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"In the name of ALLAH, most Gracious, most Compassionate".

INTERNSHIP REPORT ON PTCL


Pakistan Telecommunication Company Limited,

PREPARED BY

Muhammad Asim Rashid


(Q-579523)

MBA-HRM

SESSION 2005-2007

DEPARTMENT OF MANAGEMENT SCIENCES


Alama Iqbal Open University Islamabad
Table of Content

Preface
Acknowledgment

Overview of organization 1-21


Introduction
Brief history
Current situation
Main offices
Technical & operational network
Current PTCL network
Technical and operational mile stones

Services of PTCL 21-22


Services for customers
Value added services
Services for corporate customers

Financial analysis 23
Activity ratio

Competitors & subsidiaries 24

Subsidiaries 25-27
Ufone
Multi Media Broad Band

Competitors 28-29
Mobilink
Telenor
Warid

Brief on my internship work 30-41


Marketing department
Customer care & customer services department
Revenue department

SWOT Analysis 42-44

My project 45-67

Current HR Issues Of PTCL 68-69


Weaknesses 70-71

Recommendations 72

Conclusions 73

Appendix

DFD‘s
Organization Chart
Financial Statements
PREFACE

This report is the practical part of the most vital practice of our MBA-HR program. The
sole objective is to familiarize the student with the practical manipulation of business
organization. This report has been written to know how big organizations like PTCL
manage their teams to achieve their common goals.

In the first phase of the report there is the general introduction


about the company and then different terms have been explained, then the mission, values,
different services and different strategies of the organization have been explained.

In the next part, SWOT analysis of the firm have been done by the help of
which it is identified that what are the strong areas of the company and where it lacks so
that it can improve, and then in the end most important my experience while working in
the PTCL as internee is explained.

Author
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ACKNOWLEDGEMENT

In the name of Almighty Allah who is most merciful, and who give me strength to write
this internship report in a different way.

I extend my heartiest thanks to my seniors, colleagues, and subordinates who assist me on


every occasion to enable me to write this report.

My parents, classmates, friends come next in the list of those whom I have to thank.

I pay special homage to the following persons.

Mr. Muhammad Nawaz Joiya Senior Engineer Operations.

Mr. Bashir Ahmed Malghani (Manager HR MTR).

Mr. Irshad Ahmed Engineer Operations Vehari.


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TRANSMITTAL MEMORANDUM
To:
Department of Management Sciences
Allama Iqbal Open University Islamabad
From:
MUHAMMED ASIM RASHID
ROLL# Q-579523
REG # 05-PVI-0070
Chak 435/EB Burewala Distt. Vehari
PH # (067) 3355567, Cell # 0314-600-2121
E-Mail: aasibrw@gmail.com

SUBJECT: INTERNSHIP REPORT ON PAKISTAN


TELECOMMUNICATION COMPANY LIMITED

Internship report on any organization is a necessary element to get the MBA degree from
any university. I have written an internship report on PTCL and review its Human
Resource system / procedures adopted for such purpose.

My major recommendation is this: PTCL should improve their contact with middle &
lower level employees’ especially supervisory level and establish internal performance
appraisal system to avoid the future complications & to evaluate the employee
performance & encouraging them. That conclusion was arrived at after eight weeks
extensive practical training/study in the HR department of the company. Besides this, I
also studied the role of C.B.A during the latest proposal of Volunteer Separation Scheme
(VSS) for employees.

Because of my analysis, company’s officials felt these flaws in the system & are agree on
my suggestions and wanted to implement them in near future. I am grateful to my
seniors, colleges, and subordinates who assist me to complete this comprehensive report
in an excellent way.

If the members of the review committee of this report have any additional questions, I
Inshallah will try my best to do it more well way. At last I thankful to the University who
give me an opportunity to review/study the HR system/process of company.
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EXECUTIVE SUMMARY

TITLE: AN INTERNSHIP REPORT ON


PAKISTAN TELECOMMUNICATION
COMPANY LIMITED

AUTHORIZATION This report is a necessary part of MBA degree program.


REOCMMENDATION: Department of management sciences of the university
advised every student to submit. It was done after the
completion of all subjects. The main purpose of this report
is, review of the human resources techniques & systems
adopted by the organization. Find out their weaknesses and
give suggestions for improvements. I strongly recommend
that company should improve their contact with middle &
lower level employees’ especially supervisory level and
establish internal performance appraisal system to avoid the
future complications & to evaluate the employee
performance & encourage them.

PROCESS OF REVIEW Data from June, 2005-2007 were taken for analysis, and
METHODOLOGY: Human Resource Management practices followed by the
company seen practically whether the company adopted
them according to the international labor law standards or
not. I had been working in this organization since five
years. Therefore, I was in a better position to review the
system in an efficient way.

PROBLEMS: A central problem in the HRM systems of the company is


lack of contact & feedback from & to employees there is a
lack of co-ordination between different departments of the
organization as well as into a specific branch. Another
problem is lack of trained staff & political pressure for
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transfers/postings etc on middle management. Like wise


lake of automation and state-of-the-art latest IT technology
for correspondence between the contents of the company
causing the delay in work and negatively affecting the over
all performance of the company.

I point out those weak areas, and hope that company if,
adopted my suggestion and recommendation can overcome
the problems. This will also benefit for the other systems of
the company.

TIME FRAME: Finally, if the recommendations are accepted, the program


could be, put into effect within six months.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED


(PTCL)

Established on January 1, 1996

Head Office: - Pakistan Telecommunication Company Limited


G-8/4, Islamabad

INTRODUCTION

S
even years into a new century, the telecom sector of world finds itself at
crossroads after changing itself almost beyond recognition over the last 25
years. Privatization and competition are the order of the day, with a majority of
countries having adopted these policies to advance their telecom sector. The results
have been impressive; the industry has grown at unprecedented pace. Although there
has been a phenomenal growth in Pakistan, especially in the cellular mobile
communication and in the internet, yet the late density remains almost stagnant.

So far PTCL is the sole land line service provider of Pakistan. PTCL is the giant of
Pakistan telecommunication industry and enjoying the monopoly. This part of the
report contains a brief introduction of PTCL. This introduction is divided into two parts,
history and current situation.

BRIEF HISTORY

Over the years, technology has changed the concept of communication and what was
thought to be a fictional only a decade ago, has actually made its way through to our
hands today. This is the future we dreamt of so fondly. Welcome to the modern age, of
telecommunication, which have become complementary to our lives. But there must
also be an anchor to introduce, allow, improve and channelize all these services and

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innovations sweeping through the globe. In Pakistan same anchor is Pakistan


Telecommunication Company Limited from the humble beginnings of posts &
Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph
Department in 1962, to this very day, PTCL is a story of commitment and vision.

Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory 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.

Pursuing 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
the would-be PTCL in two separate placements. Each had a par value of Rs.10 per
share. These vouchers were converted into PTCL Shares in mid 1996.In 1995, Pakistan
Telecommunication (Reorganization) Ordinance Formed the basis for PTCL monopoly
over basic telephony 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 same
year, Pakistan Telecommunication Company Limited was formed and listed on all stock
Exchanges in Pakistan. Since then, 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 where in
convergence of technologies continuously changes the shape of the Sector. A measure
of this understanding is progressive measures such as Establishment of the company’s
mobile and Internet subsidiaries (U-fone & Paknet) in 1998.

As telecommunication monopolies head towards and imminent end, services and


infrastructure providers are set to face even bigger challenges. Pakistan also entered

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post-monopoly era with deregulation of the sector in January 2003. On the Government
level, a comprehensive liberalization policy for Telecom sector has already been
announced now. Now PTA have issued License to two new telecom companies in
Pakistan TELENOR international and WARID TEL this act will put some challenges
for PTCL to cope with.

PTCL is in process of enhancing organizational and business Proficiency through


vertical integration and horizontal diversification. At the same time, cross-national
ownerships, operations and partnerships are being evaluated with a view to developing
and diversifying the business.

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These are few historical developments of PTCL through the years.

Historical Background

1947
Posts & Telegraph Dept. established

1962 Pakistan Telegraph & Telephone Deptt.


Pakistan Telecom Corporation
1990-91 ALIS: 850,000
Waiting list: 900,000 Expansion Program of 900,000 lines initiated
(500,000 lines by Private Sector Participation
400,000 lines PTC/GOP own resources).
1995 About 5 % of PTC assets transferred to PTA, FAB & NTC.

1996 PTCL Formed listed on all Stock Exchanges of Pakistan

1998 Mobile & Internet subsidiaries established

2000 Telecom Policy Finalized

2003 Telecom Deregulation Policy Announced

2005 26 % Shares by Etisalat UAE through open bidding

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CURRENT SITUATION OF ORGANIZATION

After having brief introduction from past end of PTCL now we move towards the
current situation of the company .In this part focus will be on the:

 Structure of organization

 Technical & operational Net work

 Services provided by PTCL

 Financial front of PTCL

 Competitors and subsidies

Structure of organization

An Organizational Structure clarify the roles of personnel of an Organization and to


determine who has to do what task, which is responsible for what, objectives to be
achieved, who is to report to whom and to remove the obstacles for performance
caused by confusion and uncertainty of job assignment as well as to make easy
decision- making and communication networks reflecting and supporting organization
objectives.

The head of Pakistan Telecommunication Company Limited is called “President”.


Then come the SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance),
SEVP (Operations), SEVP (Technical), and SEVP (Human Resource Management),
SEVP (Marketing & Business Development). Then there is a chain of Executive Vice

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Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central),
EVP (Accounts), EVP (Operation), EVP (Information Technology, Training &
Research), and EVP (Revenue). All these are appointed at Pakistan Telecommunication
Company, Headquarters at G-8/4, Islamabad. Apart from these EVP, there are also EVP
(Operation), EVP (HR) etc who are heading the other regions of PTCL in major cities
country wide. Then there are Chief Engineers and General Managers at H/Qs who
report to their relevant EVP. Then there are Senior Managers, Deputy Directors,
Assistant Directors, Account Officers, Assistant Account Officers, Financial Analysts,
Marketing Managers, Computer Programmers, and IT Specialists etc.

There are also Regional Heads (General Managers) to head PTCL Regions then come
the Senior Managers (Operations), Senior Engineers (Operations), Engineers to look
after the telecom system of Regions. There are also Senior Managers Finance, Account
Officers and Accountants to Handle Regional account and billing matters. Manager HR
& his staff are responsible to take care of Personnel affairs at Regional Level.

In non-gazetted staff there are Engineering Supervisors Operations /Switching /Power


plant /Optical Fiber system/M.W Media, Account Assistants, Stenographers, Assistants,
Key Punch Operators, Telecom Technicians, Upper Division Clerks, Lower Division
Clerks, Line Men, Wire Men, Drivers, Exchange Cleaners, Naib Qasids and Peons etc.

All the staff is recruited by the HR Department headed by SEVP HR. The HR experts
are responsible for hiring & to further streamline its recruitment process.

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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.

These Regions provide Telecommunications services to the customers in their


respective areas. Apart from these, PTCL has an Optical Fibre Construction Region
Lahore and Optic Fibre System Islamabad, each headed by a General Manager to
install, operate and look after optic fibre systems/cables.

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Technical & Operational Net Work


Pakistan telecommunication Corporation under the Act 1996, Pakistan
Telecommunication Authority (PTA) issued a license to Pakistan Telecommunication
Company Limited for the provision of telecom services within Pakistan to private
sector and the general public as the Federal Government may determine and during
the exclusivity period of the Pakistan Telecommunication Company Limited (PTCL)
specified in above-mentioned Act. PTCL has 25 years license to provide telecom
services in Pakistan with Stake in the Company with about 62% equity. PTCL has
largest network and huge infrastructure for it’s more than 4,405,161users as on (Mar,
2008).

Switching Technology

There are 7 different kinds of switching technologies currently operational in PTCL


network.

 Alcatel

 Siemens

 NEC

 Erricsson

 Huawi

 J.S telecom

 ZTE

With these different switching technologies PTCL is running its huge network and
providing different communication facilities to its customers.

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Current PTCL Network

Mar, 2008
Installed capacity 5273091
Working connections 4,405,161

Total exchanges 2962

Telephone density per 100 population 2.9

Countries on ISD/(ISD STATION) 242

Customer service centers 154

Card pay phone 387,490

NWD stations 2092

UIA stations 1898


Total length of main optical fiber link 4591km

Optical fiber short haul links 127.2km

Optical fiber spur links 3241km

These are few basic facts about PTCL network. So taking over from posts & Telegraph
Department in 1947 to now providing sate of art technology it is really big achievement.

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TECHNICAL AND OPERATIONAL MILE STONES

PTCL is continuously improving its network. During the year 2007 PTCL installed
capacity was 4940154 but now in current year the installed capacity is improved. PTCL
achieved 100% digitalization in this year.

Computerized Fault Management System

This feature of PTCL improved network & is being used to register & rectify Land Line
Faults in a computerized way. This system was working in few cities but now it is
available all over the Pakistan. (18)

Launch Of IN Platform

To augment the capacity and introduce additional value added services a new Intelligent
Network (IN) Platform was launched in October 2003.This platform has higher capacity
for prepaid calling cards and provision for introduction of new services.

Optical Fiber Junction Access Network

To further support the launch of new services the optical fiber junction access network
has been in implementation phase. This system further supports the upcoming project of
PTCL WLL (wire less local loop), Broad Band Services & IPTV.

This was the brief introduction of PTCL network now we move further and develop our
understanding about PTCL services and offerings.

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SERVICES OF PTCL

Pakistan Telecommunication Company Limited not only Provides Conventional


telephone facilities, it also offers optical fiber services to the private sector. We will
briefly discuss below the product lines being offered by the PTCL. Basically PTCL
divide their services into two parts.

1. services for consumers

2. services for corporate customers

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.

b) Value Added Services:

CLI (Caller’s Line Identification)

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:

 Check on obnoxious calls.


 Complete record of incoming / outgoing calls with time & date.
 User Friendly

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PREPAID CALLING CARDS:

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.
 Dial PTCL’s toll free number 1010 from any digital phone.
 Dial 1 for Urdu & 2 for English Instructions, Enter your card Number
& Press #.
 For International Call Dial 00+CountryCode+CityCode+PhoneNumber+#.

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
Calling Card” This is another service from PTCL. This service is basically providing
billing solutions for the users.

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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 when ever he wants

DIGITAL FACILITIES:

PTCL offers a variety of features to digital exchange customers like:-

 Hotline

 Abbreviated Dialing.

 Call Waiting

 Don’t Disturb

 Call Transfer on (a) Busy (b) No Reply (c) Immediate

 Wake up call

 Absent Subscriber

 Code Barring

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Prepayment Telephony Services (PPT)

With the changing trends most telecoms are diversifying their services towards
Prepaid solutions .one of such modern era telecommunication service is Prepayment
Tele Phone (PPT).It provides the facility to subscriber to load a prepayment
Telephony card against their telephone number thereby generating an account on I/N
platform and any call made from that telephone will be charged to this account. the
service will provide state of art technological facilities to the subscribers.

Target market
Target market for the service can be segmented as follow:

 Budget conscious subscriber


 Subscriber avoiding bill-depositing hassles
 People requiring casual connections(on short term bases)
 Subscriber not meeting documentation requirement
 Students living in hostels
 Defaulters

Features:
 Account number recharging
 Outgoing call pin setting
 Cancel out going call pin
 Balance query
 Follow on call
 Low balance prompt
 Balance shortage warning
 Call duration prompt
 Call cost prompt

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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 suite 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.

IN BASED VALUE ADDED VALUE ADDED SERVICES


SERVICES

 0800-Toll Free  Universal Access Number


 PTCL Calling Cards (UAN)
Domestic And  Universal Internet Number
International (UIN)
 Premium Rate Service -  ISDN PRI
0900  TelePlus (ISDN/BRI)
 Virtual Private Network  Local
/Domestic/International
Leased Bandwidth And
Point To Point Leased
Lines (DXX)
 Local Leased Circuits (2
Wire/4 Wires) (DXX)
 Digital Facilities
 Digital Subscriber Loop
(DSL)
 Co Location
 Tele mail
 Call Centers (new)

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 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 who can avail UAN
Service.

 Banks  Insurance
 Newspapers  Credit Card Companies
 Airlines  Travel
 Hotels  Courier Services
 Shipping Lines  Utility Services
 Fast Food Outlets  Trading Companies
 Consumer  Stock Brokers
Products
Companies

 Voice Messaging Service: (VMS)

 With PTCL Messaging Service, you can have all for (or Desired) calls
recorded when you are absent, busy on phone or do not want to attend
the calls for any reason. You can, later on at your convenience, retrieve
all recorded messages from any telephone anywhere in the country.
 Security of message is ensured against eavesdropping through subscriber
controlled password.
 PTCL VMS is designed for those who do not want to miss a call or Fax
because that can be beneficial.
 Great for anyone owning a telephone or Fax, at home or business.
 Much more powerful and flexible than answering machine due to
Message options available in your voice mail system.

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Features

 Call answer

 Fax

 Messaging

 Notification

 Capacity 10 messages

 Free for user paying RS. 2000/- or more bill/month.

 PTCL Messaging Plus:

 PTCL MESSAGINH PLUS is designed for small and medium business


enterprises having problems with managing telephone message.

 PTCL MESSAGING PLUS will definitely handle these problems for you.
Advanced messaging features save time, make you truly mobile and increase
productivity.

 Essential for time-conscious executives, frequent travelers and Professional


groups.

Features:

 Call answer

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 Co- Location Centers


Pakistan Telecommunication Company has taken land mark decision to establish co
location centers throughout the country.

Service concept

This service is basically for telecom data and I.T companies. These companies will
install their equipment directly in PTCL premises in ready fitted environment. The
primary purpose is to provide a number of resilient and centralized connection and
control facilities in which co-location center’s communication can be located.

Benefits

 Easy access to local & international connectivity


 Quick deployment of services
 Minimum capital investment and cost saving
 Higher reliability and quality of service
 Full connectivity under one roof
 Just plug in and start business

Target market

 IT companies
 Telecom data companies

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 Universal Internet Number (UIN) 131

UIN 131 numbering scheme for internet services providers, represent exclusive
code to each ISP.

Service concept

The concept of the service just like toll free 0800 but charges a local call for each
connectivity attempt, UIN involves allocation of numbers to individual ISP’s who
are licensed by PTA.

Functionality

The service functions under single – meeting billing system, with promise of rich
dividends in terms of customer care.

Benefits

 The benefit goes to the end users who happen to be any ISP customers.

 Once subscribed, the service means timeless communication for your


customers, allowing them to pay for a single call irrespective of its duration.

Target market

 ISP’s

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 Virtual Private Network (VPN)

Communication is the secret of success in today’s highly competitive market. When


it comes to enabling your enterprise, your communication got to be instant, fast and
hassle free. The answer to this corporate need is virtual private net work.
Service concept

It is an innovative and intelligent private network to integrate business/enterprises


having sub-offices with in a city or nation wide. Without necessity installation of
dedicated resources, VPN enables organization to create a private network.

 Digital Cross Connect (DXX)

Telecommunication networks are the most important infrastructure elements of any


business today. As the businesses increasingly depend on it, quality of networks is
gaining strategic importance.

Service concept

PTCL offers flexible and reliable data services solutions through a high quality
platform of digital leased line network.PTCL digital cross connect (DXX) network
provides the most dependable media for WAN connectivity with more than 200
nodes country wide.

Features

 End to end digital connectivity on digital cross connect network

 Country wide as well as global coverage

 Flexible bandwidth to suit the requirement

 Better quality of services

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Target market

 Corporate customer
 Software exporters
 Data network operators
 Airlines/travel agencies
 ISP’s
 Financial institutes
 Courier services

 ISDN BRI/PRI
It is a near broadband experience suitable for household and small/medium sized
organizations.

Features

 Faster and clear voice

 Fax and data communication on a single phone

 PRI provides thirty 64 kbps user channel plus two 16 kbps signaling channel

 BRI provides two 64 kbps user channel plus one 16 kbps signaling channel

 Cost effective

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FINANCIAL ANALYSIS

Financial analysis of any organization is very necessary for the evaluation and
assessment of a firm. The information derived from these types of analysis should be
blended to determine the overall financial position. This analysis includes ratio analysis,
common size analysis and the study of differences in components of financial
statement. One of the primary objectives is identification of major changes in trends,
amounts and relationship and investigation of the reasons underlying those changes.

In the financial analysis of P.T.C.L we will analyze some important information about
the company. As I did my internship in human resource management, but it has not an
independent organization so I have to analyze the P.T.C.L for the analysis purpose.

Current ratio
Current Ratio is an indicator to determine the short term debt paying ability or the
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. The ideal condition is 1.1 but ratio is quite
reasonable.

Quick ratio:

Quick ratio or the acid test ratio also performs the same task as is performed by current
ratio but with more sophistication. Quick ratio of the company is 1.5 up to Mar 31, 2008
its quick ratio is decreasing. As P.T.C.L is a service organization there fore the quick
ratio is very good because there is not need of inventory as any manufacturing
organization needs.

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SUBSIDIARIES AND COMPETITORS

As already mentioned, presently PTCL has to face war with major competitors in
mobile phone & WLL telephony operators, however, there are also competitors of its
following subsidiaries/products: -

SUBSIDIRAY/PRODUCT COMPETITOR

Multimedia & Broad Band (ISP Product) There is about 100 competitors of product
throughout the country to provide Internet
service to the customers. However, some
of the major competitor ISP’s of product
are Cyber net, World online, Apollo,
World Call, and Comsats WOL etc.

U-fone (Cellular service provider) There are five competitors of Ufone in


cellular phone industry i.e. Mobilink,
Instaphone and C.M Pak, Telenor,
Waridtel.

PTCL Calling Cards (Product) Hello Cards, Call Point Cards, Call Mate
Cards, Global Telecom Cards.

Wireless Local Loop (V-Fone) Go CDMA, Wateen Telecom & World


Call are the Fixed Wireless Telephone
competitors of V-PTCL.

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BRIEF INTRODUCTION OF SUBSIDIARIES

UFONE

Launched on January 29, 2001, Ufone is growing cellular operator in Pakistan. Ufone
services are offered to you by Pak Telecom mobile Ltd., which is a 100% owned
independent subsidiary of Pakistan Telecommunications Corporation Ltd.

U-fone has been a highly successful venture both in terms of subscriber uptake and
coverage. With fastest expanding coverage, unmatched product leadership, and
consistent focus on customers, Ufone has emerged to be the most prominent player &
has 2nd largest customer base in the market in the short span of its operations.

Current Situation of Ufone

Ufone has started Sales in all the major cities of Pakistan which include Karachi,
Lahore, Islamabad, Peshawar, Rawalpindi, Kohat, Jehlum, Quetta, Sialkot, Faisalabad,
Multan, Sukkur, Gujrat, & Gujranwala including 1500 other small towns across the
country. New Connections are available at all ufone centers and authorized dealers for
just Rs. 50/ which includes Rs. 150/ of airtime. U-fone is in process of starting the sales
of connections in a large number of other destinations across Pakistan. This expansion
will also result in increase of Ufone coverage in many additional cities and highways.

Total User Base of U-fone

U-fone is currently enjoying 20.53% user of Pakistan mobile industry. It means U-fone
has 17,800,424 subscribers.

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Main Features

Both postpaid and prepaid Ufone subscribers can enjoy any/ all Ufone services
including MMS, Ufone Internet, Global SMS, and Pocket Stocks etc. In order to use
any of the GPRS based services just call 333 and activate your GPRS subscription.

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Multi Media & Broad Band (Phone n Net)

Formerly Paknet Limited a fully owned Subsidiary of Pakistan Telecommunication


Company Limited (PTCL) is now merged in PTCL as Multimedia & Broad Band
Region. It was formed in March 1999 and started commercial operation in January
2000. It is now the biggest Internet Service Provider of the Country. Besides Internet
this region also provides data communication services like Clear Channel data links,
Frame Relay and Digital Circuits on Optical fiber cross connect systems etc.

PTCL was running its Internet Division through its region by the name of Public Data
Network (PDN). On December 1999 the PDN region was dissolved and all the assets
and Liabilities were transferred to Paknet Limited. Paknet made a fresh start with an
Internet customer base of 6000 as of January 2000 and successfully achieved the target
of its first year business plan of 50,000 Internet customers. Now it became Multi Media
& Broad Band Region which currently has a customer base of more than 130,218 (Mar
31, 2008).

The Company commenced its business in January 2000 with a balance sheet size of
over US $ 7.0 million. Currently it has a revenue base of approximately US $ 5.0
million per annum and is most likely to double in the next fiscal year keeping in view
the market demand of Data products and expansion plans of the PTCL. In near future
PTCL is introducing a new IPTV service for its valued customers.

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COMPETITOR 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 then 800 million subscribers of mobile phone.

There are 03 big players in mobile phone industry but 3 of them are the competitor of
PTCL:-

 Mobilink

 Telenor

 Warid Tel

Other players in Land Line industry:

Operator NTC
Brain World Union
Naya Tel
Limited Call Communication
Customers 103,059 7,376 11,347 3,500 13,500

Mobilink

Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having


more then 31,958,597 users base which is the 36% of total cellular industry of Pakistan.
Mobilink is basically competing Ufone which is subsidiaries of PTCL.

Telenor

Telenor is another cell phone company it have 17,841,074 subscribers which is 20 % of


total mobile industry.

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Warid Tel

Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more then
15,114,678 subscribers which is 17% of Pakistan mobile industry.

NEW COMPETITORS

Other than mobile & land line PTCL is facing competition in F.W.T (Fixed Wireless
Telephone) product market. Below are the major competitors.

 Telecard 501,680

 World Call 468,335

This has added competition for PTCL (1,245,639) in WLL (Wireless local Loop) field.

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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 flow of these departments.

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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

1. Marketing Strategy of PTCL

For understanding the marketing department work flow and its function we must have
clear picture of the PTCL’s marketing strategy. For developing clear understanding of
marketing strategy of PTCL there is no one line statement or clear vision of marketing

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department so we have to move traditionally .Classically, Marketing has been all about
the “four P’s”: 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: -

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 P’s i.e. Product, Price, Promotion and place.

TARGET MARKET

PTCL’s 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.

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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
– Resident ional

• on the basis of services as:


– 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 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.

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.

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Service vs. Customer Matrix

S.# Type of PSTN UAN Tele. 0800 0900 VPN PPCC VOIP
Customers M
BASIC TELEPHONY & VALU ADDED SERVICES
A. CORPORATE
1 Companies Y Y Y Y Y Y
2 ISP’s
3 Financial Institutes Y Y Y Y X
4 Data Operators Y
5 Special License Y
6 Govt. Y Y
7 Foreign Missions Y Y
B. RESIDENTIAL Y Y
DATA
DXX PRA BRA UIN VOIP CATV Co.Loc DSL
A. CORPORATE
1 Companies Y
2 ISP’s Y Y Y
3 Financial Institutes Y Y Y
4 Data Operators Y Y
5 Special License
6 Govt. Y Y
7 Foreign Missions Y Y Y Y
B. RESIDENTIAL Y Y Y

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3. MARKETING MIX

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
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.

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 PTCL’s proposal, the
new rates are enforced. It may be mentioned here that telecom technology is only

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technology whose rates are on the decline with the passage of time. PTCL also
rationalizes its tariff with the passage of time. Tariff rationalization process started in
1997 as part of GoP Telecom Sector policy for privatization of this sector. It was mainly
focused on rebalancing the domestic process like NWD, international, local call, line
rent etc. Rebalancing is completed by the end of 2003 (as per Tariff rates) with the
objective to position PTCL for competition.

4. PROMOTIONAL STRATEGY

PTCL is using following components of promotional mix for the promotion and
Publicity of its product/services.

 Advertising:

In promotional mix, PTCL’s 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.
PTCL’s 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 1/3rd 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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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 not felt any strong need to use the
Services of a sales force for increasing the sale of its products. At the moment, PTCL’s
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 now in the process of inducting professional sales force for the
company.

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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 Operation Region Level


Customer Services Centers Tehsil Level
Toll Free Help Lines For Complaint & Enquiry

Now we briefly introduce the functions of these:

 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.

 Toll Free Help Lines

PTCL offers state-of-the-art call center network to its all type of valued customers for
convenient frequently asked Questions, Complaints regarding their services, T/No
enquiry. The following three Toll Free T/Numbers are available for this purpose.

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a) 1236 (Service Activation)

This toll free No is used to change the tariff packages of land line, WLL (V-fone),
PTCL phone n net service activation, & for Broad Band customers. The service
activation is electronically ordered & activated within 24 hours through concerned
department.

b) 17 (Telephone Directory)

This facility is also Tol Free & is used to obtain the telephone numbers of some specific
subscribers (College, Govt. offices, Private offices etc.). This is centralized & is being
used as Telephone Directory.

c) 18 (Land Line Complaints)

To register the faulty Telephone complaints PTCL has established a Toll Free No 18
where a computerized central node is used to register & rectify the consumer
complaints for land line numbers.

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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.

i. Bill Printing & Distribution.


ii. Issuance of Duplicate Bills.
iii. Error correction of Bills.
iv. Collection of defaulter amounts.

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 Officer’s staff at Distt level.

Issuance of Duplicate Bills

In case of missing or damaged bills received to customers the correction is also


Revenue department’s responsibility. For this purpose the revenue office deputes its
staff for each Tehsil level PTCL office during the bill payment dates normally from 18th
to 30th of each month.

Error Correction of Bills

In case of late payment or 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 or the bad debts are also collected through
revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target of bad

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debts collection on monthly bases. Now a days as incentive is also offered on more than
100% recovery each month.

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SWOT ANALYSIS OF PTCL

Now we move towards the most important part of the internship report the SWOT
analysis after working 2 month in the company I find some critical issues about PTCL.
After carefully analyzing these true issues of an organization now I am able to
understand the organization in right way so at the end of my report I will go for SWOT
analysis of PTCL.

 STRENGTH
 PTCL enjoy monopoly

 State of the Art International Gateway Exchanges & Satellite Earth Stations

 large earnings

 good quality international connectivity

 Customer Base of over 4 million

 Government support

These are the few basic strengths of the PTCL now we look each one in isolation.

PTCL Enjoy Monopoly

PTCL is sole provider of land line services in Pakistan .so there is no competition
regarding their basic service. it means that there is a monopoly of PTCL.

• International Submarine Cables


• High Capacity National Fiber Optic Backbone Ring
• 36 Transit Exchanges with easy Facility of Expansion
• About 99% Digitization of Country Network
• Strong Platforms & Exchanges for Value added Services
• Access Network & Customer Base of over 04 millions

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State Of The Art International Gateway Exchanges & Satellite Earth Stations

PTCL have largest net work with its state of art technology and new digital
exchanges. These are the few important characteristics of PTCL network.
• International Submarine Cables

• High Capacity National Fiber Optic Backbone Ring

• 36 Transit Exchanges with easy Facility of Expansion

• About 99% Digitization of Country Network

• Strong Platforms & Exchanges for Value added Services

Large Earnings

As described earlier that PTCL with more then 4 million users having greet
revenues this is another strength of the company

Government support

As you know PTCL is government organization so it has great support and it is


strength for PTCL.

 WEAKNESS

 Image – Government organization

 Image – Lack of customer focus

 Image – Outdated people and technology (perception)

 Lack of aggressive marketing

 Lack of customer services

 Ambiguous management style

 Lack of corporate culture

 Social responsibility

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 OPPORTUNITY

 Growth in telecommunication industry

 More aware and technology understanding consumer – a base that is growing at


a fast rate

 Market open for more number of products – less dependence on single category
or product

 Opportunity to introduce High Value Added Products / High margin products


for the new, more aware consumer

 Time to establish brand loyalty, Pre-empt competitors, co-opt partners, invest in


technology and networks

 THREATS

 Internet Telephony & other rapidly evolving technologies

 Expected competition due to the deregulation in December 2003

 New technologies

 Efficient operators

 International players, reduction in settlement rates,

 Migration to satellite and cellular telephony

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My Project

STAFF ROLE OF THE HUMAN RESOURCE


DEPARTMENT
The Human Resource department of the company operates in an auxiliary, advisory, or
facilitative relationship to other departments in the organization. Any staff unit, whether
it be personnel or otherwise, exists to help the line effectively. It has been created in the
first place to take advantage of specialized talent and knowledge.

The H.R department of the company generally performs the following roles:

 Policy Initiation and formulation

 Advice

 Service

 Control

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POLICY INITIATION AND FORMULATION

The SEVP of the H.R. Department is the individual most actively involved in policy
revision to cover recurring problem or to prevent anticipated problems. Ordinarily these
are proposed to the president of the company, and it is up on the latter’s authority that
the policy is actually issued. When proposing a new or revised policy the personnel
director must analyze problem that have occurred in the past, survey other companies to
determine how they handle similar situations, discuss the matter with colleagues and
subordinates and give due consideration to the prevailing philosophy in the
organization.

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ADVICE
A major portion of the activities of those engaged in staff personnel work is in the
nature of counsel and advice to line manager. Countless examples can be given. A shop
foreman may be confronted with a grievance over distribution of overtime. Another
foreman may have the problem employee who he feels should be disciplined or even
suspended. At the time of the annual review of all salaried personnel for possible pay
increases, the operating manager plays a key role in advising operating manager on the
administration of the program. An apparent concerted slow down may occur in the
assembly department. It may have been instituted by the union in retaliation for the
cutting of piece rates the week before. How should production supervision handle this
situation.

The H.R. Managers and their staffs are expected to be fully familiar with H.R. policy,
the labor agreement, past experience and the needs and welfare of both the company
and the employees in order to develop a sound solution. Successful personnel specialist
must be people centered. They must be feeling sensitive, wants, and motives of other
people. At the same time they must continually be cognizant of their obligation to
preserve the structure and functioning of the organization. In fact, this really is the
essence of H.R. management. Management must seek to so direct and coordinate the
efforts of the people that the goals of the organization are achieved while at the same
time providing need satisfactions for the members of that organization.

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SERVICE
The service responsibilities of the H.R. department are apparent when one examines
such things are as the employment, training, and benefits functions. The tasks of
recruiting, interviewing and testing job applicants are performed in the H.R. Dept.
Training programs are planned, Organized and often staffed through the H.R. Dept.
H.R. Dept must see that adequate instructional materials and facilities are available.
Once pension and insurance programs have been setup, all claims must be through the
H.R. Dept. The maintenance of adequate employee records is a service function that
permeates all functional specialties within the personnel field.

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Control

The H.R. Dept carries out important control functions. It monitors the performance of
line department and other staff departments to ensure that they conform to established
personnel policy, procedures, and practices. The control function of the personnel
department is quite comparable to the activities of a quality control group that measures
product variables to ensure conformance to engineering specifications or to the
activities of the auditing staff that inspects accounting records to ascertain conformance
with prescribed standards.

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HUMAN RESOURCE DEPARTMENT FUNCTIONS

H.R. Management activities are carried on both by the staff H.R. Dept and by operating
management in the course of directing the activities of the work force. Variation from
the pattern described may occur in particular companies because of special
circumstances.
This function includes recruitment, selection, and induction into the organization. The
initial decision to add someone to the payroll is made by line management. It is also its
responsibility to determine the content of the job to be performed and the employee
qualifications necessary to perform the job satisfactorily. Very commonly, statements of
job content and employee qualification have been previously worked out jointly
between line management and the H.R. Dept. These are recorded in the form of job
descriptions and job specification. The H.R. Dept must develop and maintain adequate
sources of labor. It must set up and operate the employee selection system, which may
include interviews, selection tests, a medical examination, and reference checks. Quite
commonly the role of the H.R. Dept is one of screening with the final decision to hire or
reject being made by the supervisor who requested the new employee. However, in the
case of large-scale hiring program of unskilled or skilled workers, the H.R. Dept is
commonly granted full and final authority to make the hiring decision. The new
employee’s supervisor bears important responsibilities for introducing his/her to the
new work environment. This is often called orientation.

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President of PTCL

SEVP HR

GM HR H.Q GM HR SOUTH KCH GM HR NORTH RWP

* GM HR CENTERAL GM LABOR GM TRAINING


RELATIONS

S.M TRAINING HRP S.M TRAINING


LHR
REGIONAL
MANAGER HR

S.E TRAINING R.T.T.S


LHR
OFFICE STAFF TO
R.M HR
S.E TRAINING RTTS
MULTAN

S.E TRAINING RTTS


KARACHI

S.E TRAINING RTTS


ISLAMABAD

H.R MANAGEMENT HIERARCHY AT PTCL

* The staff tree for other GM’s HR (South, North) is also same as per GM HR Central.

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TRANSFER, PROMOTION, LAYOFF

For these tasks the H.R. Dept serves primarily in a coordinative capacity. When
employees are moved from one department to another either because of the needs of the
business or because of individual requests, the personnel records may be studied to
ascertain that they posses the requisite skills. Layoffs typically are processed by the
H.R. Dept to ensure that the proper order of preference is followed. This can become
complicated of combinations of jobs, departmental, and plant wide seniority rights must
be observed. When a vacancy occurs in a position, it may be filled by promotion from
within or by direct hiring from outside the company. This decision is often made jointly
between the H.R. Manager and the executive in change of the department where the
vacancy has occurred. Many companies may establish policies to cover matters of this
type. The actual final decision as to which candidate is chosen for the promotion is
largely made by the executive in whose unit the vacancy has occurred.

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TRAINING AND DEVELOPMENT

On-the-job training and coaching are performed by the line supervisor or by a specially
designated employee who acts in the role of an instructor. It is the responsibility of the
personnel industrial relations group to determine training needs in cooperation with the
line management. Once the needs are established, the personnel training specialists
must design a program to accomplish the desired results. If the program takes the form
of in service class room courses, it usually is administrated by H.R. Department.
Coaching, performance appraisal, and post appraisal counseling, job rotation,
understudies, and special broadening assignments are largely executed by operating
managers but coordinated by a central H.R. Dept.
PTCL has established its own training facilities as detailed below:

 Telecom staff College Hari Pur

 Telecom Staff college Lahore Cantt.

The regional level staffs training schools are also involved for extending training
facility to all the staff members of the organization, based at regional headquarter level
such kind of Regional Telecom training schools are
 R.T.T.S Lahore
 R.T.T.S Multan
 R.T.T.S Faisalabad
 R.T.T.S Karachi
 R.T.T.S Islamabad etc.

The types of training being offered are:


o Initial training for the new staff generally 03-06 months as per designation at
T.S.C Lahore/ Hari Pur.
o Refresher courses for existing employees.

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o Promotion training courses.


o Special emergent technology trainings.
o Some times PTCL also sings contracts with its suppliers/vendors for foreign
trainings.

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COMPENSATION ADMINISTRATION

The work of designing and installing a job evaluation program is handled, for the part,
by the H.R. department with some consultation with line managers. The decision to
adopt a particular pay structure with pay grades and fixed minimums and maximums for
the grades is a top management responsibility.
The day-to-day work of analyzing jobs, evaluating their worth according to a formal job
evaluation plan, and maintaining suitable records is are H.R. dept. functions Periodic
wage are conducted by the H.R. dept, but any firm decision to rise or change the entire
schedule is particularly always reserved for the chief executive officer of the
organization.
Following three types of compensation packages are being served to PTCL staff.

 N.B.P.S (National Basic Pay Scale)

 N.C.P.G (New Compensation Pay Grades)

 N.T.C (New Terms and Conditions)

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HEALTH AND SAFETY

A significant part on occupational health programs is the identification and control of


agents within the working environment that can cause occupational diseases. Some
agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat, radiation,
biological substances and stress. Industrial hygienists are employed to identify and
control such hazards to health.
Other important elements of an employee health programs are pre-employment medical
examinations, periodic examinations for those working on jobs having exposure to
occupational disease-causing agents, rendering of first aid, treatment of minor ailments
such as colds and headache, and providing health education information. Small
companies typically hire physicians, nurses and industrial hygienists only on the
consulting and part time basis. Large firms tend to be staffed with full time personnel’s
in these areas. The safety program is directed toward the prevention of work injuries.
The main elements are engineering, education and enforcement.
PTCL is offering both its own medical facility setup & the private hospitals on its panel.
The miner health problems are dealt by PTCL own medical facility/staff & other in
which patient is to be admitted or operated are forwarded to the panel hospitals.
PTCL also offers reimbursement of expenses to the remote areas staff as they can not
reach to PTCL hospital in any emergency.

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DISCIPLINE AND DISCHARGE

Discipline has two principal meanings. In the first sense it means “training that molds or
corrects.” This means the achieving and maintaining of orderly employee behavior
because the people understand and believe in the established codes of conduct. The
second meaning of the term discipline refers to punishment of wrongdoers.

The H.R. department commonly assumes the responsibility for formulating the list of
necessary rules together with the range of penalties for each offense. Frequently this list
of rules and penalties is discussed and cleared with high-level line management before
it is issued and communicated throughout the organization. These rules are called terms
and conditions formerly known as Employment & Discipline (E&D) rules.

Most commonly, actual approval by the H.R. department has to be obtained before and
employee may be discharged. The reason is that discharge is a very serve penalty and
should be used only when a very clear case can be shown. In addition, it is especially
vital to achieve companywide uniformity in the handling of such cases.

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Internship Report

LABOR RELATIONS

When a union has been certified by the National Industrial Relations Commission
N.I.R.C, as the result of an election, as the sole and exclusive bargaining agency
(C.B.A) for the employees, then management must bargain with it in regard to wages,
rate of pay, hours of work, and other conditions of employment. The principal tasks
involved in handling labor relations are contract negotiation, contract interpretation and
administration, and grievance handling.

The H.R. department plays very significant role in labor-management relations. The
director of industrial relation usually serves as a key member of the bargaining team
often acting a chief management spokesman. In operating on a day-to-day basis under
the terms of the labor agreement, line supervision often finds frequently occasion to
consult the H.R. department regarding such matters like allocation of over time,
handling of transfers and layoffs, and the application of contract work rules.

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Internship Report

BENEFITS AND SERVICES

Included under this category are pensions, group life insurance, hospital and medical
insurance, sickness leave pay plans, supplemental unemployment compensation, loan
funds, credit unions, social programs, recreational programs and college tuition refunds
plans.

The actual decision to establish or to expand these programs is nearly always made by
top line management upon the advice and consultation of the H.R. department. The
actual design of pension and insurance programs requires a great deal of technical
knowledge. These programs are generally worked out in conjunction with insurance
companies or insurance consultants. After these plans are installed, the day-to-day
processing of claims is handled by the H.R. department

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Internship Report

ORGANIZATION DEVELOPMENT

Organization development is a general approach for improving the effectiveness of an


organization that utilizes a variety of applied behavioral science methodologies. Among
the objective of the OD are to increase the level of trust and supportiveness among
people in the organization, enhance interpersonal skills, make communication more
open and direct, directly confront problems and to tap the knowledge of all who can
contribute to problem solutions wherever they may be in the organization.

Consultants are often involved in OD work they work jointly with management to
collect data, diagnose problems and work of solutions. Typical kinds of OD activities
are interventions or confrontation meetings, team buildings, survey field, back conflict
resolution, laboratory training and managerial grid exercises and projects.

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Internship Report

HUMAN RESOURCE PLANNING

Another new function that has emerged in recent years in human resource planning
(also called manpower planning). Sometimes a specific person or office has this as its
primary responsibility; more commonly the responsibilities are shared by several people
within the corporate personnel unit. Human resource planning is the process by which is
a firm insures that it has the right number of qualified persons available at the proper
times, programming jobs that are useful to the organization, and which provide
satisfaction for the individuals involved. The principal elements involved in human
resources planning are as follows:

1) Goals and plans of organization.

2) Current human resource situation including skills inventory.

3) Human resource forecast including comparison of projected future demand for

employees with projected supply.

4) Designing programs to implement the plans.

5) Audit and adjustment.

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Internship Report

EQUAL EMPLOYMENT OPPORTUNITY

Very commonly the Senior Executive Vice President (SEVP HR) in the company bears
the major responsibility for insuring that the organization complies with the various
equal employment opportunity laws and regulations. She or he often delegates the day-
to-day detailed administration to someone within the H.R. department who either
specializes in this field of work or who performs these duties along with others
department such as the employment function. Usually the Chief Executive Officer
(CEO) of the company, whether she or he is called the chairman/chairperson of the
board or the president, plays a key role in the formulation and implementation of equal
employment policy.

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Internship Report

PERSONNEL INFORMATION SYSTEM


Today, many organizations have staffs of people trained in mathematical analysis,
computers, and management information systems. Some companies have applied these
capabilities to personnel work. Among the applications have been human resources
planning, skills inventories, employee benefits analysis, and productivity studies.

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Internship Report

HUMAN RESOURCE DEPARTMENT OF THE


PTCL:
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 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.

RECRUITMENT:
The department first determines the need of employees to be hired .The post against
each vacancy is advertised and then the applications are invited from the applicants .If
there is a post of manager cadre; the SEVP personally is the interviewer of the
interviewees along with his team.

TRAINING:
Then the qualified candidates undergo a training period under the banner of Human
Resource Department .There are Telecom Staff colleges at Lahore & Hari Pur. Then the
specified persons are appointed against each specified post so the best results are
expected and hence the performance and good will of the PTCL is increased.

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Internship Report

TRANSFER:
Human Resource Department of the company also deals with the transfer of the
employees because the Human Resource Department knows the demands of the job and
the right person is employed over the right place by transferring him to that post.
Health and safety matters are also handled by the Human Resource Department in the
organization. As there are no apparent dangers to the employees and customers hence it
is the responsibility of the Human Resource Department to see through the matter.

EVALUATION:
The employees are then properly evaluated by different evaluation criteria and
procedures in order to motivate them and to enhance the performance .The job appraisal
system comprises of different questionnaire depending upon which the whole system is
forwarded.

UNION:
The union plays an essential part for the labor management relation .It bargains with the
management in the light of the demands of the employees .It is the responsibility of the
Human Resource Department which holds the formal talks and the negotiations
between the parties. Human Resources Department is also responsible for the dealing
with other organizations running the same business.
Discipline and discharge is the necessity of each organization and it is maintained by
the Human Resource Department of the company. If an employee is creating problems
for the administration for nothing, he may be warned and depending upon the severity
of the matter and allegation he may be suspended and even terminated.

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Internship Report

WORK PLACE TRAINING:


The work place training or on job training (O.J.T) is the key factor of the policies of the
Human Resources Department .As the company is public dealing entity so the work
place training is the integral factor for the good will and the status of the policies and
services of the company.

REFRESHING COURSES:
The refreshing courses enhance the potential capabilities of the staff and the
performance as well. The refreshing courses are conducted by Regional Telecom
Training Schools (RTTS) and some times by Telecom Staff Colleges & are attended by
the staff members on the recommendations and behalf of the H.R. Department.
Refreshing courses are for the managerial and Technical staff. So they are equally and
firmly evaluated and enhancement of their capabilities is achieved.

PAY PACKAGES:
The packages are also determined by the Human Resources Department. These are
determined on the basis of performance, ACR, qualification and seniority. It has
comparatively low pay packages yet good ones.
The managerial posts are filled directly by the Human Resource Department. On the
other hand the Technical Lower and mid level supervisory staff is hired by the means
of:
1) Direct Hiring.
2) Promotion on seniority bases.

The promotions are on the seniority cum fitness basis .So the qualified and the efficient
workers are supposed to come up to the top. Human Resource Department also deals
with the retention and firing of the employees. In case of deceased employee, one of his
children gets the job in the company according to his qualification. According to
qualification and skills it ensures the employee benefits.

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Internship Report

More over the Human Resource Department also cares for the old age benefits of the
employees .It is obvious that the Human resources Department is of key importance and
is playing a complementary role in the development and promotion of the company.

INFORMATION TECHNOLOGY:
The information system is the core of the operating of the each and every organization.
It helps in the policy formulation and the running of the business affairs properly by
providing the 1st hand and accurate information. The whole Human Resource
Department functionality depends upon the information system. Better the information
system, better the Human Resource Department. The company is now in a process to
develop its own HRIS system so that it may have good information system and be able
to serve the employees as well customers through Human Resource Department
efficiently and effectively.

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Internship Report

CURRENT HR ISSUES OF
PTCL
PTCL offered VSS (Voluntary Separation Scheme) to its regular staff.

Under this program, all regular status employees under the age of 58 as of 15
November, 2007 are eligible to participate in this PTCL VSS. Employees interested in
opting for VSS will have 60 days from the announcement date of 15 Nov, 2007 to
complete and submit the enclosed Option/Wavier Form to the VSS Support center using
the enclosed pre- addressed & pre-paid envelop. If an employee choose not to opt for
the VSS & remain at PTCL under the current terms of employment. The VSS is
completely voluntary. Employee decision either to participate or not to participate is
voluntary at his will.
Additionally PTCL established a VSS support center to assist employees in the decision
making process. The support center staffed with Support Officers that can help
employees understand his individual VSS package & answer any questions he may
have. The support center remained available through out the VSS program rollout,
Monday to Thursday 08:30 AM to 05:00 PM – Friday 08:30 Am to 12:30 PM (Break
12:30 PM to 02:00 PM) – Saturday 08:30 AM to 03:30 PM by calling toll free number
0800-13531. ^ E-mail: {vss@ptcl.net.pk}

ACHIEVEMENTS THROUGH VSS PROCESS

a) Decrease in Surplus/Not needed staff by 29979 staff members of all categories.


b) Decrease in future staff pays payments by almost 40% each year.
c) Opportunities open for new highly qualified/trained staff.
d) VSS will help PTCL make corporate image better.
e) Ratio of staff with respect to the working capacity will improve up to 1570
Lines/employee.

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Internship Report

VSS Process & TimeLine

VSS Announced Employees Employees calls VSS


Acknowledge Receipt of Support center to
VSS notification report Errors in
Personal information

No later than No later than


15 Nov, 2007 26 Nov, 2007 1st Dec, 2007

Employees Submit
option/Waiver Form to
Accept or Decline VSS

Post Marked
No later than 14 Jan,
2008

Employees Call VSS


Support center to
confirm Receipt of
Option Form

After 15 days of
submitting Form

PTCL Management
Reviews & Accept or
reject Applications

Within 30 calendar days


of Receipt of Option
Form

Employees Receive
Letter of Acceptance or
Rejection

Postmarked
No later than
24 Feb, 2008

PTCL Management Employees Submit


cuts Settlement Cheque Completed off -
Boarding & or Pension
paperwork
No Later than
4 April, 2008 No Later than 15 days
After VSS Acceptance

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Internship Report

WEAKNESSES:
The Human Resource Department is not up to the mark for the proper
appraisal system of the staff.
The policies of the company are determined by the board of directors in
accordance with the H.R. Department. However there are certain policies in
which the Human Resource Department is dependent on the Ministry of IT
& T Govt. of Pakistan
Employees have developed a psychology that promotion criteria &
procedures of the Human Resource Department of the company are not
justified.
The quality of service in areas is much poor hence creating the problems for
customer.
Human Resource Department is lacking employee training centers. There are
only two Staff colleges. On the other hand the training opportunity is not
provided to all the staff equally.
If an employee wants to study during the job, he has to take approval from
the Human Resource Department of the company; there are certain bottle
necks for taking such approval. The management also never encourages
employees for enhancing there qualifications/technical skills.
The staff did not get any benefit for their higher qualifications in the shape
of promotions or pay increments.
Proper evaluation of the employees is not in the normal functioning of the
company.
Refreshing courses are on & off, not timely and frequently.

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Internship Report

The proper information system is not in progress for the Human Resource
Department. The automation process by the Human Resource Department is
slow hence delaying the functioning of the company.

Human Resource department lacks trained & related qualified staff and it is
very difficult for the SEVP Human Resource to do the right things for the
organization and it takes much time for normal working of the organization.

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Internship Report

RECOMMENDATIONS
The Human Resources should take less time in recruitment and training the
staff.
Highly qualified & trained staff may be deputed in HR department.
Refreshing courses should be adequate and more frequent during the year.
The promotional criteria by the Human Resource Department should be
defined and be as per rules.
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.
During the training by Human Resource Department the ethical values
should be more emphasized.
The proper and competitive evaluation of the methods and procedures
adopted by other competitors will enhance the performance of Human
Resource Department.
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 the Human Resource Department
and ultimately of the company. Human Resource Department should allocate
resources for this purpose.
Human Resource Department may advice and train employees for one
window operation in order to reduce the time and conserve the resources.
Agents for the promotion of the company policies and to facilitate the
customers by the Human Resource Department may be appointed with
proper check and balance system.
Pay packages may be revised in the light of profit earned by the
organization.

- 72 -
Internship Report

CONCLUSIONS:
No doubt PTCL is enjoying monopoly 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 with out saying that Human resources are the most important in
the organization and so does the Human Resource Department .It integrate all the
activities and functions of the company like job analysis, recruitment, staffing, training,
designing compensation package, employee’s appraisal system. Human Resource
Department plays the key role in the hiring, retention, motivation and promotion of the
employees .Actually it assign the specified duties to the specified persons in this age of
specialization. Human Resource manager should be well versed and confident in his
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”.

- 73 -
Change of Address

Customer
Request

Not Verified

Customer
Verification

Verified

CRS save the balance and


Change the Address in Both
System (CARES & Single NIC
View) Name of Owner
Father’s Name
Address
Ph No.
References

CRC Send
Document With Log
in which he writes
Address or May be
Reason
Bills Late Receive / Not Received/Return

Customer
Request

Not Verified

Customer
Verification

1. Address is
right, Verified
2. Post is
received if yes
then who is
received give
the name of
CRC Check the Reason of
this person.
Problem
3. Address is
NIC
right But Not
Name of Owner
Located by
Father’s Name
Post man
Address
Ph No.
References

CRC provide Bill @


that time and take
corrective action

1. Change the address


2. Intimate the Post
office as customer
request
Bill Amount Problem

Customer
Request

Not Verified

Customer
Verification

Verified

CRC Check the Billing


No Problem
NIC
Name of Owner
Father’s Name
Address
Ph No.
Problem References

Show the Bills or


Records of calls
CRC Will Make the
Adjustment
Activation/Deactivation of Value added Services

Customer
Request

Not Verified

Customer
Verification

Verified
1. If Value
Added service
is being offered
by the PTCL.
2. Is the CRC check the option of Request Reject
service already package and product.
activated? NIC
Name of Owner
Father’s Name
Address
Request accept Ph No.
References

CRC open the


value added
service
Change of Package

Customer
Request

Not Verified

Customer
Verification

Verified
1. Verify
user’s
previous
payments
clearance CRC Check the Old
2. What Package
package user NIC
requested? Name of Owner
Mother’s Name
Address
Amount is clear Ph No.
References

CRC Change the


Package and
send the Log
Complaint Registration for Faulty Phone (Land Line)

Customer request
(Dialed 18) Complaint
registered got Complaint
Number

Complaint Fault not rectified


forwarded to the Carried over Fault
concerned Eng. Ops
on CFMS

1. Verify
Customer Address.
T/No & customer
2. Verify address
Customer Name. verification along 1. Verify
with Nature of
Cabinet /DP/Pair.
fault
2. Verify from
Switch room.
3. Locate the
concerned E.S,L/M
Fault rectified 4. Handover
By Line Man the fault to E.S,L/M

Updated Data base on


CFMS Online software
(The fault is rectified)

Verification by CFMS
by dialing customer
T/No

Customer replied the Customer replied the CFMS


CFMS by pressing 1 on by pressing any other digit
his T/phone set on his T/phone set

Fault Rectified T/phone is


working properly
Staff Request Approval Process

Request rejected

Employee Request for


Leave

Parent SE Operation

Verify Record
Leave
Balance
Record in
Master
HRIS
Data
Sufficient Leave Balance in
Hand

Leave Balance Forwarded to (Regional)


Zero Manager HR

Leave Approved
Leave Approved by
(Regional) Manager HR

Copy of Approval
forwarded to G.M HR for
master record (Leave)
update.
ORGANIZATION CHART OF PTCL
PRESIDENT &
CEO
SEVP
(I/ AUDIT) COMPANY G. M
G.M SECRETARY N. S. S
(I/ AUDIT)

SEVP SEVP SEVP SEVP SEVP SEVP SEVP


(STATE MGMT) (TECHNICAL) (OPERATIONS) (HR & ADMN) (IT)
(FINANCE) (CORPORATE AFFAIRS)
* Detail is on page 51*

EVP EVP EVP EVP EVP EVP EVP EVP EVP EVP EVP EVP
(Accounts) (Revenue) (Dev) (Tech & St. Pl) (O) (O) (O) ITT&R I/C (Marketing & (Bus. Dev.)
(Finance) C/C)
H/QTRS CENTRAL SOUTH

C.E C.E G.M C.E C.E (St.Plg) C.E C.E C.E


(RRR) (HRM&P) (Finance) Dev (LNW) (M&O-I)
(M&O) Central (M&O) South
C.E G.M
C.E (I/C)
(ITT&R) (Marketing)
C.E C.E (T&S)
C.E C.E G.M Dev(S&T)
C.E G. Ms G. Ms
(S&E) (Co-ord) (CTS&S) (M&O-II) GTR/LTR-I&II/ STR-I, II, III&V/ C.E G.M
C.E (T&NE) FTR/ CTR/ MTR WTR G.M (IBD) (C/Care)
C.E (ITI) KR
G.M G.M G.M G. Ms
(Proc-I)
(Admn) (T&T) (Accts) G.M ITR/NTR-I&II/ G.M G.M (STR-IV) Expert
(Tech Audit) RTR/OFS/HTR (SNCR) Lahore G.M G.M Telecom B.D
(S&T) KR OTR IBA
(Software
G.M ** G.M C.E Audit&Sup)
(I&I) (PR) (Proc-II) MD* G.M
(PTML)
(R&D Fund) G.M (OFS) G.M
G.M Mntce.
G.M G.M G.M
(T&I) G.M (Trg & Res) Computer
Legal ** C.M.O OTR KR (MM)
(TRANS DEV) Expert
Advisor Data Network Chief
Expert G.M Inspector G. M Principal C.E (SBD)
G.M G.M (ITI) IBA (NPGIT&I)
HR Telecom. (IT DEV) (FAN)IBA
Expert (Telecom)
(Revenue)
I/Technology
G.M (VAS)
C.E G.M G.M
(DSR&D)
Legend: (QA) Expert (Stores)
G.M
* Not included in PTCL working strength. B&C. Care (TH & VOIP)
** Posts do not exist. Officers are working G. Ms G.M
on Contract (Development) (OFC) Expert C.E
Kr/Lh/Pe/Iba B&C. Care (PSP)

C.E
(Po & Reg.)
Company
Financial Statements

1/5
PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CONDENSED INTERIM BALANCE SHEET
AS AT MARCH 31, 2008 (UN-AUDITED)

March 31, June 30,


2008 2007

(Rupees in thousand)

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorized Share Capital


11,100,000,000 "A"Class Ordinary Shares of Rs 10 each 111,000,000 111,000,000

3,900,000,000 "B" Class Ordinary Shares of Rs. 10 each 39,000,000 39,000,000


150,000,000 150,000,000

Issued, subscribed and paid-up capital


5,100,000,000 (June 2007: 5,100,000,000) ordinary shares of Rs 10 each 51,000,000 51,000,000
Insurance reserve 1,749,047 1,749,047
General reserves 30,500,000 30,500,000
Unappropriated profit 10,899,930 27,664,217
94,148,977 110,913,264

NON CURRENT LIABILITIES

Payable to PTA against WLL license fee 1,725,357 1,601,222


Deffered taxation - 2,373,223
Employees' retirement benefits 16,018,903 12,289,626
Long term security deposits from customers -
non interest bearing 1,213,161 1,195,784

18,957,421 17,459,855

CURRENT LIABILITIES

Trade and other payable 22,230,925 19,259,958


Short term borrowings 2,804,994 2,145,948
Current portion of Suppliers' credit - 171,581
Taxation 708,097 2,870,254
25,744,016 24,447,741

CONTINGENCIES AND COMMITMENTS

138,850,414 152,820,860

2/5
PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CONDENSED INTERIM BALANCE SHEET
AS AT MARCH 31, 2008 (UN-AUDITED)

March 31, June 30,


2008 2007

(Rupees in thousand)

NON CURRENT ASSETS

Property, plant and equipment 73,929,7297 76,191,881

Capital Work-in-Progress 9,159,750 10,609,483


Intangible assets 3,087,531 3,230,742
Long term investment 7,358,572 7,411,776
Long term loans 441,069 1,174,140
Deferred taxation 1,109,881 -
95,086,532 98,618,022

CURRENT ASSETS

Stores and spares 5,124,355 3,879,206


Trade debts 12,137,542 11,411,412
Current portion of loan to subsidiaries 150,000 400,000

Receivable from Government of Pakistan for VSS 2,164,072 -

Loans advances, deposits, pre-payments and other receivables 5,870,399 5,228,560


Cash and bank balances 18,317,514 33,283,660
43,763,882 54,202,838

138,850,414 152,820,860

3/5
PAKISTAN TELECOMMUNICATION COMPANY LIMITED

CONDENSED INTERIM PROFIT AND LOSS ACCOUNT


FOR THE QUARTER AND NINE MONTHS ENDED
MARCH 31, 2008 (UN-AUDITED)

Quarter ended Nine months ended


March 31, March 31, March 31, March 31,
2008 2007 2008 2007
(Rupees in thousand)

Revenue 14,940,105 15,715,580 43,963,060 48,451,819

Operating costs (11,407,143) (11,127,000) (56,940,963) (33,724,102)

Operating (loss)/profit 3,532,962 4,588,580 (12,977,903) 14,727,717

Non-operating income 1,001,054 982,128 3,439,540 3,859,457

Finance cost (135,816) (180,772) (453,716) (326,033)

(Loss)/profit before taxation 4,398,200 5,389,936 (9,992,079) 18,261,141

Taxation (1,420,865) (1,886,296) 3,427,792 (6,391,217)

(Loss)/profit after taxation 2,977,335 3,503,640 (6,564,287) 11,869,924

Earnings per share - basic and


diluted (Rupees) 0.58 0.69 (1.29) 2.33

4/5
PAKISTAN TELECOMMUNICATION COMPANY LIMITED

CONDENSED INTERIM CASH FLOW STATEMENT


FOR NINE MONTHS ENDED MARCH 31, 2008 (UN-AUDITED)

March 31, March 31,


2008 2007

(Rupees in thousand)

Cash flows from operating activities

Cash generated from operations 17,756,652 32,825,424

Long term security deposits 17,377 (123,571)


Employee retirement benefits (20,063,838) (208,445)
Finance cost paid (455,096) (330,911)
Income tax paid (2,217,469) (5,147,344)

Net cash inflow from operating activities (4,962,374) 27,015,153

Cash flows from investing activities

Fixed capital expenditure (4,960,188) (5,370,575)


Intangible assets - (9,900)
Long term investments (250,497) (516,518)
Long term loans 973,636 96,473
Loan to subsidiaries 249,996 250,001
Return on deposits 2,655,943 1,842,481
Dividend income 350,000 402,073
Sale proceeds from disposal of property, plant and equipment (1,034) 39,098

Net cash inflow/(outflow) from investing activities (982,144) (3,266,867)

Cash flows from financing activities

Repayment of long term borrowings 512,464 (404,923)


Dividend paid (10,193,138) (13,301,924)

Net cash used in financing activities (9,680,674) (13,706,847)

Net increase in cash and cash equivalents (15,625,192) 10,041,439


Cash and cash equivalents at beginning of the period 31,137,712 18,835,484
Cash and cash equivalents at end of the period 15,512,520 28,876,923
- -
-

5/5