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PTCL is an existing business, which has existed for decades. It went through some major
restructuring eras of which 1996 and 2006 are the most prominent. PTCL was incorporated in
1996 and the new management took control of PTCL in 2006 by buying its 26% ordinary shares.
Our main focus in this business plan is the revenue maximization and growth of PTCL not only
in the fields of telephony but also the latest telecom services. PTCL today offers the widest range
of services to its customers. 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.
This report is being started with the brief and complete introduction of organization, its historical
background, its services and its products offerings.
The most important thing the BUSINESS STRAGTEGIES is discussed in such a way that it’s
not difficult to understand it. Internal and External analysis has the vital importance, which in
this project is also done. Moreover the Financial Analysis is also done which is depicting the
financial position of the organization in the market place. Whereas SWOT analysis is done
which clearly shows what are the strengths, weaknesses, opportunities and threats in the
organization. Finally some suggestions and recommendations are given to organization in this
report. Thus this report completely depicts the true picture of PTCL in a meaningful way.
1. Company Description
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Pakistan Telecommunication Corporation (PTC) has established in December 1990, taking over
operations and functions from Pakistan Telephone and Telegraph Department under Pakistan
Telecommunication Corporation Act 1991.
This coincided with the Government's competitive policy, encouraging private sector
participation and resulting in award of licenses for cellular, card-operated payphones, paging
and, lately, data communication services.
In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL
monopoly over basic telecommunication sector in the country. It also paved the way for the
establishment of an independent regulatory regime. The provisions of the Ordinance were lent
permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act.
The year 2006-07 in the telecom sector was marked by the phenomenal growth in the mobile
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 market.
The privatization of the company was completed in the FY06, following the purchaser of 26%
‘B’ class ordinary shares by Etisalat International Pakistan L.L.C. EIP took over management
control on 12th on April 2006.
In short PTCL has been working vigorously to meet the dual challenge of telecom development
and socio-economic uplift of the country. This is characterized by a clearer appreciation of
ongoing telecom scenario wherein convergence of technologies continuously changes the shape
of the sector.
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A measure of this understanding is progressive measures such as establishment of the company's
mobile and Internet subsidiaries in 1998. As telecommunication monopolies head towards an
imminent end, services and infrastructure providers are set to face even bigger challenges.
Pakistan also entered post-monopoly era with deregulation of the telecom sector in January 2003.
PTCL is in full awareness of the same, and future policies feature a strong conviction of healthy
competition.
In 2006, Pakistan's Privatization Commission held open bidding to sell 1.326 billion shares,
along with management control of PTCL. The Etisalat International Pakistan, a 100 % owned
subsidiary of Emirates Telecommunications Corporation - Etisalat was the highest bidder for a
26 per cent stake in PTCL with a $1.96 (116 rupees) per share offer. Etisalat takes pride in being
a partner in progress wherever it goes. To realize the dream of human progress, Etisalat is ever
ready to harness new technologies, build new partnerships and embrace the future as it comes.
This is the vision that drives Etisalat and directs the Etisalat-PTCL interaction.
PTCL is one of the largest employers in the country with its work force spread all over the
country to provide an essential service to the people of Pakistan. The changed telecom
environment requires PTCL to bring about changes in its corporate culture to thrive more in the
new environment.
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With employee strength of 30,000 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 0.8 million V-fone customers.
PTCL has laid an Optical Fibre Access Network in the major metropolitan centres 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 are being expanded to meet the increasing demand of International traffic.
1.2.1 Vision
To be the leading Information and Communication Technology Service Provider in the region by
achieving customer satisfaction and maximizing shareholders' value'.
1.2.2 Mission
• Professional Integrity
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• Customer Satisfaction
• Teamwork
• Company Loyalty
The above mentioned values and statements are just not mere word of mouth by the BOD or the
top management but is having some sound backing the corporate and commercial initiatives.
As part of the transformation of PTCL, the management initiated work on the re-branding of the
Company as a modern and customer-centric national carrier. Externally changing the logo was
carried out to reflect the commitment to the customers and the modernizing of the infrastructure.
Internally it gave employees a new zeal to stimulate the mindset change from a technology and
operations focused company to a competitive carrier that has customer services as its hallmark.
PTCL made several investments in infrastructure development and added network capacity to
enhance services and expand its reach across the country. The market in Pakistan is extremely
competitive and PTCL has the largest nationwide installed network infrastructure capability
including switching, transmission, fibre optic backbone, co-location and international capacity.
This gives PTCL a unique position in terms of providing to carriers and individual consumers
alike.
With the introduction of Vfone, the new CDMA-based WLL platform of PTCL, is poised to
become the largest fixed wireless telephony network in Pakistan. On the wireless broadband
front, a major upgrade of the WLL CDMA network was rolled out in order to provide wireless
broadband services in 17 major cities.
Broadband Pakistan offers DSL services with unmatched reliability, affordability and
connectivity. Customers have the option to packages with varying speeds from 512Kb to 2Mb
with unlimited downloads. Broadband customer service is available twenty-four hours a day,
seven days a week at 1236 with highly trained and professional representatives.
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As part of offering converged services, expanding its service portfolio and improving customer
retention and acquisition, PTCL initiated the multi-channel Inter Protocol Television (IPTV)
project during 2006-07. This is a landmark addition to the PTCL service portfolio and has
enabled the company to provide Triple Play (voice, video and data) services over a single fixed
line connection. With IPTV the customer are provided with a single interface to satisfy his
communication and entertainment needs along with single billing.
Keeping in mind customer convenience, PTCL is actively engaged in bringing an array of bill
payment options to its customers. PTCL customers now have the flexibility to choose between
dropping a cheque in a drop box at a location near them to sending their payments through mail
at a nearby post office.
PTCL has also offered a dedicated service to provide billing information to its valued subscribers
who can simply dial '1200' to access instant billing information of the required PTCL service.
With the introduction of this service, customers no longer need to personally visit customer
service centers to find out what their bill amounts are and the automated service is available
twenty-four hours a day, seven days a week to further facilitate customers.
Moreover, PTCL has introduced a variety of valued added services for its customers while a
number of others are in the pipeline.
Alongside the many packages and services PTCL is continually seeking ways to facilitate its
customers of which payment cards and electronic modes of payments are just a part.
On the technical front, PTCL has laid an Optical Fibre Access Network in the major
metropolitan centres of Pakistan and local loop services have started to be modernized and
upgraded from copper to an optical network.
PTCL has invested in the capacity of two SEA-ME-WE submarine cables to meet the increasing
demand of international traffic. Additionally, PTCL is also part of a consortium that will put in
place a high-capacity fiber-optic submarine cable that stretches from India to Italy and France via
the Middle East, named I-ME-WE, to provide effective resilience to the existing cable systems
(SMW3 & SMW4).
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PTCL has also signed an agreement with Huawei Technologies Pakistan and Hewlett Packard
(HP) to jointly launch the ‘Network Operation Center’ project which has state-of-the-art fault
detection and resolution technology. This project would establish one main network operation
center and three regional ones with the implementation of an alarm management system across
the entire PTCL network in an integrated manner.
Beyond improved packages and new products, PTCL, as a socially responsible corporate entity,
has been pursuing different social causes touching on areas of culture, sports, music,
environment and general welfare by supporting different initiatives.
As such, PTCL’s CSR activities and new ventures are warmly welcomed
1.4.1 Ufone
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its
operations on 29th January 2001 as a GSM 900 service 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).
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.
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.
PTCL 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 cost. This will
enable customers to offer their own branded WLL, DSL etc to customers nationally, together
with an array of key support services.
PTCL EVO 3G Wireless Broadband is Pakistan’s fastest wireless internet which offers its
customers – “superior 3G internet experience”. Evo Wireless Broadband is enabling the wireless
broadband revolution in Pakistan with flexibility to roam freely like never before. PTCL Evo has
revolutionized the way people connect to the internet by offering true mobility. PTCL Evo is
currently offering its services in more than 18 cities on EV-DO technology offering speeds up to
3.1 Mbps. PTCL Evo gives its customers the advantage of nationwide roaming with seamless
internet connectivity across Pakistan. The coverage of Evo is not limited to 18 cities as Evo
customers can enjoy CDMA-1X data rates of up to 153.6 Kbps at more than 1000 destinations
across Pakistan.
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The portable, small & stylish Evo USB device is a multipurpose device which not only delivers
fastest wireless internet but can also be used for Voice Calls by inserting a Vfone SIM and for
data storage by inserting a standard Micro SD Card
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. Since its
launch on 19th May 2007, PTCL has acquired approximately 432,821Broadband customers in
over 150 cities and towns across Pakistan, 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.
Unique offers that make PTCL’s Broadband unmatchable are special packages for the student
segment, one time Installation charges of Rs. 500. The installation charges are applicable from
July 1,2010, Availability of Wi-Fi Modems, FREE dial up service for its Broadband customers
and FREE access to movies, music, classical Pakistani dramas, cricket matches, online gaming,
educational and religious content on PTCL’s entertainment portal ‘BUZZ’, (the access to PTCL
Buzz & Gaming lounge is exclusive 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.
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.
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Branded under ‘PTCL Smart Line’, the service includes Interactive Television, Broadband and
voice telephony all at the same time on PTCL’s 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 through TSTV (Time Shift Television) feature, 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 125 live channels and over 500
Movie titles through its Video on Demand service’. The service is available in 16 cities including
Karachi - Lahore - Islamabad - Rawalpindi - Gujranwala - Faisalabad - Peshawar - Sialkot -
Multan - Sargodha - Jehlum - Wah Cantt - Taxila - Hyderabad - Abbotaba and Sukkur however
it is planned to be expanded to all the major cities and towns across Pakistan during the year
2010
2.4 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 franchises or by dialing
1236 and it will be delivered within 48-72 hours.
In today's world, a website is an important tool for any business. PTCL now offers world class
hosting on windows platform. PTCL provides you the control, flexibility and reliability required
to create and manage a successful web presence and our self healing backbone make sure the
high availability of your website.
Their web-based Control Panel helps you manage and advertise your site. The Control panel
provides you with powerful and easy to use tools to help you manage and control your site.
2.5.1 Features
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• Multiple data base support
• High availability
• 99.999% uptime
• SENTRY Ready 2 Go
• SENTRY Personalized
• SENTRY Customized
When developing IP Video Surveillance solutions, PTCL focuses on the solution requirements of
the specific site and customer needs. In order to provide the most effective and functional IP
video surveillance system, PTCL first spends considerable effort understanding the customer’s
needs, expectations, and budget. Any existing video surveillance hardware and network
infrastructure are included in the design, if possible. Understanding these requirements is what
allows PTCL to develop and implement the most reliable, manageable, and most of all, effective
IP video surveillance solutions available today.
PTCL Tele Presence is an innovative new technology that combines rich audio with high-
definition video to deliver a true “in-person” experience. It is designed to bring you and your
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team closer to the people, places, and events you need to build your business. The creation of a
live, face-to-face meeting experience empowers users to interact and collaborate like never
before.
The rise of Internet, Intranet and Web-based technologies has made the data center more
strategic than ever, improving productivity, enhancing business processes, and accelerating
change. Data centers are the strategic focus of IT efforts to protect optimize and grow the
business. PTCL Data Center offers strategies that enable your business to respond to industry
trends and prepare for the future which reduces the total cost of ownership by introducing a new
and innovative architecture.
PTCL Tier 3+ Data Centers helps you to virtualize system, storage, and network resources to
reduce the number of systems you need to manage, while increasing asset utilization. Their Data
Center solution allows businesses to protect critical applications and confidential data, enhance
data center operational efficiencies, and rapidly create new secure application environments to
support new business processes.
PTCL Data Centers is an ideal choice for companies who want the flexibility to relocate their
data center capacity as their business demands.
2.9 Skylink
PTCL introduces ”Skylink” satellite communication service for operators and corporate
customers. PTCL, the largest, integrated telecommunications service provider in Pakistan is
pleased to announce the introduction of SKYLINK satellite communication services for
corporate customers and telecom operators for domestic and international communication
applications. PTCL is the most experienced operator in the satellite communication domain and
has extensive ground support, operations and implementation infrastructure to service a variety
of satellite communication applications such as:
• Cellular backhaul
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• Enterprise applications including remote site connectivity
• Other satellite connectivity solutions tailored for telecom carriers and corporate
customers
SkyLink services are based on advanced satellite technology providing dedicated point-to-point
and point-to-multipoint connectivity between sites within the coverage footprint. SkyLink offers
high-quality 64Kbps up to n x Mbps links between locations. Key features of PTCL SkyLink
service are:
• Reach – SkyLink is available everywhere in the country due to strong footprint of our
satellites of choice.
• Cost Effective – Highly competitive rates. Flexibility- The size of SkyLink network can
be readily expanded depending on business operation needs, with end-to-end control from a
central hub.
IP services for voice and data form an integral component of PTCL’s service portfolio for
carriers and service providers throughout the country. With capacity acquired on SMW-3 and
SMW-4 submarine cables and strategic partnership with FLAG, PTCL is the largest IP services
carrier in Pakistan with extensive international peering capacity. PTCL has made significant
network investments to achieve top-class network reliability, availability and performance to
help keep carrier networks running smoothly. PTCL is connected to the global IP backbone
through tier-1 carriers who are able to provide an extensive IP backbone infrastructure ideally
suited to deliver reliability, performance and security for carrier grade applications. In addition to
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Internet applications, PTCL provides secure and reliable VoIP solutions catering to the
requirements of LDI and other operators in the marketplace.
3. Market Analysis
PTCL is providing its services to its customers in every nook and corner of Pakistan. A complete
market analysis of PTCL will help the company to determine its current position in the market
and how it can improve it in future.
1. Market size
2. Target customers
3. Total customers
4. Target market
5. Market trends
6. Future anticipation
7. Growth potential
8. Market profitability
9. Distribution patterns
In Pakistan, there is an opportunity for PTCL to expand its business because market size is very
big and there is unmet demand. PTCL is currently providing its products to the customers
locating mostly to urban setup of Pakistan. As number of internet users is increasing day by day;
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PTCL has an opportunity to meet needs of these internet users and increase its market share.
Currently it has 6.5 million customers.
PTCL is currently focusing on meeting internet usage requirements of consumers; but it is also
providing internet solutions and value added services to small, medium and corporate businesses
also. Targeted customers of PTCL include the following:
• House Hold
In a very long period of time (six decades); PTCL has captured almost every customer. Target
for next year is to create 0.2 Million customers across the country for the services it has
introduced. The company has resources and capacity to expand its operations across Pakistan and
meet demands of more customers. Currently it has 5.7 million customers excluding 0.8 million
v-fone and its subsidiaries.
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PTCL is currently targeting only developed markets where there is large number of customers.
PTCL has launched its outlets in Islamabad, Karachi, Lahore and Rawalpindi and planning to
target customers in small cities and towns in near future.
In future PTCL is ready to target it planned customers and markets in Pakistan. After household
consumers, the company will go for corporate clients, Government and Universities and schools.
The company is operating only in major cities (as far as services are concerned) of Pakistan and
targeting only developed areas. There is unmet demand in the market which is a great
opportunity for PTCL to increase its number of customers thus getting a large share in the
market.
The company is currently operating in all four provinces of Pakistan but still it is not earning
good profits. PTCL is becoming first choice of internet users because of its technology and
customer services.
To provide reliable services and product and after sale services; PTCL has opted for own outlet
distribution channel, where customer friendly customer relation officers are ready to deal with
their customers. PTCL is working through direct sales channels because the company doesn’t
want to compromise on quality and want to provide maximum comfort to its customers. By
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establishing own sales outlets; PTCL is focusing on providing customers with excellent
customers support.
PTCL enjoy such a strategic position that none of its competitor offers such a variety of services
and products. For instance consider the following matrix which is only for internet services.
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Broadband Internet /
Digital cable / Fixed
Nayatel 2004 3000** 1 Acquisition of second STM-1
Line telephony services
/ Video conferencing
4. Business Environment
The industry analysis is based on afore mentioned internet competitors. Internet Service
Providers in Pakistan are offering wide range of Broadband technologies, such as DSL, Cable,
FTTH and WIMAX. Currently, DSL is the leading broadband technology in Pakistan with
approx 65 percent market share. Major DSL providers in Pakistan are Micronet, LinkdotNet,
Cybernet, Multinet and PTCL.When compared with cellular phone growth, broadband has been
slow to take off in Pakistan. The last two years show some progress in terms of growth, more
choices of services in more places and most importantly a significant drop in cost for broadband
access (~Rs.800-1200 per month on average). Another emerging trend is to move towards
unlimited broadband.
With PTCL’s wired and network capacity of about 5.5 million subscribers, it is foreseen that
DSL may not cater the future broadband requirements of the country. This leaves a huge
investment potential in Fiber and wireless broadband access technologies.
Use of FTTH and WIMAX has increased, not with the same ratio as in developed countries, but
emergence and benefits of services is pulling customers towards FTTH. There are around 2800
FTTH and 20,000 WIMAX subscribers in Pakistan. Wateen Telecom, Mobilink Infinity and
PTCL are WIMAX providers in the country. However, due to first of its kind experience of
WIMAX technology, service issues are being reported.
Following is the chart showing technological trends in Pakistan and market captured by each
technology.
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FIgure: 4.1
A large market is captured by DSL technology, whereas WiMAX has a very little share because
it is on introductory stage
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Potential
entrants
(Threat of new
entrants)
The
Suppliers Buyers
Industry
(Bargaining
power of (Bargaining
suppliers power of
Rivalry buyers)
among
existing firms
Substitutes
(Threat of
substitute
products/services
Figure: 4.2
The following analysis of each external force defined by Porter will help us determine the level
at which these forces are operating.
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There is an unmet demand in the market for wireless internet services. Therefore there is an
opportunity for new companies to start their operations and provide such services in Pakistani
market. Qubee “An Augere Brand”, have now been officially launched in Karachi and
Islamabad. Qubee has become the fourth player offering WIMAX services, the other three being
Wateen, Mobilink Infinity and Wi-tribe. The services also are expected to be launched in Lahore,
Hyderabad and Quetta in 2010.
There are an extremely large number of buyers as compared to companies in the industry. DSL
and other fixed internet service provider have captured at least 70% market share. And buyers
are satisfied with customers. So PTCL is positioning through quality and price. So the bargaining
power of buyer is high in internet industry.
PTCL landline services have a threat from cell phone operators and their broadband services
have threat from Wi-Max technology. Otherwise there is no such company that can match the
portfolio of ptcl.
WIMAX technology is newly introduced in wireless internet world. In all over the world the
demand of this technology is high so WIMAX is charging high prices for its services on the basis
of their demand, brand name, reliability and innovation. So is the bargaining power of suppliers
is also very less as compared to PTCL.
PTCL has taken the lead with its DSL and EVO offerings while World Call, Mobilink Infinity,
Wateen / WIMAX, Qubee, NayaTel and Wi-Tribe. At least 65% share of DSL and WIMAX has
only 8% share in market. A heavy war is going on the bases of price in this industry. PTCL has
almost no threat as it is offering its services at a very low price which is compelling its rivals to
offer their services at a competitive price.
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Key Success Factors in the Industry:
Following are some of the factors participating for getting success in the industry.
• Wide geographic presence is a critical factor in case of the kind of wireless broadband
and related services.
• Quality of service which includes reliability, speed, coverage etc. is very important to the
customer.
• It is very important to stay ahead of competition in this kind of industry which is driven
by technology. So, the company cannot be complacent and would have to focus on
constant innovation.
• Internal capabilities including the experienced and trained personnel would be a key
success factor in this kind of business.
• Knowledge about the culture and habits of the customers is very important. The company
would have to remain in touch with the changing needs of the customers.
SWOT Matrix:
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Weaknesses:
Strengths:
Mature market
Reliability
Bad perception of
Quality
PTCL
Excellent customer
Lack of skilled
support
workforce
W-O Strategies:
Opportunities: S-O Strategies:
The market has reached
Large population to Expand operations to its maturity
serve developing areas also Provide best services to
Operate in Thrive on quality to gain confidence of
developing market attract more customers
Unmet demand customers Training of staff to
support customers
Threats:
Figure 5.1
5. SWOT ANALYSIS
5.1 Strengths
• Market leadership in Local loop, Wireless local loop (WLL) and fixed telephony.
• Ufone is performing well though Warid and Telenor are tough competitors. Ufone’s
profitability increased by 49.2 percent to Rs.977 million in 3H/ FY09 as compared to Rs.
655 million in the corresponding period last.
5.2 Weakness
• Not been able to nurture its growth around customer services oriented strategy
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6. BUSSINESS STRATEGY
As PTCL 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 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.
6.1 DIFFERENTIATION
PTCL has by far the largest network coverage, competitive price, and a range of Value Added
services including Phone book, messaging, and call logs. PTCL wireless service gives voice
quality of a landline with country-wide coverage, employing the state of the art CDMA 2001x
technology and nationwide availability.
Since PTCL is the oldest communication service provider in Pakistan. It has already an
advantage of developed infrastructure, huge market, stakeholders in government and MNC’s. So
we can easily go for cost leadership strategy without losing its customer focus.
PTCL seriously needs to focus on its customers because it already has a huge market. So we’ll be
following customer focus strategy in order to better market our product and services and also to
retain our customers.
It so happened in the recent past that our corporate clients had a problem of connectivity while
using data center service. Some of them were so angry that they switched to other carriers. Ptcl
is working on fiber optics network expansion, so that optical cables are carried all the way to end
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user. Right now fiber optics only covers a radius of five hundred meters and rest is covered by
copper cables.
6.4 Rationale
The rationale behind adopting above such strategies is that PTCL today has the largest market
pre-occupied just because of its presence in Pakistan over last 40odd decades. PTCL had been
through a lot of ups and downs but today it offers services more than any other service provider
in Pakistan. So at this point in time it is safe to say that the service innovation along with better
customer service will continue and the PTCL’s monopoly will continue to prevail in telephony
and internet.
These strategies are adopted also because of the weaknesses mentioned above. So we want to
overcome our weaknesses and gain competitive advantage by providing such services that are
either not available or are very costly.
7. Financial Plan
The financial plan of the company is such designed that the company will grow twelve percent in
terms of profitability in the following five years after 2010. Though the company recorded a loss
recently in FY 10-11(1st quarter) which is not a loss in reality because it is due to the capital
expenditure made by the company which will give higher returns in the future. The twelve
percent increase taken in the financial plan is not a round figure but is averaged. The profit is
likely to increase and decrease in the random pattern. It is assumed that the most profit shall be
reaped by the company in the end of 2012 and starting of 2013 which can go up to twenty three
percent.
7.1 Assumptions
b) PTCL will continue to innovate and provide better and better customer service
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c) PTCL will not lose its current customers, instead will also capture the corporate
customers
d) The prevailing conditions will not affect the company’s profit and performance
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