University of Education

Lower Mall Campus, Lahore

Department of Economics and Business Administration

Internship Report
Pakistan Telecommunication Company Limited

A REPORT SUBMITTED TO THE DEPARTMENT OF ECONOMICS AND

BUSINESS ADMINISTRATION, UNIVERSITY OF EDUCATION, LOWER MALL
CAMPUS, LAHORE IN THE PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (HONS)

Submitted By:
BBA-F15-115
Arham Waseem
2015-2019
August 11, 2019
 University of Education
Lower Mall Campus, Lahore
Department of Economics and Business Administration

LETTER OF UNDERTAKING

This internship report was submitted by Arham Waseem S/o/D/o. Waseem

Akhtar Roll No. BBA-F15-115 for the partial fulfillment of the requirements for the degree

of

BBA (HONS.)
Session (2015-2019)

with specialization in

MARKETING

and is hereby accepted by the evaluation committee.

Internship Supervisor ________________________

Principal ________________________
 Dedication:

First, I wish to dedicate this project to God Almighty my creator, my strong pillar, my source

of inspiration, wisdom, knowledge and understanding. Allah has been the source of my

strength throughout this program. I also dedicate this work to my family and friends who

have encouraged me all the way and made sure that I give this project all it takes to finish that

which I started. Special dedication to my Father and Mother, who have been affected in every

way possible by this quest. Thank you, dear one’s for you all can never be repaid. God Bless

you.
 Acknowledgement

Completion of this project would not have been possible without the kind support and help of

many individual, PTCL and almighty Allah, who strengthened me at every step of my life

and gave me the courage to complete my degree & job at Pakistan Telecommunication

Company Limited. Secondly, I am highly indebted to my project supervisor Sir Faran Ali for

their guidance, professional advice and constructive criticism which gave me motivation to

complete my internship report on PTCL. Special thanks and gratitude to the office persons

for giving me such attention and information especially in the shadowing sessions. I also

wish to thank my financial and moral supporters during this journey. My thanks and

appreciations also go to my colleagues in developing the project and people who have

willingly helped me out with their abilities. Thank you all.

 Contents

Dedication: .............................................................................................................................................. 3
Acknowledgement .................................................................................................................................. 4
Contents .................................................................................................................................................. 6
Executive Summary: ............................................................................................................................. 10
1. Introduction to the Industry: ......................................................................................................... 11
1. Overview of the Organization ........................................................................................................... 13
1.1 Brief History ............................................................................................................................... 13
1.2 Vision .............................................................................................................................................. 13
1.3 Mission............................................................................................................................................ 14
1.4 Introduction of the Organization ..................................................................................................... 14
1.5 Corporate Objectives. ..................................................................................................................... 14
1.6 Market Standing .............................................................................................................................. 15
.............................................................................................................................................................. 15
1.7 Policy of the Organization .............................................................................................................. 15
1.8Competitors:..................................................................................................................................... 15
1.8.1 NAYATEL ................................................................................................................................... 16
Islamabad. ............................................................................................... Error! Bookmark not defined.
1.8.2 StormFiber: .................................................................................................................................. 16
1.8.3 Wi-Tribe:...................................................................................................................................... 16
1.8.4 Zong: ............................................................................................................................................ 16
1.8.5 Jazz 4G:........................................................................................................................................ 16
1.9 Business Volume: ........................................................................................................................... 16
2.0 Product Line:................................................................................................................................... 16
• 2.2 Internet /high-speed broadband ....................................................................................... 17
3. Hierarchy Chart ............................................................................................................................. 18
3.1 Number of Employees: ................................................................................................................... 19
3.2 Main Office. .................................................................................................................................... 19
3.3 Brief Introduction of All departments:............................................................................................ 19
3.3.1 Human Resource Management Department ............................................................................ 20
 3.3.2 Finance Department: ................................................................................................................ 20
3.2.3 Commercial Department: ......................................................................................................... 21
3.2.4 Operations Department: ........................................................................................................... 21
3.2.5 Technical Department: ............................................................................................................. 21
3.2.6 IT DEPARTMENT .................................................................................................................. 22
3.2.7 CORPORATE AFFAIR DEPARTMENT ............................................................................... 22
3.2.8 SPECIAL PROJECTS DEAPRTMENT ................................................................................. 22
3.3 Comments on the organizational Structure: .................................................................................... 22
4. Plan of Internship Program: .......................................................................................................... 23
5. Marketing Functions ..................................................................................................................... 25
5.1 Products....................................................................................................................................... 25
• 5.1.2 Internet / high speed broadband ................................................................................... 25
5.2 Pricing: ............................................................................................................................................ 26
5.3 Place ................................................................................................................................................ 26
5.4 Promotion:....................................................................................................................................... 27
6 Ratio Analysis: ................................................................................................................................... 27
6.1 Liquidity Ratio: ............................................................................................................................... 27
Interpretation:.................................................................................................................................... 27
6.2 Quick Ratio ..................................................................................................................................... 28
Interpretation ..................................................................................................................................... 28
6.3 Debt to Asset Ratio ......................................................................................................................... 28
Interpretation:.................................................................................................................................... 29
6.4 Debt to equity ratio ......................................................................................................................... 29
Interpretation ..................................................................................................................................... 29
6.5 Profitability Ratio: .......................................................................................................................... 29
Interpretation :................................................................................................................................... 30
6.6 ROI.................................................................................................................................................. 30
Interpretation:.................................................................................................................................... 30
6.7 Activity Ratios : .............................................................................................................................. 30
Interpretation :................................................................................................................................... 31
6.8 Assets turnover Ratio: ..................................................................................................................... 31
7.1 Micro Environment: ........................................................................................................................ 31
7.1.1 New entrants ................................................................................................................................ 31
7.1.2 Customers .................................................................................................................................... 32
7.1.3 Competitors .................................................................................................................................. 32
7.1.3.1 NAYATEL ................................................................................... Error! Bookmark not defined.
................................................................................................................. Error! Bookmark not defined.
7.1.3.2 StormFiber: .................................................................................. Error! Bookmark not defined.
7.1.3.3 Wi-Tribe:...................................................................................... Error! Bookmark not defined.
7.1.3.4 Zong: ............................................................................................ Error! Bookmark not defined.
7.1.3.5 Jazz 4G:........................................................................................ Error! Bookmark not defined.
7.1.3.6 Employees or Workers .............................................................................................................. 32
7.2 Macro Analysis ............................................................................................................................... 33
7.2.1 Political Factors ....................................................................................................................... 34
7.2.1.1 Political Instability: ............................................................................................................... 34
7.2.1.2 Risk of Martial Law: ............................................................................................................. 34
7.2.1.3 Terrorism: ................................................................................................................................. 35
7.2.1.4 Development of PTA: ........................................................................................................... 35
7.3 Economic Factors: .......................................................................................................................... 35
7.3.1 Economic Conditions influenced by Government: .............................................................. 35
7.3.2 Overall economic conditions are not very sound: ................................................................ 35
7.3.3 Efficiency of financial market is not so Good:..................................................................... 35
7.3.4 Country risk of Pakistan goes to 3: ...................................................................................... 36
7.3.5 Currently the government has increased the taxes: .............................................................. 36
7.4 Social Factors: ................................................................................................................................. 36
7.4.1 Uneducated People:.............................................................................................................. 36
7.4.2 Corruption: ........................................................................................................................... 36
7.4.3 Destroying Cultural norms: .................................................................................................. 37
7.5 Technological Factors ..................................................................................................................... 37
7.5.1 Focus on increasing the Coverage: ...................................................................................... 37
7.6 Conclusion of Micro & Macro Analysis: ........................................................................................ 37
7.7 Customer Analysis .......................................................................................................................... 38
7.7.1 Competitors Analysis: .................................................................................................................. 38
7.7.2 NAYATEL ................................................................................................................................... 39
. ............................................................................................................................................................. 39
7.7.3 StormFiber: .................................................................................................................................. 39
7.7.4 Wi-Tribe:...................................................................................................................................... 39
7.7.5 Zong: ............................................................................................................................................ 40
7.7.6 Jazz 4G:........................................................................................................................................ 40
9. Demand Forecasting: ........................................................................................................................ 45
10. SWOT Analysis: ............................................................................................................................. 46
10.1 Strengths: .................................................................................................................................. 46
10.1.2 Huge Earnings:....................................................................................................................... 46
10.1.3 B2B Services:......................................................................................................................... 47
10.2 Weaknesses: .................................................................................................................................. 47
10.2.1 Employees Lack Knowledge: ................................................................................................ 47
10.2.2 Employees Motivation: .......................................................................................................... 47
10.3 Opportunities: ............................................................................................................................... 48
10.3.1 New Products: ........................................................................................................................ 48
10.3.2 Employee Motivation:............................................................................................................ 48
10.4 Threats: ......................................................................................................................................... 48
10.4.1 Software Hacking................................................................................................................... 49
10.4.2 Government Policies: ............................................................................................................. 49
Bibliography ......................................................................................................................................... 51
 Executive Summary:

In this world of globalisation strong telecom and internet services providers are a

basic need of individuals and country. Pakistan Telecommunication Company Limited is a

well-known telecom and ISP giant which is leading the market since late nineties. Since then

PTCL has expanded the business across Pakistan to a great extent and served as the backbone

of Pakistan. For developing countries like Pakistan a flexible telecom and ISP provider is

necessary. As the concept of globalisation is very common nowadays and countries are

becoming technology oriented day-by-day, lifestyle and living standard of people are also

changing to a great extent. Globalisation, modernisation and technological advancement have

become major concerns for many countries. In Pakistan PTCL is the biggest telecom giant

that was able to withstand all certain and uncertain changes since the inception and

contributed significantly to the economy of Pakistan.

So, the purpose of this report is to focus on Pakistan Telecommunication Company

Limited’s functions, management and operations. The report entails the overview of the

telecommunication and internet services sector of Pakistan. Then, there is an introduction to

the organisation (PTCL). In chapter number one I have introduced the telecommunication

sector of Pakistan, stats have also been used. Chapter number two focuses on the mission,

vision history of the organisations. Furthermore, introduction to the organisation, market

standing, policy of the organisation, competitor analysis, business volume and product line

has also been included in chapter two. The organisational structure includes the hierarchy

chart, number of employees, main office, introduction of all departments and comments on

the organisational structure. Plan of the organisation contains an introduction of the branch

where I have done my internship, starting and ending date of my internship and names of the

departments where I got the pleasure to work.

 The training program includes all the work that I’ve done in my internship period. It

also holds a detailed description of the tasks assigned to me. Then we have critical marketing

analysis which includes sales forecasting, micro and macro analysis, competitor analysis and

SWOT analysis. At the end we have conclusion, recommendation and bibliography.

1. Introduction to the Industry:

Pakistan’s telecommunication industry is increasing rapidly since last six years. Its

revenue reached 15.35 billion dollars from July 13 to June 2017. (Jabri, 2018). The growth

rate of Pakistan’s telecom industry has been really good and the industry not only growing

but also bringing innovation. At first the ISP’s used to provide 2G services but with the

passage of time services are getting advanced. In 2014 four cellular providers, i.e. Zong, Jazz,

Telenor and Ufone were awarded the 3G license (Economist, 2018). In 2016 Telenor

received 4G license and in 2017 Jazz was awarded the same license too. Market share of

telecom industry mentioned below Annual Report (2017-2018):

 The increase in mobile phone users has also increased to approximately 151 Million

until July 2018 (Business Recorder, 2018). According to Mudassir Hussain, Pakistan has

more than 58 Million mobile broadband users, and they are being provided quality internet

services as compared to other countries. Thus, the broadband rate in Pakistan is more

affordable than other countries (Economist, 2018). Market share of broad band mentioned

below:

But Pakistan’s telecom industry which caught global attention is on the edge of losing

it all. Recently there’s a dispute going on between PTA and NAB. In 2004 PTA issued a 2G

certification and a technology spectrum to Warid and in 2004 Warid deployed 2G services.

Under the same spectrum Warid in 2014 started offering 4G services. Now NAB thinks that

the issuance of 4G services was illegal as the 2G certification at 2014 says that Warid was to

introduce services that were available at that time (2014) since Warid issued 4G services its

illegal. However PTA says there were nothing specifically involved future services. NAB

seems to have the upper hand in this investigation and if they manage to put PTA officials

behind bars; then Pakistan’s telecom industry would suffer a great loss. (Atta, 2017)
 1. Overview of the Organization

1.1 Brief History

PTCL is one of the biggest Information Communication Technology (ICT) Company of

Pakistan. Starting from telephone and telegraph department in 1947, PTCL has managed to

offer latest and innovative technologies today. Products which are being offered by PTCL

now includes :

• High-speed Broadband

• Charji (Wireless internet)

• Smart TV App

• PTCL touch

• Netflix

• Iflix

PTCL is very proud of serving the country for last 70 years and connecting the people of

Pakistan. Today, PTCL contributes significantly in development of the country as well

and committed to strives to contribute to further development

Pakistan Telecommunication Limited is the backbone of Pakistan which provides

telecommunication, internet, and IPTV services nationwide. PTCL also provides B2B

services to almost every other cellular provider, i.e. Zong, Warid etc. Ufone which is also

a cellular/isp provider is also the wholly-owned subsidiary of PTCL. PTCL shares were

reduced to 62% when in 2006, 26% shares were sold to Etisalat Telecommunication, and

other 12% were sold to general public. However, government of Pakistan still holds 62%

shares of the company.

1.2 Vision

To be the leading and most admired Telecom and ICT provider in and for Pakistan.
1.3 Mission

To be the partner of choice for our customers, to develop our people and to deliver

value to our shareholders.

1.4 Introduction of the Organization

Pakistan Telecommunication Limited is the backbone of Pakistan which provides

telecommunication, internet, IPTV services nationwide. PTCL also provides B2B services to

almost every other cellular provider, i.e. Zong, Warid etc. Ufone which is also a cellular/isp

provider is also the wholly-owned subsidiary of PTCL. PTCL shares were reduced to 62%

when in 2006, 26% shares were sold to Etisalat Telecommunication, and other 12% were sold

to general public. However, government of Pakistan still holds 62% shares of the company.

PTCL is a well-known organisation of Pakistan, and it doesn’t stop to amuse people. Not

only it provides internet & telecommunication services to the customers but also provides the

extra-entertainment. The best example of this is PTCL’s collaboration with Netflix and iFlix.

Both are also well-known and full of entertainment websites. If you are using PTCL’s 10MB

or above package then you can enjoy Netflix for six and iFlix for one year for free.

Following are the products of PTCL:

• Broadband

• Telephone

• Evo

• Charji

• IPTV

• Cameras.

1.5 Corporate Objectives.

We Care; we treat everyone with respect, dignity and responsibility

 1.6 Market Standing

PTCL has recently announced its financial results for the half-year ended June 30,

2018 (PTCL, n.d.). PTCL shared the results that dividend of Re. 1 per share at its Board of

Directors meeting held in Islamabad, on July 18, 2018.

Revenue for the 1st half of 2018 has grown YoY (Year-over-Year) by 4% to Rs. 60.7

billion as results of efforts put in by the company. QoQ (Quarter-on-Quarter). While on the

other hand Ufone revenue has also been increased by 5% YoY (Year-over-Year) despite the

heavy competition in market. UBank, a microfinance subsidiary of PTCL has also gone

through a significant change; growth of 71% in its revenue over 1st half of 2017 has been

observed. PTCL group’s operating profit for the period improved by 57% although net profit

of PTCL decreased by 45%. One of the biggest reasons for this significant decline can be the

devaluation of the currency. Rs. 1.1 billion and positive one-offs of Rs. 1.3 billion last year.

Like-for-like net profit of PTCL Group would have been higher by 28% compared to last

year.

1.7 Policy of the Organization

Pakistan Telecommunication Company Limited uses centralised decision making,

where upper management takes decisions based on their analytical and the rest of team have

to obey the commands. The flow of communication/instructions varies from department to

department. Usually supervisors and managers are responsible and in charge of making the

command be obeyed.

1.8Competitors:

The Internet has now become a need for every household, offices, shops and

universities. Pakistan Telecommunication Company Limited states that Pakistan has crossed

approximately 30 Million marks, out of which 3 Million are broadband internet users.
Internet services providers (ISP) is the foundation of internet availability and usage. After

2004, Pakistan’s markets experienced a boom in internet sector. There are plenty of ISPs

available in Pakistan. Major factors like regulatory policy, under-sea fiber optics and

technology are the causes of poor ISPS. Mentioned below are some competitors of PTCL:

• NAYATEL

• StormFiber

• Wi-Tribe

• Zong

• Jazz 4G

1.9 Business Volume:

Following is the business volume of PTCL:

Terms Description Rupees

Revenue Ordinary shares of rs 10 each 69,757,391

Sales Gross Sales 1,676,921

Turnover 4,031,387,000

Assets Total Assets 186,158,197

Profit/loss Gross profit (11,564,824)

Profit/Loss before tax 12,845,408

Profit/Loss after tax 8,349,514

2.0 Product Line:

The product line of PTCL is as follows:

• 2.1 Voice:

PTCL provides its fixed-line telephone services in many cities of Pakistan.

 • 2.2 Internet /high-speed broadband

Being Pakistan's largest ADSL2+ provider, PTCL primarily provides its customers

with ADSL broadband, however as demand for higher bandwidth connections has increased,

PTCL is upgrading its customers to VDSL2 and FTTH GPON in a few major cities,

namely Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar.

• 2.3 Wireless

Wireless options are also available under the 'EVO Nitro' or 'CharJi Evo' brand names.

Ufone GSM is also a wholly-owned subsidiary of PTCL, it also the fourth and the smallest

cellular provider in the country. It provides both internet and telecommunication services.

• 2.4 IPTV

In addition to these services, PTCL also offers digital TV services with the brand name

of Smart TV. PTCL users can also stream live TV using the SmartTV application for

smartphones.

• 2.5 Entertainment:

In October 2016, PTCL signed up with Netflix and iFlix collaboration agreement to

provide its customers, without commercials, high quality streaming content.

3. Hierarchy Chart:
 3.1 Number of Employees:

According to PTCL total number of employees at the end of 2017 was 16,585 (PTCL,

2017).

3.2 Main Office.

In the late nineties PTCL main office was situated at Islamabad.

3.3 Brief Introduction of All departments:

Every organization big or small consists of different departments which functions in

different ways. The PTCL also have different departments which assist them to get desired

results on daily basis but the ultimate goal is the long term sustainability. Following are the

departments of PTCL (Raj, 2017):

• Human Resource Management Department

• Finance Department

• Commercial Department

• Operational Department

• Technical Department

• IT Department

• Corporate Affairs Department

• Special Projects Department

 3.3.1 Human Resource Management Department

PTCL is one of the biggest organization having more than 15000 employees and the

huge network has been spread all over the country. Managing around 20000 employees and

making policies for them to assist them in their carrier sure is a challenging task. PTCL has

been serving Pakistan since late nineties and managed to have the best facilities to employee

since then. Yet, PTCL strives to ensure the effectiveness of HR department so the needs of

employees can best be addressed. According to a research by Kehoe & Wright (2013) if the

employees are satisfied with the working environment and the company it can lead to

superior performance and sustainability in the market.

3.3.2 Finance Department:

The department of finance deals with the book keeping, accounts payable/receivable,

strategic financial planning analysis, and capital budgeting are also key factors dealt by

finance department.

• Book keeping is basically a finance function which covers the sales and expenses

within an organization. In big organizations like PTCL keeping proper book keeping

is hard, that is the reason why PTCL finance department is further divided into three

different parts.

• Strategic & Financial Planning Analysis serves as the bridge between the present and

future. In other words strategic planning shows how the sales and expenditures are

going to look like in the future. It also shows the areas where the business lack and

what factors/areas to focus on to cover the gap between current and future prospects.

• Capital budgeting is process which explains how the capital of an organization can

best be use considering the opportunities and amount of capital available. Capital

budgeting is a very essentials part of business organizations as it determines the

success, failure and sustainability of particular organization considering the future

 prospects of an organization. A strong capital budgeting enables the organization to

make best use of capital available which ultimately leads to sustainability and success

of the organization.

Considering the aforementioned functions of finance department, PTCL’s finance

department is divided into three different parts.

• Finance

• Account

• Revenue

Thus, the financial department of PTCL ensures that the financial and investment

needs of PTCL are being met. The purpose of these departments is to keep track of all

ongoing and past transactions. If these departments work efficiently, it is highly predicted

that the company will achieve its implicit and explicit goals in comparatively less period of

time.

3.2.3 Commercial Department:

PTCL also has a commercial department with the qualified staff. As the ISP and

telecommunication market is going through a significant growth and as the new ventures are

emerging into this sector; PTCL monopoly is also coming to an end. Commercial department

of PTCL anticipate the upcoming the opportunities, introduction of new products, new trends

and emerging market etc.

3.2.4 Operations Department:

The operations department of a company ensures the quality production in an

organization. Operation department of PTCL Head Quarters manages the operations with

region offices, branches subsidiary companies as well as other corporations.

3.2.5 Technical Department:

 Technical department of PTCL keeps an eye on technical functions of the company

like, technical power, technical training and equipment etc.

3.2.6 IT DEPARTMENT

This department is established to introduce new and advance technology in PTCL.

Due to IT department working system is to converted in a computerized system.

3.2.7 CORPORATE AFFAIR DEPARTMENT

This department deal corporate level issues such as PTA, International Telecom

Union, Legal and Regulatory affairs etc.

3.2.8 SPECIAL PROJECTS DEAPRTMENT

This department is doing their activities on behalf of president.

3.3 Comments on the organizational Structure:

Keeping in mind the services provided by PTCL, the organizational structure of PTCL is

effective. PTCL uses centralized decision making where all the decisions are made by upper

management and rest of the organization have to follow them. In 6 months I have observed

that the R&D department of PTCL is very strong and they are very determined to provide

best quality services to the customer. PTCL currently operates across Pakistan and the

communication gap is nothing to be found. For example, if the internet services of any

exchanging (let’s say Mall road exchange) gets suspended, the information is spread on both

of call centers as well as the excahnges. Thus, it can be analyzed that how strong is the

PTCL’s communication sector. Thus, I am of the view that PTCL holds strong organizational

structure.
 4. Plan of Internship Program:

The duration of my job started from December 28, 2018 to August 20, 2019. This chapter

includes the details about the internship program. Following are the information regarding

internship at PTCL:

So basically I have worked in PTCL’s call center where my duty was to listen to

customer’s queries and facilitates them in a manner that they won’t have to return for the

same problem in future. My job was to deal with billing as well. If a customer is facing issues

regarding the internet services, on customer request PTCL provide them compensation

according to their internet consumption.

The departments where I have work were information & billing department. Where the

information department as the name implies is related to communicating information

regarding the services, packages, changes, handling technical complaints regarding telephone

services, and billing. While on the other hand billing departments includes handling customer

queries regarding billing. If anything happened to the services PTCL keeps the full

responsibility of it and provide consumptions on the billing section. PTCL tries to facilitate

the customer in every possible manner so that they won’t leave them in future.

4.1 Training and Program:

So I have worked in a call center (Inbound) where the department keeps the record of

customer complaints. CCR (customer care representative) is expected to keep record and

escalate customer complaints to higher level or technical staff. Department is further divided

into three categories.

4.1.1 Technical Department (1218)

PTCL 1218 or technical department keeps record of technical complaints of the

customers. Technical staff of PTCL is also supposed to resolve minor issues on call. PTCL
specifically train the staff according to the frequently asked questions by the side of

customer, or perhaps it can better be called frequently asked complaints/issues.

4.1.2 Information Department (1236)

The second department was information department. The information department

provides information about packages, changes and new products & billing. Where the

information department as the name implies is related to communicating information

regarding the services, packages, changes, handling technical complaints regarding telephone

services, and billing. While on the other hand billing departments includes handling customer

queries regarding billing. If anything happened to the services PTCL keeps the full

responsibility of it and provide consumptions on the billing section. PTCL tries to facilitate

the customer in every possible manner so that they won’t leave them in future.

Charji/Evo/Smart TV Department:

4.1.3 IPTV/Charji Department

Then there is Charji & IPTV department which deals with IPTV and Charji issues. In

my tenure I have observed that PTCL is struggling in this department, as the department has

less employees and more issues. PTCL seriously needs to work on this department.

Detailed Description of Task assigned to me:

So basically I have worked in PTCL’s call center where my duty was to listen to

customer’s queries and facilitates them in a manner that they won’t have to return for the

same problem in future. My job was to deal with billing as well. If a customer is facing issues

regarding the internet services, on customer request PTCL provide them compensation

according to their internet consumption.

The departments where I have work were information & billing department. Where the

information department as the name implies is related to communicating information

regarding the services, packages, changes, handling technical complaints regarding telephone

services, and billing. While on the other hand billing departments includes handling customer

queries regarding billing. If anything happened to the services PTCL keeps the full

responsibility of it and provide consumptions on the billing section. PTCL tries to facilitate

the customer in every possible manner so that they won’t leave them in future.

5. Marketing Functions

5.1 Products

• 5.1.1 Voice:

PTCL provides its fixed line telephone services in many cities of Pakistan.

• 5.1.2 Internet / high speed broadband

Being Pakistan's largest ADSL2+ provider, PTCL primarily provides its customers

with ADSL broadband, however as demand for higher bandwidth connections has increased,

PTCL is upgrading its customers to VDSL2 and FTTH GPON in a few major cities,

namely Karachi, Lahore, Islamabad, Rawalpindi, Quetta and Peshawar.

• 5.1.3 Wireless

Wireless options are also available under the 'EVO Nitro' or 'CharJi Evo' brand names.

Ufone GSM is also a wholly owned subsidiary of PTCL, it also the fourth and the smallest

cellular provider in the country. It provides both internet and telecommunication services.

• 5.1.4 IPTV

In addition to these services, PTCL also offers digital TV services with the brand name

of Smart TV. PTCL users can also stream live TV using the SmartTV application for

smartphones.

• 5.1.5 Entertainment:
 In October 2016, PTCL signed up with Netflix and iFlix collaboration agreement to

provide its customers, without commercials, high quality streaming content.

5.2 Pricing:

PTCL uses price penetration strategy where the price for the product or services is

kept low considering the target market. However, a study entails that as PTCL is a semi-

government organization, PTCL is not authorized to select price or pricing strategy of

products and services (Scribd, 2019). Pakistan Telecommunication Authority (PTA) selects

the prices of telecom services. But there’s a complete process to it. Whenever PTCL wants to

make changes in the price of services or products, PTCL submits its proposal to PTA.

Next step PTA does is call consumers’ representatives, journalist and other members of

selected panel. After critically analyzing each and every aspect and impact of the considering

the price fluctuation, changes are made.

5.3 Place

The head office of PTCL is situated in Islamabad at G-8/4. The head office connects the

exchanges and offices spread across Pakistan. Head office also keeps the check and balance

of company’s functions and operations. Besides PTCL also has regional head offices which

are as follow:

• Islamabad Telecom Region

• Rawalpindi Telecom Region

• Hazara Telecom Region Abottabad

• Lahore Telecom Region North

• Lahore Telecom Region South

• Western Telecom Region Quetta etc.

Thus, PTCL’s exchanges/offices are spread all over Pakistan. Customer can opt for

services by visiting nearest exchange.

 5.4 Promotion:

PTCL put significant efforts to market their products or services. However, PTCL

does not have a sales team because company has never felt the need to have a sales team.

Significant efforts are made by the employees available at help line or exchanges. Since more

sales results in more bonuses every one put considerable efforts selling the products or

services.

6 Ratio Analyses:

Following is the ratio analysis of PTCL:

6.1 Liquidity Ratio:

Liquidity Ratio = Current Assets / Current Liabilities

2016 = 89,832,646 / 96,394,811

= .93

2015 = 78,781,031 / 74,167,232

= 1.6

Liquidity Ratio 2016 2017

.93 1.6

Interpretation:

Current ratio shows the firm’s ability to cover its current liabilities with its current

assets.

Generally the current ratio when comes 2 is acceptable .by the internal two years (2016-2015)

comparison of PTCL ,I interpret that the current ratio of 2016 is weaker than that of 2015 .

This weaker ratio is because of investing in capital expenditures.in 2016 their investment in

capital expenditures is high therefore the ratio gets weaker.

 6.2 Quick Ratio

Quick ratio = Current Assets –inventory / Current Liabilities

2016 = 89832646 – 2917145 / 96394811

= .90

2015 = 78781031 – 3189011 / 74167232

= 1.01

Quick Ratio 2016 2017

.90 1.01

Interpretation:

The quick ratio of the company is as same as its current ratio.

I interpret that, the ability of the company to meet its current liabilities with most liquid assets

of the year 2016 is weaker than that of the 2015.

This trend of decreasing is not favourable for short term creditors of the company.

6.3 Debt to Asset Ratio

Debt to assets ratio = total debts / total assets

2016 = 211897543 / 300084261 = .70

2015 = 195358760 / 291944826 = .66

Debt To Asset Ratio 2016 2017

.70 .66
Interpretation:

This ratio indicates the percentage of financing assets by debt. For the said years it is

interpreted that, the debt utilization in assets for both years are relatively stable.

6.4 Debt to equity ratio

total debt / total equity

2016 = 211897543 / 88186718

= 2.40

2015 = 195358760 / 96586068

= 2.02

Debt To Equity Ratio 2016 2017

2.4 2.02

Interpretation

In 2015 the debt to equity ratio gave the outcome of 2.02 while in 2016 it becomes

2.4. the debt utilization in 2016 is more than the debt utilization in 2015.

6.5 Profitability Ratio:

Gross profit margin = gross profit / net sales

2016 = 30509141 / 117202376

= .26

2015 = 30506726 / 118561034

= .25
Profitability Ratio 2016 2017

2.6 2.5

Interpretation :

This ratio indicates the firms profitability after deducting all expenses .from the

interpretation of both years net profit margin ratio, it is concluded that at both years they got

same profitability .

6.6 ROI

ROI = (net profit after tax / total assets)

2016 = 1622847 / 300084261

= .005

2015 = 1868466 / 291944826

= .006

ROI 2016 2017

2.6 2.5

Interpretation:

This ratio shows the firm frofatibilty on assets side. From the ratio it is interpreted that

there is a poor return on investment for 2016.

6.7 Activity Ratios :

Receivable turnover = annual net sales / account recievables

2016 = 117202376 /33970662

= 3.45

Receivable period = days in the year / RT

= 365 /3.45 = 105

2015 = 118561034 / 30065824

 = 3.94

RP = 365 / 3.94 = 92

Receivable Turnover Ratio 2016 2017

RT=3.45 RT =3.94

RP=105 RP=92

Interpretation :

This turnover ratios interpret that ,the collection days of 2016 is more than that of

2015 .so it is weak collection .

6.8 Assets turnover Ratio:

Assets turnover = net sales / total assets

2016 = 117202367 / 300084261

= .39

2015 = 118561034 / 291944826

= .40

Asset Turnover Ratio 2016 2017

.39 .40

7. Critical Analysis

7.1 Micro Environment:

Mentioned below is the micro environment analysis of PTCL..

7.1.1 New entrants

Pakistan’s telecom and ISP industry is getting huge day-by-day. In the era of

globalization, individuals demand availability of internet every time. States Bank of Pakistan

(SBP) quoted World Bank Stats by july 2012, Pakistan internet users have doubled from last
6 years. At 2007, the growth rate was 10%, by today it is more than 16% now (Ameen).

While on the other hand Internet Service Providers Association of Pakistan (ISPAK), states

that internet users have reached approximately more than 20 million in the country,

considering the influence of broadband and mobile phone operators.

Significant growth rate in Internet Sector of Pakistan has caught an eye of many

entrepreneurs. Significant growth in ISP providers has also been observed. Big cities like

Karachi and small cities like Rawalpindi are whelming up with the ISP providers. Despite of

the fact that PTCL is a telecom giant and also holds governments’ affection; PTCL still take

the entrance of new entrants as a threat.

7.1.2 Customers

Customer plays a vital role in success or failure of any organization. Customer is not

only the source of revenue but consumer base also determines the strategic positioning and

sustainability of an organization. PTCL understands the fact really well, thus it tries to keep

the equilibrium between prices and the quality of the services. However, it has been noted

that customer’s problems usually take more time than it should take to resolve the issue.

PTCL has started taking measures to resolve the arising complaints about the issue.

7.1.3 Competitors

The Internet has now become a need for every household, offices, shops and

universities. Pakistan Telecommunication Company Limited states that Pakistan has crossed

approximately 30 Million marks, out of which 3 Million are broadband internet users.

Internet services providers (ISP) is the foundation of internet availability and usage. After

2004, Pakistan’s markets experienced a boom in internet sector. There are plenty of ISPs

available in Pakistan. Major factors like regulatory policy, under-sea fiber optics and

technology are the causes of poor ISPS. Mentioned below are some competitors of PTCL:
 • NAYATEL

• StormFiber

• Wi-Tribe

• Zong

• Jazz 4G

7.1.3.6 Employees or Workers

One of the very important factors that determine the company’s success is employee

performance. That being said productivity is the most important thing which leads every

country towards success.

Considering the economic condition of Pakistan, different economists describe that

Pakistan needs to increase productivity (Leonard, 2019)

Let’s suppose Pakistan and Bangladesh are making 100 products annually. Where an

average person in Bangladesh stitch two suits in a day (Because stitching is the profession of

most of females in Bangladesh). With proper training and development he produces five suits

in a day, and with better machinery he produces eight suits in a day is called productivity.

While on the other hand Pakistan which was producing 100 products annually dropped to 95.

This is the major factor considering why Pakistan is losing in a global market. Thus

deficiency in productivity is a major factor in Pakistan (Akram, 2019)

Since PTCL’s most of the employees are not motivated to work, it seriously needs to

work on employees training and development as the employee factor is going to determine

how much success company is going to meet in the future.

7.2 Macro Analysis

In this part, I am going to analyse the external (micro) environment of Pakistan’s

telecommunication sector. PEST analysis is concerned with the effects of environmental

influences on business. These factors include Political, Economic, Social and Technological.

PEST analysis is a very useful tool as it entails the impact of factors above on business’, by

having clear picture of these factors; an organisation can make policies and strategies so the

certain or uncertain situation can best be addressed. However, Mobile and internet devices

grew significantly in 2016. Different organisations, customers and government are focused

on how the industry should develop.

Following is the PEST analysis of PTCL:

7.2.1 Political Factors

Internet availability has become a necessity in the life of most of the individuals.

Every organisation, SME, school systems, offices, workshops, and restaurants need internet

availability to facilitate the target audience. The importance of internet can also be

determined by the fact that even interviews are being conducted online. A battle between the

neutrality is raging. Customers are of the view that the data should be treated the same way

by ISP providers as well as government. Furthermore, the political issues which may affect

the business’ are as under:

7.2.1.1 Political Instability:

In Pakistan political environment is not stable as seen in last couple of years. Political

instability is considered the biggest influence on telecom sector of Pakistan, as the new

government sets rules, regulations and policies which facilitate them in the long run.

7.2.1.2 Risk of Martial Law:

Martial Law is also a threat for all the industries operating in Pakistan. History has witnessed

the circumstances of previous martial law caused. Thus, martial law has always been a

significant threat to Pakistan.

 7.2.1.3 Terrorism:

Terrorism is one of the most important factors that Pakistan has always been labeled with.

Since the issue of Kashmir is on the horizon. Many issues like terrorism are arising within

Pakistan. These factors may influence Pakistan’s telecom industry.

7.2.1.4 Development of PTA:

Government of Pakistan had developed Pakistan Telecommunication Authority (PTA) so that

helps in the establishing Business in Pakistan in a more efficient manner.

7.3 Economic Factors:

The economic contribution of telecom and ISP sector to Pakistan has been discussed above

which explains how much the sector contributes to Pakistan’s economy. Mentioned below are

the points which lie under economic factors.

7.3.1 Economic Conditions influenced by Government:

In Pakistan, Although a proper Institution for telecommunication sector working

(PTA) Government is influencing the working of that department and imposing the

policies made by politicians.

7.3.2 Overall economic conditions are not very sound:

Overall economic conditions are not very good for any industry because the rate of

inflation is increasing day by day and value of currency is going down which causing

increase in the value of loan payable that is another major threat for telecommunication

industry.

7.3.3 Efficiency of financial market is not so Good:

In Pakistan, all the financial institutions are controlled by government rather than the

head of the financial Institution State Bank of Pakistan (SBP). Rate of interest is increasing

day by day it is approximately 21% which is higher than any country in the world so it
makes impossible for the telecommunication industry to take loan facility.

7.3.4 Country risk of Pakistan goes to 3:

Risk rate of the economy of Pakistan goes to 3 out of 5 that is the alarming situation

for Pakistan as well as all the industries of Pakistan.

7.3.5 Currently the government has increased the taxes:

Currently, government has increased the taxes on the telecommunication sector, so

that reduces the income of the telecommunication sector some of the examples of that

are given below etc...

• Pre-paid customers were charged 10 per cent withholding tax on every new load,

which was deducted in advance

• With 15 per cent sales tax on every call increased the sales tax from 15 per cent to 21

per cent for mobile users.

7.4 Social Factors:

Social analysis is directly attached with the people and with the culture in which

they are working if they try to dictate the social factors that create the threats to that

industry and if they work within the social norms then social factors become the key to

success.

7.4.1 Uneducated People:

Low Educated people could not be able to understand the language of

telecommunication that create misunderstanding and create threat about the particular

package.

7.4.2 Corruption:

Corruption is the major threat for any industry in Pakistan that is because people are

unaware and uneducated but now these telecommunication companies are working on that
37

like«.

• AJ NAE BOLO GY TO KAL BUGHTOO GY {Khamoshi Ka Boycott}

(Djuice)

• KRO MUMKIN (Telenor)

These all campaign to educate people and develop positive behaviour in that social

culture.

7.4.3 Destroying Cultural norms:

Although these companies are bringing positive change in the society but also destroying

the social culture and providing the negative attitude to the young generation of the country

by providing late-night services that are affecting the education of the young generation.

7.5 Technological Factors

The companies involved in the communications industry in respect to Pakistan are in

a constant race to be the first to has latest technology. As a result, research and

development play an imperative role in these companies because they all want to be known

as innovators.

7.5.1 Focus on increasing the Coverage:

The current focus of the telecommunication industry is on increasing the coverage rather

than up-gradation of the systems they should upgrade the systems to meet the requirement

of the modern world.

7.6 Conclusion of Micro & Macro Analysis:

The number of macro-environmental factors is virtually unlimited. In practice, the firm must

monitor those factors that influence its industry. Even so, it may be difficult to forecast

future trends with an acceptable level of accuracy. In this regard, the firm may turn to

scenario planning techniques to deal with high levels of uncertainty in important macro-
38

environmental variables.

7.7 Customer Analysis

The customer plays a vital role in success or failure of any organisation. Customer is not

only the source of revenue, but consumer base also determines the strategic positioning and

sustainability of an organisation. PTCL understands the fact well. Thus it tries to keep the

equilibrium between prices and the quality of the services. However, it has been noted that

customer’s problems usually take more time than it should take to resolve the issue. PTCL

has started taking measures to resolve the arising complaints about the issue. However

according to a product and services provided by PTCL, its major target market goes as

follows:

• Students

• Offices

• Restaurants

• Schools

• Government Sectors

• Universities

• Colleges

• Shops

• Business Persons

• Sales Persons

7.7.1 Competitors Analysis:

The Internet has now become a need for every household, offices, shops and

universities. Pakistan Telecommunication Company Limited states that Pakistan has crossed

approximately 30 Million marks, out of whom 3 Million are broadband internet users.
39

Internet services providers (ISP) is the foundation of internet availability and usage. After

2004, Pakistan’s markets experienced a boom in internet sector. There are plenty of ISPs

available in Pakistan. Major factors like regulatory policy, under-sea fibre optics and

technology are the causes of poor ISPS. Mentioned below are some competitors of PTCL:

7.7.2 NAYATEL

Nayatel is the most recent addition to Pakistan ISPs providers. According to research,

Nayatel was the first one to launch Fiber to the Home Services (FTTH) in South Asia

(Saleem, 2019). Just like PTCL, Nayatel is also offering Triple play packages, i.e.

telecommunication, internet and smart tv. Unfortunately Nayatel is in the process of evolving

and currently operating Rawalpindi and Islamabad.

7.7.3 StormFiber:

The addition to ISPs is rising day-by-day, and the market competition is also very

tough, gaining the market share in a situation like this has become a challenging task for most

of the startups. In a very short period new startup named as StormFiber managed to compete

with the backbone of Pakistan, i.e. PTCL. After a huge success in Karachi Stormfiber has just

started in operations in Lahore. A significant shift has also been observed in customer’s

choice of ISPs. People in Lahore, as well as Karachi, are shifting from PTCL to Stormfiber

(Stormfiber n.d). With the introduction of FTTH services it is expected that StormFiber will

capture huge market share in future.

7.7.4 Wi-Tribe:

Wi-Tribe is a Qatar based company which started operating in Pakistan in 2007. PTA

in 2010 states that Wi-Tribe was one of the best ISPs providers in Pakistan (Raja) in terms of

quality and coverage. Wi-Tribe’s coverage area was Lahore, Faisalabad, Rawalpindi, and
40

Islamabad. Wi-Tribe offers different internet packages and has been a competitor of PTCL

for a long time (Wi-Tribe n.d)

7.7.5 Zong:

Zong is a competitor of PTCL in two ways. As the cellular provider, Ufone is also a

wholly-owned subsidiary of PTCL thus Zong competes with both Ufone and PTCL. Zong

doesn’t specifically provide broadband services. However, Zong has wireless internet

connectivity which is called Zong 4G devices.

7.7.6 Jazz 4G:

Seeing the significant interest in internet services Jazz has also introduced its internet

services. Just like Zong, Jazz does not particularly provide broadband services, but it has

wireless connectivity services.

7.8 Industry Analysis:

Pakistan’s telecommunication industry is increasing rapidly since last six years. Its

revenue reached 15.35 billion dollars from July 13 to June 2017. (Jabri, 2018). The growth

rate of Pakistan’s telecom industry has been really good and the industry not only growing

but also bringing innovation. At first the ISP’s used to provide 2G services but with the

passage of time services are getting advanced. In 2014 four cellular providers, i.e. Zong, Jazz,

Telenor and Ufone were awarded the 3G license (Economist, 2018). In 2016 Telenor

received 4G license and in 2017 Jazz was awarded the same license too. Market share of

telecom industry mentioned below Annual Report (2017-2018):

The increase in mobile phone users has also increased to approximately 151 Million

until July 2018 (Business Recorder, 2018). According to Mudassir Hussain, Pakistan has

more than 58 Million mobile broadband users, and they are being provided quality internet

services as compared to other countries. Thus, the broadband rate in Pakistan is more
41

affordable than other countries (Economist, 2018). Market share of broadband mentioned

below:

But Pakistan’s telecom industry which caught global attention is on the edge of losing

it all. Recently there’s a dispute going on between PTA and NAB. In 2004 PTA issued a 2G

certification and a technology spectrum to Warid and in 2004 Warid deployed 2G services.

Under the same spectrum Warid in 2014 started offering 4G services. Now NAB thinks that

the issuance of 4G services was illegal as the 2G certification at 2014 says that Warid was to

introduce services that were available at that time (2014) since Warid issued 4G services its

illegal. However PTA says there were nothing specifically involved future services. NAB

seems to have the upper hand in this investigation and if they manage to put PTA officials

behind bars; then Pakistan’s telecom industry would suffer a great loss. (Atta, 2017)

7.9 Marketing Mix Strategy:

In this chapter, we are going to cover up the whole marketing strategies & marketing

plan used by PTCL with regards to Marketing Mix. The purpose of marketing plan is to keep

leading the market and attract to the target market with the plan to build an emotional contact

with them. As companies with strong brand image somehow manage to lead the market. Here

go marketing mix strategies of PTCL:

7.9.1 Product: (Concept)

PTCL falls under the telecommunication and ISP (Internet Services Providers) sector

of Pakistan, where PTCL provides different services to the target market. Since late nineties

PTCL is leading the market with highest level of customer satisfaction. Quality products and

services have allowed PTCL to operate across Pakistan with approximately more than 2000

exchanges, working to provide quality products to the customer. The purpose behind the

existence of the brand is to mobilise the word to the future and by producing significant
42

revenues, provide benefits to the country as well. PTCL slogan is also focused towards the

future:

“Hello to the Future”

7.9.1.1 USP’s of PTCL:

• Oldest means of communication.

• Seasonal Discounts.

• New Packages.

• Students facilitation.

• Customer Services Center.

• 24/7 support services.

7.9.2 Push & Pull Approach:

The marketing plan comprises of the pull strategy because the general public is well

aware of the Pakistan Telecommunication Company Limited, but somehow or somewhere

they have forgotten its origin and link with Pakistan and with the whole nation. We need to

remind them about the benefits related to tradition and low rates of it. Everyone is well aware

of the benefits and packages offered by PTCL; we want to refresh those memories related to

people and their ancestors and remind them of customer loyalty and trust that PTCL has built

from last so many years. Therefore, Pakistan Telecommunication Company Limited would

employ to pull the brand.

7.9.3 Advertising Strategy:

The advertising campaign is a three months plan and incorporates the following objectives:

• To make a change in the attitudes of people about using PTCL services.

• To make PTCL familiar in the market.

• To help it to refresh its link with Pakistan and with the whole nation.
43

• To make people aware of its services, new technology and packages it offers.

7.9.4 Sales Promotion Strategy:

Sales promotion strategies are also used by PTCL. As the name implies, the goal of a sales

promotion strategy is to boost sales. Following are some of the strategies used by PTCL.

• Six months of Netflix.

• The annual subscription of Iflix.

• Free Smart tv application.

• Free smart tv when using 8MB and above package

7.9.5 Pricing Strategy:

PTCL uses price penetration strategy where the price for the product or services is kept low,

considering the target market. However, a study entails that as PTCL is a semi-government

organisation, PTCL is not authorised to select price or pricing strategy of products and

services (Scribd, 2019). Pakistan Telecommunication Authority (PTA) selects the prices of

telecom services. But there’s a complete process to it. Whenever PTCL wants to make

changes in the price of services or products, PTCL submits its proposal to PTA.

Next step PTA does is call consumers’ representatives, journalist and other members of the

selected panel. After critically analysing every aspect and impact of considering the price

fluctuation, changes are made.

8. STP Analysis:

Normally, a marketing strategy identifies the target markets, the desired position in

each market and the marketing mix that will persuade those target markets to part with their

money. The market is targeted through market segmentation. Segmentation can be done on

four types, i.e. Demographic Segmentation (age, gender, race/ethnicity, household type,

homeownership, education, employment, income etc.), Geographic segmentation. Positioning

44

oneself by-product can do positioning differentiation, positioning by-product usage,

positioning against a particular competitor, positioning against an entire product category,

positioning by association and positioning by problem, Marketing Mix includes P’s, i.e.

Product, Price, Promotion and place.

8.1 Target Market:

PTCL’s 80% revenue comes from just 20% customers, (Ali, 2019) who are corporate

customers and other big and small business organisations. 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.

8.2 Market Segmentation

PTCL segmented its market on two bases

To better implement customer services features, segment the market on a customer basis:

• Corporate

• Residential

Based on services as:

• Telephony

• Data

• Video
45

PTCL has segmented its market for its services and products to effectively deal with

its customers. Some of its services like Universal Access Number, Co-Location centres and

virtual private network are specially targeted at corporate customers and business concerns.

The other services like new telephone connections, digital services etc. are meant for mass

market. The services like Internet, fax facility etc. are targeted at both the corporate and

general customers.

8.3 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

9. Demand Forecasting:

Pakistan Telecommunication Limited is the backbone of Pakistan which provides

telecommunication, internet, IPTV services nationwide. PTCL also provides B2B services to

almost every other cellular provider, i.e. Zong, Warid etc. Ufone which is also a cellular/isp

provider is also the wholly-owned subsidiary of PTCL. PTCL shares were reduced to 62%

when in 2006, 26% shares were sold to Etisalat Telecommunication, and other 12% were sold

to general public. However, government of Pakistan still holds 62% shares of the company.

Considering these results it is expected that the demand for PTCL’s product will grow in the

future (PTCL .n.d)

46

10. SWOT Analysis:

SWOT analysis is a strategic planning process undertaken by almost every

organisation to determine the strength, weaknesses, opportunities and threats. The purpose of

SWOT analysis is to help businesses uncover the opportunities and threats that lie within

specific industry or to identify area of improvements and strengths. By having a clear picture

of all four concepts above, businesses can make the policies accordingly to engage in

competition. Following is the SWOT analysis of PTCL.

10.1 Strengths:

Strengths are some factors which enable the company in the market to have better

positioning and differentiation over others

10.1.1 Large Customer base:

Not so long ago people had a monopoly in the telecommunication and ISP sector.

Significant growth in ISP and telecommunication sector has caught an eye of many

entrepreneurs. That’s why the competition has grown respectively in the market. There were

times when PTCL held the monopoly but now the monopoly have broken. However, PTCL

still has the largest customer-based which according to them is the biggest strength of the

organisation. Thus, we can say that PTCL’s customers are satisfied with the services being

provided to them.

10.1.2 Huge Earnings:

Since PTCL have captured most of the market the revenues of the company have

grown at a significantly higher pace over last decade. The growing rate of smartphones and

internet connectivity has ensured the growth of ISP sectors. Since the PTCL has most of the

market share, the revenues of the companies grow respectively which is considering one of

many companies strengths.

47

10.1.2 Government Support:

PTCL is a government company. Thus the Government of Pakistan facilitates the

PTCL in different aspects of business.

10.1.3 B2B Services:

PTCL provides business to business services which means other ISP providers like

Zong, and Jazz are considered PTCL’s corporate customers.

10.2 Weaknesses:

Following are the weaknesses of the PTLC:

10.2.1 Employees Lack Knowledge:

One of the major weaknesses which I have observed during my job period was that

employees lack knowledge. Most of the employees have less or incomplete knowledge about

the product or services. When the incomplete information is delivered to customer by

different sources, customers get furious as different people are committing different things.

10.2.2 Employees Motivation:

One of the most important things to be noted that most of the employees are less

motivated. I want to provide solid reasoning of what I am saying by quoting Douglas

McGregor. According to McGregor there are two types of manager in any organisation.

Theory X managers believe that people work because they enjoy working in an organisation

and they are future-oriented. They want to grow in the long run. While on the other hand

theory Y managers believe that people work because they have to work for living (Mulder,

2015). They are not motivated nor want to work. They are just working to fulfill their basic

needs. In PTCL I’ve observed that not only employees aren’t motivated but also managers

hold theory Y perspective. They believe people are working just because they have to work,

which is to some extent is true.

48

10.2.3 Unsecure Job of Contractual Employees:

By today, the economic situation of Pakistan is indeed worrying. Economic survey

2019 entails survey report issued by Government of Pakistan’ shows the very bad picture of

the economy of Pakistan (Siddiqui, 2019, June 28). In this period where Pakistan’s economy

is about to collapse, many companies have started downsizing. Downsizing has significant

impact over Pakistan’s economy. At the same time jobs of people working on contractual

basis are at stake.

10.3 Opportunities:

Following are the opportunities available for PTCL:

10.3.1 New Products:

For every company no matter big, small, old or new, adapting new products in either

the new and old market has always been an opportunity. Thus, it is safe to say that if PTCL

anticipates the innovation and make products considering their prospect’ it can grow

significantly in the future.

10.3.2 Employee Motivation:

Employee motivation is considered a very important factor in a company’s growth

and sustainability (Dobre, 2013). Keeping track of employee’s performance can be a critical

and time taking task for an organization. Many organisations have built a quality team to

keep track of employee’s performance. As motivated and performance-oriented employees

can lead company to success. If PTCL starts to focus on employee training and development

the growth in future is assuring.

10.4 Threats:

Following are the threats for PTCL:

49

10.4.1 Software Hacking.

In the world of globalisation everything is under the process of constant change.

Technology is getting advanced day-by-day, and the threats proposed by the technology

cannot be neglected. Since the PTCL has a huge database, software hacking can be a

problem.

10.4.2 Government Policies:

Government is the major player which proposes significance on all the industries and

organisation working in a country. For example, the sudden rise in taxes forces companies to

charge a comparatively higher price for the product or service. Since the living standard of

people has remained same and expenditures are working at a very high pace, it can be

predicted that the company may lose some of its markets in the future.

11 Conclusion:

After completing my job with PTCL for about six months for the fulfilment of my

degree requirement I now conclude my report that the internship in PTCL was a very good

experience. During this period I have gained a lot of knowledge about operations and

practices carried out in an organisation. Furthermore, I have also analysed the power of team

building and also how small decisions about several things can lead to big change/growth.

One thing that I have realised while working in PTCL that telecommunication sector is very

important for country’s growth. PTCL is contributing significantly to economic growth. The

staff of organization is efficient and skilled, with little focus and training & development the

productivity of employees can also be increased. At the end I encourage all the students to

work with PTCL as it’s a great organisation which teaches you a lot.

So I recommend all students who do their internship in future, should do the training

program with PTCL.

50

12. Recommendations.

There are several things that I would like to recommend to PTCL:

PTCL should focus on employee training & development program, one thing which I have

observed that PTCL lacks too much by not conducting proper training programs.

Customer complaints should also be resolved very early as most of the people are facing miss

commitment issues.

PTCL should also train their line men to be efficient and do work quickly.

PTCL should install more DP’s to provide better services.

51

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Jabri, P. (2018, September 06). Business Recorder Business. Retrieved from Business Recorder:
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witness-dramatic-increase/

PTCL. (2017). Annual Report . PTCL.

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