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Submitted to: Ali Shaikh Submitted by: Shah Fahad Date: 11-11-2010

we will be the link that allows global communication. . we demand instant access to new products and ideas. In times to come. More importantly we want them for their better living standards with increased values in this evershrinking globe of ours. just as it has been over the past six decades. PTCL is going to be your first choice in the future as well. 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 Core Values y y y y Professional Integrity Customer Satisfaction Teamwork Company Loyalty Company Profile PTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Mission To achieve our vision by having: y y y y y An organizational environment that fosters professionalism.Vision To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'. We are striving towards mobilizing the world for the future. we are ready to shape a future that offers telecom services that bring us closer. Today. By becoming partners in innovation. We are setting free the spirit of innovation. for millions of people. The future is unfolding around us.

Pursuing a progressive policy. There were three participants in the bet for privatization of PTCL. The post-monopoly era came with Pakistan¶s Liberalization in Telecommunication in January 2003. Recent DSL services launched by PTCL reflects this by the introduction of a new brand name and operation of the service being directly supervised by PTCL. Etisalat. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. encouraging private sector participation and resulting in award of licenses for cellular. a Dubai based company was able to get the shares with a large margin in the bet. a comprehensive liberalization policy for telecoms sector is in the offering. Despite having established a network of enormous size. paging and. card-operated pay-phones. The PakNet brand has effectively dissolved over the period of time. In 2005 Government of Pakistan decided to sell 26 percent of this company to some private corporation. PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. As telecommunication monopolies head towards an imminent end. and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. It has the potential to be an instrumental agent in Pakistan¶s economic growth. On the Long Distance and International infrastructure side. services and infrastructure providers are set to face even bigger challenges. lately. Each had a par value of Rs. the Government in 1991. Ufone had increased its market share in the cellular sector. In 1995. This coincided with the Government's competitive policy. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. PTCL has been a major player in telecommunication in Pakistan. however. Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. On the Government level. announced its plans to privatize PTCL. the capacity of two SEA-ME-WE submarine cable is being expanded to meet the increasing demand of International traffic[3]. The same year. data communication services. PTCL also continues to be the largest CDMA operator in the country with 0. Lately. 10 per share. PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. These vouchers were converted into PTCL shares in mid-1996. Government's plan of privatizing the corporation were not welcomed in all . From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962. Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country.PTCL is the largest telecommunications provider in Pakistan. None of the brands made it to the top slots in the respective competitions.8 million V-fone customers.

issued new licenses for Long distance International (LDI) and Local Loop Fixed (LL Fixed). The government announced Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and2004 respectively. They arrested many workers and put them behind bars. market was opened for value added services and competition was introduced in cellular mobile sector as four licenses were issued (Mobilink. PTCL legal monopoly ended with effective from 31st December2002. PTML. The telecom regulatory. increasing inflow of foreign investment in the telecomm sector has resulted in the introduction of new cut throat technologies for provision of various telecom services including cellular. The government monopoly was retained in fixed line services. Current Tele density in Pakistan has expanded exponentially from 4. Military had to take over the management of all the exchanges in the country. The primary purpose of deregulation of the sector was to encourage healthy competition while providing better quality products and services to customers on lower prices as well providing best technology available worldwide. however. The sector has witnessed tremendous growth in recent years with Tele density depicting major expansion after deregulation. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. countrywide protests and strikes were help by PTCL workers. They disrupted phone lines of institutions like Punjab University Lahore along with public sector institutions were also blocked. During 1990s. The contention between Government and employees ended with a 30% increase in the salaries of workers. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. .3 percent in 2002-03 to stand at 48. CDMA and Internet are other resources of PTCL. GSM. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite arrival of a dozen other telcos including telecom giants like Telenor and China Mobile. Wire Local Loop (WLL) and Cellular Mobile. the focus has increasingly shifted from Fixed Lines to Cellular and Wireless Fixed Lines (WLL). wireless and internet services. with better services and competitive rates.4percent in 2006-07 with currently standing at over 52 percent. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public ANALYSIS OF EXTERNAL ENVIRONMENT Pakistan followed a gradual approach to liberalize its telecom market. In recent times. With the issuance of new licenses the market is now open for full competition in all segments of the sector In du str ia l S tr uc tu r e Pakistan s telecom sector has finally begun moving and looked set for an era of phenomenal growth. Also. In 2009 PTCL launched its new product with the name of EVO Introduction: Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. as a first step. Paktel and Instaphone).circles. making it a gigantic organization.

while need for telecom services is on rise as economy continues to grow on the right track. . ensuring diversification of products and services. PTCL. PTCL has recently taken an initiative to right size itself by introduction of VSS for its employees whereabouts 28000 employees are accepted under the scheme. the UAE based telecom player being the highest bidder emerged as the buyer of the 26 percent share in PTCL in April 2006.1 percent in 2006. With healthy competition instigating lower local and international tariffs and availability of alternative services has progressively benefited the consumers overall.5mn subscribers in 2007 against 2.07 from last year with subscribers of 2 mn. Etisalat.7 bn during the last five years making it the largest recipient of highest FDI during the past few years. The future for telephony lies amongst unexplored rural regions of Pakistan with all major telecom operators looking forward to tap these markets with a major contribution by WLL and Cellular segments due to cheaper installation costs. The telecom giant PTCL has observed cutthroat competition from various service providers after the implementation of the deregulation policies by the PTA. despite being a giant. The broadband penetration however has not depicted as much growth as expected growing with 3. WLL has shown an improvement from 0.4mn subscribers in 2006. In the urban markets introduction of Broadband internet services by various Telecomm giants such as PTCL. Cellular segment remained the vital player with increase in total Tele density contributing 48 percent. PTCL with diversification of its various services has enjoyed well-built position and posses immense potential for growth. Implementation of ERP solutions to provide integration of various departments through acquisition of SAP software and state of the art billing and customer service software. World Call has initiated cable television services with PTCL expected to follow suite by providing IPTV services through its Triple Play services.with better portability and convenience.7 percent to 1. translates PTCL s long term goals of operational effectiveness into practice. Introduction of various diversified products and services to sustain its market share. PTA estimates broadband subscribers to grow to over 5mn by 2010. Recent conducive environment provide by PTA has resulted in increased FDIs in the sector with investments of USD2. However. With the governments deregulation policies. through the vast infrastructure and being the carriers carrier. WorldCall and Wateen has further benefited the consumers to access timely information over the internet with competitive rates. Regu la tory Env iro nm en t The local telecom market has altered significantly since the creation of PTA as an independent regulatory agency and had enjoyed sizeable success to open up the local market to competing operators. had to face many bottlenecks in its operations with such large network.

y y Weakness y Not been able to nurture its growth around customer services oriented strategy. Ufone s profitability increased by 49. In addition. Similarly Defense. as regulator. PTCL has certain obligations.2 percent to Rs 977 million in 1H/FY07 as compared to Rs 655 million in the corresponding period last. Ufone is performing well though Warid and Telenor are tough competitors. NTC and SCO also depend on PTCL for many facilities. Therefore. These obligations are of paramount importance for successful implementation of the policy and failure or any deviation thereof may result in substantial damage to the deregulation process/liberalization program. Competitors still depend on PTCL network either directly or indirectly. Under the status of SMP also. PTCL has-been declared SMP operator. PTCL.The telecom De-regulation and Cellular Mobile Policies announced by the Federal Government place certain obligations on Pakistan Telecommunication Company Limited (PTCL) to facilitate market liberalization. Experienced Telecom Resources. Market leadership in Local loop. PTCL is bound to comply with these obligations within a stipulated time frame. Wireless local loop (WLL) and fixed telephony. has to ensure that new management of PTCL fulfils all these obligations. SWOT ANALYSIS Strengths y y y y y Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. PTA. An integrated Monopoly. . PTCL has important obligations towards Defense of the country and other existing operators. PTCL (Ufone) is market challenger in GSM segment.

Slow decision making including external interferences. Scope for efficient/cost effective operations. Threats y y y y y y Increased competition in long distance continues to exert pressure. Reduction in International Settlement Rates THANK YOU . the fixed wireless phone service is poor. PTCL-V. Opportunities y y y y y Low tele density of Pakistan. Migration to Cellular Networks. Partnership with new entrants in a deregulated environment. Corporate culture akin to government departments. the internet service provider arm of PTCL continues to incur losses due to poor management and lack of network optimization. Exposure to market competition.y y y y y y Monopolistic culture has further added to its complexities. Over employment & low productivity. Paknet. Have vast infrastructure and real estate assets which can be leveraged further. VOIP use is increasing despite ambiguous and discriminatory policies. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables. Global connectivity reliability has been improved. Ability to Attract & Retain Quality Professionals.