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Internship Report On

Pakistan Telecommunication Company Limited
(Peshawar main office)

Muneeb Faraz
Class No: 55 Section: “B” BBA ( Hons )

INSTITUTE OF MANAGEMENT STUDIES UNIVERSITY OF PESHAWAR
Session 2008 -2012
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Internship Report On

Pakistan Telecommunication Company Limited
( Peshawar main office)

APPROVAL SHEET
SUPERVISOR

Name: Designation: Signature:

Prof. Dr. Abdul Qayyum Khan Dean _________________

INSTITUTE OF MANAGEMENT STUDIES UNIVERSITY OF PESHAWAR
Session 2008 – 2012

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Table of contents

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My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. Muneeb Faraz 4 . I would like to express my gratitude towards my parents & member of (Organization Name)for their kind co-operation and encouragement which help me in the completion of this project.ACKNOWLEDGMENTS All praises are for Almighty ALLAH who guides us through the darkness of the unknown. All respects for Holy Prophet Muhammad (SalLalLahu Alaihe Wasallam) whose spiritual teachings guide us in every matter of life.

CDMA: Code division multiple access GIS: Geographic information system NTC: National Telecommunication Corporation FAB: Frequency Allocation Board PTC: Pakistan Telecommunication Corporation PTA: Pakistan Telecommunication Authority PTET:Pakistan Telecommunication Employees Trust MOIT&T: Ministry of IT and Telecommunication WLL: Wireless local loop 5 .Acronyms LL: Local Loop LDI: Long distance & international GSM: Global System for Mobile Communications.

The company maintains a leading position in Pakistan as an Infrastructure Provider to the other telecom operators and corporate customer of the country. video conferencing etc. Central. telephony.000 and 5. corporate and wholesale communication services e. The company provides a variety of up-to-date home user.g. Training Administration and career development.6 billion deal to buy a 26% stake in PTCL . Senior Executive Vice President. how the CV are collected and how they are screened and interviews are conducted. Finance. how the internal and external recruitment techniques are used. Executive Vice President. I worked as an internee in the HR department for about 8 weeks. South. Technical departments.7 million customers. The hierarchy of the company comprises of the following cadres: President and CEO. In Organizational design I learned about the generation of employee number in System application program. Then after selecting the candidates are informed to report at the Recruitment Help Desk and then further processes i-e medical and document verification is done and then employee is given the appointment letter. Corporate Development.EXECUTIVE SUMMARY Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication service provider in Pakistan with employee strength of about 30. Manager.The successful privatization of PTCL and consequently Ufone. During my work experience I learned how the budget is approved for the newly candidates. A new shift in the ownership of the company has been taken in April 2006. HR & Admin. is hailed in a new era for telecommunication in Pakistan. and Clearance Help Desk. The company structure has spread over the entire country which facilitates the company in providing value added services to the customers in every part of Pakistan. North. Organization Design. television. Placement. In placement I learned about the procedure that is adopted for the transfer/posting in the Head Quarters. During my internship I worked in different areas of HR which includes Recruitment and Selection. PTCL also continues to be the largest CDMA operator in the country with 0. assumed management control of PTCL –part of the $2. Geographically the company is divided into: Headquarters. internet. Operations.8 million V-Phone customers.. In training administration and career development I got knowledge about 6 . Senior Manager. Specialist. General Manager. Compensation Management. when Emirates Telecommunication Corporation which is commonly known as Etisalat. and West Zones and functionally in Commercial. Management Trainee and Non Management Employee.

In opportunities PTCL has opportunities in the Wireless Local Loop market. economic recession . resigns or even if it is transferred to other regions or zones. and damages of fiber optics result in high cost for the company.the types of training given to the employees in PTCL either it is a foreign training or local training and I was given information about the training institutes of PTCL. 7 . In weaknesses it includes like poor customer services.In compensation management I studied the salary system of PTCL. ineffective evaluation methods. I came to know how he/she gets the clearance certificate from the Head Quarter. retires. first mover advantage in launching products like PTCL smart. slow decision making. and my pleasure to be a part of team in designing appraisal forms and I got information about the benefits provided to the regular and contractual (NTC) employees. its biggest landline/optic fiber network. pay compression problem. growing Broad Band Market and partnership with new entrants in a deregulated market. And as far as threats are concerned it includes a large number of disconnections due to poor customer services. having skilled employees. high employee turn over. and by implementing System Application Program the paperwork will be reduced and all the information‘s will be centralized. lack of coordination between employees due to two tiered structure. The strengths include the corporate customers of PTCL. weaknesses. poor policy making. lack of coordination between departments. During my internship in PTCL I keenly observed the working environment and then I have identified some of the strengths. opportunities and threats. new companies entering into the market. And finally I worked at Clearance Help Desk and came to know that if an employee is fired. and no proper orientation methodology.

I select the PTCL (PAKISTAN TELECOMMUNICATION COMPANY LIMITED). My reasons for doing the internship program in PTCL is to get first hand knowledge about maintaining accounts and improve my business life. In the context. o Facilities that are provided by PTCL to their customers. because PTCL is the best organization indeed. in writing the report. literature on banking. senior students and my fellows. Moreover. organizational structure of PTCL and my work at branch suggestions. The sources of my information for the preparation of this report also include the written notes. 8 . particularly being a student of Finance & Accounts it is necessary for me to get practical knowledge of the managerial & financial activities of the organization. I have made all possible efforts to summarize the broad history and working of the organization. its operations and the practices followed today in Pakistan. PTCL came across during its establishment. The information contained in the report is based on my personal observation. This report shows and will guide the readers have an idea about maintaining accounts.  PURPOSE OF THE STUDY The basic objectives of the research are as follows: o To find out that how PTCL operating. management. verbal discussion with staff members. practical working and interviews with the staff during my internship training.CHAPTER – 1 INTRODUCTION TO REPORT  BACKGROUND OF THE STUDY For the students of BBA (Hons) the two months internship is a golden chance to develop the capability and skill of administration and management in the practical environment of different organizations. I tried to remain to the point. o The issues. So I have tried my best to learn a lot about accounts because it relates to financial activities. This work is a collection of my observations and experience during the internship period and afterward. for improvement are also given in it. Internship Program is a conventional constituent is part of the total spectrum of BBA (Hons). Brief history.

However. As discussed the study is restricted to an overview of basic operations carried at PTCL.  LIMITATIONS o Most of the data were of a confidential nature. It is an attempt to collect financial data and general data of PTCL. SCOPE OF STUDY The study is confined to the overall review of PTCL in order to know the importance of PTCL in the economy and its system of record keeping. o Support from organizations and participants o Access to resources o Access to experts in editing. complete information was not provided. o Uncertainty in the country and the security reasons. o Websites 9 . which is to make an acquaintance with practical doings in PTCL. The following sources have been used for the collection of information. o There is a limited 8 weeks time not enough to explore this topic completely. o Briefing with finance manager o Interviews  Secondary Data o Manuals & Brochures. So the report does not include a detailed description of all of the operations which were carried out PTCL. o Reference books. and guidance o Due to organization's busy schedule. the financial and SWOT analysis has been carried out for PTCL as a whole. o Annual reports.  Primary Data o Personal observations o Customer trends. Keeping in view the purpose of the study. this seems a reasonable attempt. proofreading.  RESEARCH METHODOLOGY The study conducted deals with both managerial and financial aspects of the organization.

In July 2003 the government introduced a Deregulation Policy for the Telecommunication Sector. but required a fine balance because opening the market and preserving PTCL were both important for the government. This was critical.2 ORGANIZATIONAL SET-UP OF PTCL  Telecommunication Sector in Pakistan Telecommunications in Pakistan describes the overall environment for the growing mobile telecommunications. consumers had to stick with PTCL. Despite this. Pakistan's telecom infrastructure is improving dramatically with foreign and domestic investments into fixed-line and mobile networks. as they had no other options. which allowed and encouraged foreign companies to invest in the Pakistani telecommunications market. a state-owned monopoly. for fixed line telecommunication within the 14 PTCL regions. During the 1990s. which was not affordable for most of the population. In 2008 Pakistan was the world‘s third fastest growing telecommunications market. The Telecommunications Ordnance of 1994 created the Pakistan Telecommunication Authority (PTA). 10 .Chapter . The centerpiece of the deregulation was the establishment of two categories of basic services licenses: Local loop (LL). a call to United States cost $5 per minute (300PkRs per minute). local telephone call rates were high and international call rates were even higher. This prompted the government to take a series of actions to improve the service by opening the telecommunications market. and Long-distance and International (LDI). telephone. and Internet markets in Pakistan. In addition customer service was poor.‖ Two sets of criteria set by the regulatory authorities must be met before an operator is allowed to start operation: one for the issuance of a license and another for the maintenance of service quality. for connectivity between regions. fixing a problem might take 10 to 15 days. and the Pakistan Telecommunication Company Ltd (PTCL). fiber systems are being constructed throughout the country to aid in network growth. Due to a lack of competition. Pakistan's first independent telecommunications regulator.

cellular. fiber-optic cable. the Middle East. and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. data communication services. Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. These vouchers were converted into PTCL shares in mid-1996. Despite having established a network of enormous size. PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. In 1995. 3 operational international gateway exchanges (2 at Karachi and 1 at Islamabad). Etisalat International Pakistan. Each had a par value of Rs. PTCL has been a major player in telecommunication in Pakistan. and satellite networks. (*AMK) : Now IMEWE of PTCL and TWA-1 of Transworld (Private Operator) also successfully working in Karachi.  History of PTCL From the beginnings of Posts & the Telegraph Department in 1947 and establishment of Pakistan Telephone & the Telegraph Department in 1962. purchased a 26% stake in PTCL and assumed management control of the company. and Europe. coaxial cable. lately.In 2006. the Government in 1991. Pursuing a progressive policy. announced its plans to privatize PTCL. The 11 . 3 Intelsat satellite earth stations (1 Atlantic Ocean and 2 Indian Ocean). Pakistan's telecommunications infrastructure includes: Microwave radio relay. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. card-operated pay-phones. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. This coincided with the Government's competitive policy. a wholly owned subsidiary of Emirates Telecommunications Corporation. International links include: landing points for the SEA-ME-WE-3 and SEA-ME-WE-4 submarine cable systems (*AMK) that provide links to Asia. and microwave radio relay to neighboring countries. Pakistan. encouraging private sector participation and resulting in award of licenses for cellular. 10 per share. paging and.

The post-monopoly era came with Pakistan‘s Liberalization in Telecommunication in January 2003. Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. On the Government level. The government of Pakistan sold 26% shares and control of the company 12 . Lately. The government's plan of privatizing the corporation were not welcomed in all circles. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. a comprehensive liberalization policy for telecoms sector is in the offering. making it a gigantic organization. countrywide protests and strikes were helped by PTCL workers. Recent DSL services launched by PTCL reflects this by the introduction of a new brand name and operation of the service being directly supervised by PTCL. They disrupted phone lines of institutions like Punjab University Lahore along with public sector institutions were also blocked. The PakNet brand has effectively dissolved over the period of time. an Abu Dhabi based company was able to get the shares with a large margin in the bet.Etisalat. The contention between Government and employees ended with a 30% increase in the salaries of workers. CDMA and Internet are other resources of PTCL. None of the brands made it to the top slots in the respective competitions.  Introduction of PTCL PTCL is the largest telecommunication company in Pakistan.same year. however. They arrested many workers and put them behind bars. In 2005 the Government of Pakistan decided to sell 26 percent of this company to some private corporation. Ufone had increased its market share in the cellular sector. The military had to take over the management of all the exchanges in the country. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite the arrival of a dozen including telecom giants like Telenor and China Mobile. There were three participants in the bet for privatization of PTCL. services and infrastructure providers are set to face even bigger challenges. As telecommunication monopolies head towards an imminent end. GSM.

PTCL is spearheading the spread of broadband culture in Pakistan.e. PTCL on 14th August 2008. For example PTCL‘s broadband facilitates the segment that relies most on high speed connectivity i. Abbottabad. the students. With a true vision and clear objectives. from now PTCL is also offering a free personalized e-mail account exclusively to its broadband users. Islamabad. entered the media sector by launching an interactive television service for 13 . Living up to its legacy of innovation and using its Broadband network. PTCL has become the first company in Pakistan to provide Broadband services in over 100 cities across the country. music. Larkana.e. Faisalabad. Gujar Khan. Jacobabad. Okara. Since its Broadband launch in May 2007. Pakpattan. Rawalpindi. whereas before PTCL‘s entry into the Broadband market in 2007. classical Pakistani dramas and cricket matches. quadrupling the subscribers that was acquired over a long period of 5 years by the entire lot of ISP‘s before PTCL‘s entry into the market. PTCL has made the broadband technology affordable by lowering the barriers to entry and also by geographically bringing the service within the reach of a common user across Pakistan hence. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public. Sahiwal.in 2006. Special packages for this segment along with services such as free dial up service for its Broadband customers and FREE access to movies.branded under ‗PTCL BUZZ‘. providing more of its landline subscribers an opportunity to experience the latest in broadband and related technologies. PTCL has now successfully provisioned broadband services in over 119 major cities and towns i. Khairpur. Multan. Jhelum. Quetta alongside other small towns and cities across Pakistan. Hyderabad. Peshawar. Attock. Karachi. Hala. educational and religious content for its Broadband customers . where till a couple of years back there was little awareness in the market about the broadband & multimedia technologies. Expansion of PTCL broadband network will continue. One of the main reasons for growth in PTCL Broadband services has been its customer segmentation and geographical reach. Lahore. Bhaipheru. nor were there any significant players entering the field to cater for the mass market with high speed internet access. In addition to these value additions. Sukkur. Broadband was primarily only available in the 3 major cities of the country. Mirpurkhas. this complete web infotainment content portal is made exclusive only to PTCL Broadband subscribers.

It has the potential to be an instrumental agent in Pakistan‘s economic growth. The Brand ‗PTCL Smart‘ was introduced for PTCL products that have functions that are more intelligent than their normal versions. We are striving towards mobilizing the world for the future. By becoming partners in innovation.8 million V-fone customers. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. Currently PTCL Smart TV offers its viewers over hundred live channels and a Video on Demand service. In times to come.the first time in Pakistan. the service includes Interactive Television. Branded under ‗PTCL Smart Line‘. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. PTCL also continues to be the largest CDMA operator in the country with 0. we are ready to shape a future that offers telecom services that bring us closer. 14 . we will be the link that allows global communication. Broadband and voice Telephony all at the same time on PTCL‘s telephone line. PTCL is the largest telecommunications provider in Pakistan. 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.  Mission of PTCL To achieve our vision by having: o o o o o An organizational environment that fosters professionalism. such as Smart Line and Smart TV.  Vision of PTCL To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'. The future is unfolding around us.

Islamabad Southern Telecom Region-I. Hyderabad Southern Telecom Region-II Karachi (STR-II) Southern Telecom Region-III Karachi (STR-III) Lahore Telecom Region (South) . Abbottabad North Telecom Region (NTR-II) Peshawar Western Telecom Region (WTR) QUETTA Multan Telecom Region (MTR) MULTAN 15 . HEADQUARTERS PTCL main Headquarter.R) Lahore Faisalabad Telecom Region (FTR) Faisalabad Rawalpindi Telecom Region (RTR) Rawalpindi Hazara Telecom Region.T. Lahore Lahore Telecom Region (North) Lahore Central Telecom Region (C.

showing a growth of 8% over 102. The Company's policy objectives are as follows. Goals and achievements Being a public limited Company whose majority shares are controlled by the GOP (through Ministry of IT) PTCL is responsible to provide telecommunication services in the country on affordable price while ensuring that the telecom services become accessible throughout the country. o Accelerate expansion of telecom infrastructure to extend telecom services to unnerved and underserved areas. while maintaining leadership in the telecom sector. o Encourage fair competition among service providers. o Maintain consistency with the Pakistan IT and Internet promotion policy of tow prices for BW and Internet access.24 billion in FY 2011-12. o Enhance long-run benefits of the Government's financial position by expanding the tax revenue base. The telecom giant has yet again proved that it is the leader of the telecommunication sector of Pakistan by posting impressive profits despite a sluggish economy 16 . The country‘s leading integrated telecommunication service provider. o Increase private investment in the telecom sector and encourage local telecom manufacturing/service industry. The dynamic corporate leadership and talented human capital has cascaded into PTCL‘s impressive financial strides and rising shareholder value. The positive growth of PTCL‘s revenue streams points in the dynamic corporate identity and strong customer base. PTCL‘s group revenue stood at Rs. has posted net profit of Rs. Pakistan Telecommunications Company Limited (PTCL). The annual accounts were announced at the company‘s Board of Directors meeting.110. The company also showed a steady growth of 9% in revenue. 7. o Increase service choice for all consumers of telecom services at competitive and affordable prices. According to the PTCL BoD announcement. Since the exclusivity of PTCL has ended on 01st Jan 2003.6 billion.8 billion during the period under review. the telecom sector of Pakistan has entered into a new era and PTCL is slowly moving towards competition in basic telecom services.

1996 at which date PTCL took over all the properties. obligations and liabilities of PTC except those transferred to National Telecommunication Corporation (NTC) . PTCL is continuing its digital revolution.The company‘s market share in the broadband. The registered office of the company is situated at Block-E. 1996 under the Pakistan Telecommunication (Reorganization) Act. G-8/4 Islamabad. 1995 and is listed on Karachi. PTCL‘s capable workforce continued to bring laurels for the company by winning the prestigious international ―ESRI Award‖ for innovation in GIS technology. The business was transferred to the company on January 1.  Nature of business Pakistan Telecommunication Company Limited (PTCL) was incorporated in Pakistan on December 31. PTCL Headquarter. 1996. rights. It was established to undertake the telecommunication business firmly carried on by Pakistan Telecommunication Corporation (PTC). Pakistan Telecommunication Company Limited (PTCL) is the main provider of Telecommunication services in Pakistan. Lahore and Islamabad stock exchanges. bringing underserved areas into the national telecom loop by launching telecommunications services in Azad Kashmir make it the 18th Telecom region of PTCL. The company commenced business on January 1. Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET). PTCL achieved country‘s first One Million Broadband customer‘s mark in May 2012. PTCL will continue our role of a socially responsible telecom leader by introducing ever more flexible and innovative telecommunications solutions to the masses. 17 . wireless and specialized telecom solutions segments have increased in the current fiscal year through the introduction of state-of-the-art products and unmatched affordable services. assets. Frequency Allocation Board (FAB). PTCL believes in bringing a unique customer experience by offering sophisticated products and improved service delivery while reflecting on the extraordinary achievements of PTCL. It owns and operates a substantial part of the telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan.

integrated services digital network and Internet services. The main objective of any company is to earn the profit and minimize expenses by winning goodwill in the market. o Plan. The company has entered the domain of free market economy. o Convert its cash basis single entry accounting system to accrual basis double entry system meeting the commercial international accounting standards. establish and maintain telecommunication o Acquire. transfer of technology and software development including manufacturing of telecommunication equipment and plant o Enhance efficiency. the company is determined to meet the challenge of expanding the needs of telephone and data communication such as public data network. Responding to the rapid economic and technological growth. which necessitates the liberal management policies and private sector. promote and manage research and development. o Provision of Telecom services all over the country. Objectives of PTCL 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. The following are the long-term objectives of the organization. o Create a congenial climate for binding of human skill and horizon of employees through training and education. improve quality and expand the system to meet customer satisfaction and provide service on demand. The major focus of attention is to improve and expand the services. 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. minimize the faults and provide communication facilities to rural areas. o To introduce computerized directory assistance and complaint services reform billing and a revenue collection system. 18 . 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.

o To improve the efficiency of Customer Service Centers by deputing qualified persons who are well aware of public relation techniques. o Expand customer awareness of all value-added services of PTCL. entities. international and regional telecom organizations for better international communication and technical cooperation in telecommunication business.o Strengthen relation with foreign international administration. o To introduce new services of audio Tex and video conferencing for the business community. 19 . service providers.

Khan Regional GM AJK / NAMuzaffarabad Lahore Regional GM LTR North Lahore Faisalabad Regional GM GTR Gujranwala Regional GM STR-III Karachi Regional GM STR-IV Karachi Regional GM STR-V Sukkur Regional GM CTR. Islamabad GM Support functions BZ-C. Lahore GM Support functions BZ-S.Organizational Structure of PTCL Fig. Karachi 20 . Islamabad Regional GM SEVP Regional GM NTR-I Business Zone Central. Lahore Regional GM LTR-South SEVP Regional GM FTR - Business Zone South.1 President & CEO Business Zone North.Raiwind Regional GM MTR Multan Regional GM WTR Quetta GM Support functions BZ-N. Karachi Regional GM STR-II Karachi SEVP Regional GM STR-I Hyderabad ITR- Islamabad Regional GM RTRRawalpindi Regional GM HTRAbbottbad Peshawar Regional GM NTR-II D.I.

Abdulrahim Abdulla Member PTCL Board Mr. Abdul Wajid Rana Member PTCL Board Mr. Amir Tariq Zaman Khan Chairman PTCL Board Mr. Daniel Ritz Member PTCL Board 21 . Management Board of Directors Mr.

Farah Qamar Company Secretary PTCL 22 .ptcl. Jamal Saif Al Jarwan Member PTCL Board ( Source: http://www.Mr. Serkan Okandan Member PTCL Board Mr.php?pd_id=42 ) Ms.pk/bod.com. Jamil Ahmed Khan Member PTCL Board Mr. Kamran Ali Member PTCL Board Mr. Fadhil Mohamed Erhama Al Ansari Member PTCL Board Mr.

V.E.P Special Projects Farah Qamar Company Secretary Zahida Awan E.P (Business Development) Sikandar Naqi S.F.pk/pd_content.P (Business Zone Central) Jamil Khwaja S.P (Legal) (Source: http://www.V.E.V.ptcl.P (Commercial) Furqan Habib Qureshi S.T.com.E.P (Corporate Development) Naveed Saeed S.P (Finance) / Chief Financial Officer(C. Senior Management Walid Irshaid President & Chief Executive Officer Muhammad Nehmatullah Toor S.E.V.php?pd_id=40 ) 23 .E.O) Muhammad Nasrullah Chief Technical Officer (C.V.E.E.O) Syed Mazhar Hussain S.V.P (Business Zone South) Jamal Abdalla Salim Hussain Al Suwaidi S.V.E.P (Human Resource) Hamid Farooq S.V.V.

a large number of foreign investors opted to license in LL. In business market it will be positioned as a CDMA telluler extension to add trunk lines to the ever expanding business PABX‘s Vfone will be spearheading the launch of the new postpay and prepay tariffs with no line-rent to meet the market demand. allowing customers to apply for a new connection by simply dialing 0800-80800. To increase customer base. 199/month. ‗order on phone‘ was introduced. Product line PTCL Landline Since the deregulation of the telecom sector. To increase operations. 30 seconds billing was introduced contributing as an effective customer retention tool. After the initial launch the company aims to retain the momentum by offering different bundled packages for voice to increase the subscriber base . In June 2008. data and fax service for use at home and in the office. LDI and cellular operations. Investors entered the market forcefully in the cellular segment. PTCL also launched ―international Plus Package‖ to facilitate cost effective international calls more value to the landline service.000 villages in rural areas of Pakistan. it will be a robust line of voice. PTCL shifted from its conventional duration based charging system to value based options. introducing heated competition for PTCL. during the year 2009-10 was aimed to increase ARPU. PTCL V-Fone PTCL V-Fone (WLL Service) was another major area of focus for PTCL during the year. like ―Pakistan package‖ that offered 5. including 24 . identifying Pakistan as an emerging market. In this situation PTCL‘s counter strategy for landline service . A few prominent measures taken in this area during the year were launching of free home delivery service.000 minutes for on-net nationwide calls at Rs. PTCL has expanded the network to provide coverage in all large and small cities including over 10. No line rent package was launched in September 2010. As V-Fone becomes the wireless substitute to landline in un-served areas. PTCL established an outbound call center to reach out to potential customers with an objective to attain a higher level of brand loyalty. acquire new subscriber. The tariff will include new postpaid unlimited local and nationwide calling package to bring traffic back to PTCL networks to stabilize the revenues.

However. aggressive and innovative players in the mobile sector of Pakistan. Ufone‘s operational performance has been very encouraging despite off competition in the Pakistan telecom market which has led to reduction of prices to bare minimum level. Paknet‘s operations have been closed and a liquidator appointed for completing the formalities involving the company‘s closure. data and video infrastructure and services. U-fone Pakistan Telecom Mobile Ltd a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. 25 . 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. On the wireless broadband front . Currently the technical trial is in progress which will be followed by a pilot project on WiMax technology. guidance and timely enforcement of the regulatory process by the Pakista Telecommunication Authority (PTA). Ufone managed to improve its revenue and operating profit by 35% and 4% respectively.specifically targeting the rural areas where copper infrastructure does not exist. as compared to the last year through aggressive policies and exercising strict control over expenses. The growth of the cellular industry is a direct result of the successful implementations of the telecom deregulation and cellular mobile policy by Ministry of IT and Telecommunication (MOIT&T) and the support. assets. All customers. liabilities and capital stand transferred to PTCL in accordance with the special resolution passed at General meetings. Paknet limited Paknet was introduced in the year 2000 for providing internet related services in the country is being wound up. PTCL has developed its own voice. a major upgrade of the PTCL WLL CDMA network is underway to provide wireless broadband service in 17 major cities by end 2010. Ufone is now considered to be one of the most active. This will enable PTCL to maintain its competitive edge.

The service was launched on PTCL‘s new state of the art Broadbandinfrastucture that was added to the network during last three quarters of 2007 with the initial capacity of over 1. The service is already available in the five largest cities of Pakistan and will be expanded to another dozen cities in the coming years. The smart TV for the first time offered TV viewers the power to control. PTCL Smart Line In March 2008 PTCL introduced a trial service that put PTCL on the path of a paradigm shift banded under ‗PTCL Smart Line‘ the service included interactive Television. Broadband and voice telephony all at the same time on PTCL telephone line.000 customers in Pakistan. block / unblock any TV channel foe parental lock and search through video on demand content. The commercial launch for the PTCL Smart Line services across the three largest cities of Pakistan was arranged on the 14th August 2008 which will be expanded to the other cities in coming years.000 customers within the first 120 days of its launch while historically it had taken four years collectively for all the other operators to achieve 30.00. This high customer take up also reflect on the company‘s trusted image in the eyes of the nation.PTCL Broadband The first major product initiative taken towards a changing PTCL during the year 2006-7 was the launch of PTCL‘s Broadband service under the theme of ―Broadband Pakistan‖ by the Prime Minister of Pakistan.000 subscribers. PTCL achieved unprecedented success as it added over 10. The hallmark of PTCL service was the removal of the traditional barriers such as the upfront costs of installation and customer premises equipped and added bandwidth download. 26 .

To evaluate the bank‘s financial condition and performance.3 ANALYSIS 3.1 Financial Analysis: It is the art of transforming data from financial statements into information that is useful for informed decision making. Balance Sheet Ratios Liquidity Ratio Financial Leverage Ratio Current Ratio Debt to Equity Ratio Acid-Test Ratio (Quick Ratio) Debt to Total Asset Ratio Long term Debt to Total Capitalization  Ratio analysis Ratio analysis is the calculation and comparison of ratios or indexes which are derived from the information in a company's financial statements. 27 .Chapter . Financial ratios are usually expressed as a percent or as times per period. Ratio Analysis is used.

28 .27 2. Analysis of this ratio reflects the same picture as current ratio.37 1. Current Ratio: It shows an organization‘s ability to cover its current liabilities with its current assets.3 2.A.16 Interpretation: This ratio indicates the firm‘s liquidity position as well.Test Ratio = Current Assets – Inventories \ Current Liabilities Heading Acid – Test Ratio 2010 2011 2012 1. Liquidity Ratios 1. Current ratio = Current Assets / Current Liabilities Heading Current Ratio 2010 2011 2012 1. 2. It actually refers to the extent to which current liabilities are covered by those assets except inventories.4 Interpretation: This ratio indicates the extent to which current liabilities are covered by those assets that are expected to be converted to cash in near future. Acid.6 0. Acid – Test Ratio: It shows an organization‘s ability to meet its current liabilities with its most liquid (quick) assets.

Debt To Total Assets: Debt to Total Assets Ratio =TotalDebt / Total Assets Heading 2010 2011 2012 Ratio 0.11 1.62 Interpretation: The ratio of total debt to total assets.53 0. It is also the impact of the reduction in accumulated surplus due to incurrence of losses. Debt to Equity Ratio is increasing gradually with the passage of time.B.58 0. that might be the reason of the increase in debt to equity ratio.Calculating the debt ratio. 29 . 2. measures the percentage of funds provided by the lenders.65 Interpretation: This ratio indicates that how much debt is involved against shareholder‘s equity. generally called the debt ratio. Financial Leverage Ratios 1. Debt-to-Equity Ratio = Total Debt \ Shareholder‘s Equity Heading 2010 2011 2012 Ratio 1. It can be said that as PTCL has no Capital on its balance sheet and the said ratio is being calculated only with surplus reserves.41 1. Debt-to-Equity Ratio: It is obtained by dividing organization‘s total debt by its shareholder‘s equity.

Long Term Debt to Total Capitalization: Long Term Debt to Total Capitalization Ratio =Long Term Debt / Total Capitalization Heading 2010 2011 2012 Ratio 0.57 0.50 0.3.61 Interpretation: This type of ratio shows the extent to which the total assets have been acquired or financed through debt. 30 .

during the years. 1. Net Profit Margin: Net Profit Margin = Net Profit / Net Sales × 100 Heading 2010 2011 2012 Net Profit Margin 16.1% 25. Gross Profit Margin: Gross Profit Margin = Gross Profit / Sales × 100 Heading 2010 2011 2012 G. Profit Margin 33. Profitability Ratios: Profitability ratios measure the earning ability of a firm. these ratios indicate the firm‘s overall effectiveness of operations. Profitability ratios are of two types.1% Interpretation: It shows the us the portion of total net profit in total sales.those showing profitability in relation to sales and those showing profitability in relation to investment.3% 13.1% 24. 2.2% Interpretation: It shows the us the portion of gross profit in total sales. Together.during the years.5% 12. 31 .

5% 20. Operating Income Margin: Operating Income Margin = EBIT or Operating Income / Sales × 100 Heading 2010 2011 2012 O.7% 18.4% Interpretation: It shows the us the portion of operating income margin in sales during the years. Income margin 2.3. 32 .

Mobilink as brand loyalty category winner Brand Stature An Integrated Monopoly Product Assortment (Landline.) Market Leader has a market share of 80% Ethical and corporate social responsibility Ability to attract and retain quality Professionals Acquisitions and alliances by competitors Evolution of satellite and cellular communication 33 .3.2 SWOT ANALYSIS Weaknesses Strengths Efficient Procurement & Supply Chain Management Over employment & low productivity Slow decision making including extraneous intervention Corporate culture akin to government departments Complaints due to improper management Financial Disturbance due to VSS Lack of coordination with the other departments High operating cost Threats Opportunities Increasing growth in the telecom sector Expansion by acquisitions Internet users in the Asia-Pacific region forecast to increase by over35% Developing countries are striving for communication revolution Low teledensity of Pakistan 36% Market Saturation Global credit crisis and significant decline in the equity markets Growth Potential of cellularcompanies4. V Wireless and Smart TVetc. DSL.

T. The faulty telephone connection should be Fault Free within 24 hours in order to maximize the Revenue. The Financial D. The image of PTCL being led Telecom Providing is not good in the eyes of common customer especially there are lots of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL management should give concentration towards the Securities of deposit and it should be on maximum level. PTCL is not utilizing its surplus profit in long-term investment projects which be done. The punching system of Billing through automation at CITI Bank Karachi takes so much time to adjust so it should be revived. Each Region should allocate the funds at its own level. The system of E-PAYMENT which although exist in the PTCL finance system but there is a need of improvement this facility.O powers should be entrusted to the Director Finance rather GM. 34 . 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.C.RECOMMENDATION No doubt P.D. The return on deposit should be checked accordingly. as Revenue of PTCL should sacrifice at the cost of Faulty Telephone. PTCL should also encourage the Billing Online system that each and every customer should have to pay his/her bill online basis. In current scenario P.T. PTCL should make Customer Care Centers in remote areas. PTCL should take the services of highly qualified financial analysts. The cash generated from the operation must be utilized accordingly.C.L has increased its Revenue quite dramatically.L having the monopoly in providing the Landline Telephone Connection in Pakistan and its playing its role magnificently. PTCL should immediately change its Finance upper level of the hierarchy and should streamline in the good manner. and probable that as soon as this organization has become privatized it will flourish in its revenue in a better manner.

35 .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.

PTCL also continues to be the largest CDMA operator in the country with 0. card-operated payphones. the capacity of two SEA-ME-WE submarine cable is being expanded to meet the increasing demand of International traffic. Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telecommunication sector in the country. 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. In 1994. PTCL is the largest telecommunications provider in Pakistan. Each had a par value of Rs. It has the potential to be an instrumental agent in Pakistan‘s economic growth. data communication services. The teledensity increased 36 . These vouchers were converted into PTCL shares in mid-1996. which doubled its subscriber base to 60 million. the PTC becomes the company limited (Pakistan Telecommunication Company Limited) by issuing six million vouchers exchangeable into 600 million shares of the PTCL in two separate placements. Pakistan Telecommunication Corporation (PTC) has established in December 1990. encouraging private sector participation and resulting in award of licenses for cellular. lately.000 and 5. The year 2006-07 in the telecom sector was marked by the phenomenal growth in the mobile sector in Pakistan.7 million customers. On the Long Distance and International infrastructure side. 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. In 1995. paging and. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. This coincided with the Government's competitive policy.CONCLUSION With employee strength of 30. 10 per share.8 million V-fone customers. taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991.

PTCL ‘s mobile mobile phone subsidiary Ufone‘s subscriber base grew by more than 87%. The year also witnessed the entry of major telecom companies. In current scenario P. The privatization of the company was completed in the FY06. following the purchase of 26% ‗B‘ class ordinary shares by Etisalat International Pakistan L.T. most notably China Telecom and Singtel. Management of branch cares a lot of its employees and considers them as the Asset of PTCL.L having the monopoly in providing the Landline Telephone Connection in Pakistan and its playing its role magnificently. as Revenue of PTCL should sacrifice at the cost of Faulty Telephone.from 26% to 40%. from 7.C.L has increased its Revenue quite dramatically and probable that as soon as this organization has become privatized it will flourish its revenue in a better manner. The system of E-PAYMENT which although exist in the PTCL finance system but there is a need of improvement this facility. EIP took over management control on 12th on April 2006.C. 37 . PTCL should immediately change its Finance upper level of the hierarchy and should streamline in the good manner.L.49 million to 14 million. The image of PTCL being led Telecom Providing is not good in the eyes of common customer especially there are lots of complaints about the including the bogus local calls in the monthly bills of various customers. No doubt P. 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. The faulty telephone connection should be Fault Free within 24 hours in order to maximize the Revenue. Behavior of senior executives of the bank is very polite and they are caring about the individual‘s career and their growth. helping to spread the benefits of communication technology across the country. PTCL should also encourage the Billing Online system that each and every customer should have to pay his/her bill online basis. The overall working environment is comfortable. into the market.C. PTCL should make Customer Care Centers in remote areas If I have to express my experience of internship in PTCL I would briefly say: PTCL is a good Organization in the way that anybody can join it for his/ her long-term career.T.

It is said that the best assets of a company go home to their family in the evening. gratuity funds. loans. This increases efficiency of the org. Only time can tell the impact. all the employees at branch were quite cooperative. They helped me to understand the activities of an org to possible extent. Balance is fed into the computer. I found my internship training at PTCL to be a very rewarding experience. they work more than their working hours and it is all according to their will. Therefore. and medical. All the customers are asked to fill a suggestion form and the standards of the org are improved through them. All the customers are entertained individually. avoiding billing errors and providing competent and courteous service to its customers is essential if PTCL wants to show that it is transforming itself to a competitive company which cares for its customers. Prioritizing its product portfolio in line with its corporate and consumer needs and wants the org are committed to develop products that give more value to its customers in both the sectors. So far my learning is concerned. The same kind of behavior and attention is given to all the customers. Their good attitude gave me 38 . It also shows their loyalty. All the entries are made in the computer. Getting ideas for improvement from customer side is a new idea and that is working very well in PTCL. Employees at PTCL are quite efficient.PTCL needs innovative service offerings — currently it doesn‘t even offer bundles or a single bill. Can the culture of PTCL be changed to a performance and service-based organization? According to the latest director‘s report from PTCL the ―organization is being revamped‖. Employees are given the benefits like bonus. However management is very demanding about the targets but the good reward at the achievement of assigned targets is awarded. At a minimum. The training was beneficial because it helpful me to aware a real life working environment. commitment to the organization. During my internship training I gathered information regarding how a successful org operational aspect decorticated with the practical. all the work is done on computers. increments. Has been unclear about its IPTV and WiMAX plan and strategy (trials are in progress) Overall PTCL still behaves as a monopoly … it has to change its attitude. Its employees have to bring their org among the list of good. In PTCL.

 REFERENCES Previous internship reports Inter Office Memos www. Besides there ever going activities they never get irritant by my questioning.google/com www.pk 39 .scribd. I had made an honest efferent to present the working & operation of PTCL in a simplest way.ptcl.com. I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with experienced cooperative & intelligent staff.more confidence to learn more and to ask if I have any query in my mind.com www.