1

Part—1
Introduction to the Report

Part-1 Objectives
After studying this part, we must be able to know about the following:

Background of study Purpose of study Scope of Work Methodology of Research Scheme of Report

Pakistan Telecommunication Company Limited (PTCL)

(Roll No.W582949)

2

1.1—BACKGROUND OF STUDY
This report is intended as a tool in order to better focus the function of marketing in Sales and Supply Chain Management within Pakistan Telecommunication Company Limited. Before learning more about marketing, however, it is essential to get a basic impression of what marketing is. The field of marketing is undefined and extremely vast, therefore it is not an easy task to summarize in a manual the key concepts and activities of marketing. “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others. More than any other business function, it deals with customers”. Marketing is the business function that identifies unfulfilled needs and wants, defines and measure their magnitude, determine which target markets, the organization can best serve and appropriate products, services and program to serve these markets and call upon every any in the organization to “think and serve the customer” from a special point of view, marketing is a link between a society’s material requirements and its economic pattern of response.

Pakistan Telecommunication Company Limited (PTCL)

(Roll No.W582949)

3

1.2—PURPOSE OF STUDY
The main purpose of studying organization is to get practical knowledge of marketing and to understand the functions of marketing. Also, knowing about the future prospects of our selective organization i.e. PTCL, structure and functions of the departments, product lines, marketing operations of PTCL, critical analysis, short-falls and recommendations.

1.3—SCOPE OF WORK
It encompasses market planning, sales and distribution, implementing designed market strategies, control the market operations, analysis of competitor’s products & services, shortfalls and weaknesses of the organization as well as products & services and finally recommendations to the organization.

1.4—METHODOLOGY OF RESEARCH
Research methods definitely help to get superlative results analyzing the products of an organization. I adopt various methods of research to study the PTCL’s environment, products, marketing operations etc. These were included:  Studying reports of sales & distribution department in PTCL  Studying reports of finance department  Launching Customer Facilitation Camps (CFCs) in different cities of Gujranwala Division  Reading online survey at PTCL’s website  Interviewing people and knowing about PTCL’s service and products through questionnaires  Collection of date and analyzing it  Presenting findings and recommendations
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)

4  Conclusions 1. organizational structure.W582949) . function of sales and distribution department etc.5—SCHEME OF REPORT  Part-I includes introduction to the report  Part-II includes reviewing the PTCL in terms of business volume.  Part-IV includes finding and recommendations for Pakistan Telecommunication Company Limited Pakistan Telecommunication Company Limited (PTCL) (Roll No. marketing department’s operations.  Part-III includes different types of analysis of PTCL business and its competitors etc.

5 Part—2 Review of PTCL Part-2 Objectives After studying this part.W582949) . we must be able to know about the following: Objectives of studying the organization Overview of the Organization Business Volume Organizational Structure Product and Services Structure of overall organization in terms of reporting lines Functions of the Department Department’s Operations Role of PTCL Managers Use of Electronic Data in decisionmaking Pakistan Telecommunication Company Limited (PTCL) (Roll No.

identify opportunities and create value. The winners are those who.W582949) .rich offers target customer groups that competitors cannot do much. Marketing is not a new and campaign on this month’s promotion. from the receptionists to the board of directors. PTCL is the leading company in telecom sector in Pakistan which is also considering these issues. As a result there are winners and losers. So. Pakistan Telecommunication Company Limited (PTCL) (Roll No. I have to focus on those areas which need improvement and benefit PTCL too. fully analyze needs. Marketing at present is not a function.6 2. Its job is neither to fool the customer nor to falsify the company’s image. Some companies are trying to expand the size of the market. I hope subsequent mentioned objectives will not only benefit PTCL but also add a lot into my book of knowledge. These are the learning mile stones and understanding the theoretical situation in practical mode.1—OBJECTIVES OF STUDYING “PTCL” Marketing-oriented thinking is necessity in today’s competitive world. The losers are those that being nothing special to the market. Marketing has to be all pervasive part of every one’s job description. Objectives may vary by changing time and achieving targets but real objectives are those which benefit the organizations and create true professionalism among the professionals. It is to integrate the customer into the design of the product and to design a systematic process for interaction that will create substance in the relationship. But most are competing to enlarge their shares of the existing market. it is a way of doing business.

W582949) .    for improvement    Pakistan.   leading Telecom Company. including long and short-term action plans To understand the supply chain in PTCL and suggest valuable proposals To learn new trends in marketing and role of PTCL in Telecom sector To get hand on experience of marketing.  improve performance goals. financial analysis. Pakistan Telecommunication Company Limited (PTCL) (Roll No. To improve report writing skills To develop concrete plans. organizational analysis. incessant development and marketing analysis etc.7 Following main objectives are base of my study in the organization “Pakistan Telecommunication Company Limited”:    To get training in genuine understanding To apply management knowledge to practice To improve skills i. sales & distribution To get the knowledge of unique and new products in Telecom sector in To analyze new products and services of PTCL To get the exposure of working in excellent environment of Pakistan’s To inquire about employees augmentation.e.

2—OVERVIEW OF THE ORGANIZATION With the birth of a new soul comes a new voice and with it a series of innocent new stories that we treasure all our lives.W582949) . PTCL has given voice to many little angels of Pakistan and today it has become one strong voice of the country. PTCL has laid optical fiber Access network in the major metropolitan centers of Pakistan and it has modernized and upgraded the local loop services from copper to optical network. Moreover. It has the potential to be an instrumental agent in Pakistan’s economic growth. From the first faltering “hello” to the most eloquent speech.8 million Vfone customers. The circle of the family grows and is strengthened with every addition of a voice.089. Pakistan Telecommunication Company Limited (PTCL) (Roll No. For sixty years it has been the one and only connection between families and the voice of the little ones who share thousand stories with the world. PTCL is the largest telecommunication provider in Pakistan with employee strength of 30. It also continues to be the largest CDMA (Core Division Multiple Access) operator in the country with 0.8 2. the company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. and who understands it better than PTCL.

PTCL Formulation and listing on all Stock Exchanges of Pakistan. Etisalat has been the telecommunications service provider in the UAE since 1976 and stands 140th among the Financial Times Top 500 Corporations in the world in terms of market capitalization.W582949) . and is ranked as the 6th largest company in the Middle East in terms of capitalization and revenues. Gabon. a management consulting firm.  1996. Bukina Paso.Establishment of Posts & Telegraph Dept  1961.Etisalat Takes Over In April 2006.1 Historical Background  1947. Tanzania. Pakistan. Etisalat is currently operating in 14 countries namely UAE. Benin. which aims at revamping the HR policies. Management has started another mega project from August. Pakistan Telecommunication Company Limited (PTCL) (Roll No. Sudan. 2008 with “MCKINZIE”.9 2. Now a days PTCL management is adopting new market oriented strategies to become the telecom icon in Pakistan.Establishment of Mobile (Ufone) & Internet (PakNet) subsidiaries. Saudi Arabia. Emirates Telecommunication Corporation. which is commonly known as Etisalat. FAB (Frequency Allocation Board) & NTC (National Telecommunication Corporation).Establishment of Pakistan Telegraph & Telephone Dept (T&T)  1990-91-Establishment of Pakistan Telecom Corporation (PTC)  1995. Afghanistan. Niger. Togo. and Central African Republic and is continuing to pursue new mobile and fixed line opportunities in many growth markets. Processes and Organizational structures in order to convert PTCL from public entity to corporate entity. Ivory Coast.  2006.  1998.About 5% of PTC assets transferred to PTA. acquired 26% shares of PTCL.2. Egypt.

2.2—Nature of the Organization Pakistan Telecommunication Company Limited (PTCL) is proud to be Pakistan’s most reliable and largest converged services carrier providing all telecommunications services from basic voice telephony to data. videoconferencing and carrier services to consumers and businesses all over the country.21 22.27  Open Rate Bid Price Low Rate Turnover 1.90 2124273 5% 84046980000 3774000000 Table-1-PTCL Stock Price Pakistan Telecommunication Company Limited (PTCL) (Roll No. PTCL Stock Price Symbol Bid Volume High Rate Current Rate Price Change Outstanding Shares PTC 3505587 22.W582949) . internet.06 Percent Change Market Capitalization 21.10 2. PTCL is present in every corner of Pakistan to serve customers.27 22.27 21. Whether it is an office in the largest city of Pakistan or a home in a small village.

motivation & quality.5—Core Values  Professional Integrity  Customer Satisfaction  Teamwork  Company Loyalty Pakistan Telecommunication Company Limited (PTCL) (Roll No.  An environment that is cost effective & quality conscious.2.3—Vision of PTCL “To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value” A notion about Vision (Where there is no vision.  Services that are based on the most optimum technology.W582949) .  “Quality” & “Time Conscious” Customer service.  Sustained growth in earnings & profitability 2. the people perish—Proverbs 29:18) 2.2.11 2.2.4—Mission of PTCL To achieve our vision by having:  An organizational environment that fosters professionalism.

W582949) . Etc. Quote figures for five years and analyze trend. advances. deposits.12 BUSINESS VOLUME in terms of revenue. investments. Use latest years data Pakistan Telecommunication Company Limited (PTCL) (Roll No.

W582949) SEVP BZ South SEVP Finance SEVP HR CIO .13 2.4—ORGANIZATIONAL STRUCTURE President SEVP Corporate Development SEVP Procurement & Admin SEVP Special Projects SEVP Commercial SEVP Operations SEVP Technical SEVP BZ North EVP Internal Audit EVP GM SM Manager Specialist MT Non Management EVP Legal Affairs Technical Non Technical Pakistan Telecommunication Company Limited (PTCL) (Roll No.

14 2.W582949) .5—PRODUCTS AND SERVICES PTCL achieves its customers’ satisfaction by providing them with features and services like network coverage. reliability & security at their specific locations. Pakistan Telecommunication Company Limited (PTCL) (Roll No. performance.

PTCL Direct 10.15 PTCL’s services are available for two types of Customers: 1. V fone 3. V fone Postpaid 4. PSTN (Public Switch Telephone Network) 2. Consumers Services 2.PTCL Calling Cards Pakistan Telecommunication Company Limited (PTCL) (Roll No. Broadband 5. Corporate Services 3.1—Consumer Services: 1.5. Kehdo SMS 9. VMS (Voice Mail Service) 7.W582949) . IPTV (PTCL Smart TV) 6. Free Internet Facility 8.EVO Wireless Broadband 11. Value Added Services for Consumers 2.

help line 1236 can be contacted. nationwide and international calling services to its customers.W582949) . For further details on PSTN. Call Barring and Do not Disturb. Call Forwarding. Call Waiting. Conference Calling. This service includes convenient features and options like Caller-ID. 2-VFONE FIXED WIRELESS ACCESS NETWORK: Pakistan Telecommunication Company Limited (PTCL) (Roll No.16 1-PSTN (Public Switch Telephone Network): This service is available on conventional fixed line phone. PTCL also offers flat calling rates for local.

3-V FONE POSTPAID PTCL now has introduced V Fone postpaid in exciting packages for its customers bringing new enhancement in its products.W582949) . suburban and rural villages.000 urban. The network is enabled for Voice.6M covering over 10. Wireless phones are based on CDMA2000 1X technology. Dialup-Internet access (115kbps) and EVDO Broadband. Pakistan Telecommunication Company Limited (PTCL) (Roll No. PTCL has built-up capacity of 2.17 Vfone is a replacement of fixed line phone mainly in the areas where there is not network availability.

W582949) .18 4-BROADBAND: PTCL is offering high speed broadband to its consumers for high speed internet connectivity with easy downloads & uploads. An IP Pakistan Telecommunication Company Limited (PTCL) (Roll No. No additional cable would be required to receive cable TV / Multi channel TV. on the same line. Broadband and multi-channel TV service all at the same time. 5-PTCL SMART TV: It’s a fixed line service that allows the customers to experience telephony. Free DSL modems are offered to the customers while special discounted student package is offered to the students as well.

6-VOICE MESSAGING SERVICE (VMS): PTCL is offering phone to phone Voice Mail Service that works all of the time even when there is a power outage. Voice mailbox can be accessed 24 hour a day.W582949) . 2009. Key Highlights of new offer:  Unlimited Download Pakistan Telecommunication Company Limited (PTCL) (Roll No. PTCL has extended its Voice Messaging Service to 38 cities and it’s all free. 7 days a week and the customer would never miss an important call. 7. by making the TV viewing experience more interactive and personalized.f from May 16. PTCL has introduced refined Phone-n-Net services with new charging mechanism which is equivalent to old hourly usage charges.e.19 (Internet Protocol)-based platform allows the TV service to be ‘smarter’ than the traditional broadcast and cable TV services. After 6 or 7 rings the voice mail service activates and the caller can leave the message in his voice.PTCL INTERNET FACILITY: PTCL’s limited time offer of free internet has ended w. PTCL subscriber can still enjoy this innovative service with nominal charges.

20  No balance Expiry  Best Connectivity  Strong geographic presence  No GST applicable on Internet calls  Login name: “PTCL”  Password “PTCL 8-KEHDO SMS (VOICE SMS): Adding voice to the SMS takes SMS to the next generation of value. www. Customers can purchase credit online (using a credit card) and make calls to any number in Pakistan direct through PTCL. The service aims to extend PTCL’s reach to UK based callers wishing to stay in touch with their family & friends in Pakistan.W582949) . That text message is received with voice on the cell phone as an incoming call.com is the website for further information on PTCL Direct. In this service.ptcldirect. 9-PTCL DIRECT: PTCL direct is a pre-paid international calling service for making calls from the UK to Pakistan. Pakistan Telecommunication Company Limited (PTCL) (Roll No. the caller can leave a text message from his digital phone to any cell phone number. The calls will be charged according to prescribed PTCL tariffs.

but also for downloads.21 10.1 Mbps download and up to 2. Pakistan Telecommunication Company Limited (PTCL) (Roll No. photos. spreadsheets. It also allows the user to be connected wherever they are not only for email. We can get up to 10 times the peak data rate of the next best public wireless solution up to 3. etc.W582949) . large files.4 Mbps upload speed. It has been introduced in big strata’s.EVO WIRELESS BROADBAND EVO Wireless Broadband is the latest service from PTCL that offers High Speed Wireless Internet Access and is the latest evolution in Internet.

PTCL Customer Service Centers and retail shops.22 11-CALLING CARDS DENOMINATIONS: PTCL Calling cards are available at Sales & Service Centers.W582949) . in following denominations: Pakistan Telecommunication Company Limited (PTCL) (Roll No.

common to all UANs.5. 13.2—Corporate Services 1. 15. if you move your office or your Pakistan Telecommunication Company Limited (PTCL) (Roll No. 5. 2. 4. 8. preceded by 3 digit code of 111. 3. 9. 7. UAN never changes.23 2. 11. 12. 14. 10. UAN (Universal Access Number-111) UIN (Universal Internet Number-131) Business DSL DPLC (Domestic Private Leased Circuit) IP Connect ISDN BRI (Integrated Services Digital Network Basic Rate Interface ISDN PRI Integrated Services Digital Network Primary Rate Interface Co -locations DXX Connectivity Call Centers Audio Conference VPN (Virtual Private Network) Premium Rate Service (0900) V-Connect International IP services PTCL Webhosting Payphones 1-UAN (Universal Access Number): UAN (Universal Access Number) consists of 6 digits. 16.W582949) . 17. UAN operates on existing telephone connection without disturbing normal phone number. 6.

24 normal telephone number is changed. PTCL provides leased line services to other service providers & corporate customers for data or voice communication by establishing a connection between two exchanges. This service functions under a single-metering billing system with the promise of rich dividends in terms of customer care. Functioning just like UAN-0800 toll-free service. In this service. research the web and communicate with their business associate’s and business partners. UAN can be accessed from other cities by dialing the area code first. which will help the customers to download software and large files. business-class broadband connectivity. 5-IP Connect: The “IP Connect” service is based on Internet Protocol Virtual Private Networks (IP-VPN). 4-Domestic Private Leased Circuit (DPLC): This service is also called even stream/channel stream. 3-Business DSL: PTCL’s business DSL solution provides a reliable. UIN involves allocation of numbers to individual ISPs who are licensed by PTA. which allows companies with locations spread out in PAKISTAN to connect Pakistan Telecommunication Company Limited (PTCL) (Roll No. 2-UIN (Universal Internet Number): 131 numbering scheme for Internet Service Providers. your UAN will remain unchanged.W582949) . represents exclusive code assigned to each ISP.

6-ISDN BRI (Integrated Services Digital Network – Basic Rate Interface): This service allows the customer to have two connections on a single line. In the first phase.25 and transfer data on a private and secure way over reliable robust network infrastructure. these centers are established at Islamabad. Lahore and Karachi. Total bandwidth of the BRI is 128 kbps. Moreover. just like a conventional phone line. PTCL has rented out its Pakistan Telecommunication Company Limited (PTCL) (Roll No. Customer can go utilize phone line as well as internet at one and the same time. Small as well as medium sized clients usually go for this facility to facilitate their internal & external Customers. graphics and computer data on a phone line. 8-Co-location centers: Pakistan Telecommunication Company Limited (PTCL) has taken the landmark decision to establish Co-Location centers throughout the country. 7-ISDN PRI (Integrated Services Digital Network – Primary Rate Interface): This service allows the customer to have thirty connections on a single line. video images. In addition. it allows clearer voice communication plus a faster way to send and receive fax. Total bandwidth of the PRI is 2 MB.W582949) . Business customers can operate their PABX more efficiently while using PRI’s. Call centers operate on PRI. You can have a single Tele Plus connection.

This service however involves certain human resource requisites like communication skills and customer handling to be arranged by the subscribers. 10-CALL CENTERS: International Call Centers: Call centers operate through a 0800 Toll-Free Service.26 free premises with ready fitted environment (with AC and DC power) to other Telecom and IT Companies where they have installed their equipment directly. Domestic Call Centers: Domestic Call Centers also operate through 0800 Toll-Free Service. This service however involves certain human resource requisites like communication skills and customer handling to be arranged by the subscribers. wherein overseas customers' calls are routed to Pakistan or overseas destinations through VoIP (Voice over internet protocol) technology where trained agents are ready to respond to the queries of the customers. normally to financial institutions (banks). 9-Digital Cross Connect (DXX): PTCL offers flexible and reliable services through a high quality platform of Digital Leased Line Network to organizations. PTCL digital cross connect (DXX) network provides the most dependable media for WAN connectivity with more than 200 Nodes countrywide.It is meant for data communication only and provides connectivity between two offices. Pakistan Telecommunication Company Limited (PTCL) (Roll No. wherein customer’s calls are routed to a call center where trained agents respond to the inquiries of the customers.W582949) .

W582949) .27 Pakistan Telecommunication Company Limited (PTCL) (Roll No.

14-V-Connect: This service is offered to big organizations in remote areas where V-Connect provides data connectivity in client server mode through dial up process. With the VPN service one can flexibly control the outgoing call authority of phones by setting the closed group. Audio conferencing services are easy to use with interesting billing packages. VPN allows to make calls on reduced rates on all the numbers on the virtual private network. Audio Conferencing allows organizations to conduct virtual meetings between clients/customers/staff both locally and internationally. without requiring the installation of dedicated network resources.PTCL offers Standard Service and Advanced Service for accessing the service providers with features that are helpful to the customers in customizing their service according to their needs. 12-VPN Service: This service allows a private enterprise to have a virtual private network using public network resources. 13-Premium Services (0900): These services are based on the system called IVR (Interactive Voice Response) .28 11-Audio Conference: PTCL offers audio conferencing services for SME/Corporate Customers with up to 120 participants per conference. designed for maximum user comfort and convenience with web integrated interface. where the Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) . Moreover.

16-PTCL Web Hosting Services: PTCL offers world class hosting on windows platform.29 client can be mobile or stationary and the client requires low bandwidth to access the server. It provides the control. PTCL payphone provide Wide Area Network coverage. It provides secure and reliable VoIP solutions catering to the requirements of LDIs and other operators in the marketplace. 17-PTCL Payphone: This service operates like a PCO. Pakistan Telecommunication Company Limited (PTCL) (Roll No. Moreover the self healing backbone of PTCL makes sure the high availability of the customer’s website. 15-International IP Services: PTCL is the largest IP services carrier in Pakistan with extensive international peering capacity. PTCL provides dedicated IPs to other organizations that would help them to transfer data with increased security and connectivity. It is compatible with a call centre solution and generates printed receipts at the end of call at call centre. best speech quality. quality service. flexibility and reliability required to create and manage a successful web presence by other organizations.W582949) . and reliability.

Digital Facilities PTCL offers a variety of features to digital exchange customers like: Hotline  Abbreviated Dialing.5.30 2.W582949) .3—Value Added Services for Consumers CLI (Caller’s Line Identification) Calling line Identification (CLI) allow customers to identify the caller before picking up the phone receiver.  Call Waiting  Don’t Disturb  Call Transfer on (a) Busy (b) No Reply (c) Immediate  Wake up call  Absent Subscriber  Code Barring Pakistan Telecommunication Company Limited (PTCL) (Roll No. a customer needs a telephone set with display capability or a CLI device attached to the phone. E-Bill Payment Billing system is a part of customer services so providing connivance to its valuable customers PTCL launched a new billing service which is available through “ PTCL Calling Card” This is another service from PTCL. This service is basically providing billing solutions for the users. To subscribe to CLI services.

31 Prepayment Telephony Services (PPT) With the changing trends most telecoms are diversifying their services towards Prepaid solutions. The service will provide state of art technological facilities to the subscribers. One of such modern era telecommunication service is Prepayment Tele Phone (PPT). It provides the facility to subscriber to load a prepayment Telephony card against their telephone number thereby generating an account on I/N platform and any call made from that telephone will be charged to this account.W582949) . Pakistan Telecommunication Company Limited (PTCL) (Roll No.

By designing market focused products. Since its inception. which further increased the brand equity. In keeping with the upcoming competition and market dynamics. with the Prepay brand.W582949) .5.32 2. Pakistan Telecommunication Company Limited (PTCL) (Roll No. to a necessity affordable by the common man.4—SUBSIDIARIES While keeping its tradition of being the trend setter in the industry. Ufone increased its focus on the youth segment (which comprises 50% of the population). A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufone changed the image of mobile phones from a luxury only affordable by the elite. The new brand image gained huge popularity amongst the targeted market. Ufone’s brand team launched aggressive campaigns. Ufone has positioned its brand for masses. Ufone’s Prepay brand is now considered to be one of the most favored brands by the youth market and is followed by other mobile operators launching their respective brands for the youth market.

It has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility. and are empowered with Web based franchise management systems. The outlets are able to service the customers with innovative solutions. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations.33 International Coverage Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Customer Service Ufone is proud to have an efficient and friendly customer service through 21 company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country.W582949) . Chart-1-Number of Subscribers of Ufone Pakistan Telecommunication Company Limited (PTCL) (Roll No.

With a total current investment of $400 Million. It is a company committed to excellence. Ufone has been instrumental in the growth of the cellular market in Pakistan. Ufone aspires to be the best in the market by offering customer focused products and a quality service and sales network. Ufone has always balanced its expansion efforts and quality of service.34 Network Coverage Ufone has always believed in a solid commitment to growth. Ufone has network coverage in more than 260 cities and towns and across all major highways of the country. Under the new vision of Etisalat and with the support and collaboration of its employees and vendors. Therefore. security and reliability.W582949) . Pakistan Telecommunication Company Limited (PTCL) (Roll No.

Walid Irshaid President & CEO of PTCL Mr. Ministry of Finance Government of Pakistan.W582949) . UAE Pakistan Telecommunication Company Limited (PTCL) (Roll No. Islamabad Mr. Ministry of Information Technology Government of Pakistan.35 2. Islamabad Mr. Salman Siddique Secretary (Finance). Abdulaziz Ahmed Saleh Ahmed Al Sawaleh Chief Human Resources Officer Etisalat. Naguibullah Malik Chairman PTCL Board Secretary IT & Telecom Division.L. Abdulrahim Abdulla Abdulrahim Al Nooryani Chairman & Chief Executive Officer. UAE Mr. Etisalat International Pakistan L.C Executive Vice President Contracts & Administration Etisalat.6—ORGANIZATIONAL STRUCTURE IN TERMS OF REPORTING LINES ALSO SHOWING THE RESPECTIVE AUTHORITIES AND RESPONSIBILITIES Mr.

UAE Mr. Fadhil Mohamed Erhama Al Ansari Executive Vice President Engineering Etisalat.W582949) .36 Mr. Islamabad Mr. Abdulaziz Hamad Omran Taryam General Manager. Khursheed Ahmed Junejo Ambassador. Embassy of Pakistan Abu Dhabi. Ahmed Al Jarwan General Manager Real Estate Etisalat. UAE Dr. Mushtaq Ahmad Bhatti Member Telecom Government of Pakistan. Northern Emirates Etisalat. UAE Mr. UAE Ms. Islamabad Pakistan Telecommunication Company Limited (PTCL) (Roll No. Farah Qamar Company Secretary PTCL PTCL Headquarters.

leave. He submits his report to the president periodically showing any irregularities found in the procedure.E’s (Senior Engineer) Senior Executive Vice President makes strategies to achieve overall organizational goals Chief Executive Recruitment hires and fires the employees according to organizational policy Chief Executive Human Resource Management deals employees matters i.W582949) . SEVP (I/AUDIT) G. new connections. He is responsible of rectification of errors. They make planning and decisions.S. He controls them through Centralized Network System. Salaries. He carries out instructions given by the SEVP He maintains Minutes Register and arranges meetings of Directors or Share Holders General Manager Network Switching System is master controller of all Exchanges nationwide. salary. establish operating policies and guide the SEVP’s organizations’ interaction with its environment. Pakistan Telecommunication Company Limited (PTCL) (Roll No. He can remove faults through remote help system These are directors of the board. Their policies are implemented through front SEVP (STRATEGIC MANAGEMENT) CE (RRR) CE (HRM) EVP (Accounts) EVP (Finance) line managers. He controls transactions for payment i.e. These are top managers. He is responsible for the overall management of an organization He is chief officer of internal audit. facility charges and shifting charges of connections etc.S.M (INTERNAL AUDIT) COMPANY SECRETARY GM N.37 STAFF AND THEIR RESPONSIBILITIES Designation PRESIDENT Responsibilities President is the Chief controller. They are called S. and disciplinary cases He deals PTCL Billing.e. Advances.

This officer deals with the Advertising products on all Medias (Print media.W582949) . Calling Cards.38 EVP (Revenue) SEVP (Technical) EVP (Development) MD Ufone SEVP ( Admn) SEVP (IT) EVP Sales and Commercial EVP Marketing EVP (CC) purchase/repair of assets etc. V Wireless Connections etc.e. He deals overall revenue collected from exchanges and maintains its accounts He deals in installation of new exchanges. Customer Care office deals with the removal of customer complaints and gets customer feedback Pakistan Telecommunication Company Limited (PTCL) (Roll No. their maintenance and operation He arranges for the installation of new Exchanges Managing Director is head of PTCL subsidiary Ufone He deals with the postings and transfer of staff Manager information technology deals with data base management and computer related problems This office deals with the sales of different products i. electronic media etc.

Sector G-8/4.A. Faysal Bank Limited Habib Bank Limited MCB Bank Limited National Bank of Pakistan Standard Chartered Bank Limited United Bank Limited Auditors A. Block-E. Tel: +92 51 2263732 & 34 Fax: +92 51 2263733 E-mail: secretary@ptcl. Islamabad-44000. Dr. Pakistan..ptcl. State Life Building No.pk Share Registrar THK Associates (Pvt. Chartered Accountants KPMG Taseer Hadi & Co. Ferguson & Co.W582949) .com.. F.39 2. Karachi Tel: +92-21-111-000-322 Fax: +92-21-5655595 Pakistan Telecommunication Company Limited (PTCL) (Roll No.7 Bankers ABN Amro Bank Askari Bank Limited Citibank N. Zia-ud-Din Ahmad Road. Chartered Accountants Registered Office PTCL Headquarters.pk Web: www.) Limited Ground Floor.com.3.

40 2.S) SE (D&M) HFZ S.M) S.E (APL) Manager (F.E (EWSD) Pakistan Telecommunication Company Limited (PTCL) (Roll No.E (WLL) S.E (D&M)-I S.W582949) .8—ORGANIZATIONAL STRUCTURE OF THE BRANCH IN WHICH I AM CARRYING MY INTERNSHIP Regional General Manager Gujranwala SM (S&D) SM (HR&A) SM (Finance) SM (Operations) SM (R&C) Manager (S&D) Manager (HR) Manager (B&P) SE (Ops) M/T Manager (Rev) Manager (Admn) Manager (F&MA) SE (Ops) P/C Manager (Coord) SMO SE (Ops) CTX Manager (R&C) SM (MM&BB) SM (D&M) SM (SW) SM Transmission Manager (F.E (D&M)II S.E Transmission Manager (Prov) S.

MBA (Marketing) MBA (Marketing) MBA (Marketing) MBA (Marketing) MBA (Marketing) Experience 22Years Location Islamabad A.W582949) . SALES & DISTRIBUTION DEPARTMENT Name Zafar Usmani Designation SEVP Qualification MBA (Marketing) + BSc Engg.1—PROFILE OF EMPLOYEES WORKING IN MARKETING.8. Raza Ali Kamran Nadeem Ahmed Sheikh EVP Sales & Commercial GM Sales & Distribution Senior Sales Manager 16 years 12 Years 10 Years 2 Years Islamabad Lahore Gujranwala Gujranwala Mirza Nouman Assistant Baig Sales Manager Kashif Chudhary Assistant Sales Manager 4 years Gujranwala Pakistan Telecommunication Company Limited (PTCL) (Roll No.D.41 2.

building competitive market pay structures. the technical specifications are met for telecom equipment used in PTCL and cost effective technologies are introduced This department is responsible for the final technical evaluation. providing medical services to the employees. strategies and KPIs based on Available market data. This department also indulges in administrative responsibilities including overall maintenance of the company. organizational restructuring. Technical: Technical Department deals with the preparation of annual and five year technical plan. Competitive /strategic landscape. medium and long term objectives. Corporate Development: This department formulates Master plan with short. Choosing strategic projects and closely monitoring domestic and international market for new investment opportunities is also Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .2—REVIEW OF THE VARIOUS DEPARTMENTS HR & Administration: The functional responsibilities of this department include core human resource areas like recruitment & manpower planning. training and development. performance management. It ensures that engineering standards and practices are executed properly. Procurement etc. developing the HR policies. Input from internal stakeholders. employee relations etc.42 2.8. management of the Training Colleges and Institutes.

relations with major accounts and marketing plan for PTCL. Carrier Services and wholesale and dealing with Regulatory Affairs are the prime areas of corporate development. Formulate strategies to enhance utilization of PTCL available businesses. policies and procedures. Operations The core functions of operations are to focus on activities relating to IP Services. This department is taking care of overall management of all the matters relating to the EVP’s Business in the Zone areas. sales strategy. also implement business and marketing plans for sustained growth of PTCL Pakistan Telecommunication Company Limited (PTCL) (Roll No. Business Zones –South This department is responsible for developing business plans. Management of Intl Business Relations. penetrating and developing existing and new market segments by developing products and sales programs to reach market segment objectives Business Zone This department is divided in two areas Business Zones. engineering activities and makes sure that the processes are streamlined so as to provide best services to the valued customers. Effective Corporate communications. budget.W582949) . formulation of corporate strategy. sales strategies and manages all the operations performed in the three zones of PTCL. This key area indulges in the day to day operational. Switching and Transmission.North. Commercial The Commercial Department develops strategic business plans.43 part of the responsibilities. It plans for maintaining and increasing the market share.

Revenue accounts. procurement is done by issuing tenders as well through price negotiation. Treasury. it is responsible for overall PTCL IT Operations and Data centers. Procurement & Administration Procurement department is responsible for every kind of purchase. The principal functions include financial policies and procedures. Responsible for the implementation of SLA with other departments Pakistan Telecommunication Company Limited (PTCL) (Roll No. manages and maintains PTCL’s IT Infrastructure and ensures the availability and the stability of the IT systems and solution. E-commerce. It delivers increasing shareholders’ value.W582949) . Finance This department drives financial visions and direction of the company in line with the overall business strategies. Furthermore. Web-hosting and host of new services. Tender is issued only in the funded institutions or Govt organization and price negotiation is done in private organizations. Information Technology This department is responsible for all IT related issues and network issues with in the company. Budget control. Plan and approve business areas for implementation of IT. IT department builds. costing and regulatory affairs.44 revenues. Procurement is done by issuing tenders or by price negotiations. directs and monitors financial system and strategies. In PTCL.

Pakistan Telecommunication Company Limited (PTCL) (Roll No. Revenue Assurance The main function of this department is to effectively manage the high risk areas of PTCL and reduce the possibility of revenue leakage and bad debts.45 2. Regulatory. identify revenue generation streams. and Subsidiaries Affairs. It performs a wide range of services including financial audits. operational audits and information technology audits. Litigation.8. Internal Audit This department carries out the General Internal Audit and IT Audit. compliance audits. ensure revenue generation & billing and identify cases of lost opportunities. Other responsibilities include formulation and implementation of RA plans and strategies. network surveillance and surveillance etc. Employment Laws and HR.W582949) .3—OTHER IMPORTANT AREAS Legal Affairs The department handles Commercial and Corporate.

W582949) .9—STRUCTURE OF THE DEPARTMENT President SEVP Consumer Business Services EVP Sales & Commercial EVP Marketing GM Sales & Distribution GM Marketing Area Sales Manager Senior Manager Sales Manager Marketing Manager EVP Sales & Commercial EVP Sales & Commercial Assistant Sales Manager Deputy Marketing Manager Executive Sales Support Assistant Marketing Manager Pakistan Telecommunication Company Limited (PTCL) (Roll No.46 2.

Plans and organizes the marketing communication strategies. 2. Design. new product evaluation market research advertising and promotion as well as strategic client relations. 3. tariffs and strategies to ensure competitiveness and effectiveness of product/ services in chosen markets as well as generating revenues and maximizing profits for all product lines. Formulates an integrated commercial strategy covering marketing. 5. Devises and directs sales and Customer Services plans/ programs for the entire range of products and services in order to achieve growth in sales volume and market penetration inline with the company business plan and international standards. recommends and manages pricing. Evolves plans for the continuous upgrading of customer care and advertising programs as well as for the effectiveness of services provided to all customers. Pakistan Telecommunication Company Limited (PTCL) (Roll No. Develops and expand business opportunities for specific market segments. 7. produces market development plan that determines market size and identifies new opportunities for PTCL product/ services in order to maximize profitability and satisfy the needs of all categories.W582949) . 6. agrees and implements the development of a cost effective promotional strategy using a range of promotional methods in order to stimulate and increase the demand for products/ services.47 2. sales. systems and programs with end view of maintaining and strengthening PTCL’s image. Develops an integrated and comprehensive planning and research program that identify product/ service opportunities in order to achieve PTCLs goals and business objectives. Formulates.10—FUNCTIONS OF THE DEPARTMENT Key activities of Marketing and Sales Department: 1. 4. CS policies.

Business Development a. Following operations are being conducted in corporate services and product development. Sub areas of Corporate Services & Product Development: a. I was told that there is one office of marketing department in Islamabad which is functional and guides Sales & Distribution departments at different cities for marketing operations. a strategic commercial plan under the direction of the SEVP-  Ensures efficient and effective deployment of people. Market Segments & Strategy b. people are doing dual job. Market Segments & Strategy:  Devise telecommunication solutions for a particular industry segment. They not only promote products and services of PTCL but contribute in sales function.48 2. means and systems within agreed budgets and in line with corporate strategy.  Recommends telecom solutions that are technically and economically viable. Pakistan Telecommunication Company Limited (PTCL) (Roll No. In Sales & Distribution departments. Product Development c.11—DEPARTMENT’S OPERATIONS In internship.W582949) . Corporate Services & Product Development Key activities of Corporate Services & Product development:  Defines Commercial. brand and people values.

 Analysis of economic data and dissemination of the data in order to devise solutions and sales strategies  Derives information with trends.  Applies new technologies used for the evolving of the Telecommunications market. b.  Devise product offerings that are viable from a technical and costing perspective and have outstanding market potential  Product development of key Telecom products and services.  Applies processes and systems required in order to bring product to market. Business Development:  Positions multiple corporate products as a bundled solution to new and existing customers  Leads PTCL participations in mega bids and tenders issued by government and private corporations  Provides total end-to-end solutions by using PTCL and alliance partners’ products. Product Development:  Facilitates the offering of PTCL’s products to the market. annual reports and relevant new sources so that effective sales strategies can be devised.49  Creates and implements an effective sales strategy at an industry and customer level. Pakistan Telecommunication Company Limited (PTCL) (Roll No. c.W582949) .

 Leads custom research efforts to collect data and information on market environment (customers. market share. Sub areas of Commercial Planning & Support: a. brand awareness. Market Research & Intelligence Market Communication Commercial performance control Market Research & Intelligence  Responsible for improving sales and marketing effectiveness by tracking and analyzing marketing. a. regularly track key developments in the market to identify trends and spot business opportunities. profitability of market segments and products). industries. and sales promotion data. b. companies.  Reports and analyses company’s performance against key metrics (measures key performance indicators such as overall market and product penetration. Pakistan Telecommunication Company Limited (PTCL) (Roll No. competitors. ROI of campaigns. Brand Awareness Products and Services and to attract potential users.  Facilitates customer development through marketing and customer service programs. historical data. advertising. c.W582949) . Work in conjunction with advertising and promotion companies to promote Company Image. sales.50 COMMERCIAL PLANNING & SUPPORT Key activities of Commercial Planning & Support:  Directs the Company’s overall marketing and strategic planning programs geared toward maximizing the company’s share of the market and its profits while ensuring that the company’s customers are satisfied.

 Controls the processing of all documents requiring data entry to the Customer Management and Billing system and ensure that quality targets are met. c.  Ensures all office administration including post. b.  Manages the creation. Pakistan Telecommunication Company Limited (PTCL) (Roll No. filing.) to understand consumer insights in support of business plans.W582949) .  Controls all accounts related activity and to ensure that quality targets are met.  Manages and develops Archiving & Customer Profiling staff in order to improve customer service and to achieve departmental objectives. and faxing and distributions carried out for Customer Management to the agreed level of service. Commercial Performance Control  Ensures that services are achieving their targets.51 benchmarks. the needed corrective action is planned and executed to improve service performance. development. Develops and manages the base of inside and outside resources to support implementation of advertising and promotion plans that maximize company’s revenue. market segments. etc. Market Communication  Translates the corporate values into a visible brand experience. to create a favorable image of the company. to increase awareness of the company and its services. and execution of advertising and promotion plans and sales information that support the marketing and sales objectives of the company. and if not.

establishing sales targets.Also. budget/cost.  To define a strategic commercial plan along with the EVP P&S and EVP Corporate Sales under the direction of the SEVP-Commercial . and preliminary analysis for assigned KPIs projects. quantity.52  Conducts planning.  Conducts a comparison analysis between the actual performance and targeted performance and highlights corrective action plans.  Develops value added recommendations to deal with issues identified during assigned KPIs assessments and draft action reports to formally communicate the results of the assessments and related recommendations. means and systems within agreed budgets and in line with corporate strategy. implementing systems to ensure the timely attainment of these targets. So some highlights of consumer service’s operations and working is as under: Key activities of Consumer Services:  This department is primarily responsible for Consumer sales.W582949) . timeliness and Company’s brand values. as well as to achieve increased sales and customer satisfaction in B-to-C in both direct and in-direct sales by supporting the sales teams with respect to quality. As well as to ensure efficient and effective deployment of people. to drive the department to generate commercial revenue. brand and Pakistan Telecommunication Company Limited (PTCL) (Roll No. scheduling. Consumer Services Consumer service is the main job of the department where internship is being accomplished.  Develops and monitors the Management Information Systems (MIS) and ensure the full utilization of the MIS and Data warehouse. customer satisfaction and retention.

strategy.  Fostering co-operation and team spirit. Sub areas of Consumer Services: a. prospecting the market. with specific regard to the commercial angle. negotiating and concluding major contracts. Business development d.  Visiting key accounts. Channel sales c.  Manages the Sales department  Coach and develop Sales Management Team in order to boost sales and customer satisfaction  Implements certain aspects of commercial policy by. Direct Sales Direct sales deals with:  Ensuring the appropriate establishment and organization of Regional sales teams. advising on selection and training needs. productivity and quality of work. Pakistan Telecommunication Company Limited (PTCL) (Roll No.53 people values. objectives and action plans. assessing teams. Direct sales b.  Evaluating performance and appraisals on performance.  Development and implementation of corporate mission.  Handling complaints by In-direct Sales partners. That should lead to contribute to the profitability and expansion of the company. Sales & distributions a.W582949) .

 Monitors data entry procedures and quality standards by all parties to ensure optimum corporate customer information is captured.  Coaching and developing In-direct sales teams in order to improve Channel Partner’s sales.R. anticipates their needs and communicates them to Product Marketing and PreSales/ Bid Management.  Providing strategic direction for the development and growth of the indirect channel including recruiting new strategic (and/or major) partners.W582949) . to achieve individual sales targets and customer satisfaction c.54 b. Business Development This department deals with:  Developing business models and strategies based on in-depth knowledge of technological evolution and market demands in the region.  Conducts analyses from databases as required for planning & controlling.  Understands customers’ business. Channel Sales Channel Sales deals with:  Increasing indirect revenues by working closely with all channel partners.A.  Increasing direct sales revenue opportunities through business development with complementary strategic partners such as other Value Added Resellers (V. Pakistan Telecommunication Company Limited (PTCL) (Roll No. buying behavior and decision criteria.) vendors and consulting companies.

A.W582949) .55 d.R. Pakistan Telecommunication Company Limited (PTCL) (Roll No. timeliness and brand values.  Increases direct sales revenue opportunities through business development with complementary strategic partners such as other Value Added Resellers (V.  Approves the design and the implementation of channel-specific marketing programs. quantity.  Responsible for resource allocation including budget and personnel.  Approving the design and the production of necessary channel sales and training tools and materials.) vendors and consulting companies. budget/cost. Sales & Distribution: This department deals with:  To achieve increased sales and customer satisfaction in B-to-C in-direct sales by supporting a sales team with respect to quality.  To increase indirect revenues by working closely with all channel partners.  Provides strategic direction for the development and growth of the indirect channel including recruiting new strategic (and/or major) partners.  Analyzing and reporting accurate information on the Channel Partners sales results and market feedback.

The leader role defines the relationships between the manger and employees.W582949) . The ten roles are divided into three groups: 1. The top level manager represents the company legally and socially to those outside of the organization.56 2. In the liaison role. PTCL make able and train its key personnel to be active and become a market leader.12—ROLE OF PTCL MANAGERS A notion about leadership “Weak leadership can wreck the soundest strategy—Sun Zi” The role of manager in PTCL to establish / maintain relations with other industrial institutions in terms of accounts. managers assume multiple roles. Pakistan Telecommunication Company Limited (PTCL) (Roll No. management and production management is a key job. the manger interacts with peers and people outside the organization. To meet the many demands of performing their functions. The top level manager uses the liaison role to gain favors and information. Interpersonal The interpersonal roles ensure that information is provided. Henry Mintz berg has identified ten roles common to the work of all managers. In the figurehead role. A role is an organized set of behaviors. the manager represents the organization in all matters of formality. The three interpersonal roles are primarily concerned with interpersonal relationships. The supervisor represents the work group to higher management and higher management to the work group. while the supervisor uses it to maintain the routine flow of work.

57 2. There are four decisional roles. the manger deals with threats to the organization. Informational The informational roles link all managerial work together. In the role of disseminator. The unique access to information places the manager at the center of organizational decision making. In the resource allocator role. In the role of spokesperson. Thus. the top level manager is seen as an industry expert.W582949) . 3. Decisional The decisional roles make significant use of the information. the manager receives and collects information. the manager transmits special information into the organization. the manager initiates change. In the monitor role. while the supervisor is seen as a unit or departmental expert. In the disturbance handler role. the manager disseminates the organization's information into its environment. The direct relationships with people in the interpersonal roles place the manager in a unique position to get information. The top level manager receives and transmits more information from people outside the organization than the supervisor. In the entrepreneur role. the three informational roles are primarily concerned with the information aspects of managerial work. Thus. the manager chooses where the organization will expend its efforts. Pakistan Telecommunication Company Limited (PTCL) (Roll No.

Senior Manager plays a key role in establishing and maintaining sound relationship with other public. the manager negotiates on behalf of the organization. while the supervisor makes decisions about his or her particular work unit. Similarly. Senior Manager deals with other companies who make phone hand set like Hawaii. banks etc.58 In the negotiator role. Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) . PTCL’s subsidiary Ufone also deals with other companies which make mobile sets and then Ufone offers different packages with the combination of these sets and its valued services for its customers. It makes smart set for Vfone which is a PTCL’s growing product. Limited companies. The top level manager makes the decisions about the organization as a whole. Observations at PTCL During the internship I observed that Senior Manager (S&D) is the head of Sales & Distribution department in big cities where marketing department is not functional but has been helped by this department. industrial and business institutions like Government offices.

They take decisions and disseminate information within seconds in the whole country. Customers can complain online through website or their PSTN numbers. When new packages are introduced and incentives are announced for the employees. PTCL has made a website for its personnel and they have given a user name and login ID for communication.59 2. to inform decisions related to planning and implementing instructional strategies at the branch. This facility has been provided to all departments.W582949) . strata’s and individual managerial levels.13—USE OF ELECTRONIC DECISION MAKING DATA IN Data-Driven Decision-Making focus uses marketing available data and relevant background information. towns. Almost. Personnel in all branches are provided a personal ID and password. personnel know everything within seconds all about. PTCL has itself a big network of broadband nationwide. Broadband Internet is the big source of getting and collecting of information for PTCL as well as for other institutions. Pakistan Telecommunication Company Limited (PTCL) (Roll No. Personnel communicate by this information system and share information they required. every type of communication is being done by Internet in all its branches through specific information systems.

They allow users to look at data from multiple operational systems across multiple dimensions. Pakistan Telecommunication Company Limited (PTCL) (Roll No. small cities. These systems are designed primarily as analytical and reporting tools for management.60 2.13. and can also provide useful summary data for managers. (c) Complaint Management System (CMS): This is an online information system for customer’s complaints and other related issues. These systems have the advantage that they can import and analyze data from a variety of other systems that cannot otherwise communicate with each other. towns or departments. (e) Customer Service System: This is also an online information system for communication within the department. bill correction and all other matters regarding PTCL billing. (b) Data Analysis & Reporting Systems: These systems provide the ability to measure organization’s performance across a wide array of variables and oriented to any scale: big cities.W582949) .1—DIFFERENT TYPES OF SOFTWARE BEING USED BY PTCL PTCL uses following information systems in its all departments: (a) Data Warehouses: Data warehouses are large integrated databases that connect relevant information from other sources into a single accessible format. shifting of telephones. including time. (d) Billing & Customer Care System (BNCC): This is also an online information system for new connections.

61 (f) Microsoft Word: This is used for paper communication in the organization. (i) Microsoft Outlook: This is used as mailing program. Pakistan Telecommunication Company Limited (PTCL) (Roll No. (g) Microsoft Excel: This is use for compiling data for Sales & Distribution department and other all departments. (h) Microsoft PowerPoint: This is used for organizational reports and presentations.W582949) . (j) Microsoft Access Database: This is also used for compiling complex data and view reports as they required.

62 Part—3 Analysis Part-3 Objectives After studying this part. we must be able to know about the following: Critical Analysis Financial Analysis Future Prospects of PTCL Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .

1—CRITICAL ANALYSIS 3. however. issued new licenses for Long distance International (LDI) and Local Loop Fixed (LLFixed).1. During 1990s.W582949) . Also. The government monopoly was retained in fixed line services. Paktel and Instaphone). as a first step. increasing inflow of foreign investment in the telecomm sector has resulted in the introduction of new cut throat technologies Pakistan Telecommunication Company Limited (PTCL) (Roll No. with better services and competitive rates. The government announced Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and 2004 respectively. The sector has witnessed tremendous growth in recent years with Teledensity depicting major expansion after deregulation.63 3. With the issuance of new licenses the market is now open for full competition in all segments of the sector. PTCL legal monopoly ended with effective from 31st December 2002.3 percent in 2002-03 to stand at 49. Current Teledensity in Pakistan has expanded exponentially from 4.2 percent in 2007-08 with currently standing at over 51 percent. Industrial Structure Pakistan’s telecom sector has finally begun moving and looked set for an era of phenomenal growth. The telecom regulatory. Wire Local Loop (WLL) and Cellular Mobile. market was opened for value added services and competition was introduced in cellular mobile sector as four licenses were issued (Mobilink.1—ANALYSIS ENVIRONMENT OF EXTERNAL Pakistan followed a gradual approach to liberalize its telecom market. 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. PTML.

400. The broadband penetration however has not depicted as much growth as expected growing with 4. 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.000 4.501. Fixed Line Subscribers 5.206 2007-08 Graph-1-Fixed Line Subscribers Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) 4. the focus has increasingly shifted from Fixed Lines to Cellular and Wireless Fixed Lines (WLL).600. wireless and internet services.000.240.416. PTA estimates broadband subscribers to grow to over 5mn by 2010. In recent times.400.000 4.000 4.800.000 4.531 5.012 2003-04 2004-05 2005-06 2006-07 4. with better portability and convenience.200. WorldCall and Wateen has further benefited the consumers to access timely information over the internet with competitive rates.417 .171 5.5mn subscribers in 2007.000 4.000.3mn subscribers in 2008 against 3.000 5.000 5. Recent conducive environment provide by PTA has resulted in increased FDIs in the sector with investments of USD2.826. WorldCall has initiated cable television services with PTCL expected to follow suite by providing IPTV services through its Triple Play services.227.64 for provision of various telecom services including cellular.200.7 bn during the last five years making it the largest recipient of highest FDI during the past few years.000 4. With healthy competition instigating lower local and international tariffs and availability of alternative services has progressively benefited the consumers overall. In the urban markets introduction of Broadband internet services by various Telecomm giants such as PTCL. ensuring diversification of products and services.

In 2006 Emirates Telecommunications (Etisalat) acquired a 26% stake in PTCL and assumed management control of the company. keeps callers connected from Karachi to Islamabad. or PTCL. Demand is driven by technological innovation and by growth in business activity. Large companies have big economies of scale in providing a highly automated service to large numbers of customers.1. Smaller companies can compete effectively only in small markets or by providing specialty services.3—COMPETITORS ANALYSIS FOR EVO PTCL has introduced EVO Wireless Broadband in the market initially for big cities. and IP telephony services.W582949) . PTCL's subsidiaries include wireless phone services provider Pakistan Telecom Mobile. and have the financial resources required building and maintaining a large network. interactive television. 3.2—TOP PTCL COMPETITORS  Worldcall  China Mobile  Wateen  Telenor 3. It is a new product of PTCL and expected to be got a big market share among Pakistan Telecommunication Company Limited (PTCL) (Roll No. The company also provides wholesale services such as traffic routing and call termination to other carriers. The communications services provider offers consumers and businesses with basic landline. The profitability of individual companies depends on efficient operations and good marketing.1. DSL broadband.65 Market Operation Pakistan Telecommunication Company Limited. which operates as Ufone.

Pakistan Telecommunication Company Limited (PTCL) (Roll No.Automatic switch over to 1 X in non EVDO Coverage areas.Compatible with Desktops & Laptops.  USB Interface . web casts.  Access rich media applications like live video. High-availability network  Option to switch between EVDO and CDMA 1X mode  Supported OS: Windows 2000 / XP / Vista  All Pakistan Roaming .W582949) . All the team members in marketing as well as in sales department are focusing it in all big strata’s rather than focusing other products except another more Vfon Wireless. online games and a host of other applications. Following are the major players in Wireless Broadband. Features of EVO Wireless Broadband  Mobility/ Portability: Internet on the go.whenever and wherever  High speed (Better) internet experience: Supports entertainment services such as music. streaming.  Simplicity: Faster deployment. images/ videos/ Files sharing etc. I was asked to analyze about the EVO Wireless Broad band when it was introducing in Gujranwala first time. Secure.66 other players. video streaming. I analyze the following key areas for EVO Wireless Broadband. easy to move  Provides superior Value through Reliable.

000 Rs.67 Major Players of EVO Wireless Broadband  Wateen (WiMAX)  WorldCall (EVDO)  Mobilink Infinity (WiMAX)  Ufone Edge  Telenor Edge  Zong Edge  Warid Edge  Wi-tribe (WiMAX) EVO Packages Advance Monthly Monthly Monthly Upfront Up front Monthly Line Rent Device Device Packages Charges Charges Line Rent (PSTN Rental Rental (USB) (PCMICA) (Non PSTN) Billing) (PCMCIA) (USB) Package 1 Package 2 Package 3 0 0 Rs.6.000 Rs.4.W582949) .000 0 Rs.000 0 Rs.000 Rs.500 for Rs.6.000 Table-2-EVO Packages Pakistan Telecommunication Company Limited (PTCL) (Roll No.2.000 Rs.2.2.500 for 12 months 18 months - Rs.4.

68 Functionality Comparison of EVO Mobilit Bandwidth y Wateen Y N 256Kbps-1Mbps Worldcall Y Y 256Kbps-1Mbps Evo Broadband Wireless Y Y 3. 400+ tax /month Mobilink Infinity 5-15GB Rs 450.1500 Warid Unlimited One month Free trial Rs.Competitor Tariffs for Wireless Broadband Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .500 Table-4.1Mbps Ufone Y Y 60-150Kbps Telenor Y Y 256Kbps Zong Y Y 256Kbps Mobilink Infinity Y Y 256Kbps-1Mbps Witribe Y N 1-2Mbps Vfone Y Y 153Kbps Table-3-Functionality Comparison of EVO Service Provider Wireless Competitor Tariffs for Wireless Broadband Service Provider Volume Rates Wateen 5-15GB Rs 499-1599 World call Unlimited Rs 1200-2500 Ufone 5mb-Unlimited Rs 50-500 Telenor Edge 10mb-Unlimited Rs 75-500 Zong Unlimited Rs.

web page accessed. etc. Pakistan Telecommunication Company Limited (PTCL) (Roll No.69 EVO Coverage Area Coverage Area  Currently PTCL is offering • • • • • Lahore Karachi Islamabad/Rawalpindi Mirpur Gujranwala 300 Kbps ~ 500Kbps.speedtest.W582949) .1MB and download avg.  Other than these cities subscriber will get 153KBps where we have coverage on 1900MHz evo wireless broadband internet in:  In these cities subscribers will get Broadband Speed 3.  Max Speed can go up to 2MB/sec (as tested on www. time of the day. number of simultaneous users.net)  Actual internet speed will depend on multiple factors like location.

3 Min 1.7 Min Table-5.W582949) .70 Speed Comparison of EVO Comparison Factor Mobility Max Downlink Speed (kbps) Max Uplink Speed (kbps) Average Downlink Speed (kbps) Average Uplink Speed (kbps) Time to Download 5 Mb file Time to Upload 5 Mb file Dial-up No 56 Uplink+ Downlink 25 Uplink+ Downlink 27 Min 27 Min DSL No 2000 Uplink+ Downlink 400 Uplink+ Downlink 1.Feature Comparison of EVO Pakistan Telecommunication Company Limited (PTCL) (Roll No.Speed Comparison of EVO Feature Comparison of EVO Applications E-mail Internet Video Streaming Video conference VoIP Upload Photo Send Large Email Attachments Dial-up Average Average Poor Very poor Very poor Poor Very poor DSL Very Good Very Good Good Good Good Good Good GSM Edge Average Average Average Very poor Very poor Average Poor CDMA 1X Good Good Poor Poor Poor Average EVO Excellent Excellent Excellent Excellent Excellent Excellent Average Excellent Table-6.7 Min 1.7 Min GSM Edge Yes 384 384 30 30 22 Min 22 Min CDMA 1X Yes 153 153 30 30 22 Min 22 Min EVO Yes 3100 1800 500 300 1.

Empathize with the customer and prioritize timely solution with utmost sincerity. Realizing the customer’s importance spells the success for us.1. What is Customer for PTCL? The customer is a vital link in the business world.  Take care of customers well—treating their success or failure as our success or failure.4—CELEBRATING YEAR OF CUSTOMER CARE 2008-09 In view of PTCL’s customer-centric philosophy. critical measures will be takenup to further improve the standard of services-as PTCL believe that winning over the customer can guarantee success.71 3. Pakistan Telecommunication Company Limited (PTCL) (Roll No.  Courteous and charismatic dealing with the customers.  Value the customer’s time and facilitate them in everyway. So that they form a positive view of the company and its human resource. As a result.  A satisfied customer helps not only the manager but the organization.W582949) . the coming year 2008-09 has been dubbed as the Year of Customer Care.  Furnish the customers with products of exceptional standards.

6—SWOT ANALYSIS OF PTCL STRENGTH  PTCL enjoy monopoly  State of the Art International Gateway Exchanges & Satellite Earth Stations  large earnings  good quality international connectivity  Customer Base of over 4 million  Government support WEAKNESS  Image – Government organization  Image – Lack of customer focus  Image – Outdated people and technology (perception) Pakistan Telecommunication Company Limited (PTCL) (Roll No.5—MARKETING MIX CUSTOMERS VIEWS ABOUT PRODUCT AND SERVICES How are the firms product or services perceived? Usually PTCL is the largest and monopolistic firm in nature.1. according to customer point of view there is no competitor who is providing the facilities and services like PTCL because of these reasons:  Majority of customers are using services of PTCL in Pakistan  Wide Network  High Speed Internet Provider  Wide Range of Facilities and Value added services PTCL 3.W582949) .72 3.1.

 Opportunity to introduce High Value Added Products / High margin products for the new.  Time to establish brand loyalty.  Market open for more number of products – less dependence on single category or product. THREATS  Increased competition in long distance continues to exert pressure. more aware consumer. invest in technology and networks.73  Lack of aggressive marketing  Lack of customer services  Ambiguous management style  Lack of corporate culture  Social responsibility OPPORTUNITY  Growth in telecommunication industry.  VOIP use is increasing despite ambiguous and discriminatory policies  Exposure to market competition  Migration to Cellular Networks  Reduction in International Settlement Rates Pakistan Telecommunication Company Limited (PTCL) (Roll No. invite partners.W582949) .  More aware and technology understanding consumer – a base that is growing at a fast rate. anticipate competitors.

corporate ads are also released to print media to mark special occasions.1. Advertising In promotional mix. “Inquiry 17”. “Voice Messaging Service”.74 This pictorial diagram shows cellular penetration in the whole country Graph-2-Province-Wise Cellular Penetration 3.7—PROMOTION PTCL is using following components of promotional mix and Publicity of its product/services. Sometimes. phone bill cards prepaid telephone etc. “Complaint 18”. “PTCL Prepaid Calling Cards”. PTCL’s main stress is on advertising in print and electronic media. to remind the customers of these services. “Digital Facilities”. “Caller line identification (CLI)”. PTCL periodically places its advertisements in print media on services like “H/Qs hotline 0800-44544”.W582949) . Pakistan Telecommunication Company Limited (PTCL) (Roll No.

“CLI”. “Digital Facilities” etc. are also broadcast immediately on electronic media as reminders to Customers.75 PTCL’s Commercials on “Prepaid Calling Card”.W582949) . “Voice Messaging”. Pakistan Telecommunication Company Limited (PTCL) (Roll No.

Pakistan Telecommunication Company Limited (PTCL) (Roll No.76 Its advertisement is usually ethically sound and representative of Pakistan.W582949) .

77 Sales Promotion PTCL charges 1/3rd rates on national calls from 06:00 pm – 07:00 am and local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom network. In broadband service. PTCL offers numerous benefits to the students as well as corporations and its valued customers. Pakistan Telecommunication Company Limited (PTCL) (Roll No. which offer customer reduced rates for specific timings.W582949) . PTCL offers special rate packages on special occasions like Ramadan Package and EID package. Broadband service is offered for free in Ramadan. Moreover.6:00pm and quarter from 6:00pm – 6:00 am to attract customers to use its telephone service. For Example. in EID Package. PTCL charges half rates from 6:00am . These rates result in increased revenue for PTCL and also facilitate the customers to talk to their near and dear ones on these special occasions on affordable rates.

franchises and friends etc. PTCL’s Customer Services Centers are playing the role of sales outlets.e. World U-fone (Cellular service provider) PTCL Calling Cards Wireless Local Loop (V-fone) Call and Comsats WOL etc. the Company has no Professional sales force because the company has not felt any strong need to use the Services of a sales force for increasing the sale of its products. At the moment. Four competitors exist against U-fone in cellular phone industry i. Fifteen (15) sales outlets are working for V-fone in Gujranwala region. Telenor. However. Call Point Cards. They can also get connected their telephone bills and get duplicate bills from these outlets. One Stop Shop (OSS). with the establishment of Marketing Department in PTCL. However. For this purpose. some of the major players in ISP’s product are Cybernet. send fax messages from these Customer Services Centers i. Customers can make telephone calls. Warid. Call Mate Cards etc. Majority of the customers learn about the firm’s product and services from the newspapers ads. Competitors in Subsidiary/Products of PTCL Subsidiary / Product Competitor There are almost 100 competitors of PTCL throughout the nation to provide Internet Service to Multimedia & Broadband (ISP) Product the customers. World online. Mobilink. The marketing professionals are now in the process of inducting professional sales force for the company.e.W582949) . Hello Cards.78 Personal Selling As PTCL is enjoying monopoly in fixed-line telephony. Wateen Telecom and World Call are the Fixed Wireless Telephone competitors or V-PTCL Pakistan Telecommunication Company Limited (PTCL) (Roll No. Sales and Distribution department was established but marketing professionals are in few numbers in this department. Zong.

 Lahore Telecom Region (North).  Northern Telecom Region-I Peshawar. operate and look after optic fiber systems/cables. it has Regional Headquarters like:  Islamabad Telecom Region.  Hazara Telecom Region Abottabad.  Gujranwala Telecom Region  Multan Telecom Region  Faisalabad Telecom Region  Southern Telecom Region-I Hyderabad  Southern Telecom Region-II Karachi  Southern Telecom Region-V Sukkur  Western Telecom Region Quetta.1. Pakistan Telecommunication Company Limited (PTCL) (Roll No. Franchisor.  Switching network Central region Lahore.  Lahore Telecom Region (South).W582949) . Besides. In each District and Tehsil level. an Exchange. One Stop Shop are available to facilitate the customer needs. which is headed by the “President”. each headed by a General Manager to install. These Regions provide Telecommunications services to the customers in their respective areas. Call Centers.  Rawalpindi Telecom Region. PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber System Islamabad.79 3.8—PLACEMENT The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4. Apart from these. Islamabad.

Time and Money saving 3.80 Need for Channels for the Product and Services Firm point of view 1. and should install connection on customer’s single call.Easy availability of product and services to the customers 2.Easy availability of Product and Services 2.W582949) .Fast Service System and Resolve Conflict For improvement of channels. PTCL try to convert traditional channel into remote channel.To cover target market Customers Point of view 1.Easy availability for providing basic services and value added services 3.Easy complaint handling 4. Pakistan Telecommunication Company Limited (PTCL) (Roll No.

Effective Pricing The best price is always the one that provides a customer with the most longterm profits. PTCL is not fully authorized to determine the prices of its products itself. Tariff rationalization process started in 1997. the new rates are enforced. local call. The process is such that whenever PTCL intends to increase or reduce the rates of its services.W582949) .1. Cost-plus pricing is worst choice. international. PTA then calls consumers’ representatives. Rebalancing is completed by the end of 2008 (as per Tariff rates) with the objective to position PTCL for competition. PTA gives its decision. After listening to the viewpoints of all the interested parties. it submits its Proposal to PTA for approval. It was mainly focused on rebalancing the domestic process like NWD. Price in terms of value rather than cost. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. line rent etc. Customers react positively due to monopoly of PTCL so they give purely positive response to the prices of PTCL. If PTA approves PTCL’s proposal. PTCL also rationalizes its tariff with the passage of time.81 3. we will have a real advantage over most of our competitors and due to this PTCL has an edge over its competitors. When we start pricing more intelligently. Pakistan Telecommunication Authority (PTA) and its partner fixes the prices of telecom services. Pakistan Telecommunication Company Limited (PTCL) (Roll No. journalists and other interested groups for discussion on the proposal.9—PRICE Being a semi government organization.

It’s like a tramp.  Without a strategy.W582949) . PTCL. it is a phenomenon which can be described as “Survival” of the fittest. As the past incumbent and current Significant Market Player (SMP). business level and functional level strategies and eminent implementation thereafter in order to go beyond competition. going around in circles.10—PTCL STRATEGIES Strategic Notions  The difference between now and five years ago is that information systems had limited function. Inc. Now you are. “Sur-petition” refers to creating a synergy through corporate level. (William Gruber)  The formulation of strategy can develop competitive advantage only to the extent that the process can give meaning to workers in the trenches (David Hurst). has got the largest operational network and infrastructure within ICT (Information & Communication Technologies) segment.82 3. it has not place to go (Joel Ross and Michael Kami)  A strategist’s job is to see the company not as it is…but as it can become (John W. In layman language. instead of focusing on individual growth objectives. enterprises must adopt a holistic approach towards achieving organizational goals.1.) Edward De Bono’s strategic management philosophy correctly maintains that business centers have evolved to a phase where concentrating on “Sur-petition” has become essential than focusing on “Competition”. an organization is like a ship without a rudder. Chairman of Grehound. no doubt. Therefore. They don’t lack numbers and Pakistan Telecommunication Company Limited (PTCL) (Roll No.Teets. You weren’t betting your company on it.

using PTCL offerings was a purchase decision made as no other option was available. Customer.83 potential if we mention human resources. so far has not been able to nurture its growth around customer services oriented strategy. besides focusing on Customer Support & Services. Wireless local loop (WLL) and Fixed telephony. Pakistan Telecommunication Company Limited (PTCL) (Roll No. this has translated into inadequate brand loyalty for them. Following “Strategy Map” depicts a guideline for holistic growth around Financial. spending upon marketing communications to revamp Brand Image. For many individual prospects like me. Internal organizational and business processes issues. All this adds to their strategic strengths and after having all that in their basket they lack at area where they are supposed to have developed core competence. improving existing network and existing products for market penetration and developing innovative new products and services for long term growth. Overall they have the largest consumer clout on average in the whole Pakistan telecom industry. PTCL can turnaround very well by reaping the benefits of “Sur-petition” in the shape of “Sur-petitive Advantages” in comparison to competitive advantages. PTCL enjoys market leadership in Local loop. PTCL. Their financial strength has further become their strategic strength after Etisalat has joined them as investment arm.W582949) . reverting back to competitive and service centered operational culture. All they have to do is to follow a holistic approach towards growth. monopolistic culture has further added to its complexities. PTCL (Ufone) is market challenger in GSM segment. Even their competitors still depend on PTCL network either directly or indirectly. Internal Business Process and Organizational learning & Growth perspectives.

Buzz travels in invisible networks. or company at any point of time. helped spreading strong awareness of broadband. Focus on selling media capacity to commercial enterprises Cost Management Monitoring & managing divisional OPEX Asset optimization Market leadership Customer satisfaction Ensure accurate demand forecast & budgeting Re-engineering product delivery [process.84 Value & Strategy Profit Revenue growth Initiative Launched broadband across all the major cities in Pakistan. phone n net. IPTV Network Enhancement Operational support plans. reducing mean time to the market. It's the aggregate of all informal communication about our particular product. service. To benefit from buzz marketing. brand revitalization of WLL. converted to ONUs Leadership Buzz Marketing Buzz marketing is a word-of-mouth about our brand. carrier service. aggressively introduced customer facilitation centers with new and rather strong brand image Product leadership New Product Development Broadband Pakistan.W582949) . PTCL design its Pakistan Telecommunication Company Limited (PTCL) (Roll No. improving network redundancy.

the UAE based telecom player being the highest bidder emerged as the buyer of the 26 percent share in PTCL in April 2006. PTCL. had to face many bottlenecks in its operations with such large network. Corporate leadership Employee Productivity & competency KPIs introduced with smart objectives. network etc. through the vast infrastructure and being the carriers’ carrier. 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. PTCL with diversification of its Pakistan Telecommunication Company Limited (PTCL) (Roll No. Regulatory Environment 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. With the governments deregulation policies. VSS to retain effective HR. training etc Business process enhancement Development and assurance of SOPs for departments. Supportive feedbacks. However. The telecom giant PTCL has observed cutthroat competition from various service providers after the implementation of the deregulation policies by the PTA. surveys. translates PTCL’s long term goals of operational effectiveness into practice. support.W582949) . despite being a giant. Etisalat. procurement. Introduction of various diversified products and services to sustain its market share. service delivery. PTCL has recently taken an initiative to right size itself by introduction of VSS for its employees where about 28000 employees are accepted under the scheme.85 product and marketing activities in such a way that it will give people an opportunity to talk about its product or service.

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. 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. PTCL is bound to comply with these obligations within a stipulated time frame.86 various services has enjoyed well-built position and posses immense potential for growth.W582949) . while need for telecom services is on rise as economy continues to grow on the right track. Pakistan Telecommunication Company Limited (PTCL) (Roll No.

71) 15:85 27. (m) Rs.67 (5. (m) Rs.58 (0.50 1.45 14:86 27.06 4 2007 26.73 7.96 4.25 358.07 20.16 25.81 1.46 5.37 53.650 51.92 46.500 87.269 51.43 1.13 22.26) 1.27 92.15 241.88) (0.94 35.15 25.20 15.5 5.24 87. % Times Rs.974 20.76 20.48 (5.34 2.01 18.49 83.54 2.76 4.03 4.35 (2.46 34.606 10.50 30.26) (3.34) 5.22 14:86 31.085 30.58 2.01 38.07 21.000 32.75 65.27 5 2004 51.183 97.34 3.000 32.96 5.22 2.360 29.000 31.88 1.06 0 2005 41. Rs.45 10.500 51.35 25.992 105.000 32.45) (4.60 0.45 13:87 25.62 2.50 39.20 13:87 23.151 7.92 4 2008 24. Rs.561 51.66 1.777 25.43 26.639 10.47 5 50.744 15.00 40.633 43.65 86.000 32.19 2.68 122.00 70.22 0 66. (m) 59.00 42.91 3 53.603 51. Rs.78 2.61 38.71 5.35 1.75 1.170 25.33 34.66 3.79 19.39 0 54.294 Pakistan Telecommunication Company Limited (PTCL) (Roll No.97 5.888 39.86 14.67 8.28 16:86 36.2.66 15. (m) Rs. (m) Rs. Rs.36 2. (m) 18.53 4.6 207.249 110.73 38.07 4.00 57 290.90 9.70 0 2006 34.14 28.72 21.42 1.19 2.200 81.000 109.008 100.200 69.89 1.55) 19.54 6.11 4 39.73 1.23 9 14.87 3.18 3 99.00 0 32.168 51.1—Financial Highlights and Ratio Analysis Key Indicators Operating Gross Margin (Operating Profit Margin) Pre Tax Margin (EBIT Margin) Net Margin Performance Return on Operating Assets Debtor's Turnover Return on Equity Leverage Debt: Equity Leverage Time Interest Earned Liquidity Current Quick Valuation Earning per share (pre tax) Earning per share Breakup Value per share Payout Ratio (after tax) Market Price to Breakup Value Dividend per share Market Value per share (as on June 30) Market Capitalization Historical Trends Operating Results Revenue Profit/ (loss) Before Tax Profit / (loss) After Tax Dividend declared Financial Position Paid up Share Capital Reserves Shareholders' Equity Current Assets 2009 % % % % Times % Ratio % Times Times Times Rs. (m) Rs.22 19.356 39. (m) Rs.965 Rs.296 26.336 (4463) (2825) - 71. (m) Rs.2—FINANCIAL ANALYSIS 3.07 1.100 48.W582949) .39 87.64 197.83 5.02 1 9.91 64.068 23.63 45.50 17.

88
Non Current Liabilities Operationals ALIS (000)* ALIS per Employee Rs. (m) Nos. Nos. 18,57 2 4,681 168 17,646 5,181 118 17,460 5,455 91 16,489 5,586 89 15,258 5,235 82 15,126 4,837 71

(*Exclusive of primary and basic rate interface) Table-7-Finacial Highlights

Pakistan Telecommunication Company Limited (PTCL)

(Roll No.W582949)

89

3.2.2—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
unserved 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.

3.2.2.1—Financial Aspects
The structural adjustments undertaken by the company in response to the increased competition and substitution impact of mobile expansion has adversely hit the profitability of PTCL in the short run. But the first quarter of FY'09 recorded an

Pakistan Telecommunication Company Limited (PTCL)

(Roll No.W582949)

90
increase in profitability of PTCL, as the company's profit after taxation increased as compared to the same period of last year. Sales revenue dwindled during the year 2009 but profit was increased compared to last year, depicting a decline of 11%. Operating profit increased 100%. However the effect on net profit was somewhat diluted by an increase in non-operating income of the company so that the company posted profit after tax of Rs 9.15 billion, compared to Rs -2.83 billion in FY2008. At the end of the year in 30th June, 2009, the company stock was trading at a D/E ratio of 16.86. The stock has performed remarkably well relative to the market. The stock has shown consistent performance over the year. As a consequence of the fading sales revenue for the period, the profit after tax of the company in FY09 increased over the year 2008. The net profit margin has also been declining since the FY'04 and the trend persist in FY09. The decline in profit margin may be attributed to a 5.25% increase in operating expenses for the year.

3.2.2.2—Profitability Position
PTCL posted a net profit of Rs 9.15 billion in FY09 against last year's figure of Rs.-2.83 billion. The declining trend in profitability continued during the financial year ended June 30, 2008 due to structural adjustments brought about in the telecom sector by competition. Deficit came upto Rs.2.825 billion. Although PTCL maintained its leading market share in the fixed line, there was a decrease in revenues by 5.5% mainly due to substitution impact of mobile expansion. There was also an increase in operating expenses by 11.7% mainly due to prudent provisions for doubtful debts and long term systematic improvements in operations and customer services. Considering the cash requirements for restructuring and development plan, the company declared a final dividend of Rs 1.50 per share for the financial year ended June 30, 2009. The total revenue for FY 2008-09 stood at Rs 59.239 billion against Rs 66.336 billion of FY 2007-08. The decrease in revenue was mainly in the domestic
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)

3. as current liabilities grew more sharply. staying at same position in FY09. but a continuation of the current negative trend may spell trouble for the company. The debt to asset ratio of the company had declined considerably in FY05 but the trend reversed in FY06. with the current trend in debt ratios bought about largely by changes in current liabilities of the company. Although the liquidity stance of the company is fairly satisfactory at the moment. It is important to note that the company maintains a largely unleveraged capital structure.2.3—Liquidity Position The liquidity position of the company suffered a setback in FY08.4—Leverage Position The debt ratios showed a decreasing trend in the FY09.2. PTCL is making all efforts to boost revenue by improving customer service and launching new services to turn around the situation. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business.91 segment due to competition and reduction in tariffs. 3.2. This may provide an edge to the company over its competitors. This trend has been witnessed despite increasing current assets. Pakistan Telecommunication Company Limited (PTCL) (Roll No. However. The absence of the dividends payable portion of current liabilities in FY05 and its coming back online in FY06 was an important contributor to the trend. This was brought about mostly due to a decline in current liabilities of the company in FY05 and an increase in the same in FY06.W582949) .2.

2bn.5—Activity Position Financial highlights of PTCL witnessed an upward trend throughout the period under analysis. except in FY08 when an improvement was marked. mainly arising from higher cash and bank balances. 3. dividend payout is likely to resume to its initial levels. once the ongoing process of VSS is through. and exacerbating the already long collection period of the company.W582949) . The total assets turnover and sales to equity ratio of the company also declined in the FY'08 as revenues shrunk during the period but increased in 2009 due to better financial management.2. As a result. completely nullifying the effect of the decline in FY08. Pakistan Telecommunication Company Limited (PTCL) (Roll No. However. In 2009. Therefore. complemented by increases in other components of current liabilities.2.6—Dividends PTCL has had a history of paying out significant portion of its earnings to its shareholders.2. PTCL is unlikely to announce any cash payout during FY08.92 Further. could not prevent the trend of the debt ratios.65bn dividend to its shareholders which was a proof that PTCL is again mounting up with the time being. the operating cycle has also decreased in FY08 but then began to increase in 2009. the FY06 also saw an increase in short term borrowings of the company.23. PTCL announces 7. with huge cash requirement for Voluntary Separation Scheme. The ratio jumped up considerably in FY09. The decline in FY08 illustrates that management of PTCL is constantly striving for improvement and enhancement despite stiff competition. Increases in assets.2. which requires a cash outflow of Rs. Sales/equity declined with the increase in equity of the company. 3.

Some of this growth will be accomplished through future mergers and acquisitions with other telecom institutions.W582949) . High standard customer service is an integral part of PTCL’s customer value proposition. But due to cheaper call rates. They are aimed to provide better services to our valued customers for sales of products and after sales services. quality sound. By the end of this year there will be 19 OSS operational in 11 cities of Pakistan. Measures to achieve Set Targets The management of PTCL has been adequately preparing itself to face the forthcoming challenges of deregulated environment. services to customers & facilities available. Customer service is a series of activities designed to enhance the level of customer satisfaction – that is. the feeling that a product or service has met the customer expectation.93 3. Some people may think that PTCL is loosing its position and can not compete with other companies due to rapid growth of cellular phones and foreign companies. As part of strategy PTCL has invested huge some of money to improve the environment & efficiency of its service centers. Future of PTCL falls on its better products and superior services.3—FUTURE PROSPECTS OF “PTCL” PTCL seems destined to continue to grow and be profitable. 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. It was introduced as One Stop Shop (OSS). Customer Pakistan Telecommunication Company Limited (PTCL) (Roll No. With all together complete change in outlook. These “OSS” are nine in number and are in Major cities of Pakistan. quick response to customers. it can get its position in the telecom sector. To face the challenge. these centers are called “One Stop Shop”. Appropriate structural changes have either been initiated or these are underway. launching new packages competing with other networks. improved services.

W582949) .94 feedback about services standards at these OSS is very positive. Some other initiatives are as follows: PTCL Coming Back Strong PTCL has consistently been facing market criticism with respect to its strategic management. quality assurance. for instance. policy. The Balanced Scorecard is a management tool that helps an enterprise to focus on holistic development across the organization rather than just focusing on a single area or on a specific objective. product flavors and orientation towards customer services. market & corporate leadership. however. if the strategic focus and strategy remains correct and effective as stated above. these centers help to provide better service to PTCL customers. they have all the means to differentiate for clear competitive advantage. revenues & finance. Pakistan Telecommunication Company Limited (PTCL) (Roll No. Today. Maintain its Previous Position PTCL will definitely get a sound market share when it maintains its previous position as it was doing as the sole and the whole. The initiatives taken by the PTCL may not be enough for an abrupt change. many large corporate entities across the world have adopted the BSC technique to exceed the overall growth objectives. procedures. If PTCL continues on the same path with focus on product. the list of initiatives will keep on increasing and shall lead PTCL towards Leadership in all the segments it serves.

incumbent 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. within each package the prices can be cross subsidized. PTCL can lower rates of line rent. Cross Subsidization PTCL is providing range of services i. However. marketing & customer care infrastructure. Alternatively as part of overall business strategy. 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.95 New Technology Prior to the start of the competition. in Fixed Line segment.W582949) . Analyzing PTCL position against this experience and seeing the prevailing competition environments of Pakistan. rural and urban and economy groups etc. This practice can have adverse effects on the growth of other licenses particularly those not having vertical integration. As the world experience shows. skilled trained professionals with focus to win business and earn customer loyalty. Cellular Mobile and Internet etc. Pakistan Telecommunication Company Limited (PTCL) (Roll No. residential and corporate customers.e. it can offer different packages i.e. there is a real possibility of cross subsidization. it can be safely concluded that cross subsidization is not possible in Cellular Mobile and ISP markets. This abuse can be controlled through license conditions and accounting separation which will determine the existence of cross subsidization. it can be safely concluded and seeing the prevailing competition environments of Pakistan. billing. Fixed Line. PTCL should be well equipped with new technologies.

Broadband Internet. To control price discrimination. This practice will be a restraint for other operators. Vfon can take PTCL up because these are called future brands of PTCL.) price same. Broadband internet has key importance in our daily lives not only for teachers and students but also in public and private offices. the regulator can impose wholesale cost imputation requirements. hence will be considered anticompetitive. Similarly. in homes. PTCL can resort to price discrimination. and keep the downstream services (ISPs. Brands that can take it up IPTV (PTCL Smart TV). in mobile shops etc. DSL and Payphones etc. Lower rates of intra-network calls will be strong temptation for customers to remain stuck with PTCL instead of switching over to other choice operators. The effect would be reduction or elimination of the profit of downstream service providers because their margins would be squeezed. PTCL can also reduce downstream price of its own services. Vertical Price Squeeze PTCL can increase the price of upstream input (local access).W582949) . Pakistan Telecommunication Company Limited (PTCL) (Roll No. To increase the squeezing effects. Vfon GSM can become a new product of PTCL if it converts Vfon wireless to Vfon GSM and can take lead over its rivals. IPTV can replace local TV cable and dish antennas if it is provided on cheaper rates and to everywhere in the country. For example PTCL may fix different rates for intra-network calls and internetwork calls. It monopolizes.96 Price Discrimination In order to retain and even expand the market share. This can be between users of own network and other operators networks.

we must be able to know about the following: Short-falls / weaknesses of PTCL Conclusion Recommendations Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .97 Part—4 Finding and Recommendations Part-4 Objectives After studying this part.

98 4.  Conflict between management and PTCL workers.  Unknown charges like following news cutting Pakistan Telecommunication Company Limited (PTCL) (Roll No.  Pathetic management who always makes trying to sell its assets on cheaper rates.  Corporate culture similar to government departments and this ex-culture of Government owned PTCL is not being abolished.  Internal organizational and business processes issues.1—SHORT-FALLS PTCL / WEAKNESSES OF  PTCL has not been able to nurture its growth around customer services oriented strategy.W582949) .  Customer is not focused but designations of personnel are changed day by day to get results.

 Bogus calls and new packages are imposed to users without their will.99  Monopolistic culture has further added to its complexities. the fixed wireless phone service is poor.W582949) .  VOIP use is increasing despite ambiguous and discriminatory policies.  Over employment & low productivity.  Dealer’s margin for Vfon brand is too little where its franchisers are working.  Slow decision making including external interferences.  Less ability to attract & retain quality professionals. He is also charged for double call when company representative receives call after almost 7 minutes.  Exposure to market competition.  Reduction in international settlement rates. Pakistan Telecommunication Company Limited (PTCL) (Roll No. the internet service provider arm of PTCL has lost its position and incur losses due to poor management and lack of network optimization.  PTCL-V.  Migration to Cellular Networks.  Corporate support for Customer Facilitation Camps (CFC) is very poor. Customer has to wait for its complain and has to listen its commercial advertisement tape on helpline service.  PTCL helpline services are very poor.  Increased competition in long distance continues to exert pressure.  Paknet.

This makes sure that nothing is being accomplished. Automation and simplification of internal process. Going forward.W582949) .2—CONCLUSIONS “No business can do everything. Even if it has the money. The worst thing to do is a little bit of everything. This will be achieved through improved customer experience.100 4. 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. it will never have enough good people. (Peter Drucker) PTCL is enjoying monopoly but the time is come when competition will force the organization to change its policies to become favorite telecom service provider in telecom sector & to keep its current place as customer oriented. optimization of operational expenditure. Pakistan Telecommunication Company Limited (PTCL) (Roll No. It is better to pick the wrong priority than none at all”. PTCL is poised to align itself in to a more customer friendly and commercially oriented organization. expansion of robust and resilient IP infrastructure and proliferation of broadband services are few of the milestones for the way forward. migration of services to Next Generation Networks. enhancement of national backbone infrastructure. It has to set priorities.

Pakistan Telecommunication Company Limited (PTCL) (Roll No. culture must be abolished.101 4.3—RECOMMENDATIONS  PTCL must adopt customer oriented strategy to bring back its valued products.W582949) .  Overall PTCL still behaves as a monopoly … it has to change its attitude.  Internal organizational and business processes issues must be resolved and must not kept pending.  Vfon Internet connectivity rate must be enhanced. At a minimum.  Fixed telephone line services must be provided on-time.  Franchiser’s margin for its key products must enhance so that they feel attraction for getting PTCL business.  Corporate support for CFC camps must be included and staff should equipped with knowledge of well designed market strategy.  EVO Wireless Broadband must available in even small towns where PSTN connections are not available.  PTCL must introduce GSM technology in Vfon.  PTCL needs innovative service offerings — currently it doesn’t even offer bundles or a single bill  Network of IPTV must be spread in big cities as well as in small towns where other cable operators are working.  Lowest price calling cards must be introduced. avoiding billing errors and providing competent and courteous service to its customers is essential if PTCL wants to show that it is transforming itself to a competitive company which cares for its customers.  Conflict between PTCL management and workers must be come to an end.  PTCL helpline services must need improvement and give quick response to the customers.  Highly qualified professionals must be hired at management level and ex-Govt.

 Availability and visibility of all the products during the CFC campaign.  Customer must get involved in the whole campaign by giving them value and satisfaction.  PTCL must give more and more facilities in this competition era so that people get new PTCL connections rather than disconnecting them.102  Card validity must be increased to maximum period.  Facilitate SBUs.  8000 workers employed in “New Contract Group” are worried about their jobs so PTCL must facilitate them.).  Accessories for all the products must be available at OSS and also provide to franchisers. easy load etc.W582949) .  Strategic Business Units (SBUs) must be fully involved in marketing activities.  PTCL must reduce the worries of their workers.e.  Media vehicle must run before the CFC campaign.  Integration Market Communication (IMC) Process should be adopted.  After sale service quality should be improved. Can the culture of PTCL be changed to a performance and service based organization? According to the latest director’s report from PTCL the “organization is being revamped”.  It is said that the best assets of a company go home to their family in the evening. Only time can tell the impact Pakistan Telecommunication Company Limited (PTCL) (Roll No.  Demo must be shown to the viewers at CFC campaign  Line rent must not be deducted as it is burden to PTCL users.  Easy balance must be introduced as other organizations are giving (i.

103 Part—5 Completion of Training Report Part-5 Objectives After studying this part.W582949) . we shall know about the following: References Annexes Persons Consulted Documents Consulted Pakistan Telecommunication Company Limited (PTCL) (Roll No.

1—REFERENCES (a) PTCL annual reports 2004. Wachowicz.com/business_guide/marketing (n) Daily Nawa-I-Waqt (o) Daily “The News” for financial highlights and business trends (p) Pakistan Telecommunication Authority reports Pakistan Telecommunication Company Limited (PTCL) (Roll No. Thomas (h) Fundamentals of Financial Management—12th Edition by James C. 2006.google.com (m)www.com (l) www. 2007. Herbert W. JR (i) Management—8th Edition by Stephen P. 2005.W582949) .elar. Hildebrandt and Jan P.Murphy.Robbins and Mary Coulter (j) Strategic Management—11th Edition by Fred R.104 5.Van Horne & John M.1000ventures. 2009 (b) PTCL broachers and magazines (c) www.pk (d) Reports of Sales & Distribution Department of PTCL (e) Principles of Marketing—11th Edition by Philip Kotler and Gary Armstrong (f) Marketing Management—12th Edition by Philip Kotler and Kevin Lan Keller (g) Business Communication (International Edition)—7th Edition by Herta A. 2008.com.David (k) Electronic Learning Assessment Resources (ELAR) www.ptcl.

105 Annexes-I Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .

W582949) .106 Annexes-II Pakistan Telecommunication Company Limited (PTCL) (Roll No.

107 Annexes-III Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .

108 Annexes-IV Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .

W582949) .109 Annexes-V Pakistan Telecommunication Company Limited (PTCL) (Roll No.

110 Annexure-IV Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949) .

W582949) .111 Annexes-IIV Abbreviations Used in Internship Report SM (HR&A) SM(S&D) (F&MA) CFC T&T PTC FAB NTC SEVP EVP GM SM PSTN VMS IPTV UAN UIN DPLC ISDN BRI ISDN PRI VPN DXX CLI PPT NSS CMS BNCC LDI WLL VSS Senior Manager (Human Resource & Admin) Senior Manager (Sales & Distribution) (Finance & Maintenance) Customer Facilitation Camp Telegraph & Telephone Pakistan Telecom Corporation Frequency Allocation Board National Telecommunication Corporation Senior Executive Vice President Executive Vice President General Manager Senior Manager Public Switch Telephone Network Voice Mail Service Internet Protocol Television Universal Access Number Universal Internet Number Domestic Private Leased Circuit Integrated Services Digital Network Basic Rate Interface Integrated Services Digital Network Primary Rate Interface Virtual Private Network Digital Cross Connect Caller’s Line Identification Prepayment Telephony Services Network Switching System Complaint Management System Billing & Customer Care System Long Distance International Wire Local Loop Voluntary Separation Scheme Pakistan Telecommunication Company Limited (PTCL) (Roll No.