PTCL IS NO 1 COMPANY IN PAKISTAN

TELECOMMUNICATION SECTOR.
A CASE OF PAKISTAN TELE COMMUNICATION LIMITED.

This case was written by M.Amoon and Hafiz Abul Aala , under the direction
Of Doctor Muhammad Ismail Ramay, International Islamic University Islamabad. It
Is intended to be used as the basic for class discussion rather than to illustrate
Either effective or ineffective handling of a management situation. The case was
Compiled from published sources and generalised experience.

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HISTORY OF TELECOM INDUSTRY IN PAKISTAN : When Pakistan came into being, the basic telecom services
were being provided by a monopolist, previously called as Telephone and Telegraph department (T&T). This department was being run
by the government and played multiple roles as regulator, policy maker, operator and service provider in the country. The T & T
department was later converted into a corporation. And this corporation was earning huge profits from the services, it was re-investing
the same profits into the sector for the provision of more telecom service but the investment was not enough. Further, with the
technological advancement, more and more telecom services were becoming available but there was not enough money available with
the corporation to install new telecom systems for the provision of modern services. Resultantly, a digital divide prevailed in Pakistan
keeping it behind its neighbouring countries like china and other comparable countries in terms of telecom access. The Telecom Sector
has contributed 2 percent towards the overall GDP growth with revenues of over 235 billion Pakistani rupees..

PAKISTAN POST & TELEGRAPH (P&T): The postal and telecommunication services were performed by a single department
known as Pakistan Post & Telegraph (P&T). This department started its telephone service with only 12346 telephone lines and seven
telegraph offices all over Pakistan. This department continued its business up to 1962. The Government of Pakistan adopted the
Government of India Telegraph act 1885 to control and direct the activities of telecommunication.
PAKISTAN TELEGRAPH AND TELEPHONE DEPARTMENT: Pakistan Telegraph and Telephone Department inherited a small
telecommunication network consisting of only 12,000 lines in 1947. It was the sole Department responsible for providing
telecommunication facilities to whole country. In fact postal services were also included in its responsibilities. The Pakistan Postal
Department was separated from Pakistan Telegraph and Telephone Department in the year 1962. Like all other field of newly born
nation, there was no established system of telecommunication, available in the country. However the present system, as well as new
installations was managed by the T&T quiet efficiently.
PAKISTAN TELECOMMUNICATION CORPORATION (PTC): The erstwhile Telegraph and Telephone (T&T) Department was
converted into a Statuary Corporation on 15-12-1990. It has its own legal identity totally separated from Government of Pakistan.

Bear Stearns Hired as Advisors for Privatization: In 1992, the Government, through the Ministry of Communication, appointed a
high-quality advisory consortium headed by Bear Stearns & Co. and consisting of Coopers and Lybrand and Latham & Watkins to study
the telecom sector in general and PTC in particular and make recommendations for the deregulation of the telecom sector and the
privatization of PTC. 

Based on the outcome of that activity, it was decided that PTC would be sold as a single company with a monopoly on basic telephony
services and through a transfer of minority shareholding but with control of the management of the company. This recommendation later
crystallized in the form of a 7 year monopoly and a strategic sale of 26% with management control.

Vouchers Exchangeable for PTCL Shares are Launched: In mid-1994, primarily to inject an element of continued commitment to the
privatization process, the Government decided to float 2% of the company in the domestic and international markets immediately. In July
1994, Khadim Ali Shah Bokhari/Merrill Lynch were awarded the mandate for the 2% floatation. Consequently, 1 million vouchers
(equivalent to 100 shares each) issued by the Government but convertible into PTCL shares (once PTCL was formed) were pledged in
August 1994. The offer was fully subscribed within Pakistan and was massively over-subscribed abroad. The overwhelming success of
the sale of 2% equity of PTC encouraged the Government to look at the possibility of a further sale through a second tranche. It was then
decided that the 1 million vouchers will be used to fully meet the domestic demand and launch of a second tranche of 10% was proposed
exclusively for international investors.

While the sale of 2% equity in the first tranche was performed primarily to gain popular support for the privatization process, the impetus
for the second tranche appeared to have come from the budgetary support viewpoint. Therefore in September 1994, the Government,
through a finely tuned book-building process, managed to off-load 5 million vouchers at the strike price of Rs. 5,500 per voucher
(representing conversion value for 100 shares at Rs. 55 per share) bringing in approximately US$900 million to the exchequer.

Some of the key commitments made, and met, by the Government in the information packages for the two tranches were:
PTCL would be created out of PTC and shares of PTCL would be listed on the three stock exchanges of the country within 2 years of the
issue of the vouchers/GDRs,
In case the above does not take place as stipulated, the Government will buy back the vouchers at Rs. 3,840 each,
The maximum number of fully paid-up shares in PTCL at the time shares are listed will not exceed 5.1 billion ordinary shares of Rs. 10
each, PTCL will take over a "large majority" of the assets, liabilities, employees and operations of PTC.
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Deutsche Morgan Grenfell Appointed as Advisors for Privatization: In August 1995, Deutsche Morgan Grenfell & Co. Ltd (DMG)
of U.K. was signed on as Financial Advisor to the Government of Pakistan (GOP) on the Privatization of PTCL. The period for the work
was estimated at 9 months to the close of the transaction by May 1996. Morgan Grenfell led a consortium consisting of international
accountants and lawyers (Coopers & Lybrand and Denton Hall respectively, both of the U.K.) supported by local accountants and
lawyers. 

Pakistan Telecommunication (Re-Organization) Ordinance: Also in 1995, a comprehensive "Pakistan Telecommunication

(Reorganization) Ordinance" was promulgated which established the framework for the creation of Pakistan Telecommunication
Authority (PTA) as an independent regulator of all telecommunication activity in the country, the Frequency Allocation Board (FAB), the
National Telecommunication Corporation (NTC) as a second carrier in Pakistan exclusively for public sector communication needs and
the Pakistan Telecommunication Employees Trust (PTET). The Ordinance provided details of the establishment, constitution, powers
and rights of PTA, FAB, NTC, PTCL and PTET and defined the terms of the monopoly of PTCL, the mechanisms of transfer of assets,
liabilities, employees, rights and obligation from PTC to PTCL, NTC, PTA, FAB and PTET. This law also covered issues such as rights
of employees transferred from PTC to the other entities and national security.

PTCL is Born: In exercise of the powers stated under the Ordinance, PTCL was created on January 1, 1996 and took over all the
business of PTC minus about 5% of the assets and much of the Government business which went to National Telecommunication
Corporation (NTC). The carving out of NTC from PTCL was performed in response to the national security concerns, although it was
indeed a very unique arrangement. A minor portion of the assets and employees were also transferred to PTA, FAB and PTET. PTC
stands effectively dissolved from January 1, 1996. Under the law, the 7 year monopoly granted to PTCL commences from this date.

By February 1996, substantially all the activities required for the preparation of PTCL for sale had been completed. These include the
preparation of various draft agreements, draft licenses, policy guidelines, valuations, financial model, Performa accounts, long form
reports, information memorandum, road shows, lender consents etc. Two Data Rooms had also been established and fully furnished with
all documents and requisite support equipment for due diligence. 
On October 17, 1996, the new Pakistan Telecommunication (Re-Organization) Act (Act XVII of 1996) became effective providing
permanency to the Presidential Ordinance in effect prior to that date. This law is a very comprehensive legislation and includes key
provisions for reform of the telecom sector within the country and includes provisions required for the transfer of assets from PTC to
PTCL, formation of NTC, formation of the regulatory body, PTA, Powers of Federal Government, National Security issues, creation of
pension trust for PTC employees and other employee protection issues, etc.
After a competitive bidding process, the mandate for financial advisory services for privatisation of PTCL was awarded to Goldman
Sachs International (GSI) in September 1998. 
RE-STRUCTURING OF PTC
The P.T.C. was further segregated into four separate units in 1996.
1:P.T.C.L. 2:P.T.A. 3:N.T .C. 4:F.A.B.

1:PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCL) PTCL was incorporated on December 31st 1995 and
commenced business on January 1st 1996. The idea behind this was to provide better services to its customers. This was established to
undertake the telecommunication business formally carried out by Ex-PTC. It was responsible for carrying out all kinds of
telecommunications activities in the country. It was required to look after the existing telecom installations and their automation and
development. It was also to undertake development program in telecom field. All properties, assets, obligations and liabilities of PTC
were accordingly transferred to the PTCL on the January 01st 1996.
P.T.C.L. is a prestigious organization and telecom services in the country are
getting better and better, since its incorporation.
2:PAKISTAN TELECOM AUTHORITY (PTA): Pakistan Telecom Authority (PTA) was established in 1996. It falls under the
preview of Government of Pakistan. It issues licenses to various companies for carry out certain activities. This authority is responsible
to monitor the establishment of telecom related firms, companies, the import of telecom equipments etc in the country. It is a regulatory
body formed to accomplish rules and regulations relating to the telecommunication matters.
3:NATIONAL TELECOM CORPORATION (NTC): It has been established for installation of telecommunication facilities to the
Governmental organizations. A portion of working lines was initially transferred to N.T.C. from the P.T.C.L. but now they have
established their network. They are totally. Independent in providing telephones connections, their look after and generation of revenue
there from.
4:FREQUENCY ALLOCATION BOARD (FAB) :This organization has been established to allocate Radio and Wireless telecom
frequencies to various organizations/companies within the country. The latest development in this regard is that F.A.B. is establishing
Monitoring Stations in order to check the validity and legality of the utilization of circuits. worked closely with PTCL on the Customer
segmentation survey & Traffic Analysis. PTCL had also engaged the services of a consulting company to undertake Technical Audit of
its network and performance. The project took 8 months to complete and the final report was presented by the Consultants in June '1999.
The Technical Audit is aimed at establishing a baseline of PTCL's technical, commercial and financial performance, which would
become the benchmark for improvement of the company and its services. The Financial Advisors are expected to start soft marketing of
the transaction by mid February 2001.
Privatization Process of PTCL: In December 1990 Pakistan Telecommunication Corporation was established to replace the "Pakistan
Telephone and Telegraph Department". In 1991 government of Pakistan show its intention for the privatization of PTC to meet the need
of the country and also for esteem growth of economy. A consortium was hired for this purpose to see the feasibility and on the bases of
his report government decided to sell out the 26 % share capital with management rights and to convert it to limited company. As
decided in the "privatization session of 1991-1992" 12% shares of Pakistan Telecommunication have been divested during 1994. One
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million exchangeable vouchers has been issued in august 1994 these were equal to 100 million shares each has a value of Rs 10. In
September 1994 five million vouchers has been issued to international 31 investors. The value of these issues were $900 million from
international and Rs.3 billion from domestic issue while the values of the voucher in first and second issues were Rs.3000 and 5500
respectively. While the issues of 26 % management share was still a controversy, the Government was continue with its mission by
issuing Notes with 150 million US dollar worth to international investor in 1997. The Notes were convertible to fully paid "A" class
ordinary shares of PTCL and these were 3.3 % of the total share capital issued. In august 1997 foreign receivable has been securitized
successfully obtaining 250 million US dollar to GOP. In 1995 a new financial advisor was hired by Privatization commission for the
implementation of strategic sale (26% management shares) but the new governments suspended the services of the financial advisor, and
in 1998 hire the M/S Goldman Sachs International to provide advisory services on PTCL privatization.
The Financial Advisor has start working and established a data room at the head quarter of PTCL where all possible information that is
related to PTCL were available to facilitate the team. Government approved the proposed policy and decided to complete the Re-
regulation by December 2003, major steps has been taken on legal and regulatory measures, PTA granted license to PTML (Ufone) and
proposed DSI regulation for tariff and licensing has also been accepted.
At last in April 2006 control of the Pakistan Telecommunication corporation was handed over to Etisalat (UAE based company), Etisalat
assume the control of the Impacts of Privatization on PTCL . company by paying 2.6 billion US dollar to buy 26% share with
management right in PTCL. With the control of PTCL Etisalat also assume the control of Ufone, one the top class mobile service
provider subsidiary of PTCL.
This privatization has bring in great technological change and innovation, as we can now connect to internet through mobile from all
around the country, telenor is providing TV coverage, MMS and GPRS are the services available on all the mobile operator.
PTCL also signed a contract with Emaar to provide information and telecommunication technology services to household in Karachi and
Islamabad. After this agreement PTCL is the only services provider that offer ICT to two big project of Emaar Pakistan, every household
and office will be connected through fibre optics.

Impacts of Privatization on PTCL

1=Impact on Competition

2=Impact on Employment

3=Impact on Performance

1:Impact on Competition:
With the privatization of PTCL many Competitors have entered in Pakistani market. Paktel and Instaphone were entered in Pakistan
telecom industry in 1990 and in 1994 Mobilink started its function. In 2001, Ufone, a supplementary part of PTCL entered in the market
and in 2005 both Warid and Telenor one by one started their services. From the year 2000 there is tremendous increase in the cellular
users. Mobilink is the largest cellular company with the highest number of users, compare to Ufone. Currently 79% population in Punjab
have mobile phones, 75% in Sindh, 34% in Baluchistan, 63% in N.W.F.P. and overall 73.3% of population in Pakistan enjoying this
facility.
Zong (previously Paktel) has great share in the cellular market. Latest data from PTA shows that Telenor rise to number two and Warid
telecom is becoming more popular and capturing market share with the high pace as compare to other traditional rivals. Within 4 year of
time Telenor has reached to the second largest cellular mobile company after Mobilink with Subscribers of approx. 19 million. Impacts
of Privatization on PTCL.
2:Impact on Employment:
PTCL has approx. 65000 employees before privatization. The main workforce of the PTCL is unqualified and unskilled. About 50%
employees are under graduate. After privatization of PTCL the new management has realized that company spent huge amount on
employees in respect of salary and other different remunerations. In order to reduce the operational cost of the organization, to make it
more effective and profitable, PTCL need to layoff these unskilled employees. PTCL has launched a scheme called VSS (Voluntarily
separated scheme). Under this scheme PTCL has to pay a lump sum amount to the employee who is willing to leave PTCL. The VSS
scheme cost Rs. 34.94 billion to PTCL for the period 2007 and 2008, assuming that 60 percent of the employees avail this package.
PTCL HR wing stepped forward to facilitate the emergence of new Corporate Culture by becoming Equal opportunity employer,
inducting fresh blood from the market, improving the way PTCL runs and reducing the number of employees having outdated skill set.
The Training & Development wing of the HR Department also organized a comprehensive six months ―Urgent Training Needs‖
program in technical and managerial fields to enhance soft skills.
Healthy improvements have been made in the area of Recruitment and Retention as the whole recruitment process has been redefined to
cope with the changing business requirements. Detailed facilitation programs have been initiated for the orientation of newly hired
employees. PTCL employees have been provided excellent international placement opportunities across various Etisalat International
Business Operations.
Training and Development
The role of training and development in a service involved organization is many times more in comparison with what it has in a
manufacturing involved organization. This role becomes more significant in a situation where the need to transform organizational
culture is identified as the most glaring problem and the most difficult impediment on the way to organizational growth. PTCL
employees are a great asset not only for the company but also for the country. Their marvellous potential is yet to Impacts of
Privatization on PTCL be exploited. Their skills need to be developed, their expertise need to be updated for which training and
development department is at their disposal to cater to their training needs.
At PTCL, training and development team would never miss an opportunity to contribute towards the betterment of the company.
Training and Developments is playing an essential role in changing PTCL from a government sector organization to corporate sector
company. PTCL consider every employee of the company as our customer and firmly believe that meeting their expectation would help
us achieve customer satisfaction. We look forward to your input for making our endeavours more effective. The Training and
Development has a clear road map of activities and is committed to provide high quality trainings for the development of every single
employee.
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3:Impact on Performance:
The performance of ptcl is improving after privatization and booming performance of PTCL.
Liquidity Ratio:
THE LIQUIDITY RATIO POSITION IS BETER THEN LAST YEARS.
Liquidity:
A firm’s ability to satisfy its short-term obligations‖, (Lawrence J. Gateman; Principles of Managerial Finance).
Liquidity refers to the solvency of the firm’s overall financial position, the ease with which it can pay its bills. Because a common
precursor to financial distress and bankruptcy is low or declining liquidity, these ratios can provide early sign of cash flow problems and
implementing business failures. The two basic measures of liquidity are current and quick ratios.

CURRENT ISSUES OF PTCL:

PTCL PRESS STATEMENT IN 30TH SEPTEMBER 2010:

Pakistan Telecommunication Company Limited (PTCL) today announced its financial results for the first quarter ended 30 th September
2010. The company has announced a net profit of Rs. 2.081 billion compared to Rs. 2.568 billion recorded in the same period last
year .During the last financial year, PTCL continued its strategy of developing new sources of income, on the Commercial side. In the
financial year 2009-10, the growth momentum of PTCL remained strong in emerging segments of Broadband and Corporate Services.
During the year, broadband footprint (wire line and wireless) expanded by more than 100% resulting in 172% increase in revenue from
this market segment. For the period PTCL earned profit after tax of Rs. 9.294 billion which was 1.6% higher as compared with net profit
of Rs. 9.151 billion for the last year.PTCL group revenue during the year under review stood at Rs. 98.906 billion, showing a growth of
6.7% over last year. Of this, PTCL’s revenue was Rs. 57.175 billion compared to Rs. 59.239 billion for the preceding year.
PRIVITIZATION COMISSION:
DATE 01.OCTOBER.2010
Last week, on the floor of National Assembly, Minister for Privatization, Mr. Waqar Ahmed Khan was asked to present fact and figures
on Etisalat pending payment, and the steps being taken by the Ministry to recover the said amount from the purchaser.
In response to which, Mr. Waqar Ahmed Khan told the house on September 23rd, 2010 that Pakistan Telecommunication Company
Limited (PTCL) was privatized through sale of 26 percent shares for US$ 2,598,960,000 along with transfer of management control.
So far Privatization Commission has received US$ 1,799,653,313.31 and US$ 799,306,686.62 are outstanding. Minister stated that the
Privatization Commission (PC) has followed up the case of transfer of properties with earnestness and dynamism. Secretary PC held
various meetings with the Provincial Chief Secretaries/Senior Members, Boards of Revenue for resolving the issue.
The Minister for Privatization also wrote D.O. letters to the Chief Ministers of Punjab and Sindh to help facilitate the transfers. Owing to
the efforts, both Sindh and Punjab agreed to charge fees at amenity rates (50% of the commercial rate).

Transfer the properties of PTCL to its name:(That is the issue the etisalat did not pay the 40% remaining amount.)
(According to CTO of PTCL )
On 18th December, 2009 Mr. Mohammad Imran, Chairman and Managing Director, Etisalat and his team called on the Prime Minister.
After discussion with Chairman Etisalat, PM had decided Three Member Minister’s Committee consisting of Minister for Privatization,
Minister for Information & Broadcasting and Minister for Petroleum and Natural Resources will immediately take necessary steps to
resolve the issues regarding land.
This Committee will, if necessary, resolve the issue regarding valuation of the properties with the Provincial Chief Ministers and other
Federal Government Agencies. Subsequently, a meeting between the Privatization Commission and Etisalat was held in Dubai on 26th
January, 2010 on the sidelines of FODP. The GOP reiterated its resolve for amicable resolution of issues. Privatization Commission by
using its best endeavors had arranged 64 properties in Punjab, 21 properties in Sindh to be mutated immediately in the name of PTCL
upon settlement of modalities of payment to the provinces.
Regrettably Etisalat digressed from the understanding developed during the meeting. Subsequently, a three Member Ministerial
Committee constituted by the Prime Minister, consisting of Minister for Privatization, Minister for Information & Broadcasting and
Minister for Petroleum & Natural Resources in its meeting held on 17th March, 2010, after deliberating on the various categories of land,
directed that all relevant authorities of the Provinces and Federal Government should be engaged at the appropriate levels to get as many
of the remaining properties as possible mutated in the name of PTCL at the earliest. The Committee also directed that Etisalat be
approached for delisting of 118 private properties from SPA and prepare plan of action for the remaining. The Committee further
resolved to provide full support to the Privatization Commission in its efforts to settle the outstanding land issues. Therefore the matter
was placed before the PC Board on 18th March, 2010 which endorsed the Committee’s recommendations.
Accordingly, the Privatization Commission wrote a letter on 30th March, 2010 to the President & CEO PTCL regarding using its best
endeavors in facilitating PTCL and to work closely with PTCL for expeditious mutation of properties and also requested that PTCL /
Etisalat may delete the 118 private properties from the list of outstanding properties to facilitate the resolution of the land issues and
outstanding installments, however no favorable response was received .PTCL responded on 1st April, 2010 that PTCL does not have any
authority or jurisdiction to amend / waive any of the obligations of the parties under the SPA. Therefore, the Commission may
correspond directly with the Etisalat International in this regard. Government of Pakistan is using its best endeavors to get the
outstanding properties mutated in the name of PTCL, in this regard 99 Punjab properties have been mutated as of 20th April, 2010 list of
which was forwarded to Etisalat vide Privatization Commission’s letter dated 23rd April, 2010 and was also requested to release the
outstanding installments. In response to PC’s letter, Etisalat on 26th April, 2010 appreciated the development and efforts made by GOP
and reiterated their position in context of SPA. Recently PC has again approached Etisalat for payment of outstanding installments.

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Polititions Sporter Employees Strike before a month ago: (according to CTO of PTCL discuss with us).
The ptcl worker union strike a few month ago. The back hand on this strike is some polititions.who support the workerunion.but this
strike is totally fail because the ptcl management is right at the time. And the judiciary and media also support the ptcl point of view.ptcl
management decided to gave the bonus to their employees 30% bonus of basic salary are given to all of the employees but 20% bonus is
related to worker performance. But the union decided to gave full bonus all the employees no bonus depend on the performance of
worker. And this situation is highlighted some polititions because the management of ptcl work against some polititions point of view.
And working effectively without any guidelines to the polititions.

CORRUPTION IN PTCL IS NOT EXIST: There are a lot of corruption in our society specially government institute but ptcl is
completely clear from this corruption because the management of ptcl is selected on merits. And after the privatization the working
efficiency of ptcl is increasing day by day. Some of our polititions point that there is a lot of corruption in ptcl but they have no proof and
the only reason is that ptcl does not fulfill the illegal orders of our polititions.

ECONOMICAL ACHIVEMENTS OF PTCL: As the world suffering from the economic crises which effects all the countries of
world. This effect is transferred to the organizations of country. As PTCL is semi govt institution. And most of the govt lines are
providing by PTCL It means economic condition has great impact on it. The economic situation in Pakistan is not so good and most of
the times there is depression in the economy. High inflationary rates, stock exchange freeze and international recessionary trends have
shown a negative impact on our economy. These things make the investor more reluctant in investing his money. But ptcl faces all of the
problems very effectively so that is one of the reason
reasons that the investor invests a lot of money in ptcl due to its effective
due due to its performance, planning and workings.

1: PROFITABLE COMPANY: According to the

financial highlights of ptcl the ptcl performance is
increasing ,leverage is also increasing valuation of
share is increases after recession. Profit is increases. So the ptcl is growing day by day.
Profit and dividend ratio is also increases.
The share holders are also increasing on ptcl
Due to its performance.

2:FINANCIALY TOO MUCH STRONG: The

Ptcl is financially too strong the remaining amount
is still receivable and without this ptcl has a lot of
assets in all over the Pakistan at key places.

3: PAKISTAN NO 1 COMPANY IN TELECOM:

Ptcl have 0%share in internet in 2005 but now ptcl

have 90% shares in internet in all over Pakistan.And
the ptcl is not only one company who provided land
line and internet but people of Pakistan trust on this
company. So this is the guarantee that there are no
corruption in ptcl and the ptcl is become No1
company in Pakistan.

4:PTCL IS ONE OF THE FASTEST GROWING

COMPANY IN PAKISTAN:PTCL is one of the
fastest growing company in Pakistan and make a
revolution in telecom sector .introduces new
technologies in Pakistan like fast wireless
broadband services for example EVO with 3.1 mbps
speed and EVO NITRO with 9.3 mbps speed
and on a very low rates. The shares value of ptcl is
increasing day by day and the assets of ptcl is
also growing.

5: LATEST VALUE OF PTCL SHARE AT THE TIME OF STOCK EXCHANGE CRASHES: The value of one ptcl share is at
11.11.2010.and the total turnover is this shows that the investor trust on ptcl economical situation. And that is why a lot of investor
invested in ptcl.

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6: Pakistan Telecom Sector Growing Faster than India: PTA Chief: Pakistan Telecommunication Authority (PTA) Chairman Dr
Mohammad Yasin has said that Pakistan telecommunication sector has been growing faster than that of India with over 62 percent
teledensity, encouraging the foreign direct investment (FDI), during an interview with Business Recorder. Dr. Yasin said that India
lagged far behind Pakistan with 37 percent teledensity as compared to 62 percent in Pakistan. He added that Pakistan’s FDI policy was
much more liberal than that of India to attract more investment in Pakistan telecom sector. The PTA Chairman said that the ever-growing
teledensity of Pakistan was giving new opportunities to the investors for better returns, especially in the field of data services. Services
like mobile internet, mobile banking and Internet Protocol Television (IPTV) hold fortunes for any wise investor.
“Telecom analysts around the world still believe in Pakistan to be a lucrative market and Business Monitor forecasts that mobile
subscribers in Pakistan would hit 100-million mark by next year”

TECHNOLOGICAL ACHIEVEMENTS:

1: PTCL Launches 10 MB DSL Broadband

PTCL has introduced a new 10 Mbps Broadband package on 10/10/10, This package is  in addition to its existing Broadband packages.
The New 10 Mbps data rate is offered to the customers at Rs. 9,999 / month with unlimited download. Current PTCL Broadband
packages are;
1Mbps at Rs. 1,199
4Mbps at Rs. 1,999
6Mbps at Rs. 4,999
8Mbps at Rs. 6,999
10Mbps at Rs. 9,999
On the other hand World Call, one of PTCL’s rival, is providing 10 Mbps Cable Broadband in rupees 8,000. But it’s only available in
selected areas – where as PTCL’s DSL coverage spans almost all over the Pakistan. PTCL Delivery of high speed broadband services
remains a question mark – as company’s old infrastructure, particularly in far flung areas, may not support this much of data transfer
rate. Only cities like Lahore, Islamabad and Karachi having new Fiber Optic lines may support 10 Mbps data rate.
2: PTCL BUY NEW OPTICAL FIBER IN THIS YEAR TO SPAND THERE INTERNET BROADBAND SERVICES: Ptcl buy a
new optical fiber and spend their services to all over the Pakistan like new villages in Punjanb Sindh and specially NWFP Gillget
baltistan and Balochistan.

3:PTCL BUY A NEW OPTICAL FIBER WHICH SPEED IS A LOT OF THE PREVIOUS PTCL CABLE:
(COST OF RS 5 BILIIONS AND PROJECT IS STARTED IN JANUARY 2012): This project is starting at the end of next year due to this
ptcl is upgraded its optical fiber and due to this ptcl is capable to provide too much high speed internet with excellent quality. And
This project is completed in the January of 2013.
4:PTCL GAVE A NITRO PACKAGE ON EVO WHICH HAVE 9.3MBS: PTCL also launched its EVDO Rev-B network which
offers unparalleled internet speed of up to 9.3 Mbps. This achievement makes PTCL the first operator in the world to launch this service
commercially in Pakistan. Conscious efforts were made to further facilitate landline customers by expanding the spectrum of available
services and packages. The geographical reach of popular packages was extended to benefit a broader customer base. PTCL further
streamlined its pricing strategy to make it more customer focused by offering convenient payment plans.

5:PTCL GAVE AN UNLIMITED DATA DOWNLOAD THIS OFFER DOES NOT EXIST IN ANY COUNTRY OF THE
WORLD:The ptcl have launch the dsl with unlimited download first time in the world. No world company can meet this offer in the
world.and the minimum browsing speed is 1mbps.etisalat who invested in ptcl also does not have the minimum downloading speed is
256kbps.such as in UK the unlimited downloading speed is not available on minimum speed even the high speed that data downloading
is limited.so we are say freely the Pakistan is only the country in the world in which the ptcl provided unlimited downloading speed.

6:PTCL TOTAL EXCHANGES IN ALL OUR THE COUNTRY:PTCL network is based on 9,546 automatic and 456 manual
exchanges. The switching network of the country comprises digital main switching units and remote line concentrator units, analogue
and manual Central Battery (CB) system.

7:PTCL INTRODUCE SMART TV WITH HIGH PICTURE QUALITY: Ptcl launches smart TV via telephone cable so ptcl
provided 5 things on one cable.1:telephone line.2:DSL high speed internet.3:smart tv.4:video conferencing.5:Data security services.

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PTCL LATEST PACKAGES:

1: PTCL Introduces Call me Back SMS Service: There is a time when you need someone (Mobile user) to call you rather than you
call them. Possibly, either you are budget conscious or may be someone’s cell phone was busy while you dialed his number from your
landline. For such kind of situations, PTCL has introduced this service – which will send a pre-defined text to the number of your choice
requesting him/her to call you back.
2: Service Mechanics: Just dial 1322 from your landline or VFONE and follow the IVR.It will ask you to enter the cell number on
which you want to send a Call Me back message SMS with pre-defined text will then be sent out from the PTCL to the GSM/WLL
number, requesting for a call back
Tariff: Each call will be charged @ 50 Paisa / Call (Exclusive of tax).No service subscription is required.
3: PTCL will Offer Weekend and Intl Bucket Packages: PTCL is all set to introduce Nation Wide Weekend and Off-Peak, European
and Far Eastern Bucket packages for its customers, we have confirmed with sources in the company. These packages are likely to come
at a monthly rental with a set amount of minutes to be used during weekends, off-peak hours, or otherwise for European and Eastern
countries.
4: NWD Weekend and Off-Peak Package: Unlimited on-net NWD calls from 8 PM to 8 AM and weekends. Free 100 minutes to
mobile networks during 8 PM to 8 AM and weekends. Package charges will be Rs. 350 per month
5:European Bucket Package:250 minutes to fixed networks of Spain, France, Belgium, Germany, Greece, Italy, Netherland and
Norway Package Charges: Rs. 300 per month Far Eastern Bucket Package250 free minutes to fixed networks of South Korea,
Malaysia and Fixed and Mobile networks of Hong Kong Package charges: Rs. 300 per month. Subscribers will be able to select one or
multiple buckets at a time..We are yet to ascertain the Launch date of these buckets.

WE PERSONALY INTERVIEW TO MR.NASRULLAH KHAN THE PRESENT CTO OF PTCL AND WE ASK ALL THAT
QUESTIONS AND HE GAVE THE ANSWERS WHICH ARE UNDER BELOW (7.11.2010)

QUESTIONS:
1: Is it necessary to privatize a profitable and strategically important entity like PTCL?
Ans: It is necessity to privatize the ptcl because the worker efficiency is enhanced after privatization. And the new technologies are
introduces in telecom sectors. And government also earned the revenue after the privatization. So the privatization directly impact to the
performance of the business, impact on the employees and direct the financial position of the business.

2: why the government did not action against the breach of contract by Etisalat?
Ans: The govt does not take the action against the Etisalat because Etisalat have right at the time because Etisalat pay the remaining
amount on a special condition when the govt convert all the ptcl assets on the name of ptcl. Because the govt of Pakistan dose not
transfer the assets to the ptcl.thats why the Etisalat point of view is right. So govt of Pakistan stand is wrong at this situation.

3: why government gave the extra time to the Etisalat to paying their payables?
Ans: The govt did not give the extra time to Etisalat because govt of Pakistan breech the contract. If Etisalat breech the contract the govt
is not give the extra time. But the point is that the bid of Etisalat is too much high as compare to china mobile who’s the 2 nd largest bid
for 26% shares of ptcl.

4: can success and efficiency be linked only to private entities?

Ans: This is depending on the management of the company. If the management of the public company is efficient and able to maintain
the positive business situation then there is no necessary to privatize this type of business entity. And normally the performance of
private company is much better then public companies.
5: after privatization a lot of question marks on ptcl performance? (Like decreases profit ratio/ revenue /employees/and liquidity
ratio).
Ans: The profit ration is decreases in all over the world due to world great depression. And the present economic situation of Pakistan.
And after this the earth quack and flood destroy all the setup so due to these incidents company bear a lot of extra expenses. And in this
situation the profit ratio is nearly to zero in other telecom companies like telenor, warid, and mobilink.but ptcl and ufone can earn a lot of
net profit. And the profit ratio is increases in 2010 as compare to 2009.
6: what are the future strategies of ptcl?
Ans: In future ptcl acquire new technologies and also purchase warid in Pakistan. The pay scale of ptcl has its own does not ike govt
employees and get better medical facilities to their employees. And launches video conferencing service in Pakistan first time ever.

7: who are responsible for present ptcl problems?

Our polititions are responsible for a little problem of ptcl like Etisalat does not pay the remaining amount and in this case the govt of
Pakistan take wrong steps.

8: what are the future goals of ptcl?

Ans: The future goals of ptcl to achieve no 1 position in south Asia and maintain this position and contribute in success process of
country.
9: why did not ptcl make a long contract to huaway and what are the reasons to cut of Norton hardware instruments?
8
Ans: Because the huaway is the new company who put their instruments in 1 st time in ptcl that’s why the ptcl does not make a long
contract to huaway. And the Norton is bank corrupt in 2004 so ptcl take a contract with ZTE, Huaway and Motorola. And Norton have a
old model instrument and huaway have new instrument and ptcl gave them money after testing the instrument after 3years.and huaway
gave them free installation services so ptcl make the contract with huaway.

OUR SUGGESTIONS TO PTCL AT CURRENT SITUATIONS:

Improve Recommendations: I suggest PTCL to improve quality of service, and introducing new products and emerging services to
satisfy specific market segment needs besides consolidating its leadership position in fixed line business. The customer interfaces will be
fully empowered to achieve corporate objectives. Automation and simplification of internal process, optimization of operational
expenditure, enhancement of national backbone infrastructure. Some are as under:

New Technology: Prior to the start of the competition, PTCL should be well equipped with new technologies, billing, marketing &
customer care infrastructure, skilled trained professionals with focus to win business and earn customer loyalty.

Price Discrimination In order to retain and even expand the market share, PTCL can resort to price discrimination. This can be between
users of own network and other operators networks. For example PTCL may fix different rates for intra-network calls and inter-Impacts
of Privatization on PTCL network calls. 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. This practice will be a restraint for other operators, hence will be considered
anticompetitive.

Customer Services I have found that customer service of PTCL is not competitive. The complains of customers are rarely solved out on
their on their phone calls. It is very rare that your call connect to operator of customer services. Case of damage of communication wire,
two to three weeks is needed to repair it.

References

1: Financial highlights from www.ptcl.com.pk

2:History from personal data collection and arranging them in a specific manner.

3:Person interview of present C.T.O of PTCL. Mr.Nasrullah Khan

4:Information about telecom industry in Pakistan www.pta.gov.pk

5:Person interview of Mr.Faisal senior engineer in u-fone.

6:Privatization of ptcl from www.privatization.gov.pk

7:Current isues of Ptcl from www.dawnnews.com

8:http://www.scribd.com/docs/4kxhtw4mfjhct0slzl6.pdf

9:Govt of Pakistan are not transferring the ptcl assets to its name.www.propakistani.com/2010/10/04/performance of govt.

10:www.pakwheels.com ptcl/forum/news of 2010

11: Sale of 26 percent shares of PTCL: Waqar for amicable resolution of issues with Etisalat Minister on Information Technology, senior
officials of Ministries of Finance, I.T and PC attended the meeting.senate meeting report directly collected from senate room reports at
date of September 2, 2010.

12:Supreme court order on the strike of ptcl employees in the favour of ptcl august 28,2010.