Q PREFACE

This report is the practical part of the most vital practice of our MBA-Marketing program. The sole objective is to familiarize the students 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. KASHIF ALI

ACKNOWLEDGEMENT In the name of Almighty Allah who is most merciful, and who give me strength to accomplish honors. I take this opportunity to acknowledge my teachers efforts without which my success would not have been possible. Also would like to pay my gratitude to the very cooperative Executive staff at the PTCL OSS Barket Market Lahore office, the venue of my internship training program. Also want to applaud my parents for their selfless efforts and cooperation.

EXECUTIVE SUMMARY By the grace of almighty God, I have successfully completed my 6 weeks internship as per requirement of MBA program. I join PTCL OSS Barket Market Lahore. I feel my self-lucky to have worked with such a dedicated and resultoriented team. They all helped me in every possible way they can. I was assigned to work in Customer Care Department. With employee strength of 30,000 and more than 5.7 million customers, PTCL is the largest telecommunications provider in Pakistan. PTCL also the largest CDMA operator in the country with more than 1.25

continues to be

million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. This report is being started with the comprehensive introduction of organization, its historical background, its services and its products offerings. In this report

organization structure is discussed. The hierarchy in the organization as well as working of marketing department is concisely discussed. The most important thing the Business Strategies is discussed in such a way that its not difficult to understand. Business analysis has the vital importance, which in this report is also done. More over the Competitor Strategies is also discussed. Whereas SWOT analysis is done which clearly shows what are the strengths, weaknesses, opportunities and threats to the organization. My learning as an intern is also discussed. Finally some suggestions and recommendations are given to organization in this report. Limitations of PTCL are discussed. Thus this report completely depicts the true picture of PTCL in a meaningful way.

PRESEDENT MESSAGE
As we have pledged and committed in previous years, PTCL continues to position itself as the market leader and the catalyst for change in the telecom industry of Pakistan. During the year, we managed to maintain our profitability growth despite facing many challenges. Earnings per share improved compared to last year. In fact this year, ended 30th June, 2010 has been quite exciting, eventful and monumental. I am pleased to report that we remained focused on our strategy of positioning PTCL as the leading integrated telecom company in Pakistan providing multiple solutions to the business and household market segments and extending vital services to other telecom operators in Pakistan. This year has witnessed the consolidation of PTCL as a market leader for broadband services whereby we have expanded the footprints of our DSL services to more than 500 cities and towns providing connectivity of speeds ranging from 110 Mbps. This comes with the realizing that broadband services are now a necessity and remains our mission and mandate to take this service into every household in Pakistan. We also continued to expand the coverage of our wireless broadband ensuring that customer have access to seamless services and coverage through national roaming across major cities. Our flagship product EVO has gained significant attraction and popularity with its user- friendly and plug and play feature as seen from a consistent and high subscription. Our recent launch of EVO Nitro will give an exciting experience to our customers at a much higher speed of up to 9.3 Mbps. PTCL is the first operator in the world to launch this high speed wireless product commercially and remains the single operator to offer true 3G high speed internet services across major cities of Pakistan. In order for users to enjoy higher speed internet connectivity along with real value for money, we have had to enhance and augment all portions of our network which has now been duly completed. PTCL is the only company today which operates the largest international IP bandwidth connecting Pakistan with the rest of the world and I am pleased to

announce the inauguration for the 3rd International Submarine Cable (IMEWE), we shall commence commercial services shortly. This new cable will not only bring more capacity and reliable connectivity to the country but it will also provide backup to SEA-ME-WE-3 and SEA-ME-WE-4 ensuring that Pakistan remains connected to the information highways of the world. For our corporate customers, this year has also witnessed exciting developments whereby PTCL signed contracts with major banks in Pakistan to provide total connectivity and solutions covering hundreds of branches spread throughout the country. We have also educational institutions offering high speed internet accesses to the students all across Pakistan. Additionally, PTCL has introduced new services intended to serve the business community the Data Centers in Karachi and Lahore have been constructed according to the highest standards and certifications ensuring continuous and secure operations for data hosting operations. Telepresence studios have been launch to high quality audio visual conferencing facilities between major cities in Pakistan. To facilitate end to end managed services we have established two international Points of Presence (PoP) in Singapore and in Amsterdam providing managed VPN services to cooperate customers. PTCL remains the carriers carrier of choice for many operators in Pakistan and we continue to offer vital bandwidth services to innumerable licensed operators in the country using fiber optic satellite services covering all parts of Pakistan. At PTCL, we remain highly conscious of the fact that our success and growth can only come from satisfied customers. It remains our challenge to provide friendly, seamless and prompt customer service. To this end, we endeavored to embark on several projects intended to bring PTCL closer to its customers. We continued to refine our processes and systems and to provide training to all our representatives in the field or in our various customer contact shops to ensure swift and timely response. Our emphasis has been on shortening cycles for service provision, facilitating bill payments and making our services readily available to our customers through wider distribution points. We realize that customer satisfaction is a continuous, never ending process and we shall continue with our efforts to interact with our customers to ensure that the services we roll out measure to their full expectation and satisfaction.

With our multiple and dynamic products and services, our robust, resilient and agile network and our sound financial situation, we strongly believe that PTCL is poised to grow and remain the leading and dominant integrated telecom service provider of choice for customers throughout Pakistan. I take this opportunity to thank the Government, Etisalat Group, Board of Directors and all my fellow colleagues for their continued patronage, guidance and support. Best Wishes Walid Irshaid President & CE

Table of Contents
PART 1 .......................................................................................................................................... 1 Introduction of PTCL ..................................................................................................................... 1 History of PTCL ............................................................................................................................... 3 By Year Progress ............................................................................................................................ 5 Restructuring of PTCL..................................................................................................................... 6 Company Analysis .......................................................................................................................... 7 PTCLs Core Objectives ................................................................................................................... 9 Current Situation of Organization ................................................................................................ 11 Geographical Business Areas ....................................................................................................... 11 Nature of the Organization ..................................................................................................... 11 Main Offices ............................................................................................................................ 11 PTCLs Privatization: The Biggest Financial Scam in the Pakistan History .................................... 12 Vision ......................................................................................................................................... 15 Mission ....................................................................................................................................... 16 Core Values................................................................................................................................. 17 PTCL Brand Philosophy ............................................................................................................... 18 PTCL Positioning Statement: Hello to the Future ........................................................................ 18 Brand Values ........................................................................................................................... 19 Corporate Responsibility ............................................................................................................ 19 PTCL employees donate One-Day salary for IDPs ........................................................................ 19 Donation to SOS Villages ......................................................................................................... 19 Scholarships for Persons with Disabilities .................................................................................... 20 Donation to Earthquake victims in Baluchistan ........................................................................... 20 Donation to Benazir Income Support Program ............................................................................ 20

Sponsoring Event at LUMS ........................................................................................................... 20 PTCL Gets Environment Friendly.................................................................................................. 21 Part 2 .......................................................................................................................................... 23 Company Management System .................................................................................................. 23 Corporate Information................................................................................................................ 24 Management................................................................................................................................ 24 Board of Directors ........................................................................................................................ 26 STRUCTURE OF PTCL .................................................................................................................... 27 Organizational Hierarchy Chart.................................................................................................... 29 Management Responsibilities ...................................................................................................... 30 STAFF ROLE OF THE HUMAN RESOURCE DEPARTMENT .............................................................. 31 POLICY INITIATION AND FORMULATION ................................................................................ 32 HR&A TASK ASSIGNMENT (EXISTING) .......................................................................................... 34 PTCL Subsidiary........................................................................................................................... 35 Privatization ................................................................................................................................. 36 Key Accomplishments .................................................................................................................. 36 Performance ................................................................................................................................ 36 Brand............................................................................................................................................ 36 International Coverage ........................................................................................................... 37 Customer Service .................................................................................................................... 37 Network Coverage .................................................................................................................. 37 Current Situation of Ufone .......................................................................................................... 38 Total User Base of U-fone ....................................................................................................... 38 Departments of PTCL ................................................................................................................... 38 Finance Wing Structure .............................................................................................................. 38 Finance & Accounting System of PTCL ......................................................................................... 40 Accounting System of PTCL .......................................................................................................... 41 Funding of PTCL ........................................................................................................................... 43 Mobilization of Funds .................................................................................................................. 43

Generation of Funds .................................................................................................................... 44 Allocation of Funds ...................................................................................................................... 45 Human Resource Assessment ..................................................................................................... 46 Part 3 .......................................................................................................................................... 50 Management and Administrative Styles ..................................................................................... 50 Impact of Management Styles on Motivation of Employees ....................................................... 51 Impact of Management Styles on Productivity of the Employees ............................................... 51 Job Satisfaction of Employees ................................................................................................. 52 Issues ........................................................................................................................................... 52 Right downsizing ..................................................................................................................... 52 Employee Moral ...................................................................................................................... 53 Denationalization .................................................................................................................... 53 Service Concerns ..................................................................................................................... 54 Non-functioning of public telephones .................................................................................... 55 Part 4 .......................................................................................................................................... 56 Production and Operations......................................................................................................... 56 PTCL Performance in production ................................................................................................ 57 Expansion of Network and services improvement ...................................................................... 59 Conclusion .................................................................................................................................... 60 Part 5 .......................................................................................................................................... 63 Company Marketing Mix ............................................................................................................ 63 PRODUCT LINE OF PTCL .............................................................................................................. 64 Fixed Line ..................................................................................................................................... 64 Unique Features of PSTN ........................................................................................................ 64 New Offering ................................................................................................................................ 64 Broadband ................................................................................................................................... 67 PTCL Smart TV .............................................................................................................................. 68 EVO Wireless Broadband ............................................................................................................. 68

EVO 3G Nitro ................................................................................................................................ 69 EVO Wifi Cloud ............................................................................................................................. 70 EVO Tablet ................................................................................................................................... 70 V-fone .......................................................................................................................................... 74 PTCL V-fone (WLL) Payphone .................................................................................................. 75 SERVICES OF PTCL ....................................................................................................................... 76 SERVICES FOR CORPORATE CUSTOMERS ..................................................................................... 78 BRIEF INTRODUCTION OF SUBSIDIARIES ..................................................................................... 80 UFONE .......................................................................................................................................... 80 WorldCall Telecom .................................................................................................................. 83 Link dot Net ............................................................................................................................. 83 Marketing Department ............................................................................................................... 84 MARKETING STRATEGY ................................................................................................................ 85 TARGET MARKET ..................................................................................................................... 85 Market Segmentation .................................................................................................................. 85 POSITIONING STRATEGY .............................................................................................................. 86 MARKETING MIX OF PTCL ............................................................................................................ 86 PRODUCT ..................................................................................................................................... 87 PRICE ............................................................................................................................................ 88 PLACE ........................................................................................................................................... 90 PROMOTION ................................................................................................................................ 91 Pay 3 months line Rent in advance and get your Nitro USB Absolutely FREE ..................... 92 DIRECT MARKETING ..................................................................................................................... 92 ONLINE MARKETING AND ELECTRONIC COMMERCE .............................................................. 93 DISTRIBUTION .............................................................................................................................. 94 PROMOTIONAL STRATEGY ........................................................................................................... 96 SWOT Analysis ............................................................................................................................ 96 Why use a SWOT Analysis? .......................................................................................................... 97 Strength ....................................................................................................................................... 97

Weakness ..................................................................................................................................... 98 Opportunities ............................................................................................................................... 99 Threats ......................................................................................................................................... 99 Concluding Remarks on SWOT Analysis ..................................................................................... 100 Part 6 ........................................................................................................................................ 102 COMPANY FINANCE SYSTEM .................................................................................................... 102 Ratio Analysis ........................................................................................................................... 103 Advantages ................................................................................................................................ 103 Types of Ratios Analysis ............................................................................................................. 103 Liquidity Ratios........................................................................................................................... 104 Current Ratio ......................................................................................................................... 104 Acid Test (Quick) Ratio: ......................................................................................................... 105 Leverage Ratios .......................................................................................................................... 106 Debt Equity Ratio: ................................................................................................................. 106 Activity Ratios ............................................................................................................................ 110 Profitability Ratios...................................................................................................................... 112 Market Ratios............................................................................................................................. 114 Dividend per Share: ............................................................................................................... 115 Horizontal & Vertical Analysis .................................................................................................... 117 PTCLs Common size Balance Sheet ...................................................................................... 117 PTCLs Common size Balance Sheet ...................................................................................... 118 PTCLs Common size Profit and Loss Account ............................................................................ 119 PTCLs Indexed Balance Sheet ................................................................................................... 120 PTCLs Indexed Balance Sheet ................................................................................................... 121 PTCLs Indexed Profit & Loss Account ........................................................................................ 122 FUNDING OF PTCL ..................................................................................................................... 123 Conclusion .................................................................................................................................. 125

Part 7 ........................................................................................................................................ 126 Training Programme ................................................................................................................. 126 Internship Programme .............................................................................................................. 127 Structure of Internship department .......................................................................................... 128 MARKETING OPERATIONS ......................................................................................................... 129 LEARNING AS AN INTERN .......................................................................................................... 131 Strategic Management Matrices ............................................................................................... 134 Porter's Five Forces Analysis of Market Structure ..................................................................... 137 EFE Matrix of PTCL ..................................................................................................................... 140 IFE Matrix of PTCL ...................................................................................................................... 141 SWOT Analysis of PTCL............................................................................................................... 143 SWOT Strategies Matrix ............................................................................................................. 145 BCG Matrix for PTCL ................................................................................................................... 146 SPACE Matrix ............................................................................................................................. 148 QSPM MATRIX............................................................................................................................ 151 Part 8 ........................................................................................................................................ 153 Conclusion & Recommendations .............................................................................................. 153 PTCL: Future Prospects & Challenges ........................................................................................ 154 Weaknesses Identified ............................................................................................................... 155 Suggestions and Recommendations .......................................................................................... 155 Future Prospects of the PTCL ..................................................................................................... 157 References ................................................................................................................................ 158

PART 1 Introduction of PTCL

Introduction of PTCL Eleven years into a new century, the telecom sector of world finds itself at crossroads after changing itself almost beyond recognition over the last 27 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 Telecommunication Company Limited (PTCL) is the largest

Pakistan

telecommunication company in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecom infrastructure despite arrival of a dozen other telecom companies including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA and Internet are other resources of PTCL, making it a gigantic organization. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public. PTCL is also part of the consortium of three major Submarine communication cable networks: SEA, SEA-ME-WE 4 and I-ME-WE. In addition to wireline line operations, PTCL also provides fixed line service through its countrywide CDMA based WLL (Wireless Local Loop) network, under the Vfone brand name. In the cellular segment, the second largest cellular provider in Pakistan, Ufone, is also a wholly owned subsidiary of PTCL. With employee strength of 30,000 and 5.7 million customers, PTCL is the largest telecommunications provider in Pakistan. 2

PTCL also continues to be the largest CDMA operator in the country with 0.8 million Vfone customers.

History of PTCL
Pakistan has made steady progress in expanding telecommunication networks and services in recent years. In Pakistan this industry had few big giants in the past with PTCL being the sole provider of landline telephone service in the country. At present the organizations principal activity is to provide telecommunication services all over the country. It offers both domestic and international services throughout Pakistan. PTCL also manufactures telecommunication related equipment. Pakistan Telecommunication Corporation (PTC) has established in December 1990, taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, card-operated payphones, paging and, lately, data communication services. In 1994, the PTCL becomes the company limited (Pakistan Telecommunication Company Limited) by issued six million vouchers exchangeable into 600 million shares of the 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 telecommunication sector in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. Pakistan Telecommunication Company Limited had exclusive rights to provide basic telecom services in Pakistan till the end of year 2002. With the announcement of Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses for basic telephony to the private sector in Pakistan who will be competing PTCL, the incumbent. From the humble beginnings of Posts & Telegraph Department in 1947

and establishment of Pakistan Telephone & Telegraepartment in 1962, to this very day, ours is a story of commitment and vision. 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, cardoperated 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. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is being expanded to meet the increasing demand of International traffic. In the last couple of years the impact of deregulation and increase in competition in telecommunication industry in Pakistan has been increasingly felt by PTCL. This phenomenon is not unique to PTCL - incumbent providers all over the world have gone through this difficult transition from being a monopoly to a free market competitor. During the period under review, PTCL added net 108,000 new working connections to its network. Overall, PTCLs sales revenue for the first quarter was Rs.16.9 billion as compared to Rs.17.7 billion during the corresponding period of last year. The company announced net profit of Rs 8.4 billion translating into an EPS of Rs 1.64 for the first half of 2007, a decline of 23 percent over the corresponding periods net earnings and EPS of Rs 10.8 billion and

Rs. 2.12 respectively. The major factor for the decline in the top line was six percent downfall in the Revenues from Rs 34.9 billion in first half of 2006 to Rs 32.7 billion in first half of 2007.

By Year Progress
1947 1962 1995 1996 1997 1998 1999 2000 2002 2003 2004 2006 2007 Posts & Telegraph Dept. established Pakistan Telegraph & Telephone Dept. About 5 % of PTC assets transferred to PTA, FAB & NTC PTCL came into being and listed in Stock Exchange WTO Agreement Signature Signed and divided into 5 entities PTCL gets Cellular Mobile License PTA issues 100 of lines on internet value added Services Issues Licenses in the Area of Azad Kashmir PTCL Monopoly expired/End Telecom Deregulation Policy Announced PTCL is laying down Fiber Optic cables between the local exchange and the end users Etisalat Takes over PTCL With 26% of PTCL management shifted to Etisalat Restructuring and VSS(Voluntary Separation Scheme) (Source: PTCL)

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 of 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 wherein 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 in 1998. As telecommunication monopolies head towards an imminent end, services and infrastructure providers 5

are set to face even bigger challenges. Pakistan also entered post-monopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for telecom sector is in the offing. PTCL is in full awareness of the same, and future policies feature a strong conviction of healthy competition. The company is in process of enhancing organizational and business proficiency through vertical integration and horizontal diversification. At the same time, crossnational ownerships, operations and partnerships are being evaluated with a view to developing and diversifying the business.

Restructuring of PTCL
The governments efforts to restructure and privatize PTCL have been on-again off-again since 1991. It had an offer in the late 1990s for 26 percent equity, reputedly totaling $3 billion, but held out in negotiations and ultimately missed the unique global market window at that time. Since then, it faced difficulty in attracting potential buyers and new competitive entrants. From the government perspective, breaking up PTCL prior to a sell-off will help curtail the market power of any one single service provider, thereby stimulating competition. Unbundling the sale was also likely to increase revenues for the government. The risk, of course, was that the mobile company, PTML (branded as Ufone), was disproportionately more attractive than the other businesses. According to AKD Securities, PTML's contribution to PTCL's total revenues was expected to rise to 12.5% over the next five years and was assumed to contribute 39% of PTCLs overall revenue growth. Future growth of mobile, both in terms of subscribers and net revenues, was considered to almost certainly outstrip demand for fixed line services. The target was to sell up to a 26 percent stake in PTCL; the government held 88 percent of shares. Some estimates placed the value of the trance at around $1 billion. PTCLs net profit for the year ending June 2003 was 23 billion rupees ($400 million). The new buyer would gain management control. Splitting up PTCL could take at least two years or longer, complicating hopes for a quick disposal. Leading international investors that publicly stated their interest in the sale include

Singapore Telecommunications Ltd., Egypt's Orascom Telecom Holding, Saudi firm Oger and the Menara Telecom consortium. Unsolicited offers were reportedly made the planning process a moving target. The eventual new owner(s) greatest challenge was considered to be organizational. PTCL needed a fundamental shakeup of its corporate culture, and a massive reduction in staff.

Company Analysis
Pakistan Telecommunication Company Limited (PTCL) is the primary provider of Telecommunication services in Pakistan. The range of services include basic telephony, telegraph, fax, telex, Public data, Internet, E-mail, ISDN (Integrated Services Digital Network), Universal Access Numbers (UAN), and other value added services. Pakistan Telecommunication Company Limited is a professionally managed company and has initiated measures, with active support of the Federal Government, to inculcate a corporate culture that benefits company. Pakistan Telecommunication Company Limited believes that it has an inherent potential that it can exploit to emerge as an important and active business entity. Pakistan Telecommunication Company Limited has some basic strength and the potential that needs to be exploited into real business opportunities. The Directors of the Company feel that a firm and unwavering commitment towards provision of a complete range of market driven Companys Analysis. Pakistan

Telecommunication Company Limited (PTCL) is the primary provider of Telecommunication services in Pakistan. The range of services include basic telephony, telegraph, fax, telex, Public data, Internet, E-mail, ISDN (Integrated Services Digital Network), Universal Access Numbers (UAN), and other value added services. Pakistan Telecommunication Company Limited is a professionally managed company and has initiated measures, with active support of the Federal Government, to inculcate a corporate culture that benefits company. Pakistan Telecommunication Company Limited believes that it has an inherent potential that it can exploit to emerge as an important and active business entity. Pakistan Telecommunication Company Limited has some basic strength and the potential that needs to be exploited into real business opportunities. The Directors of the Company feel that a firm and unwavering commitment towards provision of

a complete range of market driven change is gradually becoming visible through expanded capacity and increasing revenue. Pakistan Telecommunication Company Limited has taken decisions to cope with the competition within the next years. The initiatives taken resulted in the establishment of 100% Pakistan Telecommunication Company Limited owned subsidiaries like Pak Telecom Mobile Limited, Paknet and Pak Telecom Pay Phone services limited. These new entities shall provide cellular mobile information technology, Internet, payphone, prepaid calling cards and other range of services. Pakistan Telecommunication Company Limited made a conscious decision to enter the cellular business as it has tremendous potential and an accelerated annual growth of about 60% which is likely to continue for many years. Pakistan Telecommunication Company Limited has been successful in obtaining a Cellular Mobile License for its subsidiary and has selected the GSM 900 state -of the art technology, which is growing at a much faster rate internationally. Pak Telecom Mobile Limited was incorporated on 18th July 1998 to establish and run this new business independent of Pakistan Telecommunication Company Limited with full accounting separation thus creating a level playing field for industry competitors. Pakistan Telecommunication Company Limited is following a business-oriented policy to associate private entrepreneurs in telecom sector development. The options are based on interconnect and revenue sharing arrangements with license operators and through out-sourcing revenue sharing with 0 & M contractors as business partners. PTCL has successfully entered into arrangements with foreign and local telecom companies and has signed three contracts prepaid calling card service to promote international traffic. The Government of Pakistan has encouraged the growth of the telecom sector to enable Pakistan to keep pace with the rapid technological advancement in the field of telecommunication. The tariff structure remains under constant review of the government to rationalize from the point of providing adequate returns to the telecom operators and to tap the tremendous potential of the growth in the demand 8

and market for telecom services. The GOP has reduced the CED on telecom services, encourages the use of value added services with special emphasis on proliferation of Internet. It has also reduced the import duties on telecom equipment and allows tax exemption. Private sector data and Internet services providers are operating under license and revenue share arrangements. Internet & information technology services are now very popular in the market and numbers of new entrants are competing, providing Pakistan Telecommunication Company Limited an opportunity lease capacity. Its available IT & Internet infrastructure both for private sector licensed operators and Pakistan Telecommunication Company Limited own customers. Pakistan Telecommunication Company Limited is launching a three-phased project for IT & Internet to expand the service to take care of 300,000 customers including the needs of private license for infrastructure.

PTCLs Core Objectives

The primary objective of Pakistan Telecommunication Company Limited is to provide telecommunication services to the people in the country or in short to satisfy the telecommunication needs of its customers. Responding to the rapid economic and technological growth, the company is determined to meet the challenge of expanding needs of telephone and data communication such as public data network, integrated services digital network and Internet services. The major focus of attention is to improve and expand the services, minimize the faults and provide communication facilities to rural areas. It is also one of the major objectives of management that the company should not improve its performance but also encourage the private sector to enter the Tele business. The company has entered the domain of free market economy, which necessitates the liberal management policies and private sector. The following basic policy steps have been taken to meet the objectives laid in PTCL Act to expand and operate telecommunication services in the country. The main objective of any company is to earn the profit and minimize expenses by winning goodwill in the market private sector to enter the Tele business. The

company has entered the domain of free market economy, which necessitates the liberal management policies and private sector. Convert its cash basis single entry accounting system to accrual basis double entry system meeting the commercial international accounting standards To introduce computerized directory assistance and complaint services reform billing and a revenue collection system Strengthen relation with foreign international administration, entities, services providers, international and regional telecom organizations for better international communication and technical cooperation in telecommunication business Expand customer awareness for all value-added services of PTCL To improve the efficiency of Customer Service Centers by deputing qualified persons who are well aware of public relation techniques To introduce new services of audio Tex and video conferencing for the business community In a static sense, profits are not the appropriate indicator but it is the sustained capacity of the enterprise to generate maximum profits, make productive and efficient investments to grow over time and provide quality goods or customer satisfactory services that are relevant. There are many cogent reasons that question the assumption of sustained profitability of PTCL under the changed environment of telecom sector deregulation that is sweeping Pakistan since 2003. PTCL enjoys high profits because it earns monopoly rents as a single provider of fixed telephony in the country. Comparison with other telecoms in developing countries shows that it is not due to the efficiency of PTCL that it is showing good financial results and paying dividends. Tele density under PTCL monopoly is quite low - only three percent compared to seven per cent in India. Another more efficient operator in the private sector would have generated twice the current level of PTCL profits through better cost controls and higher penetration rates. Had it not been for the private cellular companies with their seven million customers calling to and from its network, the revenues and profits of PTCL would have been much lower. 10

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

Geographical Business Areas

Nature of the Organization It is service oriented Communication Company. It has two subseries (Paknet & Ufone) it has centralized management system. Its main offices are situated at PTCL H/Qs Islamabad and few in Lahore. Its main decisions are taken by the Board of Directors and CEO/President. PTCL has its own research and development department. 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 11

PTCLs Privatization: The Biggest Financial Scam in the Pakistan History

The fall of corporate giants like ENRON and WORLDCOM left many learning impressions for both public and private sector enterprises besides stakeholders including governments, employee, Board of Directors and strategic partners. In both of the above mentioned historical cases, the core reason was fraudulent conduct by the corporate level management. The top officers consistently kept hiding the true financial facts and figures bearing losses and public reports kept displaying healthy financial results and profitability, which strengthened the trust of shareholders and partners to keep investing besides helping the share price to grow further in the stock market. Unfortunately, we might have another big financial scandal in Pakistan in upcoming days this is about privatization of PTCL. As you may recall Etisalat acquired a 26% strategic stake along with management control in 2006 after months of deals and bargaining on the actual value of the deal. Now the scandal reported in the papers claims that PTCL was worth a lot more. PTCL no doubt is one of the strongest corporate enterprises not only in Pakistan but also in the continent known as Asia. Therefore, if the news story becomes true, it will have a devastating effect on the Pakistans Telecom market, Economy and Pakistans political stability. Pakistans image, which already is in crisis, will be hurt further. The business schools around the world surely will have another good case study. Jang, one of leading Urdu newspaper in Pakistan, has highlighted news on the secret contract over privatization of PTCL as shown above. An ex-Senior Vice President has claimed the privatization as Pakistans Biggest Financial Scandal. PTCL former official further commented that the deal was closed on 2.6 billion dollars including U-fone & Paknet, however only U-fone had enterprise value of more than 6 billion dollars which does not include assets of U-fone. Moreover, pricing decisions were made through old records instead of determining current market value, which means, it was like Buy One Get 2 Free offer. It has been reported further that in September 2006, when Etisalat had refused to honor the deal, they were offered a secret price discount of 394 million dollars along with commitment to lay off 20,000 employees and to bear the 50% cost of layout. 12

Supreme Court of Pakistan has already given decision against the privatization of PSO and Pakistan Steel and if PTCLs privatization gets challenged on true facts, it will bring horrifying results. Now this brings another example to Corporate Governance books and poses immense need to improve upon corporate governance practices. Corporate Governance is the set of policies, procedures, practices, processes, customs, laws and institutions affecting the way in which a corporation or enterprise is controlled or administered. It further involves shareholders, stakeholders, management and the enterprise goals and objectives i.e. profitability, organizational growth, share price stability for which a company is governed. The two main aspects of corporate governance are Accountability and Economic efficiency for the welfare of the shareholders. Being state owned enterprise, it was Governments critical responsibility to measure the scope and feasibility of privatization. PTCL was and is one of the oldest & strongest corporate enterprises and revenue contributor in Pakistan. The key objective of any business entity is to earn profit. So, why there was a need to privatize such a Giant, Whatever PTCL is doing after privatization could also have done before privatization. When there is no major change in organizational structure and policies and even new owners have still not been able to even lay off those 20,000 employees for which our Government has agreed to bear 50% cost of layoff. Marketing, Corporate Level, Business level strategies and new product launch could also be carried on without risking a profitable business. All PTCL needed was good corporate governance through accountable and economically feasible process with holistic approach towards growth besides integrity & ethical behavior, transparency and control by the BODs (Board of Directors). Corporate governance practice includes a set of internal and external controls, which, if applied properly can bring growth results in all operational activities. These controls include Internal Controls such as Monitoring by the Board of Directors, Human Resource Development, and Transparent & Accurate Disclosure

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of Financial Results. Then there are External Controls such as Debt Covenants, Government regulations, Media pressure, Competition etc. Concluding here, one could well imagine that if PTCLs management had implemented such controls, it would have been in a better position.

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Vision
To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'.

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Mission
To achieve our vision by having: An organizational environment that fosters professionalism, motivation and quality An environment that is cost effective and quality conscious Services that are based on the most optimum technology "Quality" and "Time" conscious customer service Sustained growth in earnings and profitability

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Core Values
Professional Integrity Customer satisfaction Team Work Company Loyalty Corporate Information

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PTCL Brand Philosophy

As the leading Information and Communication Technology Service Provider in the region we are the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom services to bring the world closer.

PTCL Positioning Statement: Hello to the Future

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

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Brand Values Evolving Innovative Human Trustworthy Quality Conscious

Corporate Responsibility
PTCL as a socially aware and responsible entity is determined to do its utmost in furthering worthy causes that contribute to the lives of individuals and help better the standards of society as a whole.

PTCL employees donate One-Day salary for IDPs

Pakistan Telecommunication Company Limited employees have contributed their one day salary that amounts Rs. 20 million for the support of internally displaced people of Swat and other affected areas. CEO and President of PTCL Mr. Walid Irshaid called on Prime Minister Syed Yousuf Raza Gilani at PMs House and presented him a cheque of Rs. 20 million on behalf of PTCL employees for PMs Special Fund for the Relief of Victims of Terrorism. While thanking PTCL employees for their generous contribution and appreciating their willingness to help IDPs, Mr. Waild Irshaid said that PTCL employees have exhibited their profound sense of sharing and empathy on this occasion. This highly speaks of the strong commitment of our employees with this national cause. Contribution from our employees during these days specially donating one day salary for IDPs in these testing times shall be greatly helpful in mitigating IDPs miseries and will go a long way in their rehabilitation process. Donation to SOS Villages PTCL keeping with its healthy tradition of supporting non-governmental organizations recently donated a sum of Rs.2.5 million to the SOS Villages. As most people would be aware, SOS is an organization that looks after the well-being and education of orphans and the destitute. Last year, PTCL organized a special event at the SOS Village Rawalpindi, which the then Prime Minister of Pakistan, Mr. Shaukat Aziz, attended. He handed over a cheque of Rs.2.5 million, donated by PTCL for this noble cause, to the SOS Childrens Village. 19

Scholarships for Persons with Disabilities

Another recent CSR initiative taken by PTCL was announced at the World Telecommunication Day held on May 17, 2008. This year the worldwide theme for the Day was Connecting Persons with Disabilities. To raise awareness of this theme and support initiates focusing on less privileged persons, PTCL chose to become the lead sponsor of the World Telecom Day event in Islamabad contributing PKR 6.8 Million. During his address at the event, PTCLs President/CEO, Mr. Walid Irshaid announced five academic scholarships per year for persons with disabilities so that they could pursue their career of choice by obtaining higher education at any university with Pakistan. PTCL would bear the full tuition costs and living expenses of those awarded these scholarships. PKR 1.5Million was announced focusing on the education of the special people

Donation to Earthquake victims in Baluchistan

Earthquake struck the western telecom region Quetta leaving terrifying effects in the region. Mr. Walid Irshaid President & CEO PTCL donated Rs.10 Million for the reconstruction and rehabilitation of the area.

Donation to Benazir Income Support Program

Mr.Walid Irshaid President & CEO PTCL donated Rs.10 Million to the Benazir Income Support Program. This program directly focuses on the poor populace of Pakistan.

Sponsoring Event at LUMS

PTCL was the lead sponsor for Synergies 2008; the 1st ever Business School Competition in Pakistan organized by Lahore University of Management Sciences costing PKR 1 Million.

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PTCL President Mr. Walid Irshaid announces Rs 10 Million for National Press Club Islamabad The president of PTCL, Walid Irshaid has said that PTCL was still one of the most profitable National organizations, despite all economic and financial crisis and back draws. Addressing the inaugural of the new building, alongside president NPC (National press Club), Tariq Chaudhry, general secretary Afzal Butt, and other luminaries, including SEVP PTCL Sikandar Naqi, EVP Ali Qadir Gilani. Walid Irshaid expressed the company's willingness and readiness to tackle any impending challenges with lan and preparedness. Mr. Walid Irshaid also assured press club about his full cooperation and assistance, and during the lunch hosted in his honor by NPC also announced a grant of Rs. 10 million, DSL Internet services, IPTV and other facilities. He said that PTCL would continue to work for betterment of media in Pakistan, and also lauded media services rendered during the last few years.

PTCL Gets Environment Friendly

The Pakistan Telecommunication Company Limited (PTCL) has decided to introduce a new bill format for its customers, effective February 2009. This decision was taken to ensure that PTCL stir towards adopting environmentalfriendly and customer-friendly policies in line with the government of Pakistan's efforts, which recommends companies and institutions to go green. This initiative of PTCL also coincides with the Governments decision to celebrate 2009 as the "Environment Year". PTCL's decision to reduce the number of billing pages is an environment friendly initiative and is a way forward towards becoming a paperless enterprise. According to Dr. Sadik Al-Jadir, SEVP Commercial PTCL, preceding bill format comprising multiple pages, would be replaced with a new one-page bill format, thus packing all the essential billing details on a single page. This single page bill format would help save, at least 12 million papers every month that are being used for printing the billing details. To facilitate the customers, itemized billing details would remain obtainable and accessible. Customers would be able to obtain their itemized billing details by visiting any customer service centre of PTCL and would also be able to access essential billing details through IVR by dialing 1200. PTCL Call

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center is also expected to start taking orders from customers for their itemized billing details. Subsequently, these details would be delivered to the customers through courier within a certain time frame. Dr. Sadik said, PTCL is determined to improve and build good relationship with its customers by providing novel and superior telecom products and services to its valued customers and is striving hard to meet their expectations.

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Part 2 Company Management System

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Corporate Information
Management
Walid Irshaid President & Chief Executive Officer Muhammad Nehmatullah Toor S.E.V.P (Finance) / Chief Financial Officer(C.F.O) Mohammad Nasrullah Chief Technical Officer (C.T.O) Syed Mazhar Hussain S.E.V.P (HR / Admin & Procurement) Hamid Farooq S.E.V.P (Business Development) Javed Mushtaq C.I.O Sikandar Naqi S.E.V.P (Corporate Development) Naveed Saeed S.E.V.P (Commercial) Furqan Habib Qureshi S.E.V.P (Corporate Services) Abdullah Yousef S.E.V.P (Business Zone South) Nasir Iqbal S.E.V.P (Business Zone Central) Farah Qamar Company Secretary Legal affairs Zahida Awan Ghulam Mustafa

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Bankers Allied Bank Limited Askari Bank Limited Bank Alfalah Limited Bank Al Habib Limited The Bank of Punjab Citibank. N.A Dubai Islamic Bank Faysal Bank Limited Habib Metropolitan Bank Limited MCB Bank Limited Meezan Bank Limited National Bank of Pakistan NIB Bank Limited Royal Bank of Scotland Silkbank Limited SME Bank Limited Standard Chartered Bank (Pakistan) Limited United Bank Limited

Registered Office PTCL Headquarters, Block-E, Sector G-8/4, Islamabad-44000, Pakistan. Tel: +92-51-2263732 & 34 Fax: +92-51-2263733 E-mail: company.secretary@ptcl.net.pk Auditors A.F. Ferguson & Co. Chartered Accountants Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants 25

Share Registrar M/S FAMCO Associates (Pvt.) Limited Ground Floor, State Life Building 1-A I . I Chundrigar Road Karachi 74000 Tel: +92-21-2422344, 2467406 Fax: +92-21-2428310

Board of Directors
Mr. Saeed Ahmad Khan Chairman PTCL Board

Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani Member PTCL Board

Dr. Waqar Masood Khan Member PTCL Board

Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh Member PTCL Board

Mr. Jamil Ahmed Khan Member PTCL Board

Dr. Syed Ismail Shah Member PTCL Board

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Mr. Fadhil Mohamed Erhama Al Ansari Member PTCL Board

Mr. Abdulaziz Hamad Omran Taryam Member PTCL Board

Ms. Farah Qamar Company Secretary PTCL

STRUCTURE OF PTCL
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 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 27

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 comes 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.

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Organizational Hierarchy Chart

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Management Responsibilities
President President is the Chief controller. He is responsible for the overall management of an organization. SEVP (I/Audit) He is chief officer of internal audit. He is responsible of rectification of errors. He submits his report to the president periodically showing any irregularities found in the procedure. G.M (Internal Audit) He carries out instructions given by the SEVP. Company Secretary He maintains Minutes Register and arranges meetings of Directors or Share Holders. General Manager Network Switching System is master controller of all Exchanges nationwide. He controls them through Centralized Network System. He can remove faults through remote help system. These are directors of the board. They make planning and decisions, establish operating policies and guide the organizations interaction with its environment. These are top managers. Their policies are implemented through front line managers. They are called S.Es (Senior Engineer), Senior Executive Vice President makes strategies to achieve overall organizational goals. CE (RRR) Chief Executive Recruitment hires and fires the employees according to organizational policy. CE (HRM) Chief Executive Human Resource Management deals employees matters i.e. salary, leave, and disciplinary cases. EVP (Accounts) He deals PTCL Billing, new connections, facility charges and shifting charges of connections etc. EVP (Finance) He controls transactions for payment i.e. Salaries, Advances, purchase/repair of assets etc.

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EVP (Revenue) He deals overall revenue collected from exchanges and maintains its accounts. SEVP (Technical) He deals in installation of new exchanges, their maintenance and operation. EVP (Development) He arranges for the installation of new Exchanges. MD Ufone Managing Director is head of PTCL subsidiary Ufone. MD Paknet He is head of Internet section of PTCL. It is also a subsidiary of PTCL. MD CTI This is training institute of PTCL personnel. They offer training and refresher courses to staff periodically. SEVP (Admn) He deals with the postings and transfer of staff. SEVP (IT) Manager information technology deals with data base management and computer related problems. EVP (Sales and Commercial) This office deals with the sales of different products i.e. Calling Cards, V Wireless Connections etc. EVP Marketing This officer deals with the Advertising products on all Medias (Print media, electronic media etc.). EVP (CC) Customer Care office deals with the removal of customer complaints and gets customer feedback.

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. 31

The H.R department of the company generally performs the following roles: Policy Initiation and formulation Advice Service Control

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 latters 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. 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 slowly 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 32

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. 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. 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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HR&A TASK ASSIGNMENT (EXISTING)

GM (HR&A) Overall responsibility of HR & A

SM (HR & A)-I Security Vehicle Management Store Matters / Auctions Janitorial Service Buildings & Maintenance Management Furniture & Fixture repair & Logistics Police Matters Protocol Matters Investigations / Inquiries All Admin Reports

MHR& A-I Vehicle Management Store Matters / Auctions Procurement & Disbursement Protocol Matters Recruitment / Interviews Training Buildings / M & R Janitorial Services Attendance and Time Management System All Admin Reports

AMHR SAP ERP Compensation & Benefits Honoraria & Rewards FSTCs Management All HR Reports Accounts Matters, Reimbursements, Payments

SM (HR&A)-II Staff Matters, Transfers / Postings Welfare Matters Medical Matters Leave Management Retirement & Separation Matters Honoraria & Rewards 34

FSTCs Management Union Matters (IR & ER) Legal Affairs SAP / ERP Procurement & Disbursement Accounts Matters, Reimbursement, Payments Colonies/ Residential Services Disciplinary & Appeal Cases All HR Reports

MHRA-II MT Presently Under Training and Exposure HR Data Staff Mattes, Transfers / Postings Welfare Matters Medical Matters Honoraria & Rewards Retirement & Separation Matters Disciplinary & Appeal Cases All HR Reports

PTCL Subsidiary
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of the cellular industry is a direct result of the successful implementation of the telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications (MOIT&T) and the support, guidance and timely enforcement of regulatory process by the Pakistan Telecommunication Authority (PTA).

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Privatization
The growth of the cellular sector in Pakistan can also be attributable to good governance policies of the government of Pakistan and the Privatization Commission. In April 2006, Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltd part of the $2.6bn deal to buy a 26% stake in PTCL. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan. Now, under the management of Etisalat, Ufone will concentrate on customer needs and benefits and is more determined than ever to be the leading cellular player in the market. Ufone has been known for providing superb propositions and quality service to its customers. With the new expected investment, Ufone can now aggressively expand its network coverage.

Key Accomplishments
Ufone has always played a pivotal role in the development of the cellular market in Pakistan. For the most part, it has been a step ahead in introducing innovative products to the market. Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market.

Performance
As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact those two new international players also entered into the market in 2005. Subsequently the growth in subscriber base caused a healthy trend in revenues which have doubled.

Brand
While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a 36

necessity affordable by the common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the upcoming competition and market dynamics, Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand. By designing market focused products, Ufones brand team launched aggressive campaigns, which further increased the brand equity. The new brand image gained huge popularity amongst the targeted market. A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufones Prepay brand is now considered to be one of the most favored brands by the youth market and is followed by other mobile operators launching their respective brands for the youth market. International Coverage Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. Customer Service Ufone is proud to have an efficient and friendly customer service through 21 company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. It has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility. Network Coverage Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, Ufone has network coverage in more than 260 cities and towns and across all major highways of the 37

country. Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company committed to excellence. Under the new vision of Etisalat and with the support and collaboration of its employees and vendors, Ufone aspires to be the best in the market by offering customer focused products and a quality service and sales network.

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 forjust Rs. 50/ which includes Rs. 150/ of airtime. U-fone is in process of starting the salesof 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 24.53% user of Pakistan mobile industry.

Departments of PTCL
Following are the main departments of PTCL; Engineering & Technology Finance Marketing HR

Finance Wing Structure

At this level there is one head SEVP (Finance) who controls the functions of Finance, Accounts, and Revenue with the assistant of EVP in their respective within the Region, Director Accounts has Senior Revenue Officers in his area of Finance Jurisdiction on Division Level. The Senior Revenue Officer, usually the head of Finance Division and Revenue Officers then supervised on District level. SEVP (Finance) EVP (Finance), (Accounts) & (Revenue) 38

The Director (Finance), (Accounts) & (Revenue)

The Regional Level comprising two or three Divisions. The Senior Revenue Officers on Division Level The Revenue Officers on District Level

In view of the challenging scenario PTCL has to take bold steps regarding its organizational structure in order to demonstrate that PTCL has set-up arms-length relationships among the staff. There should be separation of Finance Wing from the Engineering Wing. Finance Wing should give liberty to take the decision in their favor. Management has to take the strategic decisions, the clear and institutionalized arrangements. Number of Employees in Finance Section There are about 30,000 (2008-2009) employees are working in the PTCL, which are being divided into categorically here under Division of Employees according to their Status

Regular 22,200

Daily wager 4250

Through T.F 2300

Contract 1250

*Ad-hoc NIL

*There is no any employee in PTCL on Ad-hoc basis. This system of recruitment has since been changed into contract basis.

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Finance & Accounting System of PTCL

The PTCL Finance & Accounting system is actually divided into three wings. 1- Finance 2- Accounts 3- Revenue 1) Finance The SEVP (finance) is concerned with the makeup of the all type of financial decisions especially in the context of acquisition, financing and management of all assets with some goal in mind. The EVP (Finance) with the General Manager (Finance) extend their expertise in the decision making process. 2) Accounts Here the SEVP (Finance) is once again concerned by heading the EVP (Accounts) and General Manager (Accounts) to deal with all Accounts Decision. In PTCL the Finance and Accounting are so correlated but the difference between finance and Accounting is the method of Funds Recognition and the decision making. In the Accounting the Director Accounts in the PTCL Regions assist the higher management. 3) Revenue Here the SEVP (Finance) is once again concerned by heading the EVP (Revenue) and General Manager (Revenue) to deal with all Revenue matters. One Director Revenue within the Region assists to implement and control the inflow of Revenue and reconcile it with the PTCL Headquarters Islamabad. The PTCL is actually the Revenue Generation organization. PTCL collects the Revenue from the following modes. Revenue from products and services Revenue from System Billing of Land Line Numbers Through Line Rent of Land Line Numbers Through National wide dialing from LLNs (Land Line Numbers) International dialing from LLNs Providing Value Added services to customers, Like UAN (Universal Access Numbers), PABX (Private Auto Branch Exchanges), VPN

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(Virtual Private Network) Bandwidth of ISPS (Internet service providers) PTCL has its three subsidiaries PAKNET (leading ISP in the country), Ufone (unique cellular phone company in Pakistan), TF (Telecom Foundation), the leading foundation for the welfare of employees of Telecom Sector.

Accounting System of PTCL

In PTCL the rules contained in the special volume of the PTCL under which the SEVP (Finance) is responsible for creating the procedure of Accounting matters.

Capital Receipts Side

1. Revenue From Billing System Revenue from Usual customers Revenue from DXX System Revenue from DSL System Revenue from PABX/PBX System Revenue from Card Phone Operators Revenue from IPOs Internet service providers Revenue from Mobile Phone Operators Co-location charges from various companies

2. Revenue From Other Revenue from Overseas calls (Incoming) Revenue from Premium PRS (0900) calls Income from Dismantle Exchanges Revenue from MDF used by other companies

Capital Expenditures
Installation of New Exchanges Expenses of installation of new Exchanges are the major capital expense of PTCL because PTCL purchases the new telephone exchanges from France, Italy, Germany and China. A heavy cost is to be paid for purchasing process in order to proper margin. Each exchange having different capacity and due which each Engineer should has to be trained accordingly so expenses rises on purchasing of new Telephone Exchanges. This is the major expense of PTCL. 41

Extension of Existing Exchanges The extension of the existing exchanges is the dire need as the density of the population is increasing day by day and in order to fulfill the basic communication and fill the communication gap PTCL has to extend its normal Telephone Exchanges in accordance with the demand and per paid connection. So PTCL sustain heavy expenses on the extension of exchanges.

Minor Expenditures
Internal Audit and Technical Inspection The PTCL has sustained huge amount in context of internal audit both Accounts and Technical from various agencies. For example M/s Ferguson conduct both internal audit and external audit and payment made to auditors in the expenses of the company. Administration and Control Expenses Sometime in the best interest of company, some expenses could be occurred for example if there is need of induction of a financial analyst in one region or if there is need of an Engineer then transfer and posting order can be issued and traveling and training expenses could be realized to employees. Salaries of Staff The monthly salary of the staff is rest with the approval of PTCL H.Q Islamabad. PTCL is spending lot of amount on the salaries. Printing and Stationary Charges On printing of stationery PTCL spends reasonable amount. Contribution in Provident Fund There is also contribution in the provident fund from the PTCL.

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Funding of PTCL Mobilization of Funds

PTCL mobilized its funds with following ways. 1) Purchase the new imported infrastructure like new Exchanges etc. PTCL mobilized its finds mostly in the purchase of new telephone exchanges from abroad (France, Italy & China). There is also purchase of accessories of telephone exchange generators and other equipments. 2) Capital expenditure for the organization There are various expenses for the PTCL in the context of capital expenditure that has already been mentioned in previous pages. 3) Purchase and acquisition of stores PTCL store items are very important components i.e. Stationery, standby Exchanges, generators, barites and other equipments. PTCL spend lot of funds on these items. 4) Loan and advances to others, and re-investment There are offering of Loan and advances to the employees on various rates according to the length of services on roll. This is the main source of mobilization of funds. 5) Payment of dividend to the stockholders Payment made to the shareholders in the context of dividend to be paid to the shareholders. PTCL has currently announced the divided of Rs.32/per share. 6) Salaries of the staff all over the country Obviously services rendered by the staff and in this way PTCL has to pay handsome amount to their staff, those are the main source of generating the revenue. 7) Annual Bonus to employees PTCL pays annual Bonus of Rs. 12000/- to its employees on the Eid occasion. 8) Security deposits, Transfer of Companys Land & Building

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Where PTCL does not find any building or land then security deposit may be paid to the private landholders for the installation of PTCL infrastructure. 9) Insurance of the Company PTCL offers the insurance from its own side in case of death and medically unfit of its employees. 10) Pension, graduate, and other fringe benefits For the pension and gratuity of the retire official PTCL mobilized its funds accordingly. 11) Supply of Furniture and Fixtures to the office buildings This is the responsibility of the Management to be provided the furniture and fixture to the office buildings accordingly. 12) Renovation, alteration, and rental charges of privately owned buildings PTCL has to pay the handsome amount for renovation and alteration of existing building and the charges of privately owned builders are being issued accordingly. 13) Premium paid to the other telecomm companies of different countries in the context of overseas calls and media used.

Generation of Funds
Amount Realized from System Billing Amount Realized from defaulters Revenue from Value-added Services Bandwidth facilities provided to the companies Earning from DXX, PSTN, PABX, VPN, PRI & ISD Media used by cellular and pay-card companies and earn royalty Earning from subsidiaries PTML, PAKNET & TF Amount realized through co-location charges Basic Rate Interface provided to the subscriber International dialing customers Corporate Billing customers, valued customers Earning from MTR mobile Termination Rate Earning from Incoming Overseas Calls in shape of premium from overseas

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Allocation of Funds
Against all purchase orders issued by the PTCL H/Qs Islamabad payment made after allocation of Funds which further allocated by the Regional offices. The funds usually allocate in order to manage the following: i. ii. iii. iv. v. vi. vii. Capital expenditure Purchase of infrastructure like new exchanges Launching of new Product Human resource development Transportation expenses, misc expenses Domestic and overseas training of staff Bonus to the employees, house/building advances, and motor car/motor cycle advances viii. Worker compensation fund, benevolent fund contribution general provident fund ix. x. Maintenance of buildings, vehicles, fixed assets Default situation of subsidiaries

Allocation of Funds for Marketing exploration Allocation of Funds for Research & development Allocation of Funds for Human Resources & Admn. Allocation of Funds for Corporate affairs

19% of net profit 18% of net profit 33% of net profit 30% of net profit

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Human Resource Assessment

It is the department of the PTCL which has been established in 1999 so it is still in the development stage and there are number of activities which are yet to be decided to take into the consideration by the Human Resource Department of PTCL. It is established to regulate the human resource activities and to solve number of critical activities and the problems of PTCL regarding the human resource and their critical matters. This department has its own importance and course of action to resolve and to foresee the future for the development of the employee and the customers interests simultaneously. A great deal of delay has been there for the establishment of Human Resource Department. Previously recruitment of the employees was the responsibility of the RRR Department but now it is decided that activity would be given under the supervision of the Human Resource Department of PTCL. This is also done in the recent years to cope with the new market condition of telecommunication industry in Pakistan as the government had decided to privatize the PTCL. So to attract the healthy customer, it was also necessary to make valuable arrangements so that the company can fulfill all kind of international standards which would be then helpful to convince the customer about the worth and the value of PTCL. Besides the functional requirement this was another factor, which played vital role for the establishment of the Human Resource Department. Human Resource Department is lead by the Chief Engineer and he is responsible for the activities carried out by the department. There are four Directors working under the supervision of the chief engineers. Then these Directors supervise the divisional engineers and assistant divisional engineers and so on. As it is at its initial stages so authorities and responsibilities are still under the process of development and precise definition of these are not finalized by the top-level management. The hierarchy of the human resource department clarifies the

responsibilities and level of authorities between the different level of the department and also between the persons of human resource department.

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The general hierarchical structure is as follows: -

CHIEF ENIGNEER

DIRECTOR

DIVISIONAL

ASST. DIVISIONAL

STAFF

This is general hierarchy whereas there are four directors working under the supervision of the chief engineer. Their classifications of the directors are through their region like Karachi, Lahore, and central and north.

Special Tasks
There are no defined and precise responsibilities of this department as it has already been mentioned that this department is still in the development stage. However some special task has been assigned to the department so that its activities can be started and the flow of activities and their harmony with other department can be established. For this purpose numbers of activities are assigned, out of which some were accomplished and some others are in the process of accomplishment. There was confusion about the exact number of PTCL employees. Exact data was not provided to the top-level management, approximate figure was there. More over different departments of PTCL claim different number of employees, which they collected through their own resources. Top level managemen t was not satisfied which such kind of information, so it assigned the first task to the Human Resource Department. The challenge was accepted by the department and was successfully met with in the given time

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period. The figure of fifty five thousands three hundreds and eighty five (55,385) was found for the regular employees and figure eight thousands (8,000) was found out for the employees on contract basis. This figure is for the year 2002, so is the latest figure and is accepted by the top-level management. The organization of data base management system was also assigned to the HRM department, which was also successfully done by the department. This helped PTCL to gather the distributed employee data which is then helpful for the regulation of pay system for the employees and also helpful for the regulation of seniority system for the employees. These works are done successfully by the HRM DEPARTMENT. There are some other responsibilities, which are still in process of accomplishment. The development of recruitment manager software Restructuring of organization structure Revising of performance appraisal process Establishment of some new rules and regulations to cope new market conditions Changes in the salary structure of the employees Changes in the medical facilities Establishment of compatibility between the expertise and their appointment Reduction of union influence in the company matters Establishment of programs for the development and training of employees

Grant For Training Personnel in Information Technology by Subsidizing International Certification Fees In order to meet the international standards in Information Technology there was need of certification and qualification improvement by getting training and passing the examinations of different classifications of IT. So a grant was approved for the said purpose. The purpose of this grant is to support the candidates in obtaining specified and internationally recognized certification relevant to information technology and telecommunication by either completely or partially subsidizing the fee of examinations. Grant for Human Resource Development and Institutional Up Gradation

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Capacity-building in science and technology is one of most important aspects of a viable infra structure. Unfortunately majority of institutions in Pakistan suffer from a severe lack of human and institutional capacity to conduct any meaningful research and development projects and to provide quality teaching in the areas of science and engineering. There was therefore an urgent need to train manpower and upgrade scientific institution in Pakistan. SO a grant was approved by PTCL. This grant scheme was thus aimed to train manpower. The purpose of this grant was fold to support the candidates in obtaining essential training and certifications. Staff-Welfare PTCL is providing free medical facilities (indoor / outdoor) to both its serving and retired employees and their dependent family members from panel hospitals as well as from 42 staff dispensaries / medical centers established in various cities. The total number of beneficiaries is 296,850. Besides this, employees are given merit/stipend awards and general education grants for professional and general studies of their children. Benevolent grants of Rs. 1 lac as special compensation is paid to the employees on accidental death. Widows are also financially compensated out of welfare funds on the eve of Eid. Marriage grant is paid to the employees on the marriage of their dependent daughters as well. Transportation facilities for the commutation of staff and school going children are provided on nominal charges. Schools being run by Telecom Foundation (TF) are providing quality education to the children / wards of PTCL employees at concessional fees.

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Part 3 Management and Administrative Styles

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Management and Administrative Styles Management style can best be described as somewhat bureaucratic despite the fact that organization privatized six years ago. The organization is in a state of transformation and changes are taking place but there is a resistance to the process of change. The officers have an equal opportunity for development and grow, though the pattern is not the same for all employees of the organization. People are recruited into the company based on references, head hunting and sometimes on merit too and with disregard to considerations of gender, race, color or creed. Performance evaluations are conducted on the basis of the employee category. Promotions are similarly guided by merit and the suitability of an employee to the position for which he or she is being considered. Leadership follows the principle of 'management by walking around', where managers are expected to make daily rounds of all areas of responsibility, and have first-hand information of all significant happenings. This informal style of management may seem arbitrary, but is serious without being intimidating and has stood the company in good stead over the years. Working environment is quite friendly, however, Autocratic Style is being followed i.e., Decision environment is not participative. Heads of different departments participate to some extent in decision making but the executive level employees dont participate in goals setting and strategies formulation. They just follow, what their managers ask them to do. There is an environment of Yes Boss around the organization.

Impact of Management Styles on Motivation of Employees

No doubt, employees of management level are highly motivated to enhance the performance of the organization and to achieve the desired goals; despite highly centralized environment, employees at executive level are very motivated towards achievement of the goals of the organization and to enhance the performance of the organization. The salary package is market competitive and well placed in keeping the executive level staff motivated and satisfied.

Impact of Management Styles on Productivity of the Employees

Employees at clerical level dont exhibit high efficiency and productivity due to lack of participative environment and intrinsic and extrinsic rewards. Executives 51

exhibit satisfactory productivity; they fulfill their responsibilities and duties in time and posses and exhibit the morale to exceed the standards or to increase performance levels to drive their organization forward. Also, employees at management level exhibit high efficiency level due to their participation in goals making and satisfactory salary packages. Job Satisfaction of Employees As discussed earlier, the staff at all levels at PTCL is satisfied with their packages and jobs in general. The employee turn over is not very high, though many engineers view PTCL as a very lucrative opportunity to start their career with. Also, the market reputation supports their thinking and PTCL holds a great standard for the entrants

Issues
Privatization processes invariably involve restructuring economies in terms of ownership, management as well as changes in the nature and direction of decisions about investments, service delivery and market strategies etc. The nature of such conflicts is determined by the study of a particular privatization model used and the specific socio-economic realities in a country. It is, therefore, hard to generalize about what kinds of outcomes can be expected through privatization, especially when it involves a range of variables. There are some issues or conflicts that are raised by the privatization of Telecom sector. Right downsizing Employee Moral Denationalization Service Concerns Risks for national security Lead toward inequalities across regions.

Right downsizing Privatization has been followed by employee layoffs. If we see that some privatization generates net employment as a result of expanding production or services, employment in many privatized entities may decrease after privatization. This is all about due to State owned enterprises often have many more employees

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than needed for efficient operation of the company. Many of the employees perform little or no work and/or have low productivity. This implies that either taxpayers end up subsidizing their salaries or consumers pay for it through higher prices. The extra amounts paid by taxpayers or consumers leaves less money in the hands of people who might otherwise spend it in a way that promotes productive employment. If we see the privatization program as a whole, by injecting new investment, introducing better management, improving competitiveness, and leaving more money in the hands of the public, then result will likely to increased employment opportunities. At the same time, laid-off workers are often given generous severance packages that can be used to start business or obtain training to help them prepare for a new job. It is justified on the grounds that entities in the public sector generally employ more workforce than required for efficient and profitable functioning, as people get employment in view of political considerations. In situations when such retrenchments involve significant numbers of employees, labor unions put up significant resistance and hence a conflict situation arises.. Steps that can be taken to make privatization acceptable for workers include offers of a certain number of shares to them for free or on discounted rates. Employee Moral After the deregulation, an issue arise which is employee moral. It is seemed that due to deregulation employees has threat about their jobs. When privatization was made there are many employee layoffs, due to which it distorts the moral of the employee, they even have no hope of their job. In this regard, PTCL takes the steps for the moral of employees, job surety and gives the incentives, accommodation, house rent allowance, school fee of the Childs hospital facilities etc. Denationalization Privatization process is opposed in certain situations on the grounds that it opens up the door for the foreign companies to buy national assets and gradually establish control on the national economy. In many developing countries; privatization is referred to as denationalization, which is understood as a transfer of control of 53

national assets to foreign investors or managers. The reason why privatization is considered difficult in developing countries is that their domestic markets are generally not strong enough to buy a significant percentage of shares or assets privatized. Opposition to privatization comes from a range of actors including national enterprises, who are often competitors of foreign companies, as well as by political groups and labor unions. Ownership of national assets by foreign companies is seen as a threat to national independence. Service Concerns The major grievances of the users of PTCL include the following: Low quality of service, despite the fact that the rate of digitalization of the sector is 90%. The target fixed by PTCL is of 100% digitalization by 2003. Long waiting lines for telephone connections, since there is an everincreasing demand for telephone connections, but the demand is not being matched by the supply of services. However, PTCLs target for fixed line teledensity is 5.6% by the year 2003. Low tale-density, which is only 3.2%. In 2008. Delayed complaint redressed. Excessive billing is one of the most important consumer concerns. Just in the year 2000, the tariff of telephone service and other charges were raised a number of times despite the fact that the PTCL is earning a huge profit. Moreover, the tariff and other charges of basic telephone services are very high despite the fact that the government has fixed the price-cap for tariff of telecommunication services. Arbitrary price fluctuations are rampant, which are often made without any prior notice to the consumers.

Consumers of telephone service often complaint of dead telephones for long periods of time. The number of total installed lines is 4.00 million, whereas the actual number of working lines is 3.18 million.

Since PTCL has given more connections than its infrastructure can support, the call completion rate is poor. Many times, a number does not get dialed even if the called number is not busy.

Delay in shifting of telephones from one place to other. 54

Non-functioning of public telephones Unfair practices of PCO operators (licensees of telephone department). Delay in publication of telephone directory is also a concern of the telephone users, since it is an obligation of PTCL to publish its directory regularly and distribute it free of cost to the people. The directory has not been published for a number of years. Though in 1994, PTCL published a directory for telephone subscribers in Karachi, the number of copies was limited. As a result, 36% of the consumers in Karachi could not receive its copy. Given the increasing number of telephone subscribers in the country, at least 2.86 million directories were needed in 1999 alone. This number must have increased by now. Concentration of telecom facilities in urban areas and neglect of rural areas. Concerns of Internet like VSATs & Cable TV Users. The role of Internet in information dissemination cannot be overemphasized. Therefore PTCL is relatively weak in the areas of high-speed digital Communications and satellite-based telecoms. Though the Internet connectivity is inexpensive as compared to expansion plans in other areas of telecommunication services, and relatively less physical infrastructure is involved in it, these areas are lagging far behind the other areas. It can be accessed from the fact that in Pakistan the on line population or the Internet users in the year 2000 were merely 0.25 million. The consumers of these services also suffer from a number of problems. The prices of leased lines have been about ten times higher than the

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Part 4 Production and Operations

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PTCL Performance in production

In a static sense, profits are not the appropriate indicator but it is the sustained capacity of the enterprise to generate maximum profits, make productive and efficient investments to grow over time and provide quality goods or customer satisfactory services that are relevant. There are many cogent reasons that question the assumption of sustained profitability of PTCL under the changed environment of telecom sector deregulation that is sweeping Pakistan since 2003. PTCL enjoys high profits because it earns monopoly rents as a single provider of fixed telephony in the country. Comparison with other telecoms in developing countries shows that it is not due to the efficiency of PTCL that it is showing good financial results and paying dividends. With the induction of new licensees, the teledensity of Pakistan is estimated to double in the next two years to eight million subscribers. Public Sector monopoly could reach only four million in 60 years. Cellular phones have already jumped almost threefold to seven million subscribers during the last one year due to competition among the four players and have contributed to increased tax collection. Government would still receive all the taxes from PTCL and 65 percent of all the dividends that hopefully will be higher under private management. State enterprises have an inherent disadvantage that their procedures, clearances, and lengthy approval processes do not permit the managers to make timely decisions to respond to the business opportunities. Ufone valuable time has been facing various inquiries into its procurement while its competitors were successful in enhancing their market share at its cost. Such a scenario is most likely to recur once a government owned PTCL is pitted against several private competitors. The skill mix of the staff employed by the PTCL and its numbers are inappropriate to meet the new challenges of providing high standards of customer service, introduction of value added services and new product development. This legacy of PTCL inherited from the culture of the Post and Telegraph Department cannot be washed away and this culture will always keep it at a competitive disadvantage. It will always be difficult to get rid of the redundant labor in a public sector company due to the political repercussions while the private sector firms face no 57

such constraint. The PTCL Board has been recently reconstituted and private sector individuals of eminence have been inducted. This has improved the quality of the oversight and monitoring. However, as they have no direct personal stakes it cannot be expected that these part-time members engaged in their own professional pursuits will be able to devote as much time or energies to the Board's affairs as the private strategic investors will. Voice and data transmission are two separate domains. Both domains served their own functions, where voice was supposed to provide timely and reliable delivery, while data transmission was known for its reliability element. The intrinsic difference between the Internet and voice telephony services worldwide is that the Internet was born out of a completely unregulated network, while the telecoms are heavy with regulation. Internet expansion and evolution is exponential in its timing, while the telecoms have been cautious and slow moving. However, when in the early 90s data traffic exceeded voice traffic; the telecoms realized a new opportunity of voice and data convergence. Pakistan Telecommunication Company Limited (PTCL), which has shown a lack of vision, implemented ad hoc policies and have used their monopolistic advantage. The largest earnings of PTCL are through international calls, not from calls made from Pakistan but from those that are made from abroad with Pakistan as their destination. In accordance to the International Telecommunication Union treaty that Pakistan is signatory to, there is an accounting rate system of half-circuit charging that translates into splitting the cost and revenue from a leased line or international call between the two or more Public Telecommunication Operators providing network service. Thus, PTCL generated a steady flow of foreign revenue into the country and earned more than a fair share of it, a scenario PTCL can see changing and will do utmost to resist. However, PTCL did make very solid infrastructural investments and while not all of these can be called rational, all of them are proof of PTCL's financial prosperity. The government has taken various initiatives to spread Internet connectivity across the country as effectively and efficiently as possible. Apparently PTCL is decreasing the cost of leased lines for ISPs and the charges for international leased

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lines have been reduced 5 times over the last couple of years. Digital Subscriber Lines (DSL), which increases bandwidth and enhances data-carrying capacity of lines, is not yet operational but PTCL is looking for private sector investment in this sector. PTCL has issued 122 licenses to Internet Service Providers and 357 licenses to cable television operators. DSL technology without upgrading the country's backbone infrastructure will not yield the desired results. Currently all of Pakistan data traffic transits through the United States so while I may just be sending my neighbor an email, it will first go and touch base at a peering point in the US and then come all the way back to his computer, which can be avoided by installing specialized routers, networking and related software. Similarly when it comes to supporting ISPs, out of the 122 licensed ISPs only 43 of them are operational because the leased line rates, bandwidth, license fee, renewal charges and royalty is still too high. Also with PTCL not allowing ISPs to use their own networks for providing internet, these ISPs do not invest enough in their telecom infrastructure to achieve high speed networks; as a result the end-user suffers from sub-standard and unreliable service.

Expansion of Network and services improvement

The telecom infrastructure is expanding fast in Pakistan. In order to maintain its leading position, PTCL also embarked on an ambitious plan to expand its services throughout the country. During the year 2005, an optical fiber Access (OFAN) project of 145,000 lines was completed providing high capacity 10 GB and 2.5GB metro ring in Karachi, Lahore and Islamabad. There are protected rings and are critical for providing media to newly establish high capacity transit exchange of PTCL in eight cities and also for other operators including cellular companies. Call processors at 15 exchanges were replaced with a new version and speed increased in 21 exchanges. During last year 160 new stations were brought on National Wide Dialing (NWD) thereby increasing the number of NWD stations to 2,252. Moreover additional optical fiber cable laid in rural areas and 107 new towns were brought on to the Optical Network to enhance the voice and data communication capabilities. The company would now be capitalization on its strength of the fiber backbone network which extends to over 700 cities for provision of increased bandwidth and broadband services. 59

To modernize its local loop network and accelerate the expansion process, PTCL obtained the licensed and spectrum of the provision of WLL services in 14 operating regions of the Company. Frequency Spectrum worth over RS.4 billion was purchased in an open auction for provision of the widespread coverage in the rural as well as urban areas. The platform will also used to providing high speed data and numerous other value added services like SMS, MMS, call forwarding, ring back tone close user groups etc. The board of Director of the company approved new capital project worth over RS. 34 billions mainly to expand the network of the company by an additional 3 million WLL lines camp airing of 2.5 million WLL lines along with the handset mentioned above, and another 0.5 million lines through OFAN expansion. The company also initiated certain other large capital expenditure project to provide the media requirements of the fast expanding infrastructure needs of cellular companies. The management is committed to fully utilize the opportunities arising from OFAN expansion capacity and WLL roll out thereby accelerating its customer acquisition drive to enhance its customer base and revenue. Introduction of two Next Generation Networks (NGN) soft switches Islamabad and Karachi along with 20 Media gateways in other cities speaks of PTCs commitment to serve its customer with leading edge technology. As Telex and Tele Graph services became obsolete following the adoption of fax, e-mail and internet Technologies, they ceased during the year. To augment network reliability, the company has invested in preventive Maintenance programs relating to Outside Plant (OSP) of identified cabinet areas and Multi- Story building.

Conclusion
PTCL Privatization provide for a public welfare model driven by market forces. These rules change the role of Governments from public service provider to a regulator. On the basis of this study the following conclusions can be drawn:

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In Pakistan the PTCL Privatization has proven beneficial to the economy and positive effect on customers PTCL performance is also improved, investment increased, quality of service also improved but customer are not satisfied about network accessibility and growth of PTCL services in rural areas. Employment also increased but working condition and skill level of employees is not satisfactory

Share Holders are satisfied from the PTCL and receiving the dividend timely. The value of PTCL share also increased and number of share holders after privatization

New and better technology is being transferred in the country The emergence of new players in telecom sectors has facilitated the economy. It has positive impact on business transactions as well as the daily life of a common man. The increased competition among service providers has benefited the consumer as they have a wide array of telecom service choices available at affordable prices

For residents of the remote areas these facilities largely remain inaccessible for various reasons. There is a need to develop a mechanism for incentive and motivation to be offered to the private sector to be able to address the issues of digital divide

Liberalization of telecom has boosted the economic activity and has generated numerous employment opportunities The result of PTCL Privatization is very encouraging for policy makers of Pakistan. It is expected that this experience will be replicated in other sectors of the economy but before that a strong institution framework has to be formulated to manage market dynamics and trade challenges for long term sustainability of economic growth resulting from liberalization, privatization and deregulation

It is also beneficial for the government. The management control is transferred to the private investor for the proper utilization of resources and earns huge revenue.

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The foreign telecom companies realized huge market potential in the country and thus invested not only in paying high license fee but also invested in the infrastructure.

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Part 5 Company Marketing Mix

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PRODUCT LINE OF PTCL

Fixed Line
The PTCL phone line now gives customers convenient features and options like Caller-ID, Call Forwarding, Call Waiting, Conference Calling, Call Barring and Do not Disturb to name a few. Now anyone can buy his own phone and enable features similar to cellular services on landline too. Super Sunday and Zero Line rent are very attractive promotions now a day for landline customer. The new pricing packages now give customers choices to suit their talking habits. Besides the standard per minute charges, PTCL subscriber now have many choices with flat calling rates for local, nationwide and international calling for added convenience in their phone conversations. Unique Features of PSTN PTCL Landline offers customized packages and call rates according to customer needs. PTCL land line offers the most economical call rates PTCL Landline provides unmatched voice clarity PTCL Landline has the largest network spread across the country

New Offering
Super Sunday PTCL has introduced a new promotion of Unlimited On-Net Calls on Sundays effective May 01, 2011 for a period of two months. All PTCL landline Customers are now able to make unlimited calls from their PTCL Landlines on PTCL Network (Landline and Vfone) for 24hrs on

Sundays. As per the promotion PTCL landline telephones line rent is increased from existing Rs. 174 per month to Rs. 199 per month (excluding tax) and this increase will be compensated by free on-net calls to all PTCL landline numbers on Sundays.

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This new calling incentive has been introduced to encourage the landline usage among residential customers and to keep them connected to their loved ones without worrying about the charges. With this new initiative PTCL intends to address the needs of our valued and budget conscious customers in the most effective and affordable way possible. Details of offer Line rent: Rs 199 Free minutes : Unlimited On net calls (PSTN to PSTN and PSTN to Vfone numbers) on Sundays Target Market All PTCL existing and potential Landline Customers Zero Line Rent After the successful launch of Regional and Local call packages in rural and semiurban areas of Pakistan, Capped minutes were tested through special NTC

packages in Lahore, Karachi and Sukkur. The customer feedback has hinted

towards a latent demand for capped on-net packages especially in current economic condition where people want to budget their expenses. Basic Budget (For Low end Users) Package charges: of Rs. 249 per month Free minutes: 200 On-Net minutes Line rent: Zero Package type: Opt In

Budget Plus (For Low to Medium Users) Package charges: of Rs. 399 per month Free minutes: 400 On-Net minutes

Family Budget (For Medium to High Users) Package charges: of Rs. 699 per month Free minutes: 750 On-Net minutes

Business Budget (For Business / Commercial users) 65

Package charges: of Rs. 1,999 per month Free minutes: 3,000 On-Net minutes

Value Added Services Call Forwarding A customer with this facility may forward his calls to another predefined desired number. Immediate Transfer A customer with this facility may transfer his calls to another predefined desired number. A change in dial tone will be observed. Call Transfer on Busy In case the customer number is busy, an incoming call will be transferred automatically to another predefined specified number. Call Transfer on No Reply In case there is no reply, the call will be transferred automatically to another predefined desired number. Call Waiting During a conversation, a customer can hear a beep indicating that another call is coming. The new incoming call can be attend by tapping which will put the present call on hold. Code Barring Customers can prevent misuse of their telephone with the help of a code barring facility. This can be changed by the customer if the need arises. Do not disturb Activating this facility will stop all incoming calls for a pre determined time slot. This will allow customers to be in peace if he does not want to be disturbed during such time. The caller will get a pre-recorded message. Abbreviated Dialing Dial a short number (single digit) to get desired number. A maximum of 10 such numbers can be registered. The facility can be activated through a written application to the concerned DE Phones along with copy of NIC. The customers can activate or deactivate the facility from their own telephone sets. Absent Customer 66

A customer with this facility may inform the calling person about his non availability at the. This calling person will get an announcement or a special tone. The facility can be availed through a written application to the concerned DE Phones along with copy of NIC. The customers can activate or deactivate the facility from their own telephone sets. Wake up Ringing of a Customers telephone is initiated automatically at the fixed time. In case Customer does not answer the ring at the first offering, subsequent rings will follow after five minutes. For Activation *55*hrs mints# and for Deactivation dial *55*

Broadband
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. Since its launch on 19th May 2007, PTCL has acquired 432,821 Broadband customers in over 414 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan. Experience the Internet at its fastest with high-speed access from Broadband Pakistan, simultaneously, enjoy Voice service over the same telephone line without any extra cabling connections! Broadband Pakistan offers DSL service with unmatched reliability, affordability and connectivity. Again like other options from PTCL, you have option of many plans to meet your bandwidth and download needs and you can choose the packages of your choice between 1Mbpsto 50Mbps. Offering There is also student package which is just Rs 879 per month. Mostly students have this package. Besides student package, there are more packages as follow: 1Mbps at Rs 1,199 2Mbps at Rs 1,499 4Mbps at Rs 1,999 6Mbps at Rs 4,999 8Mbps at Rs 6,999 10Mbps at Rs 9,999

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20Mbps at Rs 14,999 50Mbps at Rs 20,000

PTCL Smart TV
PTCL SMART TV Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few countries across the globe, which offers this state of the art interactive TV service to its subscribers.

EVO Wireless Broadband

PTCL EVO is Pakistans fastest 3G Wireless Broadband internet which offers its customers superior 3G internet experience. With flexibility to roam freely like never before, in 106 cities Nationwide, Evo Wireless Broadband is enabling the wireless broadband revolution in Pakistan in its true sense. So whether you are going on a field trip, business trip or a family reunion downloading a song, an image rich presentation or the latest episode of your favorite TV show with PTCL EVO, we let you spend less time waiting and more time working and visiting your favorite web sites, anywhere anytime you want. Just plug and play or work at home, in the office or anywhere in between with the unsurpassed & amazing speed of up to 3.1Mbps, backed by the countrys largest Wireless service provider; experience the evolution of broadband revolution at its best.

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Key Features

Superior 3G experience. Broadband Internet in your pocket. Plug & Play - Instant Connectivity. Fastest growing *Coverage in more than 50 cities. Average download speeds from 300 kbps to 500 kbps! Instant Prepaid Recharge through V-fone-scratch cards.

EVO Prepaid Packages USB Device Rs. 3,999 Evo Volume Based Packages

Evo Time Based Packages

EVO 3G Nitro
Introducing Evo 3G Nitro in Pakistan; The Worlds first & most cutting edge EV-DO Rev.B commercial network. PTCL is the first operator in the world to commercially launch EV-DO Rev.B products which offer blazing fast speeds of up to 9.3 MBPS. EVO 3G Nitro is all set to meet the next-generations need for ultimate speed & superior performance. It is the next step in Evolution of the Wireless Broadband Revolution. Whether it is streaming High Definition video or music, conducting a video conference while simultaneously browsing the Internet or uploading multimedia content, in the Nitro Universe everything happens at the speed of light.

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EVO 3G NITRO Packages USB Device Charges: Rs.3, 999 Nitro Device Charges Nitro Unlimited 3999 2999 per month

EVO Wifi Cloud

Make the world your hotspot with Pakistans smartest Wi-Fi device. Evo Wi-Fi Cloud allows you to stay connected to the people, places and information that are important to you and the best part; you can even share your connection with others. Introducing yet another first of its kind in Pakistan; EVO Wifi cloud is a mobile hotspot that intelligently converts your home/work space into a personalized wifi zone and is sure to revolutionize the way internet is used in the country. Features of EVO Wi-Fi Cloud Simple One touch high speed internet connectivity. Connects up to 5 Wi-Fi enabled devices simultaneously to blazing fast 3G speeds. Plug & PlayInstant Connectivity Compact portable device that fits in the pocket. Secure password protected connection to ensure optimal connection security. Internet connectivity at speeds of up to 3.1Mbps. Currently available in Islamabad/RWP, Lahore & Karachi Nationwide roaming on Rev A Network (up to 3.1Mbps) in 106 cities across the country.

EVO Tablet
PTCL has introduced this above pictured 7 inch tablet device as August 14th Dhamaka to celebrate the Independence Day. PTCLs 3G Evo Tab boasts built-in EVO service to offer wireless broadband internet on the go. After the launch of Ufone Futura (which offered GSM voice and EVO Broadband), one such high-end device was very much expected. And here we have a mid-range

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touch screen, Android Froyo powered device at a price tag of Rs. 27,999 (three months of free unlimited internet included). With EVO coverage in more than 100 cities, PTCL definitely had a chance to come up with a CDMA compatible Smartphone or tablet. They can win handsome

number of subscribers before 3G could practically hit the market in 2012 or beyond.With this EVO tab, PTCL is now part of smart phone competition that was earlier geared by cellular companies only. Probably a good solution for those who require high speed internet while on the go. Though PTCL isnt disclosing the original manufacturer of this tablet; their helpline said they dont have any words on the make or model but we are pretty certain (thanks to a readers comment below) that its Indonesia made IVIO Twilight 7 device or its little variant maybe that is tailored specifically for PTCL. Ivio is a brand owned by an Indonesian company PT. Intersys. They develop mobile devices like modems, handsets, and at least 1 Android tablet. Following is the device image being displayed on IVIO official page, which looks pretty similar to PTCLs EVO Tab. It merits mentioning here that PTCLs EVO Tab supports GSM network as well, meaning that, you can use cellular SIM for voice calls too. Having a bluetooth earphone will be added advantage or you can use speakerphone for voice calls. P.S. We are not sure if PTCL allows you to use cellular SIM or not.

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Specifications
Size & Weight

Size: 199*114*12mm Weight: 429g

Display

7 screen WVGA LCD 800X480 resolution Capacitive touch screen Multi-Touch

Memory

512 MB (RAM) & 512 MB (ROM) Micro Slot up to 32 GB

Cellular & Wireless

Support EVDO/CDMA 1X 1900Mhz, GSM/GPRS/ EDGE/UMTS Quad-band: 850/900/1800/1900/ UMTS 2100Mhz

Dual Mode: EVDO or UMTS

Processor

Qualcomm MSM7627T (Turbo) 800Mhz

Operating System

Android Froyo OS Smartphone 2.2

Sensors G-Sensor Light Sensor Wi-Fi Bluetooth EDR 2.1

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Camera

5 Megapixel rear Auto Focus, VGA Secondary front Camera

Input/output

USB Port Ear phone port TF card slot SD card Slots

Battery

3500 mAh internal Battery 7hours usage 140hours standby time

In the Box

3G Evo Tab Stereo Earphones with Mic Micro USB Cable USB Power Adapter Free Sleeve Pouch Documentation Warranty Card

Warranty PTCL Evo Tab comes with 1 Year after sales & service warranty. Please refer to limited warranty statement on Warranty Card placed inside the box for complete terms & conditions. Price and EVO Tariff As a part of launch offering, PTCL is selling EVO Tab with 3, 6 or 12 month contract for EVO unlimited package at following rates:

EVO Tab + 3 Months Unlimited EVO = Rs. 27,999 EVO Tab + 6 Months Unlimited EVO = Rs. 29,999 EVO Tab + 12 Months Unlimited EVO = Rs. 31,999 73

After the launch offer, usual 3G EVO pricing would be as following:

Evo Tab Unlimited (Unlimited data volume): Rs. 2,000 Evo Tab 5 GB (5GB Data Volume): Rs. 1,500 Evo Tab 2 GB (2 GB Data Volume): Rs. 1,000

V-fone
Fixed Wireless Access Network Using CDMA2000 1X technology, PTCL already has built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The network is already enabled for voice, dialup-internet access (153.6kbps & 256 kbps). Value Added Services CLI Identify your caller with the caller line identification free of cost. Name/Number shall be displayed on your V PTCL wireless phone screen. SMS enjoy the facility of Free SMS to any Ufone, Mobilink, V PTCL wireless phone and PTCL landline. Wireless Internet You can use PTCL V wireless phone to connect to the internet and enjoy a world of information and entertainment at rate as low as Rs.5/per hour (2000 hr to 0800hr).

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Call Waiting Customer during conversation can hear a beep indicating that another call is coming. The new incoming call can be attended by putting the present call on hold. Call Transfer A customer with this facility can transfer his/her calls to another predefined desired number. Calls can be transferred immediately, on Busy tone or on No Reply. Phone Book Save all your important numbers with ease. A phone book that keeps you in touch with your friends and family. Missed Call Alert Calls on No Reply are forwarded to Miss-call-notification-system, which sends a short message (Missed Call Alert) to the subscriber. Caller is informed through an announcement of No Reply and Short Message being sent to the subscriber. PTCL V-fone (WLL) Payphone The promotional scheme consists of free air time in the shape of WLL prepaid card amounting to Rs. 500 per set on bulk purchase of 50 or more WLL Payphone sets during the promo months Dc07 to present. Pricing The price of a payphone set is Rs. 3,600/- with Rs. 1,000 free balance. The retailers have 58%+ margin on the cost of a V card. There is no line rent. Best tariff package to call any network.

Features Different denomination of cards as per usage (Rs. 100, Rs. 300 , Rs. 500 and Rs. 1,000) Easy availability of scratch cards (same PTCL V-cards) from open market. Wide Area Network coverage, quality service, best speech quality, and reliability. In small towns/villages community activists can start their business for supplemental income. There are lot more services which PTCL offers to individuals and corporate customers.

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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. Services for consumers 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 (Callers 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

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

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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 PTCLs 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. How to use it? The basic concept of the service is to provide billing solution to PTCL customer. The same PTCL Calling cards are used for this purpose. Through these cards customer can pay his bill on phone. No additional charges for bill payment transaction. Advantages Customer can save his time by paying his bill on phone Customer can pay his bill whenever he wants

DIGITAL FACILITIES PTCL offers a variety of features to digital exchange customers like: Hotline Abbreviated Dialing. Call Waiting Dont Disturb Call Transfer on (a) Busy (b) No Reply (c) Immediate Wake up call 77

Absent Subscriber Code Barring

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. Features Account number recharging Outgoing call pin setting Cancel out going call pin Balance query Follow on call Low balance prompt Balance shortage warning

SERVICES FOR CORPORATE CUSTOMERS

PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suit the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the following services, PTCL Corporate Customer Centers can be contacted. Universal Access Number (UAN) UAN (Universal Access Number) service is ideal for organizations Engaged in marketing of products or services. Here is a list of business that can avail UAN Service. Banks Insurance Newspapers Credit Card Companies Airlines Travel 78

Hotels Courier Services Shipping Lines Utility Services Fast Food Outlets Trading Companies Consumer Products Companies Stock Brokers

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

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 group. 79

Virtual Private Network (VPN) Communication is the secret of success in todays 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. 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. 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

Target market Corporate customer Software exporters Data network operators Airlines/travel agencies ISPs Financial institutes Courier services

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

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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, Sakkhar, 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. 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. 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 custome r base of more than 130,218 (Mar 31, 2008).The Company commenced its business in January 81

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. Competitor strategy There is a hard core competition among the cellular service providers in Pakistan. PTCL is market leader in its competitive position while Worlcall, Wateen is market challenger to PTCL. While Go CDMA and link Dot Net is also strong competitor. PTCL has following direct competitors in different product line In Broadband DSL wired and wireless Wateen Wimax Wi-Tribe Link Dot Net Wordcall wireless Qubee

In Wireless phone Worlcall Go CDMA Wateen

Wateen telecom Wateen Telecom Ltd embarks on providing leading international voice retail and wholesale communication services to its esteemed customers through its ability to seamlessly connect and enable smarter, faster, cost-effective and flexible solutions. Wateen continues to build on the heritage of its parent company - The Abu Dhabi Group. We believe in leadership through people. Our technology and service-delivery strengths stems from our valued employees who have joined Wateen from all over the world to earn customer trust and loyalty with

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a continuing commitment to the deployment of innovative products and services, reliable, high-quality service and excellent customer care. WorldCall Telecom WorldCall Telecom Limited (WTL), an Oman Telecommunications Company (Omantel), is the most reliable and unique telecom and multimedia service provider in Pakistan. WorldCall launched its business in June 1996 with payphone operations. Amid fundamental shifts in technology and industry, innovation and dedication led us to growth in diversified businesses with a range of services designed to serve the needs of the local market. From Cable Broadband to Wireless Broadband, from Cable TV to Video on Demand, from LDI services and fiber optic network to wireless local loop telephony, WTL has crossed a number of milestones. WTL offers an array of services under three major service categories i.e. Data, Entertainment andVoice.WorldCall Telecom Limited became an associate company of Omantel after acquisition of major share holding by Omantel in 2008. Today, WorldCall Telecom has become synonymous with innovation, dedication, and reliability in Pakistan. Link dot Net Established in 1992, InTouch Communications was the first ISP in Egypt. It grew to become an industry leader and one of the largest in the country in terms of volume. Link Egypt was set up to provide turnkey Internet services and solutions. Formed in 1995, the company quickly held and maintained an enviable track record, and displayed strong leadership qualities. This irresistible combination made Link Egypt one of the fastest growing companies in its sector. In June 2000, the two joined forces to become LINKdotNET. Overnight, the company became a dominant new force in the marketplace. LINKdotNET enjoys the backing and considerable technical and financial resources of Orascom Telecom Holding Company. Orascom Telecom is the largest integrated telecommunications services provider in the region, serving twenty markets 83

throughout the Middle East and Africa. LINKdotNET is now the largest Internet Solutions Provider in the Region with regional offices in Dubai, UAE; Riyadh, KSA; Qatar; Algeria; and Islamabad, Pakistan GO CDMA GOCDMA is revolutionary concept where life revolves around a single goal: to bring people closer. At TeleCard, we believe communication is the expression of life and we work endlessly to make it possible. We aim to strengthen our ties and create a world where distance has no meaning. TeleCard began its journey from a convenience-driven concept of the countrys first ever payphone operation. Over the years, through a synergy of a dedicated team, cutting edge technologies and uncompromised values, it has become an important part of every other Pakistani individuals life. They started with heavy campaign and low call rates and gain market share from GO CDMA. PTCL use attacking strategy for Go CDMA and became the market leader.

Marketing Department
Marketing Department is called a revenue-generating department of an organization. Marketing Department undertakes market research and gives feedback to management about customers needs and wants on the basis of which, products and services are developed and positioned to give value to the customers. Thus Marketing department of an organization plays a pivotal role in its business development, growth & expansion. During my internship I worked with PTCL marketing department. 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 PTC

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MARKETING STRATEGY
A marketing strategy is the marketing logic by which the company hopes to achieve its marketing objectives. It consists of specific strategies for target markets, positioning the marketing mix and marketing expenditure levels. For understanding the marketing department work flow and its function we must have clear picture of the PTCLs marketing strategy. Marketing has been all about the four Ps: Product, Place, Price and Promotion. The marketer identifies a target market, defines the product and Pricing to appeal to this market and a strategy to deliver the product to the market. Thus the marketer is the steward of the value proposition, ensuring that the firm is delivering maximum value to its customers. TARGET MARKET PTCLs 80% revenue comes from just 20% customers, who are corporate customers and other big and small business organizations. The main focus of PTCL marketing efforts is on retaining and satisfying that 20% chunk of key customers at any cost. For this purpose, PTCL is now established Corporate Customer Services Centers in major cities to take care of these vital customers. Apart from these important customers, PTCL targets general public and other small business companies for sale of its landline telecom services like telephone, fax, Internet, as well as other services like CLI, VMS, and Digital Facilities etc.

Market Segmentation
Basically PTCL segmented its market on two bases To better implement customer services features, segment the market on a customer basis: o Corporate o Resident ional On the basis of services as: o Telephony o Data o 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, CoLocation centers and virtual private network are specially targeted at corporate

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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.

MARKETING MIX OF PTCL

As we are well aware that marketing mix consists of 4 Ps that is Product, Price, Place, and Promotion. In modern area marketing not confined only to the selling of products and services. Today it become an art how to recognized your customer, how to reach your customer, what are their needs and what services you are offering at what price. PTCL has a monopoly and enjoying a corporate image in Pakistan due to its wide range of services at comparably at low prices in the remote areas by using different techniques of promotion PRODUCT PRICE PLACE PROMOTION

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MARKETING MIX

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Channels Coverage Assortments Locations Inventory Transport OSSs

List price Discounts Allowance s Payment Period Credit Terms

Sales Promotion Advertisin g Sales Force Public relations Direct Marketing

PRODUC

PRICE

PROMOTION

PLACE

PRODUCT
PTCL is offering multiple services to its customers in almost all the cities of Pakistan. The differential point as compare to others is that it covers almost all the needs and wants at very low prices so we can say that company is attracting both quality conscious and cost conscious at the same time. Some of the distinguished services offered by P TCL are as under IN Based Value Added Service Internet facility 0800 80800 Toll Free Customer services center Basic Services (PSTN Lines) Package of seven special services

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Digital communication all around the world PTCL Calling Cards Domestic & International Premium Rate (0900) & Virtual Private Network Service. Voice Data & Video Voice Messaging Service (VMS)

Value Added Service Collocation Facilities Digital Subscriber Loop (DSL). Universal Access Number (UAN). Voice Mail & Messaging Services. Calling Line Identification (CLI) service. Digital features like Call Waiting, Call Transfer etc. Universal Internet Number (UIN) - for ISP's Licensed only). Integrated Services Digital Network ISDN-PRI, ISDN-Tele Plus. Local/Domestic/International Leased bandwidth and point to point leased lines.

PRICE
Price is a main factor in Pakistan while getting a product or service. PTCL has an edge on its competitors like Worldcall, Wateen, Link dot Net and all the other companies which are offering Internet facilities and communication facilities. PTCL is basically a service organization. Its aim is customer satisfaction not to only earn the profit. The call charges are set which are assessable by the customers. At the same time the connection charges are also very low e.g., connection charges of fixed telephone line is only Rs. 600 in urban and rural areas. Customer can take telephone connection only providing a photo copy of NIC and filing an application form. This form is available free of cost from customer services centers and Online using Internet. This facility is post paid with International dialing, Besides PTCL no company is available in Pakistan who provides the land line phone and without submitting any security in monitoring terms. PTCL consider the different factors while setting the price of their products, like economic power of the customers, competitor pricing strategy, customer value etc.

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Pricing Strategy There are many ways to price a product. Premium Pricing Use a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Penetration Pricing The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased. Economy Pricing This is a no frills low price. The cost of marketing and manufacture are kept at a minimum. Supermarkets often have economy brands for soups, spaghetti, etc. Price Skimming Charge a high price because you have a substantial competitive advantage. However, the advantage is not sustainable. The high price tends to attract new competitors into the market, and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost, other marketing strategies and pricing approaches are implemented. Premium pricing, penetration pricing, economy pricing, and price skimming are the four main pricing policies/strategies. They form the bases for the exercise. However there are other important approaches to pricing. Value Pricing This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales. In Case of PTCL Pricing strategy changed according to the market situation. It may be increased or decreased. World Call Telecom has provided country wide free call on his own network. In countering V Wireless has offered 1200/- free balance to retain and attract new customers. This is a short term method as against world call strategy.

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PSTN For PSTN or landline PTCL is using ECONOMY strategy which means PTCL is getting average revenue per user. As PSTN is now on maturity stage so the focus is on retaining customers. EVO EVO is a newly lounged brand by PTCL. As it has no other competitor in market so PTCL is using Skimming strategy by which they are getting high no. of customers with high revenue. Vfone For the pricing of Vfone and SmartTV PTCL is using Market Penetration strategy through which the have added two new ways to penetrate its market. Smart TV For SmartTV Market Penetration strategy is being used. Purpose is to get maximum market share. Broad Band Skimming and Value added strategies are being used for broadband for maximum revenues and high market share.

PLACE
PTCL covers every nock and corner of the country. PTCL has its offices approximately in every city of Pakistan. PTCL has also its customers services

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center throughout the country to provide better facilities to the customers known as One Stop Shops. Customers can reach PTCL by visiting one of its One Stop Shops (OSS) or Customer Service Centers (CSC). Offering one window operation, these One Stop Shops and Customer Service Centers are strategically located to ease the reach of PTCLs valued customers. PTCLs courteous and friendly staff is trained to handle customers from varying backgrounds and different walks of lives.Equipped with the latest products and services the OSS/CSCs have been designed to facilitate customers and provide all the convenience under one roof. The following services are available at One Stop Shops: Order Booking(Telephone, Broadband, Smart TV) Sales (Wireless Local Loop and EVo Wireless Broadband) Billing Service Information Service

Recent plane is to concentrate in rural areas more properly because telecommunication services are as much beneficial in rural areas as in the urban areas. Where Land Line is not feasible PTCL has launch V-fone facility with the same land line tariff.

PROMOTION
Different techniques are being used for the promotion program. It is clear that PTCL has a monopoly in the telecommunication services in Pakistan and no other organization is providing this facility on that much large scale. However management of PTCL is trying to fulfill customer needs in a better way and trying to overcome the need of increasing customers. Different medias are use to promote its services such as Television, Radio, Newspapers and Brochures for promotion and for achieving organization objectives. Different packages and special services are also providing for promotion such as: Pakistan Package Zero Line Rent EVO CPSP, ICAP, ITD package Free V-fone Bonus Balance package.

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Local Call Package. Double up of broadband packages EVO Nitro promotional Package

Nitro New Sales Promo Pay 3 months line Rent in advance and get your Nitro USB Absolutely FREE Objective To communicate new sales promotion on Nitro whereby any new Nitro customer making advance payment of 3 months line rent shall be eligible for a Free Nitro

Device. Key Objectives of this promotion To encourage new sales by providing free Device incentive to the customers. Limited time promotion shall generate additional demand by encouraging potential customers for product trials. Create awareness for potential users about the core product benefits. Highlight the product USP i.e. Download Speed of up to 9.3Mbps& uplink of up to 5.4Mbps. Nationwide Roaming facility, providing Rev B speeds in Islamabad, Rawalpindi, Lahore & Karachi with Backward compatibility & seamless roaming on Rev A Network (up to 3.1Mbps) in 106 cities across the country.

DIRECT MARKETING
Mass marketers have typically sought to reach millions of buyers with a single product and standard message delivered through the mass media. In contrast, direct marketing consists of direct communications with carefully targeted individual consumers to obtain an immediate response. Thus, direct 92

marketers communicate directly with customers, often on a one to one, interactive basis. The benefits customers in many ways, consumers report that home shopping is fun convenient, and hassles free it saves timer and introduces them to a larger selection of merchandise. They can do comparative shopping by browsing through mail catalogs and online shopping services, then order products for themselves or others. Industrial customer can learn about available products and services without waiting for and tying up timer with salespeople. FORMS OF DIRECT MARKETING Face to Face Selling Direct Mail Marketing (Fax mail, E-mail, Voice mail) Catalog Marketing (Direct marketing through catalogs that are mailed to select list of customers or made available in stores) Telemarketing (using the telephone to sell directly to consumers Direct Response Television Marketing (Direct marketing via television, including direct response television advertising and home shopping channels) Kiosk Marketing

ONLINE MARKETING AND ELECTRONIC COMMERCE Online marketing is conducted through interactive online computer systems, which link consumers with sellers electronically; a modem connects the consumers computer Web machine with various services through telephone lines. There are two types of online marketing channels Commercial Online Services Internet

PTCL has made his web database. A person can apply online for taking services provided by the company. Advertising PTCL has a strong advertising strategy. They use different strategies for different products according to products lifecycle stage. At the maturity stage PTCL used different advertising channels to promote the product and to maintain the sale

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level. He uses news paper, bill boards, back boards for franchiser, banners, TV, magazines etc. Sales promotion PTCL offers different sales promotion schemes like Get free balance Buy V-fone at Rs 3600/ and get Free Balance of Rs 1000. At the purchase of EVO 3G, after the recharge of one month the next month is absolutely free to all new customers. Personal selling Some franchisers built their own personal selling team who went door to door or instead of purchasing product or service from CSC or OSS or from franchiser. Sales team also introduced the new features and use of the product to the target and potential subscribers. PTCL have not his own sales team but in near feature the company intends to prepare his own sales force. At present company is using franchisers sales force to enhance the sales, commonly known as indirect sales.

DISTRIBUTION
Distribution includes warehousing, distribution channels, distribution coverage, retail site locations, sales territories, inventory levels and location, transportation carriers wholesaling, and retailing. Most producers today do not sell their goods directly to consumers. Various marketing entities act as intermediaries; the bear a variety of names such as wholesalers, retailers, brokers, facilitators, agents, middlemen, vendors, or simply distributors Companies must decide on the best way to store, handle, and move their products and services so that they are available to customers in the right assortments, at the right time, and in the right place. A poor distribution system can destroy an otherwise good marketing effort Here we consider the nature and importance of marketing logistics, goals of the logistics system, major logistics functions and the need for integrated logistics management. To cope with the EVO customers and dealers demand and to cover the whole country Pakistan Telecommunication Company limited established three main warehouses in Lahore, Karachi and Islamabad. Company Sale/Distribute these sets through following channels.

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Direct Sales PTCL has establishes the in house sale centers to provide the product to the customer in their nearest Customer services centers in different cities. Indirect Sales PTCL has also deliver her product through franchisers/dealers and sub dealers. The aim is only to create the easy access for the customers. For this purpose PTCL pay order to the nearest store according to the regional demand and sent it to the franchiser through courier service or through vehicles. Physical Distribution (marketing logistics) The tasks involved in planning implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at profit. Distribution of EVO through Direct Sales Point PTCL increases its distribution channel. In start PTCL directly sales his product through his own Customer services center (CSC) or OSS. When he feels that their product is not reaching to their customer well in time. He starts to sale the product through indirect channel e.g. through franchise or sub dealers.
PTCL Quarter (Warehouses) Head

PTCL CSC/OSS Exchanges

Customer

Distribution of EVO through Indirect Sales Point PTCL has also sale his product through authorized franchisers. According to the survey, only a small percentage of the total sale is done through direct channel and remaining sales is done through franchiser and retailers.

PTCL Quarter

Head

Franchise

Sub Dealers

Customers

(Warehouses)

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PROMOTIONAL STRATEGY
Above the line advertising is including newspaper T.V at big level and below the line advertising at low level like local cable banners, sign boards. Several types of promotions are used extensively by PTCL. All the promotional tools are used in service industry. Advertising and sales promotion has been used extensively in service fields. Public relation and publicity also play important role. PUSH STRATEGY To achieve the sales targets, PTCL uses push strategy. In this strategy PTCL gives extra bonuses and discounts on purchasing of prescribed quantity. By using this strategy PTCL meets its sales targets and can generate more revenue in a short period of time. In this strategy the benefits are given to the dealers and sales teams. PULL STRATEGY PTCL also using pull strategy, it directs its marketing activities toward final consumers to encourage them to buy the product. Promotion is directed to enduser. The intention is to motivate the dealers to prescribe the companys products to their users. It increases the demand of products. When demand increases, all channels give more orders to distributors and in the same way distributors will further give orders to PTCL. Effective steps taken by PTCL for promotion PTCL uses different media for promotion Print Media Newspapers Electronic Media Local cables TVC Radio Internet Brochures Bill Boards

SWOT Analysis
A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or detailed snapshot of a company's health. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of 96

planning and helps marketers to focus on key issues. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. By identifying the organization's strengths, weaknesses, opportunities and threats, managers can formulate strategies in such a way so that the strengths and opportunities can be utilized and internal weaknesses and environmental threats can be minimized. To fulfill its mission, PTCL should capitalize on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of the most promising opportunities.

Why use a SWOT Analysis?

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a company's position and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have.

Strength
Experience in the Field of Telecommunication Unlimited download on all packages on broadband. Most Experience Staff of Telecommunication sector PTCL is enjoying the monopoly in the landline and DSL Largest Pre-Established operational network and infrastructure Maximum use of telephone cable for different brands i.e. Voice, video, files etc. The company is run by a body of highly professionals who have dedicated, in depth knowledge and experience in the fields of Engineering, Accounts and Administration. The PTCL enjoys a strong financial position, which is the biggest source of confidence for existing and prospective potential investors and lenders. IPTV is only IP TV provided by the PTCL. No competitors still in this market. Competitors still depend on PTCL network either directly or indirectly Wired and Wireless Services provided at one stand.

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All the competitors of PTCL are using PTCL services like UAN, Toll Free etc. PTCL (Ufone) is market challenger in GSM segment. Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony. SMW-4 Submarine Cable System SMW-4 is a relatively new submarine cable system (inaugurated in December 2005) and links 14 countries with 16 landing stations across Europe, Middle East and Asia. The system is using Terabit DWDM technology to achieve. The link between any two destinations is STM-1. SMW-4 is designed for relatively higher traffic volumes.

Experienced Telecom Resources as oldest telecom provider in the Pakistan

Weakness
Very Strong labor union. Old version of bios setup of the modems System not upgraded as no. of users increases. Noise in Telephone Line is very common problem. Poor Response from PTCL exchange to install the service Infrastructure is needed to be upgrade in most area of Pakistan Technical staff who is sitting in Complain office doesnt know anything about Broadband and IPTV problems. Variation in the speed of broadband create problem in working The Process of getting product is time consuming Over employment and low productivity No action taken early against customer complaints Internal organizational and business processes issues Signal problem in EVO Wireless USB even in Model and Johar Town Lahore. Not been able to nurture its growth around customer services oriented strategy.

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Paknet, the internet service provider arm of PTCL continues to incur losses due to poor management and lack of network optimization Monopolistic culture has further added to its complexities Slow decision making including external interferences Corporate culture akin to government departments

Opportunities
Opportunity to introduce High Value Added Products / High margin products for the new, more aware consumer. Scope for efficient/cost effective operations Low tele-density of Pakistan Maximum coverage in Pakistan Have vast infrastructure and real estate assets which can be leveraged further Externally the company can become an important medium for globalization of the society by bringing different nations together. In This Company has a major role to play Global connectivity reliability has been improved. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables Partnership with new entrants is a deregulated environment Huge target market is ready to come on PTCL platform as no one is providing unlimited downloading at this price

Threats
Exposure to market competition Migration to Cellular Networks from PSTN Reduction in International Settlement Rates Ability to Attract & Retain Quality Professionals Wi-Max signal problem during environmental effect Mostly roads construction damages the main wires of PTCL Increased competition in long distance continues to exert pressure VOIP use is increasing despite ambiguous and discriminatory policies

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PTCL has enjoyed long Monopoly and is now likely to be faced with tough competition from various service providers.

Concluding Remarks on SWOT Analysis

To maintain its monopoly in Land Line services PTCL has to improve its services including customer care and low fault duration. As it has experienced telecom resources to have them is not a big deal but to retain them should be its mission. there is no care of network from the last two years the reason behind that is the issue of privatization, every one is not clear about the policies and future of the company and there is no concentration on network improvement no material is available in the store for maintenance purpose. In order to compensate the line fault ratio a proper system of WLL V wireless promotion can be adopted which can nullifies the issues of line faults. There is burden of staff in offices in the context of supporting staff and those staff which has become obsolete after technological changes (replacement of manual exchanges with digital exchanges) which has reduced the need of staff at that level as in manual system. Employees Union Involvement is still high which the main cause of slow decision-making is. However it has been take over by a private company but still there attitude and behavior is like government officials. Company is not focusing on proper advertising of the products and services even some time company owns employee dont know about the new feature and services offered by the company then how customer will come to know about it. Company should try to gain its customer confidence back by offering timely response to complaints secondly company should enhance its product line. After the takeover of Etisalat, management is trying to implement an ERP system which will be very helpful in coming future for decision-making and analysis. Not only the capacity but also the quality of network should be enhanced for proper market share. After the deregulation policy there are huge chances of partnership with other private companies and it also leads to true market competition. The countrys economy at macro level is expanding and future of services providing companies is very bright. Today is the era of IT and IT without telecom is impossible. There is enough potential in cellular services, LDI, LL and WLL, company can invest in such kind of activities for revenue growth. IPTV rollout can change the game, if

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done right it will tilt the odds in PTCLs favor. It will make sticky bundles possible (tv+pohne+internet) with say a single bill for convenience. After privatization it has become a global company the major benefit to the employees are that they can move to any subsidiary of that holding company in other countries. Three main projects of Triple play, Ofan and wimax are in pipe line which will be launched very soon and it will be very helpful for the company to get a competitive edge. now that time has been passed when company connections were selling with out any advertisement due to his monopoly now the time is going to change very quickly there are a lot of emerging telecom companies with a big mission to get a big market share like Mobilink and Wateen Telecom is spreading its own optical fiber cable throughout the country that will reduce there dependency on PTCL .People are quickly switching to cellular companies due to their low call rates its a big threat for PTCL in addition there quality professionals are also searching place in that companies due to high salary package and benefits. Rising sale of mobile operators due to low call rates is very big shock for its revenue. Due to increased competition in long distance and local loop company is unable to sustain its current market share, companies using Voip technology can provide low call rates then PTCL. Paknet is suffering from loss from many years it should be merged with PTCL to improve its management that is the main reason of loss. The centralized structure and management style should be modified with new company culture environment to improve overall company position; double standard policy for employees should be eliminated. Currently company launched VSS for its current employees which effects will be cleared in near future at present employees are not cleared that what management will do with them in case they dont accept this VSS what will be their future in company.

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Part 6 COMPANY FINANCE SYSTEM

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Ratio Analysis
Ratios simply mean a number expressed in terms of another. A ratio is a statistical yardstick by mean of which relationship between two or various figures can be compared or measured. Thus Ratio Analysis shows the relationship between accounting data. Ratio can be found out by dividing on number by another number. Ratio analysis is an important and age old technique of financial analysis. Following are some of the advantages of ratio analysis.

Advantages
It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in the financial condition of the business It provides data for inter-firm comparison. Makes inter-firm comparison possible Ratio analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future. Ratios highlight the factors associated with successful and unsuccessful firm. They also reveal strong firms and weak firms, over-valued undervalued firms. It helps in planning and forecasting. Ratios can assist management, in its function of forecasting, planning, co-ordination, control and

communications.

Types of Ratios Analysis

Let us now have a detailed analysis of all the following four ratios for PTCL and industry. 1. Profitability Ratios 2. Liquidity Ratios 3. Leverage Ratios 4. Activity Ratios

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Liquidity Ratios
Current Ratio: Current ratio is equal to current assets divided by current liabilities. Current Ratio = Current Assets Current liabilities = 45450236 30192778 = 1.51 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
1.51 1.65 1.61

Industry
1.2 1.1 2.3

Interpretation: Current ratio is a general and quick measured of liquidity of firm. It represents the margin of safety or cushion available to the auditor. It is the index of the firms financial stability. It is also an index of the financial solvency and index of strength of working capital. The current ratio of the firm is ranging between the figures of 1.5 to 2 which shows that company is maintaining the strong liquidity position. The ratio is quite stable as compared to the industry. Graphical view:
2.5 2 1.5 1 0.5 0 2010 2009 2008 PTCL Industry

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Acid Test (Quick) Ratio: Acid Test (Quick) ratio is equal to Current assets fewer inventories divided by current liabilities. It gives more liquid amount of assets to cover your liabilities. Quick Ratio = Current assets Inventories Current liabilities = 45450236 - 4075863 30192778 = 1.37 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
1.37 1.63 1.60

Industry
1.15 1.0 2.1

Interpretation: The quick ratio is a very useful measuring of the liquidity position of the firm. It means the firms ability to pay its short-term obligations or current liabilities immediately and is a more rigorous test of liquidity than the current ratio. The quick ratio should be1:1, but here it is greater than 1, which depicts the strong liquidity of the company. Here again the company ratio is stable relative to the industry that is a good sign for the company. Graphical view:
2.5 2 1.5 1 0.5 0 2010 2009 2008 Ptcl Industry

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Leverage Ratios
Debt Equity Ratio: Debt equity ratio is equal to long term debts divided by stockholders equity. Debt Equity ratio = Long Term Debts Stockholders equity = 20816238 99758711 = 0.21 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
0.21 0.17 0.18

Industry
0.20 0.18 0.20

Interpretation: This ratio indicates the proprietors claims of owners and outsiders against the firms assets. The purpose is to get an idea of the cushion available to outsiders and the liquidity of the firm. Debt Equity ratio increment is a negative point to management that the more of their business is financed by debts this will increase their financial charges or interest expense and firms liquidity and hence decreasing the companys profit. The lower the ratio the higher the firms financing that is provided by the shareholders and larger the creditors cushion (margin of protection) in the extent of shrinkage of assets values or outright loss. Here the ratio is according to the industry average so the management has to maintain and improve this situation. Graphical view:
0.25 0.2 0.15 0.1 0.05 0 2010 2009 2008 PTCL Industry

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Debt to Capitalization Ratio: Debt to capitalization ratio is equal to total long term debts divided by total capitalization. Total capitalization= Total long term debts + Shareholders Equity Debt to Capitalization Ratio = Long Term Debts Long Term Debts + Shareholders Equity = 20816238 20816238+99758711 = Comparison on Yearly Basis: Year
2010 2009 2008

0.17

PTCL
0.17 0.15 0.15

Industry
0.15 0.15 0.17

Interpretation: It can be defined as how much sufficient our assets are in retrieving the total debts. The debt ratio of the company has remained stable almost over the last three years as shown clearly by the above calculations. It is an acceptable situation for the company. Graphical view:

0.17 0.165 0.16 0.155 0.15 0.145 0.14 2010 2009 2008 PTCL Industry

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Long Term Debt to Total Asset Ratio: Debt ratio is equal to total liabilities divided by total assets. Long Term Debt to Total Asset Ratio = Total Long Term Debts Total Assets = 20816238 150767727 = 0.14 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
0.14 0.12 0.11

Industry
0.16 0.15 0.17

Interpretation: It can be defined as how much sufficient our assets are in retrieving the total debts. The debt ratio of the company has remained stable almost over the last three years as shown clearly by the above calculations. The ratio shows that the management is efficiently using the assets. It is an acceptable situation for the company. Graphical view:
0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2010 2009 2008

PTCL Industry

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Times Interest Earned (Coverage Ratio): It briefs that how many times the firm has earned the interest or how many times the firm has user its earnings before interest and taxes to cover the interest expense. Times Interest Earned = Profit before Interest and Taxes Interest expense = 14684358 403240 = 36.42 Comparison on Yearly Basis:

Year
2010 2009 2008

PTCL
36.42 16.43 14.23

Industry
18.24 16.58 12.56

Interpretation: Investors should not own a stock that has an interest coverage ratio under 1.5. An interest coverage ratio below 1.0 indicates the business is having difficulties generating the cash necessary to pay its interest obligations. As the ratio is below 1.5 and also from industry average so the company should review its strategies regarding debt. Graphical view:
40 30 20 10 0 2010 2009 2008 PTCL Industry

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Activity Ratios
Inventory Turnover Ratio: Inventory Turnover Ratio is equal to Cost of Goods Sold divided by Closing Inventory. Inventory Turnover ratio = Cost of Goods Sold Closing Inventory Inventory Turnover Ratio = 55,345,017 470,673 = 118 times Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
11.8 26.7 18.0

Industry
14 19 13

Interpretation: It means how many times stock in trade can be sold in a year. If the ratio is too high the chance of stock out arises. Much higher ratio also indicates low stock. Here the ratios are acceptable because the demand of communication devices is always higher. PTCL purchases in bulk and utilize equipments quickly due to high demand. Graphical view:

5 4 3 2 1 0 2010 2009 2008 PTCL Industry

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Total Asset Turnover Ratio: Total asset turnover ratio measures that how much sales are generated through the total assets of the organization. Total Asset Turnover Ratio = Sales Total assets = 57174527 150767727 = 0.38 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
0.38 0.43 0.49

Industry
0.67 0.69 0.74

Interpretation It shows that firms must manage its total assets efficiently and should generate maximum sales through their proper utilization. As the ratio, increases there are more revenue generated per rupee of total investment in asset. The firm ability to produce a large volume of sales on a small total asset based is an important part of the firms overall performance in terms of profits. It is stable but below the industry average so it is not a good sign for the company. Graphical view:
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2010 2009 2008

PTCL Industry

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Profitability Ratios
Gross Profit Margin: Gross profit margin is equal to the ratio of gross profit to sales. Gross Profit Margin = Gross Profit Sales = 18915816 57174527 = 33.1% Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
33.1% 40% 44%

Industry
27% 26% 14%

Interpretation: Gross profit margin or gross profit ratio is the ratio of gross profit to net sales expressed as percentage. It is very good in the industry and favorable for the firm. Graphical view:
45 40 35 30 25 20 15 10 5 0 2010 2009 2008

PTCL Industry

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Net Profit Margin: Net Profit Margin is equal to net profit divided by sales. Net Profit Margin = Net Profit Sales = 9294152 57174527 = 16.26% Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
16.26% 11.8% 2.2%

Industry
7.2 5.4% 7%

Interpretation: This used to show the overall profitability and hence it useful to the proprietors. Higher ratio is better for the organization .It shows the firms ability to turn each rupee of sale into profit. Due to VSS the company suffered losses in 2007 and 2008, but this loss was temporary, so the company should continue its operation normally. Graphical view:
18 16 14 12 10 8 6 4 2 0 2010 2009 2008

PTCL Industry

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Market Ratios
Earnings per share: This ratio shows that how much amount per share does a common stock holder attains. Earnings per share = Earnings Available for Common Stock Holders No. Of Common Stock Shares = 9294152 5100000 = 1.82 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
1.82 1.79 1.2

Industry
1.45 1.11 1.93

Interpretation: This ratio shows the worth of the share. As we can see that the worth of the shares is increasing in current year that is a good sign. Graphical view:
2 1.5 1 0.5 0 2010 2009 2008 PTCL Industry

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Dividend per Share: It is the amount calculated by dividing amount of dividend by number of shares outstanding. Dividend per Share = Dividend paid No. of Shares outstanding = 8925000 5100000 = 1.75 Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
1.75 1.5 0

Industry
0.38 0.32 0.30

Interpretation: This ratio shows the amount of dividend paid over each share. As we can see that the amount of dividend on shares is above the industry average so it is an acceptable situation. Graphical view:
2 1.5 1 0.5 0 2010 2009 2008 PTCL Industry

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Dividend payout ratio: Dividend payout ratio = DPS EPS = 1.75 1.82 = 96.15% Comparison on Yearly Basis: Year
2010 2009 2008

PTCL
96.15% 83.60% 0

Industry
80% 78% 40%

Interpretation The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio. The ratio indicates poor position of the company. Graphical view:
100 80 60 40 20 0 2010 2009 2008 PTCL Industry

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Horizontal & Vertical Analysis

PTCLs Common size Balance Sheet

Common size (%)

Non Current Assets Property, Plant Capital WIP Finance Lease Assets Intangible assets Long term Investments Long term loans Total Non Current Assets Current Assets Stores, Spares Stock in trade Trade Debts Loans and Advances Accrued interest Recoverable from tax authorities Taxationnet Other receivables Receivable from Govt. Short term investments Cash and bank Total Current Assets Total Assets 0.027 0.001 0.066 0.006 0.0018 0.0076 0.020 0.011 0.055 0.044 0.24 1.00 0.023 0.11 0.05 0.0045 0.0037 0.005 0.00027 0.0085 0.097 0.098 0.098 0.30 1.00 2009 0.67 0.064 0.000005 0.02 0.00057 0.0021 0.76 20010 0.61 0.062 0.018 0.0005 0.0015 0.69

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PTCLs Common size Balance Sheet

Common size (%)

Liability + Equity Equity Revenue Reserves Non Current Liabilities Long term loans Payable to PTA against license fee 0.048 0.01 0.04 0.0007 2009 0.24 0.27 2010 0.24 0.025

Deferred taxation Employees retirement benefits Deferred Government grants Long term security deposits Long term liabilities Current liabilities Trade and payables Interest and markup accrued Current portion of Long term loans Liabilities against assets subject to finance lease Payable to PTA against license fee Long term liabilities Unearned income

0.023 0.076 0.0005 0.075 0.135

0.03 0.066 0.005 0.0069 0.06

0.13 0.0012

0.15 0.0013

0.0067 0.0001 0.0001 0.0003 100

0.00047 0.009 0.090 0.0064 0.035 100

Taxation net Dividend payable Total Liability + Equity

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PTCLs Common size Profit and Loss Account Common size (%)
2009 Revenue Cost of services Gross profit (G.P) Administrative and general expenses Selling and marketing expenses Operating profit Voluntary separation scheme Other operating income Finance cost Share of profit / (loss) from an associate Profit / (loss) before tax Taxation Group Associate Profit/(loss) after tax 0.005 0.0001 -0.022 0.062 0.000003 0.12 1 -0.05 0.45 -0.15 -0.071 0.22 -2.61 0.04 -0.03 -0.0004 -0.027 2010 1 0.6 0.40 0.145 0.084 0.17 0.0001 0.056 0.048 0.000003 0.180

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PTCLs Indexed Balance Sheet Common size (%)

Non Current Assets Property, Plant Capital WIP Finance Lease Assets Intangible assets Long term Investments Long term loans Total Non Current Assets Current Assets Stores, Spares Stock in trade Trade Debts Loans and Advances Accrued interest Recoverable from tax authorities Taxationnet Other receivables Receivable from Govt. Short term investments Cash and bank Total Current Assets Total Assets 100 100 100 100 100 100 100 100 100 100 100 100 0.952344 123 0.862407 0.826068 2.316621 0.737997 0.485079 1 2.031808 2.534263 1.447175 1.142686 2009 100 100 100 100 100 100 100 2010 1.042255 1.098411 1.029428 0.995882 0.841585 1.046078

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PTCLs Indexed Balance Sheet Common size (%)

Liability + Equity 2009 100 100 2010 1 1.125

Equity Revenue Reserves

Non Current Liabilities

Long term loans

Payable to PTA against license fee Deferred taxation Employees retirement benefits Deferred Government grants Long term security deposits Long term liabilities Current liabilities Trade and payables Interest and markup accrued Current portion of Long term loans Liabilities against assets subject to finance lease Payable to PTA against license fee Long term liabilities Unearned income

100 100 100 100 100 100 100

0.95 0.67 1.83 0.966 0.905 1.169 0.56

100 100

1.15 1.23

100 100 100 100 100

0.08 77.9 1.14

Taxation net Dividend payable Total Liability + Equity

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PTCLs Indexed Profit & Loss Account Common size (%)

2009 Revenue Cost of services Gross profit (G.P) Administrative and general expenses Selling and marketing expenses Operating profit Voluntary separation scheme Other operating income Finance cost Share of profit / (loss) from an associate Profit / (loss) before tax Taxation Group Associate Profit/(loss) after tax 100 100 100 -12.4223 1.651961 -5.36796 100 100 100 100 100 100 100 100 100 100 100 2010 1.011536 1.089812 0.914294 0.965797 1.195017 0.789031 -0.003848 1.404174 1.680889 -0.00767 -6.68824

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FUNDING OF PTCL
MOBILIZATION OF FUNDS PTCL mobilized its funds with following ways. Purchase the new imported infrastructure like new Exchanges etc PTCL mobilized its finds mostly in the purchase of new telephone exchanges from abroad (France, Italy & China). There is also purchase of accessories of telephone exchange generators and other equipments. Capital expenditure for the organization There are various expenses for the PTCL in the context of capital expenditure that has already been mentioned in previous pages. Purchase and acquisition of stores. PTCL store items are very important components i.e Stationery, stand-by Exchanges, generators, barites and other equipments. PTCL spend lot of funds on these items. Loan and advances to others, and re-investment. There are offering of Loan and advances to the employees on various rates according to the length of services on roll. This is the main source of mobilization of funds. Payment of dividend to the stockholders Payment made to the shareholders in the context of dividend to be paid to the shareholders. PTCL has currently announced the divided of Rs.32/per share. Salaries of the staff all over the country. Obviously services rendered by the staff and in this way PTCL has to pay handsome amount to their staff, those are the main source of generating the revenue. Annual Bonus to employees. PTCL pays annual Bonus of Rs. 12000/- to its employees on the Eid occasion. Security deposits, Transfer of Companys Land & Building. Where PTCL does not find any building or land then security deposit may be paid to the private landholders for the installation of PTCL infrastructure. 123

Insurance of the Company PTCL offers the insurance from its own side in case of death and medically unfit of its employees.

Pension, graduate, and other fringe benefits For the pension and gratuity of the retire official PTCL mobilized its funds accordingly. Supply of Furniture and Fixtures to the office buildings. This is the responsibility of the Management to be provided the furniture and fixture to the office buildings accordingly. Renovation, alteration, and rental charges of privately owned buildings. PTCL has to pay the handsome amount for renovation and alteration of existing building and the charges of privately owned builders are being issued accordingly.

SOURCES OF FUNDS OF PTCL Cash generated from operations In this context we can say that PTCL usual earning lot much more depends upon the usual earning from Telephone number and payments of the bill thereof, this is the primary source of funds of PTCL. Security deposits Various pay card companies like Dancom, World call, Pearl Tel, Soft tech, and deposited huge amount as the securing deposit in the books of PTCL for the media that is being used by these companies. PTCL is utilizing these security deposits. Return on deposits After payment the dividend to the share holders and having paid the income tax on the profit the surplus amount is being used in the deposits of various national and multinational banks from where ROD is received accordingly. Dividend Income PTCL some time itself purchases the share from the open market and earn the dividend income thereof. It is also possibly that PTCL if applicable may detain the shares of different other companies and earn the dividend.

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Conclusion
After going through the entire analysis of the company, quite evident results can be deduced about the financial situations of the industries. Each and every ratio has been analyzed quite profoundly and the results have been provided along with the clear illustration of the graphs. As far as current financial situation of PTCL is concerned, it is going in a quite better condition as compared to the current financial situation of the industry except for the year 2007. Company is reducing in its debt ratio and increasing in its profitability. But one thing that should be taken into notice is the stable performance of industry as compared to the PTCL. In fact VSS put a great burden on the company and the whole financial structure is disturbed. The whole VSS expense is charged against the revenue of year 2007 and year 2008. This factor put the profitability of the company into losses. But still the company should review its strategies and financial structure. As far as loss of year 2007 is concerned the company needs to take some steps for its overall financial structure and needs a renewal of its strategy to compete in the market and to remove instability. So, in the light of all the details given above about the financial analysis of the company, it can be seen that PTCL is managing its resources well but the internal management needs a lot of improvements.

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Part 7 Training Programme

126

Internship Programme
The internship is a golden chance for the students of MBA to develop the capability and polish skills of administration and management in the practical environment of different organizations. In the context, I selected the PTCL (Pakistan Telecommunication Company Limited). This report shows and will guide the readers to have an idea about operations and the practices followed by PTCL. The reason for doing the internship in PTCL is to get knowledge about financial activities and accounting practices prevailing in this organization. I started my training in PTCL OSS Barket Market, Lahore. I joined on July 11.2011. This training session lasts till August 20.2011. During this internship I learnt how to implement theory in practical. I tried my level best to polish my professional skills and enhance my practical knowledge.

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Structure of Internship department

President

S.E.V.P

E.V.P

G.M

S.B.M Manager/ In charge OSS R.O Cashiers

CSRs

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Staff Introduction Ali Riaz Shaikh o Senior Business Manager Syed Shahper Abbas o Assistan Manager/ Supervisor OSS Tahir Jamil Shaikh o Revenue Accounts Officer Amin Shahid o Cashier Ubaid ullah Anwer o Cashier Ahmad Shamim o Customer Services Representative Khaleeq ur Rehman o Customer Services Representative

MARKETING OPERATIONS
At OSS Barket Market, Lahore, marketing team has the following operations. Focus on the Customer Monitor the Competition Own the Brand. Find & Direct Outside Vendors. Create New Ideas. Communicate Internally. Manage a Budget. Set the Strategy, Plan the Attack, and Execute.

Let's take it one step further though, with this second list, which should best serve marketing departments that have already accomplished all above marketing functions and are looking for the next step in their evolution: Befriend your customers. Become your market. (Don't just monitor the competition. Rewrite the rules. Set the pace. Lead. Outdistance your competition. Make them copy you. Force them to up their game. Breathe your brand. Recruit and direct outside vendors.

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Foster Innovation. Simplify your internal communications. Then simplify them again and again

Strategize as if your budget had been slashed in half. Deliver as if your budget had been twice what it actually is.

Observe, adapt, strategize, anticipate, plan, execute.

A BROAD VIEW OF MARKETING TASKS Marketers are skilled in stimulating demand for a companys products. But this is to limit a view of the tasks marketers perform.

Communication Goods/Services Industry (A collection of sellers) Money Market (A Collection of buyers)

Information Just as production and logistics professional are responsible for supply management, marketers are responsible for demand management. Marketing managers seek to influence the level timing and composition of demand to meet the organizations objectives. Marketing (management) is the process of planning and executing the conception pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

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LEARNING AS AN INTERN
Duties I have to perform following duties at OSS Barket Market, Lahore Managing the files for New Orders, Sales and Replacements. Filling the service order form Mail checking and forwarding to respective person. Visit market to check the franchisee and dealers offerings Welcome customer with warm greeting Issue duplicate bills Listening complaint of customer Registering the complains on CMS Providing solutions Giving product information to customer Selling the product. Sale of EVO, Vfone Writing application on behalf of customer Correction of bills Restoration of suspended lines Installments of bills Handling the EVO complains and issues Placing of new telephone and DSL connections on BnCC Processing on Temporary close application Reactivation and new order entry of EVOs Printing and punching of EVO bills Changing of address and ownerships of PSTN and EVO Watching the front desk and reception Providing of information to customers Keeping all the computers running

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New Knowledge Acquired How to deal with the customer was one of the most useful thing I learn there. How to break the franchisees sales and how to attract the customer CSR assignment was new for me it also guides me how to work in pressure. How manager organize and hire new employees so that they come into fit in just few days of training. Theoretical knowledge is quite different from actual happening. We talk in the book very professional approach while in the organization we have to do task using just organization resources, no one is going to financially help you How telecommunication companies manage their resources and do sale. Stock lifting and issuing is quite different from other business sector. In PTCL usually push strategy is adopted Short time period give me chance to learn the corporate culture of the PTCL. I observed the hiring process in OSS; I was there when interview was being conducted for CSR. I got command over BnCC, pCRM, CMS and Billing and Recovery Console during my internship. I learnt how to handle my anger and hyper and how to smile in front of customer. I got knowledge about CDMA technology

Problems encountered Biggest problem I face was, I had to do work of 5 people alone. Customers shout and misbehave with me mostly as their problems were not being cleared by backend. Financial problems I face as PTCL did not provide any financial assistance Transport facility was not available with me sometime The lower level permanent employees do not want to work at all Non serious attitude of old employees. They dont want to do work.

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I found big gap while communicating with old Govt. employees. I had to learn everything depending on Self learning. Load shading problem, some time we have to wait long time for all the sort of works. Most of the time LAN was not working especially in billing days. I had to stay there for more than 9 hours daily as there was only one CSR in the morning and one in evening. Computer systems are not up to the mark and no backup for power failure

Future impact on my career This short time period internship gave me chance to improve my career. It was very learning process for me and it had store its impact on my career in the following way It will help me in the future to fit in the organization It help me the learning of corporate culture in Pakistan which is key point that will effective on my carrier if I do job in Pakistan This practical experience in the telecom sector will help me in the future if I join telecom sector Sale is a tough job I learn there but its quiet interesting it is very useful in creating your own good will or reputation. This internship has given me practical knowledge about managerial techniques being used in the practical field

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Strategic Management Matrices

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Components of Mission Statement

No.
1. 2. 3. 4. 5. 6. 7. 8. 9.

Components
Customers Product and Services Markets Technology Concern for survival, growth And profitability Philosophy Self Concept Concern for public image Concern for employees

Analysis

Improved Mission Statement We desire to be the most admired and valuable telecommunication company with a goal to enrich our customers' personal lives and to make their businesses more successful by bringing to market exciting and useful communications services with integrity, ethical business practices and building shareowner value in the process having great concern for our employees.

Why it is improved
The vision is to be the best and leading telecom company in Pakistan, to facilitate the people of Pakistan and we emphasis on consumer more rather than competitors we among the top telecom companies in the world, by continually challenging present conventions and always staying a step ahead of the competition. It is our mission to be the number one telecom company of Pakistan by providing our customers with the highest product quality in terms of consistent quality, experience, and satisfaction. We will ensure this through an unwavering

dedication to the continuous development of our products and processes ensuring that we remain best in class. We will strive to hire the most competent and dedicated employees whose work ethic will set the standard in the industry. We will be paymasters, as we strongly believe that human resource is the only asset 135

that truly appreciates over time. We will also be a responsible social corporate citizen, and strive to enhance the quality of life in the markets we serve.

Comments on vision and mission (In terms of how they support the strategies)
The vision statement of our company supports the existing strategies that is (generic strategy) that PTCL needs to pursue is that of differentiation. In their current vision and mission statements, the company says it aims to provide satisfaction to customers and investors, yet through our thorough analysis of the strategic direction the company needs to adopt a generic strategy of differentiation. This will allow PTCL to do three things; 1. Survival in competitive environment 2. Increase revenue 3. Gain customers satisfaction. However, at the expense of sounding simplistic, it is necessary that the company communicate its differentiation to its customers, otherwise these three advantages will not avail themselves. 2. Initially PTCL will need to adopt a focused differentiation approach, which means that they should selectively choose which markets will profit them the most and then target only those markets until such provisions are in place from where the company is able to expand its target base. After which they should opt for a broad differentiation generic strategy. With the market just turning the bend to saturation, it is entering a phase of intense competition with all major players diversifying their product lines, ranges and even businesses into a versatile range of products to put in place more infantry on the battle ground to use to their advantage in this war of brands. Therefore, we believe that the current strategic objective of PTCL should be to consolidate its existing brand, PTCL through extensive strategic market research and consumer insights to be able to home in on the correct target market like a precision targeting missile rather than as an Anti-aircraft gun.

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Porter's Five Forces Analysis of Market Structure

The competitive structure of an industry can be analyzed using Porter's five forces. This model attempts to analyze the attractiveness of an industry by considering five forces within a market. According to Porter (1980) the likelihood of firms making profits in a given industry depends on five factors:

1. Barriers to Entry
This factor shows the extent to which barriers to entry exist. The more difficult it is for other firms to enter a market the more likely it is that existing firms can make relatively high profits. The likelihood of entering in telecom market is lower as: The entry costs are high e.g. heavy investment is required in marketing or equipment There are major advantages to firms like PTCL, Wateen and Worldcall that have been operating in the industry already in terms of their experience and understanding of how the market works (this is known as the "learning effect") In Pakistan government policy prevents entry or makes it more difficult The existing firms usually react aggressively to any new entrant e.g. with a price war The existing firms have control of the market operations

2. The Power of Buyers

The stronger the power of buyers in an industry the more likely it is that they will be able to force down prices and reduce the profits of firms that provide the product. In Pakistani telecom sector buyers are in great power. Buyer power is higher as: There are a few, big telecom companies so each one is very important to the firm The buyers can easily switch to other providers so the provider needs to provide a high quality service at a good price The buyers are in position to take over the firm e.g. PTCL. They have the resources to buy the provider this threat can lead to a better service because they have real negotiating power

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3. The Power of Suppliers

The stronger the power of suppliers in an industry the more difficult it is for firms within that sector to make a profit because suppliers can determine the terms and conditions on which business is conducted. Suppliers are not powerful as: Switching to another supplier is easy and not expensive The supplier cannot threaten to buy the existing firms so they are not in a strong negotiating position

4. The Degree of Rivalry

This measures the degree of competition between existing firms. The higher the degree of rivalry the more difficult it is for existing firms to generate high profits. Rivalry in telecom sector is very high because: There are a large number of similar sized cellular companies (rather than a few dominant firms) all competing with each other for customers The costs of leaving the industry are high e.g. because of high levels of investment. This means that existing firms will fight hard to survive because they cannot easily transfer their resources elsewhere The market is going to be saturated so firms are fighting for their share of falling sales There is little brand loyalty so customers are likely to switch easily between products

5. The Substitute Threat

This measures the ease with which buyers can switch to another product that does the same thing e.g. aluminum cans rather than glass or plastic bottles. The ease of switching depends on what costs would be involved (e.g. transferring all your data to a new database system and retraining staff could be expensive) and how similar customers perceive the alternatives to be. There is a threat of substitute products. There are so many companies which are threatening the monopoly of PTCL. There are perfect substitutes available for all of its products. Worldcall and Wateen have introduced wireless phones, broadband, cable TV and many others which are a threat for PTCL.

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The implication of Porter's analysis for managers is that they should examine these five factors before choosing an industry to move into. They should also consider ways of changing the five factors to make them more favorable. The five forces will change over time as market conditions alter. For example, more information is available nowadays to enable customers to compare offerings and prices; this gives buyers more power. The opening up of world markets (for example through the efforts of the World Trade Organization to reduce protectionist measures that limit trade and the expansion of the European Union enabling free trade between more countries) has led to much more rivalry in markets in recent years. In North America, for example, the sales of Japanese firms such as Toyota have gradually been reducing the market share of American producers such as General Motors as consumers have more choice. Meanwhile, the success of the internet has made it easier for producers to enter many markets such as finance, book retailing and clothes retailing; the ability to start selling online has reduced a major barrier to entry which was the investment required to set up a network of shops. As ever the business world is not static and the conditions in any industry will always be changing. As this happens the various elements of the five forces are always shifting requiring established firms and potential entrants to review their strategies.

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EFE Matrix of PTCL

Sr. No. Weighted Score

Key External factors Opportunities

Weight

Rating

1. 2. 3.

Increasing growth in telecom sector Expansion by acquisitions Internet users in the Asia-Pacific region forecast to increase by over 35%

0.08 0.10 0.07

3 4 3

0.24 0.40 0.21

4.

Developing countries are striving for communication revolution

0.06

0.18

5.

Diversification of telecom business to other industries like IT and electronics

0.10 0.08 0.07

2 4 3

0.20 0.32 0.21

6. 7.

Low teledensity of Pakistan 36% e-marketing to approach customers directly Threats

1. 2. 3.

Growth Potential of competitors Acquisitions and alliances by competitors Ability to attract and retain quality Professionals

0.10 0.07 0.05

3 2 2

0.30 0.14 0.10

4.

Global credit crisis and significant decline in the equity markets

0.02 0.04 0.08 0.02 1.00

2 3 2 3

0.04 0.12 0.24 0.06 3.04

5. 6. 7.

Mobilink as brand loyalty category winner Market Saturation Increasing prices of communication equipments Total

Conclusion: This assessment of the External Factors reveals that PTCL is above the industry average in responding to the external environment. But they should begin to prepare a strategy to better defend the firm against external threats present in the business environment and try to identify ways to take advantage of opportunities because there is large competition in telecommunication sector due to the entry of many new rivals. 140

IFE Matrix of PTCL

Sr. No. Key Internal factors Strengths 1. 2. 3. 4. 5. 6. 7. High brand recognition Experienced Telecom Resources Product diversification (20+ brands) Market Leader having market share of 80% Efficient Supply Chain Management Strong financial position Ethical and corporate social responsibility Weaknesses 1. 2. 3. 4. 5. 6. Decreasing gross profit (9% in 2009) Expansion focus structure rather product focus Poor inventory management Limited product portfolio Finance cost increased by 40% in 2009 Ineffective logo evolution Total 0.08 0.07 0.05 0.06 0.05 0.02 1.00 2 1 2 2 2 1 0.16 0.07 0.10 0.12 0.10 0.02 2.66 0.10 0.07 0.06 0.09 0.10 0.08 0.05 4 4 3 4 4 4 3 0.40 0.28 0.18 0.36 0.40 0.32 0.15 Weight Rating Weighted Score

Conclusion: This assessment of Internal Factors indicates that PTCL is above average in using its internal strengths to offset their weaknesses. PTCL is having some success in controlling their internal operations relative to responding to their weaknesses. However, they should not be satisfied with being just above average in this highly competitive business environment. The goal is to establish a competitive advantage over other firms, and they have plenty of room for improvement. PTCL needs to identify ways to improve their operations to gain this competitive advantage.

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MATCHING STAGE

142

SWOT Analysis of PTCL

Strengths 1. Efficient Procurement & Supply Chain 2. Brand Stature 3. An Integrated Monopoly 4. Product Assortment (Landline, DSL, V Wireless and Smart TV etc.) 5. Market Leader having market share of 80% 6. Ethical and corporate social Responsibility Management Opportunities 1. Increasing growth in telecom sector 2. Expansion by acquisitions 3. Internet users in the Asia-Pacific region forecast to increase by over 35% 4. Developing countries are striving for communication revolution 5. Low teledensity of Pakistan 36%

Weaknesses 1. Over employment & low productivity 2. Slow decision making including extraneous intervention 3. Corporate culture akin to government departments 4. Complaints due to improper management 5. Financial Disturbance due to VSS 6. Lack of coordination with the other departments 7. High operating cost

Threats 1. Market Saturation 2. Global credit crisis and significant decline in the equity markets 3. Growth Potential of cellular companies 4. Mobilink as brand loyalty category winner 5. Ability to attract and retain quality Professionals 6. Acquisitions and alliances by competitors 7. Evolution of satellite and cellular communication

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Consumer Analysis: According to the analysis 70 % of the customers got the good service, 20% of the customers think that they got the excellent, 10 % of the customer realize that the service is just OK and no one thought about the bad service.

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SWOT Strategies Matrix

STRENGTHS (S) 1. Efficient Procurement & Chain Management 2. Brand Stature 3. An Integrated Monopoly 4. Product Assortment (Landline, DSL, Vfone and Smart TV etc.) 5. Market Leader having market share of 80% 6. Strong financial position 7. Ethical and corporate social Responsibility 8. Experienced Telecom Resources SO Strategies 1. Investment of 1200 million rupees is required for acquisitions and horizontal integrations (Worldcall) (S6, O2) 2. Improve social and cultural awareness with community involvement (S7, O5) 3. Market penetration strategy (S5, O3) 4. Use e-marketing to promote brand image among new segments (S2, O6) WEAKNESS (W) 1. Over employment & low productivity 2. Slow decision making including extraneous intervention 3. Corporate culture akin to government departments 4. Complaints due to improper management 5. Financial Disturbance due to VSS 6. Lack of coordination with the other Departments 7. Low growth and high operating cost WO Strategies 1. Expansion by alliances and integrations with cellular industry e.g. Wateen (W1, O2) 2. Market development strategy in Caribbean and Asian markets (W1, O3, O4) 3. A strong ECommerce framework will boost sales by 14 % (W7, O5,O6)

Opportunities (O) 1. Increasing growth in telecom sector 2. Expansion by acquisitions 3. Internet users in the Asia-Pacific region forecast to increase by over 35% 4. Developing countries are striving for communication revolution 5. e-marketing to approach customers directly 6. Low teledensity of Pakistan 36%

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Threats ( T)
1. Market Saturation 2. Global credit crisis and significant decline in the equity markets 3. Growth Potential of cellular companies 4. Mobilink as brand loyalty category winner 5. Ability to attract and retain quality Professionals 6. Acquisitions and alliances by competitors

ST Strategies
1. Product development and unrelated diversification strategy (S4, T1) 2. Use of core competencies will sustain and grow market position by 3%/year (S3, S8, T3) 3. Hire qualified management team (S6, T5)

WT Strategies
1. Unrelated diversification to develop a new market (W7, T1) 2. Product focus to offset the effect of competitors alliances (W4,T6)

BCG Matrix for PTCL

Products Revenues (Million) Percent Revenues (Million) Profits Percent Profits Percent Market Share 48% 4% 3% 3.1% 42% 100% 27% 55% 25% 10% 19.5% Percent Growth Rate 3% 40% 11% 14% 8% -

Landline DSL Vfone EVO Ufone Total

4973 530 642 210 5735 11990

41% 4.5% 5% 2% 48% 100%

2099 184 115 134 1858 4410

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Graph of BCG Matrix

Relative Market Share High Low 1.00 0.50 0 High +20 Medium

Stars

Industrial Growth %

Cash Cows

Dogs

Low

-20

Size of pie shows volume of revenues Shaded area shows percentage share of profit of a division

Pies are positioned according to their relative market share and industrial growth in the matrix

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Analysis of BCG Matrix of PTCL We can see from the graphical presentation of BCG matrix that only DSL is in Stars. The problem lies in landline and Ufone which having largest revenue but having almost no growth and less market share. PTCL must decide to strengthen it by pursuing an intensive strategy (market penetration, market development, product development). Recommended Strategies Unrelated diversification, horizontal integration, Market penetration, Market development and product Development are appropriate strategies for these segments to consider.

SPACE Matrix

Financial strength (FS) Return on asset (ROA) Return on Equity Net income Leverage Inventory Turnover 6 6 6 5 3

Environmental Stability (ES) Competitive pressure Barrier to entry into Marke Economic changes Technological changes Inflation rate 6 3 2 2 3

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Financial strength (FS) Average:

5.20

Environmental Stability (ES) Avg.-3.2

Competitive advantage (CA)

Industry Strength (IS)

Market Share Product Quality Brand Recognition Monopoly Supply chain management

-1 -1 -2 -2 -1

Growth potential Financial Stability Ease of entry into market Profit potential Resource Utilization

6 6 4 5 5

Competitive advantage (CA) Average -1.4

Industry Strength (IS) Average5.0

X-axis: -1.4 + 5.0 = 3.6 Y=axis: 5.2 + -3.2 = 2 Coordinate: (3.6,2)

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DECISION STAGE

150

QSPM MATRIX
To increase efficiency Acquire KEY FACTORS Weights World call AS OPPORTUNITIES Increasing growth in telecom sector Expansion by acquisitions Internet users in the AsiaPacific region forecast to increase by over 35% Developing countries are striving for communication revolution Low teledensity of Pakistan 36% e-marketing to approach customers directly THREATS Ability to attract and retain quality Professionals Acquisitions and alliances by competitors Growth Potential of cellular companies Global credit crisis and significant decline in the equity markets Mobilink as brand loyalty category winner Market Saturation TOTAL 0.04 0.08 1.00 _ 3 _ 0.24 _ 4 _ 0.32 0.02 _ _ _ _ 0.08 4 0.32 3 0.24 0.07 _ _ _ _ 0.07 3 0.21 4 0.28 0.08 0.10 4 3 0.32 0.30 2 4 0.16 0.40 TAS Market Development AS TAS

0.07

0.14

0.21

0.05

0.07

0.10

0.30

0.40

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STRENGTHS

High brand recognition Experience Telecom Resources Product diversification (20+ brands) Market Leader having market share of 80% An Integrated Monopoly Efficient Supply Chain Management Strong financial position Ethical and corporate social responsibility
WEAKNESSES

0.10 0.07

3 4

0.30 0.28

2 2

0.20 0.14

0.06

0.24

0.40

0.09 0.10 0.06 0.08 0.05

3 3 _ 2 2

0.27 0.30 _ 0.16 0.10

4 4 _ 3 3

0.36 0.12 _ 0.24 0.15

Over employment & low productivity High operating cost Slow decision making including extraneous intervention Corporate culture akin to government departments Complaints due to improper management Lack of coordination with the other departments Financial Disturbance due to VSS
TOTAL 0.03 1.00 3 0.09 4.36 4 0.12 5.00 0.02 _ _ _ _ 0.05 2 0.10 3 0.15 0.06 2 0.12 4 0.24 0.05 _ _ _ _ 0.08 0.07 4 3 0.32 0.21 3 4 0.24 0.28

*It is better for the company to find out new customers and offer such new and quality services that the annoyed customers come back to them. 152

Part 8 Conclusion & Recommendations

153

PTCL: Future Prospects & Challenges

As the past incumbent and current Significant Market Player (SMP), PTCL, no doubt, has got the largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. They dont lack numbers and potential if we mention human resources. Their financial strength has further become their strategic strength after Etisalat has joined them as investment arm. PTCL enjoys market leadership in Local loop, Wireless local loop (WLL) and fixed telephony. PTCL (Ufone) is market challenger in GSM segment. Overall they have the largest consumer clout on average in the whole Pakistan telecom industry. Even their competitors still depend on PTCL network either directly or indirectly. All this adds to their strategic strengths and after having all that in their basket they lack at area where they are supposed to have developed core competence. PTCL, so far has not been able to nurture its growth around customer services oriented strategy, this has translated into inadequate brand loyalty for them. Internal organizational and business processes issues, monopolistic culture has further added to its complexities. For many individual prospects like me, using PTCL offerings was a purchase decision made as no other option was available. PTCL can turnaround very well by reaping the benefits of Sur-petition in the shape of Sur-petitive Advantages in comparison to competitive advantages. All they have to do is to follow a holistic approach towards growth, besides focusing on Customer Support & Services, reverting back to competitive and service centered operational culture, spending upon marketing communications to revamp Brand Image, improving existing network and existing products for market penetration and developing innovative new products and services for long term growth.

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Weaknesses Identified
The finance department is not up to the mark there is no proper financial system. The policies of the company are determined by the board of directors in accordance with the finance department. However there are certain policies in which the company is dependent on the Ministry of IT& T Govt. of Pakistan Employees have developed a psychology that promotion criteria & procedures of the company are not justified. The quality of service in areas is much poor hence creating the problems for customer. Finance department is lacking employee training centers. On the other hand the training opportunity is not provided to all the staff equally. 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. The proper information system is not in progress for the finance department. Less or no sharing of information

Suggestions and Recommendations

The image of PTCL being leading Telecom providing is not good in the eyes of common customer especially there are lot of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL should also provide the detail of local calls made from any Land Line Number which would be provided in Micro level to the customer. P.T.C.L having the monopoly in providing the Land-Line Telephone Connection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L has increases its Revenue quite dramatically and probably

155

that as soon as this organization has become privatized it will flourish its revenue in better manner. PTCL should immediately change its Finance upper level of hierarchy and should stream line in the good manner. PTCL should also encourage the Billing On line system that each and every customer should have to pay his/her bill on line basis. The system of E-PAYMENT which although exist in PTCL finance system but there is need of improvement this facility. Faulty Telephone connection should be Fault Free within 24 hours in order to maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone. PTCL should make Customer Care Centers in remote areas. The punching system of Billing through automation at CITI Bank Karachi takes so much time to adjust so it should be revived. The Financial D.D.O powers should be entrusted to the Director Finance rather GM. PTCL is not utilizing its surplus profit in long-term investment projects which be done. PTCL management should give concentration towards the Securities of deposit and it should be on maximum level. The return on deposit should be checked accordingly. The cash generated from the operation must be utilized accordingly. Each Region should allocate the funds at its own level. PTCL should take the services of highly qualified financial analysts. The promotion system in the Finance & Revenue wing should be revived in true manner all promotion must be made strictly on merit. Each Region should maintain Profit & Loss and Balance sheet and the statement of Cash inflow and outflow.

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Future Prospects of the PTCL

Expansion in the Local Loop System WLL system Expansion of the Broadband System Reduce the NWD, International, Local Calls rate for facilitation the customer Expansion of TDMA, PRI, BRI, LLO system for maximization profit Free of cost value added services. Reduce the Tariff of Assisted Trunk Dialing System. Free CLI (Caller Line Identification) system in Land Line system Free DXX (Digital Cross Connect) system Reduce the tariff of Internet charges in order to expand the customers Free local calls rate and reduce the Line Rent, which is Currently Rs. 20000 E-Payment, on-line billing payment system to facilitate the customers Expansion in the project of BILKUL-MUFT scheme Reduce the installation charges of telephone Project to provide the Local calls details to all customers Expand the business on international level Increase the investment on the international level Reduce the charges of Co-Location Charges

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References
www.pta.gov.pk. www.ptcl.com.pk PTCL,Media (online) accessed on July 2011, available at http://www.ptcl.com.pk/mediac.php?NID=132 PTCL, About Us (online) accessed on July 2011, available at http://www.ptcl.com.pk/index.php Wateen, About Us (online) accessed on July 2011, available at http://www.wateen.com/AboutUs.aspx WorldCall, About Us (online) accessed on July 2011, available at http://www.worldcall.com.pk/aboutus.html Link dot Net, History (online) accessed on July 2011, available at http://www.linkdotnet.com/English/Linkcorp/About/Our%20History/ Go CDMA, History (online) accessed on July 2011available at http://www.gocdma.com.pk/low/index.php

Annual Reports PTA Annual report PTCL Annual Reports from 2008 to 2010 www.dailytimes.com.pk www.privatisation.gov.pk www.finance.google.com www.researchandmarkets.com www.telecomstats.com

Case Studies Privatization of Public Utilities: How is it Generating and Impacting Conflicts in Pakistan? (By Mukhtar Ahmad Ali)

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