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Privatization Of PTCL

In 2003 PTCL monopoly comes to an end when government decided to completely liberalize the telecommunication industry. Due falling revenues government pursued a progressive policy in 1991 and announced its plans to privatize PTCL. PTCL has been privatise twice, once in 1994 when 12% shares were sold to general public n secondly in 2006, 26% shares were sold to foreign investor.

Privatization Of PTCL
The Privatization Commission, Government of Pakistan had planned to privatize 51 % shares of entity through bidding. In response, the government faced stirred opposition from the employees of PTCL lead of employees parties and strike of about 20 days lead the knees of government down, which rescheduled the mechanism and presented plan of privatizing 26 % of shares along with the managerial power to Etisalat (Choudhary, et al., 2008).

Privatisation of `PTCL, why?


Government should concentrate on governing countries instead of running businesses. They should monitor business activities n penalize the ones found guilty Ptcl was a monopoly under government control thus didnt face any competition or had any incentive to be more productive.

Privatisation of PTCL, why?


Breaking the monopoly triggered the market competition and thus improvement was seen in technology and rates decreased drastically as well. This will raise finance for the government and they could allocate in an efficient manner in infrastructure , school , hospitals etc The incentives created would prompt the organisation to advertise massively and attract new subscribers

Corporate Vision
To be the leading ICT service provider in the region by achieving customers satisfaction and maximizing shareholders value.

MISSION STATEMENT
To achieve our Vision by having
An organizational environment that fosters professionalism, motivation and quality. An environment that is cost effective and quality conscious. Services that are based on the most optimum technology. 'Quality' and 'Time' conscious Customer Service. Sustained growth in earnings and profitability.

Changes after Privatisation


Logo
Logo- A brand identity

Subscribers Growth & Improvements in Tele-density


No of wireless subscribers were drastically increased after privatization of company Then figure available on PTA website shows that there is a decline in the fixed line services from 2006 to 2009. This is just in wired line connection but the wireless local loop has a increasing trend in its tele-density and also subscribers.

Changes after Privatisation


Telecom Services Tariff
The Re-regulation process offered people to enjoy more choices, greater access to value added services at cheaper prices.

Impact on Competition
With the privatization and Reregulation of PTCL many Competitors have entered in Pakistani market. Paktel and Instaphone 1990 Mobilink-1994 Ufone-2001 Warid and Telenor- 2005 Ptcl also faces competition from NTC and worldcall for providing fixed line services.

Changes after Privatisation


Impact on employees
PTCL has approx. 65000 employees before privatization. The main workforce of the PTCL is unqualified and unskilled. Introduction of VSS(voluntarily separated scheme) Financial Position There was increase in operation expenses by 11.7%. The main reasons for the reductions in the revenue are reductions in tariffs and heavy competition in the market.

Positive Argument
Improvement in technology:
Like DSL, Broadband, IPTV, optic fiber cables and voice messaging

Budget effective
The losses of ptcl was now not to be covered from government budget .

Raised real money


It provided government with instant finance which it I could have invested in improvement of infrastructure.

New projects
Launch of Vfone
expanded the network to provide coverage in all large and small cities including over 10,000 villages in rural areas of Pakistan.

Launch of broadband Pakistan


PTCL will not only be bringing the benefit of high speed Internet access to subscribers in major cities but will also generate new revenue streams for future growth.

New projects
EVO:
It runs on a 3G network and can offer an average of 300-500 Kbps download speeds.

Improve customer service


The contact center is powered by fully automated IT based Billing and Customer Care applications that provide online information to agents to serve the customers interactively.

New projects
Telephone to Television
PTCL initiated the multi channel Inter Protocol Television (IPTV) project during 2006-07

SEA-ME-WE-3 Optical Fiber System:


a Submarine Optical Fiber System Project was commissioned in August 1999.

Negative impact
one of the leading telecom players in Asia before privatization Unemployment after Privatization Corruption Bad customer care service Fall of market shares

Negative impact
Reduction in Profits Loss of subscribers due to competition If the government have showed a little concern for it and managed it in a proper manner it have been today at a better place then now. As the PTCL has been the highest profit earning state-owned company with real-estate assets worth billions of rupees across the country including commercial plazas, residential colonies and exchanges.

Bibliography: www.google.com http://www.economicshelp.org/blog/501/economics/advantage s-of-privatisation/ Reference: introduction to business ( joseph T. straub) ( Raymond f. Attner ) http://en.wikipedia.org/wiki/Privatization http://www.studentpulse.com/articles/566/privatizationanalyzing-the-process-of-privatization-in-theory-and-practice http://www.wec.com.sa/ItemDetail.aspx?itemId=23 http://www.slideshare.net/aveyond/privatisationvani-prasunapresentation http://www.economicshelp.org/blog/501/economics/advantage s-of-privatisation/