Contact:   Shahbaz Ahmad                     (0300‐6957234, 0333‐4094882) 

SHAHBAZ AHMED        3007  SHOAIB TARIQ                     3003  BILAL AZAM          2967  SHUMAILA KHALID        2983  NAGHMANA LIAQAT        2997  ABEER M. HUSSAIN            3035         

Pakistan Telecommunication Limited

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
     

d a

Presented to: Ms. Taha Seyal  Date of submission: 13th April  2009 
 

 

TABLE OF CONTENTS 
1 INTRODUCTION OF TELECOM INDUSTRY                                                                                1  1  1  2 2  2  3  3  3  4  4  5  5  5  6  6 6  6   7  7  8                             9  9 

2. PTCL ‐ PAKISTAN TELECOMMUNICATION LIMITED  2.1 Introduction of PTCL  2.2 Vision                                                

2.3 Mission     2.4 Core Values  

 

2.5 Organizational Structure     2.6 Products & Services   2.6.1 PTCL Landline     2.6.2 PTCL V‐Fone    2.6.3 Ufone        

2.6.4 Paknet Limited    

2.6.5 PTCL Broadband   2.6.6 Smart Services    

3. ANALYSIS OF EXTERNAL ENVIRONMENT     3.1 Industrial Structure    3.2 Market Operation              

3.3 Top PTCL Competitors      3.4 Market Structure     

3.5 Regulatory Environment    

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
                                                                                                                                                                                         

 

d a
   

4. ANALYSIS OF INTERNAL ENVIRONMENT 4.1 Organizational Management Cycle    4.2 HR Aspects  

4.3 Training and Development     5. BUSINESS STRATEGIES 5.1. Fixed Line Telephony   
 

            10  11            11 

 

5.2 Wireless Local Loop  

 

 

 

     

     

       

       

       

11  12 12  13  13

5.3 Broadband and Value Added Services     5.4 Cross Subsidization         

6. ENTREPRENEURSHIP ‐ INNOVATION & INCENTIVE PLANS    6.1 Quality Services 6.2 Free Internet    6.3 One Stop Shop                                    

     

   

     

13  14  14  14  15 15

7. SWOT ANALYSIS     7.1 Strengths

7.2 Weakness

7.3 Opportunities 7.4 Threats    

8. GAP ANALYSIS  

8.1 FUTURE OF PTCL

8.2 Measures to achieve Set Targets    8.2.1 New Technology 9. Bibliography  

10. Executive Summary   11. Resources     

 

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
                                                                                     

d a
 

   

15  15  15

 

16  16

     

17  18  20 

 

 

1 INTRODUCTION OF TELECOM INDUSTRY 
Since the independence of Pakistan, basic telecom services were being provided by a monopolist, previously called as Telephone and Telegraph department (T&T). The department was being run by the government and played multiple roles as regulator, policy maker, operator and service provider in the country. The T&T department was later converted into a corporation. Although the corporation was earning huge profits from the services, it was re-investing the same profits into the sector for the provision of more telecom service but the investment was not enough.

becoming available but there was not enough money available with the corporation to install new telecom systems for the provision of modern services. Resultantly, a digital divide prevailed in Pakistan keeping it behind its neighbors and other comparable countries in terms of telecom access, Cellular mobile services in Pakistan commenced in 90s when two cellular mobile telephone licenses were awarded to PakTel and PakCom (Instaphone) for provision of cellular mobile telephony in Pakistan. Currently there are six cellular players in the market. The Telecom Sector has contributed 2 percent towards the overall GDP growth with revenues of over PKR 235bn.

2 PTCL ‐ PAKISTAN TELECOMMUNICATION LIMITED   2.1 Introduction of PTCL  

the largest CDMA (CORE DIVISION MULTIPLE ACCESS) operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. 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 (South-East Asia - Middle East - Western Europe) submarine cables is being expanded to meet the increasing demand of International traffic. With the promulgation of Telecommunication (Re-Organization) Act 1996, the PTA (Pakistan Telecommunication Authority) was established as the Telecom Regulatory body.
1   

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

Further, with the technological advancement, more and more telecom services were

d a

PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be

 

Following the open licensing policy in BUY @ PKR 45.40 accordance with the instructions of Government of Pakistan and in exercise of powers conferred by Pakistan Telecommunication (Re-Organization) Act l996, the basic telephony was put under exclusivity and PTCL was given a seven years monopoly over basic telephony which ended by December 31, 2002. The year 2006-07 in the telecom sector witnessed a phenomenal growth in the mobile phone sector in Pakistan, which doubled its subscriber base to 60 million. The teledensity increased from 26% to 40% helping to spread the benefits of communication technology across the country PTCL’s mobile phone subsidiary Ufone’s subscriber base grew by more than 87%, from 7.49 million to 14 million.

2.2 Vision 

region by achieving customer satisfaction and maximizing shareholder’s value. “ The future is unfolding around us. In times to come, we will be 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 that bring us closer.

2.3 Mission 

• 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  

2.4 Core Values  

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
To achieve our vision by having

d a

“To be the leading Information and Communication Technology Service Provider in the

• Processional Integrity • Customer Satisfaction • Teamwork • Company Loyalty • Corporate Information  
 

 

2.5 Organizational Structure  

2.6 Products & Services   2.6.1 PTCL Landline  

for licenses in LL (Local Loop), LDI (Long Distance International) and cellular operations, identifying Pakistan as an emerging market. Investors entered the market forcefully in the cellular segment introducing heated competition for PTCL. In this situation PTCL’s counter strategy for landline service, during the year 2007-08 was aimed to increase ARPU (Average return per user), acquire new subscribers and contain facilitate existing ones. 

system to value based options, like ‘Pakistan Package’ that offered 5,000 minutes for on-net nationwide calls at Rs. l99/month. PTCL also launched ‘International Plus’ package to facilitate cost effective international calls at unmatchable rates alongside offering Voice messaging and Phone n Net services, adding more value to the landline service. To increase customers’ base ‘order on phone’ was introduced, allowing customer to apply for a new connection by simply calling 0800-80800.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

d a

Since the deregulation of the telecom sector, a large number of foreign investors opted

To increase operations PTCL shifted from its conventional duration based charging

 

 

2.6.2 PTCL V‐Fone  
PTCL V-Fone (WLL, Wireless Local Loop Service) was another major area of focus for PTCL during the year. A few prominent measures taken in this area during the year were launching of free home delivery service. No line rent package was launched in September 2007. In June 2008 30 seconds billing was introduced contributing as an effective customer retention tool. PTCL has expanded the network to provide coverage in all large and small cities including over 10,000 villages in rural areas of Pakistan.

robust line for voice, data and fax services for use at home and in the office in business markets it will be positioned as the CDMA cellular extension to add trunk lines to the ever expanding business PABXs. V-fone will be spearheading the launch of the new post pay and pre-pay tariffs with no line-rent to meet the market demand. The tariff will include new post-pay unlimited local and nationwide calling packages to bring traffic back to PTCL’s networks to stabilize the revenues.

2.6.3 Ufone 

operations on 29th January 2001 as a 1SM 900 set-vice 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) Ufone’s operational performance has been very encouraging despite still competition in Pakistan telecom market which has led to reduction of prices to bare minimum level. Ufone managed to improve its revenue and operating profit by 35% and 47% respectively, as compared to the last year through aggressive policies and exercising strict control over expenses.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

As V-fone becomes the Wireless substitute to landline in un-served areas, it will be a

d a

(Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its

 

 

2.6.4 Paknet Limited  
Paknet was incorporated in year 2000 for providing internet related services in the country is being wound up. However, PTCL has developed its own voice, data and video infrastructure and services. Paknet’s operations have been closed and liquidator appointed for completing the formalities involving the company closure. All customers, assets, liabilities and capital stand transferred to PTCL in accordance with the special resolution passed in General Meetings.

2.6.5 PTCL Broadband 

07 was the launch of PTCL’s Broadband service under the theme of ‘Broadband Pakistan’ by the Prime Minister of Pakistan. The service was launched on PTCL’s new state of the art Broadband infrastructure that was added to our network during the last three quarters of 2007 with the initial capacity of over 100.000 subscribers.

120 days of its launch while historically it had taken four years collectively for all the other operators to achieve 30,000 customers in Pakistan! The hallmark of’ PTCL service was the removal of the traditional barriers such as the upfront costs of installation and customer premises equipment and added bandwidth download. This high customer take up also reflected on the company’s trusted image in the eyes of the nation. The service is expanded into dozen cities of Pakistan during the corning year.

2.6.6 Smart Services

shift. Branded under PTCL Smart Line, the service included Interactive Television. Broadband and voice Telephony all at the same time on PTCL’s telephone line. The ‘Smart TV’ for the first time offered TV viewers the power to control the TV channels interactively. The Commercial launch of the PTCL Smart line services across the three largest cities in Pakistan was arranged on the 14th of August 2008 which will be expanded to the other cities during the course of the year.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

The first major product initiative taken towards a changing PTCL during the year 2006-

d a

PTCL achieved unprecedented success as it added over l0, 000 customers within the first

In March 2008, PTCL introduced a trial service that put PTCL on the path of a paradigm

 

 

3. ANALYSIS OF EXTERNAL ENVIRONMENT   3.1 Industrial Structure 
In recent times, the focus of PTCL has increasingly shifted from Fixed Lines to Cellular and Wireless Fixed Lines (WLL), with better portability and convenience. WLL has shown an improvement from 0.7 percent to 1.1 percent in 2006- 07 from last year with subscribers of 2mn. Cellular segment remained the vital player with increase in total Teledensity contributing 48 percent. In the urban markets introduction of Broadband internet services by PTCL has further benefited the consumers to access timely information over the internet with competitive rates.

3.2 Market Operation 

landline, DSL broadband and smart services. The company also provides wholesale services such as traffic routing and call termination to other carriers. PTCL’s subsidiaries include wireless phone services provider Pakistan Telecom Mobile, which operates as Ufone. In 2006 Emirates Telecommunications (Etisalat) acquired a 26% stake in PTCL and assumed management control of the company. Demand is driven by technological innovation and by growth in business activity. The profitability of individual companies depends on efficient operations and good marketing.

3.3 Top PTCL Competitors 
• • • • • • China Mobile

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
Orascom Telecom Telenor Mobilink Warid Worldcall

d a

The communications services provider offers consumers and businesses with basic

 

 

3.4 Market Structure 
Wireless Local Loop (WLL) is growing at a rate of about 100 percent per annum as its teledensity has reached to 1.34 percent by end of December 2007. The quarterly addition of WLL subscriber is approximately 0.14 million on an average. PTCL is leading in terms of traffic on WLL in Pakistan. This has about 54 percent market share of total traffic of WLL segment. Two major players PTCL and Telecard have lost market share in WLL traffic in quarter ending December 2007 when compared with the same quarter of the last year. PTCL share came down to 54 percent from 57 percent while Telecard share in total traffic has come down to 22 percent from 30 percent. WorldCall has gained 100 percent and its share reached to 22 percent at the end of 2007 compared to the same quarter last year. PTCL the incumbent operator in fixed line in Pakistan has also emerged as market leader with 57 percent market share followed by Telecard and Worldcall with 19.6 percent and 20.2 percent market share at the end of December 2007. PTCL has already covered over 11,500 cities/towns/villages while other major operators like Worldcall, Telecard and Wateen are increasing their coverage too.

each other and deployment of primary or secondary copper network is difficult. WLL system is best suited for rural, sub urban areas and very congested metropolitan areas.

3.5 Regulatory Environment  

independent regulatory agency and had enjoyed sizeable success to open up the local market to competing operators. With the governments deregulation policies, Etisalat the UAE based telecom player being the highest bidder emerged as the buyer of the 26 percent share in PTCL in April 2006. PTCL despite being a giant had to face many bottlenecks in its operations with such large network. PTCL has recently taken an initiative to right size itself by introduction of VSS (Voluntary Separation Scheme) for its employees where about 28000 employees are accepted under the scheme. Introduction of various diversified products and services to sustain it market share, Implementation of ERP solutions to provide integration of various departments through acquisition of SAP (Solution Application) software and state of the art billing and customer service software, translates PTCL’s long term goals of operational effectiveness into practice. The telecom giant PTCL has observed cutthroat competition from various service providers after
7   

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

d a

WLL system is used when low to medium subscribers densities are located apart from

The local telecom market has altered significantly since the creation of PTA as an

 

the implementation of the deregulation policies by the PTA, However through the vast infrastructure and being the carriers’ carrier, PTCL with diversification of its various services has enjoyed well-built position and posses immense potential for growth, while need for telecom services is on rise as economy continues to grow on the right track. 4 ANALYSIS OF INTERNAL ENVIRONMENT Being a public limited company whose majority shares are controlled by the Government of Pakistan. PTCL is responsible to provide telecommunication services in the country on affordable prices while ensuring that the telecom services become accessible throughout the country. Since exclusivity of PTCL has ended on 1st Jan 2003 the telecom sector of Pakistan has entered into a new era and PTCL is slowly moving towards competition in the basic telecom services. The company’s policy objectives are as follows:

• Increase service choice for all consumers of telecom services at competitive and affordable prices

• Increase private investment in the telecom sector and encourage local telecom manufacturing/service industry

• Enhance long run benefits to the Government’s financial position by expanding the taxable revenue base.

• Accelerate expansion of telecom infrastructure to extend telecom services to un-served and undeserved areas.

• Encourage fair competition among service providers, while maintaining leadership in the telecom sector

• Maintain consistency with the Pakistan IT and Internet promotion policy of low prices for Bandwidth and Internet access.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

d a

 

 

4.1 Organizational Management Cycle 

blocks describe the Core functions of the Company performed at all levels in the Organization. Blue Blocks are the Strategic functions which are performed at the Strategic level only.

4.2 HR Aspects  

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

d a

The cycle above describes the Organizational Management process at PTCL. White

The transformation from a legacy public sector organization into a responsive and competitive enterprise in the deregulated era could not have been possible without implementing a forward looking Human Capital development and management strategy. One of the most important objectives of this new strategy was to optimize the workforce which was implemented by offering the voluntary option of separating from PTCL in exchange for financial
 

 

compensation. Around 29,920 employees opted to pursue other career opportunities after accepting terms of voluntary separation from PTCL. The VSS marked the single largest most successful exercise in the history of Pakistan. In the highly challenging marketplace PTCL HR wing stepped forward to facilitate the emergence of new Corporate Culture by becoming Equal opportunity employer inducting fresh blood from the market, improving the way PTCL runs and reducing the number of employees having outdated skill set. The Training & Development wing of the HR Department also organized a comprehensive six months “Urgent Training Needs” program in technical and managerial fields to enhance soil skills. An MoU (memorandum of understanding) was also signed with Etisalat Academy to benefit from their experience in training programs. Healthy improvements have been made in the area of Recruitment and Retention as the whole recruitment process has been redefined to cope with the changing business requirements. Detailed facilitation programs have been initiated for the orientation of newly hired employees. PTCL employees have been provided excellent international placement opportunities across various Etisalat International Business Operations.

4.3 Training and Development  

more in comparison with what it has in a manufacturing involved organization. This role becomes more significant in a situation where the need to transform organizational culture is identified as the most glaring problem and the most difficult obstacle on the way to organizational growth. PTCL employees are a great asset not only for the company but also for the country. Their marvelous potential is yet to be exploited. Their skills need to be developed, their expertise need to be updated for which training and development department is at their disposal to cater to their training needs. PTCL consider every employee of the company as our customer and firmly believe that meeting their expectation would help us achieve customer satisfaction. We look forward to your input for making our endeavors more effective. The Training and Development has a clear road map of activities and is committed to provide high quality trainings for the development of every single employee.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
10 

d a

The role of training and development in a service involved organization is many times

 

 

5 BUSINESS STRATEGIES
PTCL choose August 14th the Independence Day, to launch its new logo and theme of feel the difference. To support the new spirit and to reinforce its commitment PTCL offered ‘free’ nationwide calls to the people of Pakistan. The traffic on 14th August 2007 jumped to 4 times the level on a similar holiday to give credibility to our hypotheses that the ‘good old telephone Company is still the trusted landmark of the people of Pakistan’. This exceptional response to free calls on 14th August was a heartwarming experience as it reassured the faith of our customers in our services, making us even more aware of our responsibilities towards putting our customer first.

5.1. Fixed Line Telephony  

year with a decrease of 452K lines during the past year. The market for the FLL (Fixed Local Loop) segment has least amount of penetration primarily due to the major inclination towards cellular and wireless segments by users. PTCL’s fixed line potential is anticipated to remain stable with its having the largest network coverage and better quality service as compared to WLL and cellular networks. The fixed line segment is anticipated to cater the needs of the business community at large and as expected is to be driven by the country’s future economic growth.

5.2 Wireless Local Loop  

pace than expected. It started its service from the northern regions slowly moving towards the metro cities using its CDMA wireless technology. World Call and Telecard were the other major operators that introduced the WLL services using CDMA2000 and CDMA technology to cater the needs at its customers. Telecard started its operations 1mm Karachi flowing into Baluchistan region while World Call initiated its operation in Lahore in June 2005 with aim of rollout its network to update its capacity to 1.5mn subscribers in the years to come. PTCL has been facing still competition however with vast presence and infrastructural facilities across Pakistan, has the potential to outrun its competitors in the segment.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
 
11 

d a

PTCL’s fixed line segment has witnessed decline in number in 2006-07 as against last

PTCL’s WLL segment has depicted immense amount of growth nevertheless at a slower

 

 

5.3 Broadband and Value Added Services
PTCL through diversification and assorted products and services could retain its fundamental presence in the Telecom Sector. Introduction of DSL Broadband services across major cities with plans to include more cities in times to come will enhance the revenue base of PTCL, Still competition from other cable based broadband service providers and local cable operators still persists. PTCL’s broadband services were introduced in June 2007 with free installation service with an initial capacity of 100.000 subscribers by providing services in the five largest cities and had a decent start by adding over 10,000 subscribers within the first few months of its operations depicting PTCL’s brand recognition. Furthermore, with the introduction of WLL segment. Phone n Net, IPTV, VMS and Carrier Services is expected to bring product leadership in the sector.

5.4 Cross Subsidization 

the world experience shows, current can engage in cross subsidization which means that price of one market may be increased above the cost and use the surplus revenue obtained from this market to subsidize the lower prices in other markets where more competition is faced. Analyzing PTCL position against this experience and seeing the prevailing competition environments of Pakistan, it can be safely concluded that cross subsidization is not possible in Cellular Mobile and ISP markets. However, in Fixed Line segment, there is a real possibility of cross subsidization. PTCL can lower rates of line rent, installation charges and local calls and correspondingly increase rates of NWD and International out bound traffic maintain present level; lower the prices but still remain on the higher profit margin side. Alternatively as part of overall business strategy, it can offer different packages i.e. residential and corporate customers, rural and urban and economy groups etc within each package the prices can be cross subsidized.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
12 

d a

PTCL is providing range of services i.e. Fixed Line Cellular Mobile and Internet etc. As

 

 

6  ENTREPRENEURSHIP  ‐  INNOVATION  &  INCENTIVE  PLANS   6.1 Quality Services
In order to have sustainable business performance in the highly competitive environment of the Telecom industry PTCL has to deliver highest quality services to its customers. Quick provisioning of PTCL services brings lot of value to the customers which not only guarantees more revenues but creates goodwill for the company.

In the backdrop of this situation, PTCL management is taking key initiatives in different business areas one important move aimed at improving the Sales and Customer satisfaction is to boost the morale and motivation level of our employees.

employees performing beyond the specified benchmarks. This will be the start of an era where the rewards shall be linked with the performance and achievement of targets.

6.2 Free Internet  

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
13 

d a

An Incentive Plan has been worked out to present substantial cash rewards to the

           

PTCL proudly presents Free Internet facility for its landline valued customers. All PTCL landline subscribers can now experience the best dial up speeds with unlimited internet usage during night hours from 10:00 pm to 07:00 am, Furthermore subscribers can also avail up to 100 hours of free dialup internet on monthly basis from 0:700 am to 10:00 pm every day.

 

 

Offer Package Details: • Free unlimited dialup Internet will be available from 10pm to 7am in the morning every day. • For day time users (7am to 10pm) PTCL is offering up to 100 free hours on monthly basis to entire subscriber base.

• Customers exceeding 100 hours in a month (during day time from 7am to 10pm) will be charged as per existing tariffs of Rs. 6/Hour.

6.3 One Stop Shop  

satisfaction that is, the feeling that a product or service has met the customer expectation. High standard customer service is an integral part of PTCL’s customer value proposition. As part of strategy PTCL has invested huge sum of money to improve the environment & efficiency of its service centers. With all together complete change in outlook, services to customers & facilities available, and these centers are called ‘One Stop Shop. They are aimed to provide better services to our valued customers for sales of products and after sales services feedback about services standards at these OSS is very positive these centers help us to provide better service to our customers.

7 SWOT ANALYSIS  7.1 Strengths  

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
14 

d a

Customer service is a series of activities designed to enhance the level of customer

• Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. • An integrated Monopoly. • Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony. • PTCL (Ufone) is market challenger in GSM segment. • Competitors still depend on PTCL network either directly or indirectly. • Experienced Telecom Resources.

 

 

7.2 Weakness
• Not been able to nurture its growth around customer services oriented strategy. • Internal organizational and business processes issues. • Monopolistic culture has further added to its complexities. • PTCL-V the fixed wireless phone service is poor. • Over employment & low productivity. • Slow decision making including external interferences. • Corporate culture akin to government departments

7.3 Opportunities

7.4 Threats 

8. GAP ANALYSIS 

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
• Low teledensity of Pakistan. • Partnership with new entrants in a deregulated environment. • Scope for efficient/cost effective operations. • Increased competition in long distance continues to exert pressure. • VOIP use is increasing despite ambiguous and discriminatory policies • Exposure to market competition • Migration to Cellular Networks • Ability to Attract & Retain Quality Professionals • Reduction in International Settlement Rates
15 

d a

• Have vast infrastructure and real estate assets which can be leveraged further. • Global connectivity reliability has been improved. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables.

8.1 FUTURE OF PTCL
Going forward PTCL is poised to align itself in to a more customer friendly and commercially oriented organization. This will be achieved through improved customer experience, offering better quality of service, and introducing new products and emerging
 

 

services to satisfy specific market segment needs besides consolidating its leadership position in fixed line business. The customer interfaces will be fully empowered to achieve corporate objectives. Automation and simplification of internal process optimization of operational expenditure, migration of services to Next Generation Networks. Enhancement of national backbone infrastructure, expansion of robust and flexible IP infrastructure and increase of broadband services are few of the milestones far the way forward.

8.2 Measures to achieve Set Targets  

The management of PTCL has been adequately preparing itself to face the forthcoming challenges of deregulated environment. Appropriate structural changes have either been initiated or these are underway. To face the challenge, a new Marketing and Business Developing wing headed by a Member with appropriate organizational structure has been made functional with a view to expanding business and taking good care of the customers.

8.2.1 New Technology

billing, marketing & customer care infrastructure, skilled trained professionals with focus to win business and earn customer loyalty.

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
16 

d a

Prior to the start of the competition PTCL should be well equipped with new technologies

 

 

9 Bibliographies  

For successful completion of this project we have utilize different available resources, from which we have obtain required data. These resources lie in both digital and analog form. Most of the information is obtain from Mr. Mehboob Alam, Internal Auditor PTCL, Head Office, Islamabad, Mr. Mohammed Khalid, Ex-Regional Incharge Operations, Lahore, Division. We are thankful to company management, who had welcomed and cooperated with us.

                   
 

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
 
17 

d a

 

10. Executive Summary 
Ever since Pakistan got independent, Telecom services were monopolized by only one department that was Telecom & Telegraph department (T&T). T&T had a sole monopoly over the provision of said so services in Pakistan till early 90’s. The 90’s decade saw massive change in this sector when two licenses were issued to PakTel & PakCom (Instaphone). PTCL being the largest shareholder of the cliental in the telecom business has the biggest infrastructure for provision of the services. Though having the largest infrastructure yet PTCL has to upgrade its existing systems and introduce new technology to cope with the new product requirements. This included the provision of two new submarine SEA-ME-WE cables. In 1996 Pakistan saw a new entity by the name of PTA (Pakistan Telecommunication Authority) this acted as a regulatory body and so gave PTCL an exclusive monopoly over the basic telephony for the coming seven years. In 2006-07 the masses of Pakistan saw a revolution in shape of cellular service providers. The good thing was that all the new emerging cellular service providers coming in Pakistan had to use the basic infrastructure of the PTCL. The basic vision of the PTCL states that provision of telephony based services with keeping in mind customer satisfaction as well to maintain the leading Information, Communication & Technology service provider.

stated that provision of an environment where professionalism could excel, customer service given the maximum importance and to keep on growing and get the optimum of the profits. As Pakistan was seen as a potential for investment by the international opportunists, PTCL had to change or upgrade its services and entertain its customers with newly added features, services, tariffs etc. Pakistan package was introduced for its valued customers, providing them 5000 minutes for on-net nationwide calls at Rs. l99/month. Applying for a new landline subscriber was made easier by introducing toll free help lines. PTCL expanded its network by facilitating Pakistan’s 70% of the population which lives in the rural areas. This served as a landline substitute in un-served areas. Ufone commenced its operations in 2001, as a wholly owned subsidiary of PTCL. In the current situation Ufone is one of the innovative players in the mobile sector of Pakistan. Paknet was incorporated in year 2000 for providing internet related services in the country but now it’s being wound up. In 2006 PTCL took a bold and innovative step by introducing PTCL’s
18   

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S

d a

To achieve the vision, the mission selected was of the utmost importance. The mission

 

broadband service by the theme of Broadband Pakistan. PTCL also introduce PTCL smart line, a different service which was only in the West which Pakistan had never got the taste of. PTCL’s new focus emphasizing on shifting its customers from fixed lines to cellular and wireless fixed lines/WLL. Other then the now basic services PTCL also started offering wholesale services such as traffic routing and call termination to other carriers. Whatever bold steps PTCL takes, it does not neglect the presence of its six major competitors in the same sector. Even though PTCL being the giant in providing the said so services when it was privatized and Etisalat bought its shares in 2006. It had to face many bottlenecks to make necessary changes to smoothen the monopolistic environment. Etisalat has also merged/integrated many departments through new software (SAP).

telecommunication services in the country at the most affordable rates. To obtain best of the quality and experienced staff members PTCL offered a voluntary option for employees to separate from PTCL in return of compensation. The HR department has taken an initiative by providing a comprehensive six months “Urgent Training Needs Program”. Training and

development has also been a major issue because of the fact that transformation of organizational culture of PTCL is very difficult. PTCL employees are not only important for the organization but for the country too. A new way of thinking arrived when PTCL started to consider its employees as its customers, by this it could achieve the said so aims and objectives. PTCL choose a new logo and color to express its upgrading. The SWOT analysis shows many strengths and opportunities rather than its weaknesses and threats which shows a very good sign for PTCL on a road to its success. PTCL wants to achieve a high standard of customer service and provision of quality services and migration of services to Next Generation Networks. The management of PTCL has been adequately preparing to face the forthcoming challenges of deregulated environment. Many structural changes have been initiated or are underway.

     

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
19 

As PTCL is public limited company and owned by the government it is liable to provide

d a

 

 

11. Resources  
Resources which are consulted discussed below: • • • • Company’s website - www.ptcl.com.pk PTCL Annual Reports PTA Reports Mr. Mehboob Alam Internal Auditor PTCL

     

m h 4 A 3 z 2 a 7 b 5 q h 9 ri a -6 a h 0 S 0 T 3 aib 0 o h S
Head Office, Islamabad • Mr. Mohammed Khalid, Ex-Regional Incharge Operations Lahore, Division.
20 

d a

 

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.