licensees to new mobile service providers so threat of new entry is high. As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are companies who are working to achieve licenses and approaching PTA to know terms and conditions for this. As for this business companies need a well established distributions and franchises network so threat of new entrant is high in this case.

Bargaining Power of Buyers:

Power of buyer is high in telecommunication sector. There are six market players and players are offering different packages at different prices and a situation of price war is running. Buyers have a power to buy any package which is suited to them. Cost of switching from one company package to other company package is low. Hence, power of buyers is high.

Bargaining Power of Suppliers:

The power of suppliers is low in case of telecommunication sector. But the fact is that numbers of suppliers are few in the market but they are competing in the market to make agreements with mobile service providers.

Threat of Substitute Products:

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Government also gave so many land lines and wireless local loop licenses to different companies like PTCL wireless local loop, GO CDMA etc. these services in future will be like mobile phone services like they are planning to offer services a lot but currently they are offering SMS and CLI services to their customers.

Competitive Rivalry:
Currently there are six market players but in future they will be eight and nine or even more. Thruway satellite service is offering subscribers freedom of mobility and uninterrupted service. Thruways satellite technology supplements of existing mobile service providers, overcoming the challenges of large geographical areas and insurmountable terrain.

ANALYSIS OF INTERNAL ENVIRONMENT:

Being a public limited company whose majority shares are controlled by the Government of Pakistan, PTCL is responsible to provide telecommunication services in the country on affordable prices while ensuring that the telecom services become accessible throughout the country. Since exclusivity of PTCL has ended on 1st Jan 2003, the telecom sector of Pakistan has entered
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into a new era and PTCL is slowly moving towards competition in the basic telecom services. The companys policy objectives are as follows: Increase service choice for all consumers of telecom services at competitive and affordable prices Increase private investment in the telecom sector and encourage local telecom manufacturing/service industry Enhance long run benefits to the Governments financial position by expanding the taxable revenue base. Accelerate expansion of telecom infrastructure to extend telecom services to undeserved areas.
Encourage fair competition among service providers, while maintaining

leadership in the telecom sector Maintain consistency with the Pakistan IT and internet promotion policy of low prices for Bandwidth and Internet access.

FINANCIAL ASPECTS:
The structural adjustments undertaken by the company in response to the increased competition and substitution impact of mobile expansion has
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adversely hit the profitability of PTCL in the short run. The first quarter of FY'08 recorded a drop in profitability of PTCL, as the company's profit after taxation declined 41.5% over the three months period to September 2007, as compared to the same period last year. Sales revenue dwindled during three months period, reaching Rs 14.4 billion, compared to Rs 16.9 billion last year, depicting a decline of 15%. A 6% rise in operating expenses as a result of high provisioning against doubtful debts and infrastructure development for high speed DSL connections, combined with a 32% increase in financial charges, provided a further blow to the bottom line. Consequently, operating profit declined 46%. However the effect on net profit was somewhat diluted by a 14% increase in non-operating income of the company so that the company posted profit after tax of Rs 3.01billion, compared to Rs 5.15 billion in1Q'07. At the end of first quarter, the company stock was trading at a P/E ratio of 18.20. As illustrated by the graph, the stock has performed remarkably well relative to the market. The stock has shown consistent performance over the three months, dropping only slightly as the rest of the market dipped sharply during August. As a consequence of the fading sales revenue for the period, the profit after tax of the company in FY06 declined by 21.91% over FY05. The net profit margin has also been declining since the FY'04 and the trend persisted in FY06. The decline in profit margin may be attributed to a 5.25% increase in operating expenses for the year.

ANALYSIS OF EXTERNAL ENVIRONMENT

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Pakistan followed a gradual approach to liberalize its telecom market. During 1990s, as a first step, market was opened for value added services and competition was introduced in cellular mobile sector as four licenses were issued (Mobilink, PTML, Paktel and Instaphone). The government monopoly was retained in fixed line services, however, PTCL legal monopoly ended with effective from 31 st December 2002. The government announced Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and 2004 respectively. The telecom regulatory, issued new licenses for Long distance International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL) and Cellular Mobile. With the issuance of new licenses the market is now open for full competition in all segments of the sector.

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ENTREPRENEURSHIP INNOVATION & INCENTIVE PLANS

Quality Services In order to have sustainable business performance in the highly competitive environment of the Telecom industry, PTCL has to deliver highest quality services to its customers. Quick provisioning of PTCL services brings lot of value to the customers which not only guarantees more revenues but creates goodwill for the company. In the backdrop of this situation, PTCL management is taking key initiatives in different business areas. One important move aimed at improving the Sales and Customer satisfaction is to boost the morale and motivation level of our employees. An Incentive Plan has been worked out to present substantial cash rewards to the employees performing beyond the specified benchmarks. This will be the start of an era where the rewards shall be linked with the performance and achievement of targets. While the first phase focuses on front end of the Supply chain, it would subsequently be expanded to other segments of the Organization like Fault management, WLL and IP TV etc. Important features of this plan are: Implementation would be highly transparent, with zero

tolerance for abuse. It would cover Installation/Provisioning of Telephone (wire-

line) & Broadband connections. Rewards would be applicable to all the channels of request for

installation/ provisioning of connections. Rewards against Installation/Provisioning are subject to

receipt of the amount of first monthly bill through B&CC.

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Rewards

against Installation/Provisioning

of

telephone

connections are strictly subject to the fact that the whole process completes within a span of 03 days (from service request registration to the final service activation).

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SWOT ANALYSIS
PTCL strengths and weaknesses are discussed in detail below. This will define our work regarding to PTCL company affairs.

Strengths:
Largest operational network and infrastructure within ICT

(Information & Communication Technologies) segment. An integrated Monopoly Market leadership in Local loop, Wireless local loop (WLL) and fixed telephony.
PTCL (Ufone) is market challenger in GSM segment Ufone is performing well though Warid and Telenor are tough

competitors. PTCL, Ufones profitability increased by 49.2 percent to Rs. 977 million in 1H/FY07 as compared to Rs 655 million in the corresponding period last.
Competitors still depend on PTCL network either directly or

indirectly Experienced Telecom Resources

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Weakness:

Not been able to nurture its growth around customer services oriented strategy Internal organizational and business processes issues Monopolistic culture has further added to its complexities
Paknet, the internet service provider arm of PTCL continues to incur

losses due to poor management and lack of network optimization

PTCL-v, the fixed wireless phone service is poor

Over employment & low productivity Slow decision making including external interferences Corporate culture akin to government departments

Opportunities:

Profit taking growth of subsidiaries Low Teledensity of Pakistan.

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Have vast infrastructure and real estate assets which can be leveraged further. Global connectivity reliability has been improved. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables. Partnership with new entrants in a deregulated environment. Scope for efficient/cost effective operations.

Threats:
Increasing Number of competitors Cellular companys rates Increased competition in long distance continues to exert pressure. Exposure to market competition Migration to Cellular Networks Ability to Attract & Retain Quality Professionals Organizational Management Cycle

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PRACTICAL WORK BRIEF ON MY INTERNSHIP WORK

During my internship at PTCL I worked in fallowing department of PTCL Marketing department Customer Care & Customer Services department HR department Revenue department Now we move department wise and give brief introduction of each department and I will explain the work of each department
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.

Marketing department
Marketing Department is called a revenue-generating department of an organization Marketing Department undertakes market research and gives feedback to management about customers needs and wants on the basis of which, products and services are developed and positioned to give value to the customers. Thus Marketing department of an organization plays a pivotal role in its business development, growth & expansion. During my internship I worked with PTCL marketing department. Through working there I gain so much practical knowledge that will help me during my practical life. For Understanding the work flow and the operation of the department we have to move in certain manner. We have to look the key operation the structure of the department and in the end the focus will be on the critical analysis So we will move in the pattern describe below: Marketing strategy of PTCL Market segmentation of PTCL Marketing mix of PTCL Promotional strategy of PTCL REVENUE DEPARTMENT The revenue generated by the marketing department through selling the company Services/products is collected by the Revenue Department. The roles played by the Revenue Department are following.
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Bill Printing &Distribution. Issuance of Duplicate Bills. Error correction of Bills. Collection of defaulter amounts
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CUSTOMER CARE & CUSTOMER SERVICES DEPARTMENT PTCL has established its Customer Services Department at different levels the overview of the said department is as follows.

Corporate Customer Care Center To facilitate Corporate Customers PTCL has established Corporate Customer Care Centers at all Operation Regional Head Quarter Level, in all the meager cities country wide. The Corporate Customers can get their problems resolved under one roof in a one window environment by dialing UAN 111-20 20 2. The Customer Relation Officers register the complaints & forward these to the related office.

Customer Services Centers To facilitate consumers PTCL has established Customer Services Centers at all Tehsil Level cities/offices. Here the consumers can use Fax Facility, Voice Telephony for Local/NWD/ISD dialing. On divisional Offices Level duplicate phone bills may also be obtained from C.S.C's.

HR department
The PTCL has won repute in the field of land line & WLL services for the domestic & commercial customers .It has been achieved only due to the proper and exact functionality of the Human Resource Department .The Head of the Human Resources Department is the SEVP and his team comprises of EVP's & General Managers of different zones . The Human Resource Department may advice the administration and the board of directors on special issues of the company and then
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it offers services in order to accomplish the task. The human resources are the ultimate deciders provided by the Human Resource Department. It not only gives advice, offers services but also control the policies of the administration.

Conclusion & Recommendations: RECOMMENDATIONS

1. There should be screening of employees because number of employees

working is more than required.

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existence in a competitive environment.

3. The technical and installation team for broadband is insufficient. The

need is to have more experts to satisfy customer requirement of broad band.

4. Strong emphasis on marketing to compete with competitors. More

emphasis on promotion to compete with competitor.

5. There must be Quick response to customers queries. The marketing

department must take less time to solve customers queries. They must improve poor customer service.
6. Highly qualified & trained staff may be deputed in HR and marketing

department.
7. Refreshing courses should be adequate and more frequent during the

year.
8. The promotional criteria by the Human Resource Department should

be defined and be as per rules.

9. More training centers should be established. If there is lack of

resources, it is difficult, the training centers of the other organizations in the same capacity can be utilized by determining the terms and conditions.
10. During the training by Human Resource Department the ethical

values should be more emphasized. All employees must have ability to respond to customers.
11. The

proper and competitive evaluation of the methods procedures adopted by other competitors will enhance performance of Human Resource Department.

and the

12. This is the era of Information Technology. The functions and

procedures of the company should be converted from manual to the automatic. It will enhance the performance & accuracy of all the Departments and ultimately of the company. Human Resource Department should allocate resources for this purpose.
13. Human Resource Department

may advice and train employees for one window operation in order to reduce the time and conserve the
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resources.
14. Agents for the promotion of the company policies and to facilitate

the customers may be appointed with proper check and balance system.
15. Pay packages may be revised in the light of profit earned

by the organization.

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CONCLUSIONS
No doubt PTCL is enjoying monopoly and PTCL has the guts and capabilities to meet with the advancing telecommunication industry worldwide. But the time is came when competition will force company to change its policies to become favorite telecom service provider in the market & keep its current place & customer base. The actual working substances are the human beings .It goes without saying that Human resources are the most important in the organization and so does the Human Resource Department .marketing department also plays a very important role. Although marketing department is performing well but it pays more attention to promotion because of competitive environment. All managers must be well versed and confident in their field. He should be humane, well natured and have go face reading capabilities .All this ensures his success. He should be of the notion

"Victory is not everything, but the way of fighting is".

According to latest directors report from PTCL the Organization is being revamped. Only time can tell the impact. I have completed my internship for about Six weeks. During this period I have gained a lot of knowledge and practical experience. After a complete research work I concluded that decision making power in PTCL is fully centralized. All the powers lie in the hands of CEO of the company. Main decisions are made by board of directors. And confirmation of their decision is given by president of the company. I analyze the organizational structure of PTCL. Organizational structure of PTCL is fully straight forward.

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We can conclude that since the HR department of PTCL has been reorganized in 2005, there is still a long way to go for achieving the competitive advantage. Although the strategies they are adopting are good but they still need further improvement for the satisfaction of their employees and best utilization of human resources so in return they would be able to increase their market share.

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Glossary
B& CC DSL FAB HFC HR ICT ISP LDI NCPG NTC PTA PTC PTCL PTET PTML T&T VSS Billing and Customer Care Software Digital Subscriber Line FREQUENCY ALLOCATION BOARD Hybrid Fibre Coaxial Human Resource Information & Communication Technologies internet service providers Long distance International New contract pay grade NATIONAL TELECOM CORPORATION PAKISTAN TELECOM AUTHORITY Pakistan Telecommunication Corporation Pakistan Telecommunication Company Limited Pakistan Telecommunication Employees Trust Pak Telecom Mobile Limited Telephone and Telegraph Department Voluntary Separation Scheme

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WLL

Wireless Local Loop

BIBLIOGRAPHY
I would like to thank all the members of the organization who were always there to help and guide me when I need help. Specially to the following Mr. Kashif Mehmood Ch. Provisional manager (0345-6565650) Mr. Shahzaid baber HR manager (03425066300) Mr. Tayyab shabbier A.M HR 03009623851 Mr.Akram Bajwa Senior manager coordination More over I use the following resources to collect data relating to PTCL:
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www.ptcl.com http\www.pakistan-Report on markets in IT - telecom convergent technologies.htm http\www.ptcl\Board of Directors.htm

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http\www.ptcl\Company Profile.htm http\ptcl\Corporate Social Responsibility.htm http\www.ptcl\Microsoft Word - Document9.htm http\www.ptcl\Organizational Behaviour project on ptcl.htm http\www.ptcl\President's Message.htm http\www.ptcl\Ptcl Report.htm http\www.ptcl\PTCL Smart TV.htm http\www.ptcl\PTCL Subsidiary.htm http\www.ptcl\Vision.htm http\www.ptcl\History of PTCL.htm http\www.ptcl\Management Information System of PTCL by MBA (USMAN RAZA).htm http\www.ptcl\Pakistan Telecommunication Wikipedia, the free encyclopedia.htm Company Ltd -

www.telecom.pk.nethttp\www.ptcl\PTCL _ Entertainment - About US.htm http\www.ptcl\Trainging and Development.htm

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