PTCL Internship Report Part 3 of Yasir

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Part1
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)
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1.1BACKGROUND 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 societys material requirements and its economic pattern of response.
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1.2PURPOSE 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.
1.3SCOPE OF WORK
It encompasses market planning, sales and distribution, implementing designed market strategies, control the market operations, analysis of competitors products & services, shortfalls and weaknesses of the organization as well as products & services and finally recommendations to the organization.
1.4METHODOLOGY 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 PTCLs 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 PTCLs website Interviewing people and knowing about PTCLs service and products through questionnaires Collection of date and analyzing it Presenting findings and recommendations
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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Conclusions
1.5SCHEME OF REPORT Part-I includes introduction to the report Part-II

includes reviewing the PTCL in terms of business volume,
organizational structure, marketing departments operations, function of sales and distribution department etc.
Part-III
includes different types of analysis of PTCL business and its
competitors etc.
Part-IV includes finding and recommendations for Pakistan Telecommunication

Company Limited
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Part2
Review of PTCL
Part-2 Objectives
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 Departments Operations Role of PTCL Managers Use of Electronic Data in decisionmaking
2.1OBJECTIVES OF STUDYING PTCL

Marketing-oriented thinking is necessity in todays competitive world. Some companies are trying to expand the size of the market. But most are competing to enlarge their shares of the existing market. As a result there are winners and losers. The losers are those that being nothing special to the market. The winners are those who, fully analyze needs, identify opportunities and create value- rich offers target customer groups that competitors cannot do much. PTCL is the leading company in telecom sector in Pakistan which is also considering these issues. Marketing at present is not a function; it is a way of doing business. Marketing is not a new and campaign on this months promotion. Marketing has to be all pervasive part of every ones job description, from the receptionists to the board of directors. Its job is neither to fool the customer nor to falsify the companys image. 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. So, I have to focus on those areas which need improvement and benefit PTCL too. I hope subsequent mentioned objectives will not only benefit PTCL but also add a lot into my book of knowledge. 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. These are the learning mile stones and understanding the theoretical situation in practical mode.
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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.e. organizational analysis, financial analysis, To improve report writing skills To develop concrete plans, 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, 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 Pakistans To inquire about employees augmentation, incessant development and
marketing analysis etc.
for improvement
Pakistan.
leading Telecom Company. improve performance goals.
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2.2OVERVIEW 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. The circle of the family grows and is strengthened with every addition of a voice, and who understands it better than PTCL. 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. From the first faltering hello to the most eloquent speech, PTCL has given voice to many little angels of Pakistan and today it has become one strong voice of the country. PTCL is the largest telecommunication provider in Pakistan with employee strength of 30,089. It also continues to be the largest CDMA (Core Division Multiple Access) operator in the country with 0.8 million Vfone customers. Moreover, the company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. 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.
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2.2.1 Historical Background

1947- Establishment of Posts & Telegraph Dept 1961- Establishment of Pakistan Telegraph & Telephone Dept (T&T) 1990-91-Establishment of Pakistan Telecom Corporation (PTC) 1995- About 5% of PTC assets transferred to PTA, FAB (Frequency Allocation Board) & NTC (National Telecommunication Corporation). 1996- PTCL Formulation and listing on all Stock Exchanges of Pakistan. 1998- Establishment of Mobile (Ufone) & Internet (PakNet) subsidiaries. 2006- Etisalat Takes Over In April 2006, Emirates Telecommunication Corporation, which is commonly known as Etisalat, acquired 26% shares of PTCL. 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, and is ranked as the 6th largest company in the Middle East in terms of capitalization and revenues. Etisalat is currently operating in 14 countries namely UAE, Saudi Arabia, Egypt, Pakistan, Afghanistan, Sudan, Niger, Ivory Coast, Benin, Togo, Tanzania, Bukina Paso, Gabon, and Central African Republic and is continuing to pursue new mobile and fixed line opportunities in many growth markets. Management has started another mega project from August, 2008 with MCKINZIE, a management consulting firm, which aims at revamping the HR policies, Processes and Organizational structures in order to convert PTCL from public entity to corporate entity. Now a days PTCL management is adopting new market oriented strategies to become the telecom icon in Pakistan.
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2.2.2Nature of the Organization

Pakistan Telecommunication Company Limited (PTCL) is proud to be Pakistans most reliable and largest converged services carrier providing all telecommunications services from basic voice telephony to data, internet, videoconferencing and carrier services to consumers and businesses all over the country. Whether it is an office in the largest city of Pakistan or a home in a small village, PTCL is present in every corner of Pakistan to serve customers.
PTCL Stock Price

Symbol Bid Volume High Rate Current Rate Price Change Outstanding Shares PTC 3505587 22.27 22.27 Open Rate Bid Price Low Rate Turnover 1.06 Percent Change Market Capitalization 21.21 22.27 21.90 2124273 5% 84046980000
3774000000
Table-1-PTCL Stock Price
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2.2.3Vision 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, the people perishProverbs 29:18)
2.2.4Mission of PTCL
To achieve our vision by having: An organizational environment that fosters professionalism, motivation & quality. An environment that is cost effective & quality conscious. Services that are based on the most optimum technology. Quality & Time Conscious Customer service. Sustained growth in earnings & profitability
2.2.5Core Values
Professional Integrity Customer Satisfaction Teamwork Company Loyalty
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BUSINESS VOLUME in terms of revenue, deposits,

advances, investments. Etc. Quote figures for five years and analyze trend. Use latest years data
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2.4ORGANIZATIONAL 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
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SEVP BZ South
SEVP Finance
SEVP HR
CIO
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2.5PRODUCTS AND SERVICES

PTCL achieves its customers satisfaction by providing them with features and services like network coverage, performance, reliability & security at their specific locations.
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15 PTCLs services are available for two types of Customers:

1. Consumers Services 2. Corporate Services 3. Value Added Services for Consumers
2.5.1Consumer Services:
1. PSTN (Public Switch Telephone Network) 2. V fone 3. V fone Postpaid 4. Broadband 5. IPTV (PTCL Smart TV) 6. VMS (Voice Mail Service) 7. Free Internet Facility 8. Kehdo SMS 9. PTCL Direct 10.EVO Wireless Broadband 11.PTCL Calling Cards
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16 1-PSTN (Public Switch Telephone Network):
This service is available on conventional fixed line phone. This service includes convenient features and options like Caller-ID, Call Forwarding, Call Waiting, Conference Calling, Call Barring and Do not Disturb. PTCL also offers flat calling rates for local, nationwide and international calling services to its customers. For further details on PSTN, help line 1236 can be contacted.
2-VFONE FIXED WIRELESS ACCESS NETWORK:
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Vfone is a replacement of fixed line phone mainly in the areas where there is not network availability. Wireless phones are based on CDMA2000 1X technology. PTCL has built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The network is enabled for Voice, Dialup-Internet access (115kbps) and EVDO Broadband.
3-V FONE POSTPAID
PTCL now has introduced V Fone postpaid in exciting packages for its customers bringing new enhancement in its products.
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18 4-BROADBAND:
PTCL is offering high speed broadband to its consumers for high speed internet connectivity with easy downloads & uploads. Free DSL modems are offered to the customers while special discounted student package is offered to the students as well.
5-PTCL SMART TV:
Its a fixed line service that allows the customers to experience telephony, Broadband and multi-channel TV service all at the same time, on the same line. No additional cable would be required to receive cable TV / Multi channel TV. An IP
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(Internet Protocol)-based platform allows the TV service to be smarter than the traditional broadcast and cable TV services, by making the TV viewing experience more interactive and personalized.
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. After 6 or 7 rings the voice mail service activates and the caller can leave the message in his voice. Voice mailbox can be accessed 24 hour a day, 7 days a week and the customer would never miss an important call. PTCL has extended its Voice Messaging Service to 38 cities and its all free.
7- PTCL INTERNET FACILITY:

PTCLs limited time offer of free internet has ended w.e.f from May 16, 2009. PTCL has introduced refined Phone-n-Net services with new charging mechanism which is equivalent to old hourly usage charges. PTCL subscriber can still enjoy this innovative service with nominal charges. Key Highlights of new offer: Unlimited Download
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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. In this service, the caller can leave a text message from his digital phone to any cell phone number. That text message is received with voice on the cell phone as an incoming call.
9-PTCL DIRECT:
PTCL direct is a pre-paid international calling service for making calls from the UK to Pakistan. The service aims to extend PTCLs reach to UK based callers wishing to stay in touch with their family & friends in Pakistan. Customers can purchase credit online (using a credit card) and make calls to any number in Pakistan direct through PTCL. The calls will be charged according to prescribed PTCL tariffs. www.ptcldirect.com is the website for further information on PTCL Direct.
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21 10- 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. It has been introduced in big stratas. We can get up to 10 times the peak data rate of the next best public wireless solution up to 3.1 Mbps download and up to 2.4 Mbps upload speed. It also allows the user to be connected wherever they are not only for email, but also for downloads, large files, photos, spreadsheets, etc.
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22 11-CALLING CARDS DENOMINATIONS:

PTCL Calling cards are available at Sales & Service Centers, PTCL Customer Service Centers and retail shops, in following denominations:
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2.5.2Corporate Services
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 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, preceded by 3 digit code of 111, common to all UANs. UAN operates on existing telephone connection without disturbing normal phone number. UAN never changes, if you move your office or your
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normal telephone number is changed, your UAN will remain unchanged. UAN can be accessed from other cities by dialing the area code first.
2-UIN (Universal Internet Number):

131 numbering scheme for Internet Service Providers, represents exclusive code assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves allocation of numbers to individual ISPs who are licensed by PTA. This service functions under a single-metering billing system with the promise of rich dividends in terms of customer care.
3-Business DSL:
PTCLs business DSL solution provides a reliable, business-class broadband connectivity, which will help the customers to download software and large files, research the web and communicate with their business associates and business partners.
4-Domestic Private Leased Circuit (DPLC):

This service is also called even stream/channel stream. In this service, PTCL provides leased line services to other service providers & corporate customers for data or voice communication by establishing a connection between two exchanges.
5-IP Connect:
The IP Connect service is based on Internet Protocol Virtual Private Networks (IP-VPN), which allows companies with locations spread out in PAKISTAN to connect
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and transfer data on a private and secure way over reliable robust network infrastructure.
6-ISDN BRI (Integrated Services Digital Network Basic Rate Interface):

This service allows the customer to have two connections on a single line. In addition, it allows clearer voice communication plus a faster way to send and receive fax, video images, graphics and computer data on a phone line. You can have a single Tele Plus connection, just like a conventional phone line. Moreover, Customer can go utilize phone line as well as internet at one and the same time. Total bandwidth of the BRI is 128 kbps.
7-ISDN PRI (Integrated Services Digital Network Primary Rate Interface):

This service allows the customer to have thirty connections on a single line. Small as well as medium sized clients usually go for this facility to facilitate their internal & external Customers. Business customers can operate their PABX more efficiently while using PRIs. Total bandwidth of the PRI is 2 MB. Call centers operate on PRI.
8-Co-location centers:
Pakistan Telecommunication Company Limited (PTCL) has taken the landmark decision to establish Co-Location centers throughout the country. In the first phase, these centers are established at Islamabad, Lahore and Karachi. PTCL has rented out its
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free premises with ready fitted environment (with AC and DC power) to other Telecom and IT Companies where they have installed their equipment directly.
9-Digital Cross Connect (DXX):

PTCL offers flexible and reliable services through a high quality platform of Digital Leased Line Network to organizations, normally to financial institutions (banks).It is meant for data communication only and provides connectivity between two offices. PTCL digital cross connect (DXX) network provides the most dependable media for WAN connectivity with more than 200 Nodes countrywide.
10-CALL CENTERS:
International Call Centers: Call centers operate through a 0800 Toll-Free Service, 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. This service however involves certain human resource requisites like communication skills and customer handling to be arranged by the subscribers. Domestic Call Centers: Domestic Call Centers also operate through 0800 Toll-Free Service, wherein customers calls are routed to a call center where trained agents respond to the inquiries of the customers. This service however involves certain human resource requisites like communication skills and customer handling to be arranged by the subscribers.
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28 11-Audio Conference:
PTCL offers audio conferencing services for SME/Corporate Customers with up to 120 participants per conference. Audio conferencing services are easy to use with interesting billing packages, designed for maximum user comfort and convenience with web integrated interface. Audio Conferencing allows organizations to conduct virtual meetings between clients/customers/staff both locally and internationally.
12-VPN Service:
This service allows a private enterprise to have a virtual private network using public network resources, without requiring the installation of dedicated network resources. With the VPN service one can flexibly control the outgoing call authority of phones by setting the closed group. Moreover, VPN allows to make calls on reduced rates on all the numbers on the virtual private network.
13-Premium Services (0900):

These services are based on the system called IVR (Interactive Voice Response) .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.
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, where the
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client can be mobile or stationary and the client requires low bandwidth to access the server.
15-International IP Services:
PTCL is the largest IP services carrier in Pakistan with extensive international peering capacity. It provides secure and reliable VoIP solutions catering to the requirements of LDIs and other operators in the marketplace. PTCL provides dedicated IPs to other organizations that would help them to transfer data with increased security and connectivity.
16-PTCL Web Hosting Services:

PTCL offers world class hosting on windows platform. It provides the control, flexibility and reliability required to create and manage a successful web presence by other organizations. Moreover the self healing backbone of PTCL makes sure the high availability of the customers website.
17-PTCL Payphone:
This service operates like a PCO. It is compatible with a call centre solution and generates printed receipts at the end of call at call centre. PTCL payphone provide Wide Area Network coverage, quality service, best speech quality, and reliability.
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2.5.3Value Added Services for Consumers

CLI (Callers Line Identification) Calling line Identification (CLI) allow customers to identify the caller before picking up the phone receiver. To subscribe to CLI services, 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. Digital Facilities PTCL offers a variety of features to digital exchange customers like: Hotline Abbreviated Dialing. Call Waiting Dont Disturb Call Transfer on (a) Busy (b) No Reply (c) Immediate Wake up call Absent Subscriber Code Barring
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Prepayment Telephony Services (PPT) With the changing trends most telecoms are diversifying their services towards Prepaid solutions. 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. The service will provide state of art technological facilities to the subscribers.
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2.5.4SUBSIDIARIES
While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the upcoming competition and market dynamics, Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand. By designing market focused products, Ufones brand team launched aggressive campaigns, which further increased the brand equity. The new brand image gained huge popularity amongst the targeted market. A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufones 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.
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International Coverage Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. 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. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. 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.
Chart-1-Number of Subscribers of Ufone

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Network Coverage Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, Ufone has network coverage in more than 260 cities and towns and across all major highways of the country. Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company committed to excellence. Under the new vision of Etisalat and with the support and collaboration of its employees and vendors, Ufone aspires to be the best in the market by offering customer focused products and a quality service and sales network.
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2.6ORGANIZATIONAL STRUCTURE IN TERMS OF REPORTING LINES ALSO SHOWING THE RESPECTIVE AUTHORITIES AND RESPONSIBILITIES
Mr. Walid Irshaid President & CEO of PTCL

Mr. Naguibullah Malik Chairman PTCL Board Secretary IT & Telecom Division, Ministry of Information Technology Government of Pakistan, Islamabad Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani Chairman & Chief Executive Officer, Etisalat International Pakistan L.L.C Executive Vice President Contracts & Administration Etisalat, UAE
Mr. Salman Siddique Secretary (Finance), Ministry of Finance Government of Pakistan, Islamabad
Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh Chief Human Resources Officer Etisalat, UAE
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Mr. Mushtaq Ahmad Bhatti Member Telecom Government of Pakistan, Islamabad Mr. Fadhil Mohamed Erhama Al Ansari Executive Vice President Engineering Etisalat, UAE
Mr. Khursheed Ahmed Junejo Ambassador, Embassy of Pakistan Abu Dhabi, UAE Mr. Abdulaziz Hamad Omran Taryam General Manager, Northern Emirates Etisalat, UAE Dr. Ahmed Al Jarwan General Manager Real Estate Etisalat, UAE Ms. Farah Qamar Company Secretary PTCL PTCL Headquarters, Islamabad
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STAFF AND THEIR RESPONSIBILITIES

Designation PRESIDENT Responsibilities President is the Chief controller. He is responsible for the overall management of an organization He is chief officer of internal audit. He is responsible of rectification of errors. He submits his report to the president periodically showing any irregularities found in the procedure. 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. He controls them through Centralized Network System. He can remove faults through remote help system These are directors of the board. They make planning and decisions, establish operating policies and guide the SEVPs organizations interaction with its environment. These are top managers. Their policies are implemented through front SEVP (STRATEGIC MANAGEMENT) CE (RRR) CE (HRM) EVP (Accounts) EVP (Finance) line managers. They are called S.Es (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.e. salary, leave, and disciplinary cases He deals PTCL Billing, new connections, facility charges and shifting charges of connections etc. He controls transactions for payment i.e. Salaries, Advances,
SEVP (I/AUDIT)
G.M (INTERNAL AUDIT) COMPANY SECRETARY
GM N.S.S.
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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. He deals overall revenue collected from exchanges and maintains its accounts He deals in installation of new exchanges, 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.e. Calling Cards, V Wireless Connections etc. This officer deals with the Advertising products on all Medias (Print media, electronic media etc. Customer Care office deals with the removal of customer complaints and gets customer feedback
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2.7
Bankers
ABN Amro Bank Askari Bank Limited Citibank N.A. Faysal Bank Limited Habib Bank Limited MCB Bank Limited National Bank of Pakistan Standard Chartered Bank Limited United Bank Limited
Auditors
A. F. Ferguson & Co., Chartered Accountants KPMG Taseer Hadi & Co., Chartered Accountants
Registered Office
PTCL Headquarters, Block-E, Sector G-8/4, Islamabad-44000, Pakistan. Tel: +92 51 2263732 & 34 Fax: +92 51 2263733 E-mail: secretary@ptcl.com.pk Web: www.ptcl.com.pk
Share Registrar
THK Associates (Pvt.) Limited Ground Floor, State Life Building No.3, Dr. Zia-ud-Din Ahmad Road, Karachi Tel: +92-21-111-000-322 Fax: +92-21-5655595
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2.8ORGANIZATIONAL 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.M)
S.E (D&M)-I
S.E (WLL)
S.E Transmission
Manager (Prov)
S.E (D&M)II
S.E (APL)
Manager (F.S)
SE (D&M) HFZ
S.E (EWSD)
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2.8.1PROFILE OF EMPLOYEES WORKING
IN MARKETING, SALES & DISTRIBUTION DEPARTMENT

Name Zafar Usmani Designation SEVP Qualification MBA (Marketing) + BSc Engg. MBA (Marketing) MBA (Marketing) MBA (Marketing) MBA (Marketing) MBA (Marketing) Experience 22Years Location Islamabad
A.D. 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
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2.8.2REVIEW 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, organizational restructuring, building competitive market pay structures, developing the HR policies, Procurement etc. This department also indulges in administrative responsibilities including overall maintenance of the company, management of the Training Colleges and Institutes, providing medical services to the employees, employee relations etc.
Technical:
Technical Department deals with the preparation of annual and five year technical plan. It ensures that engineering standards and practices are executed properly; 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.
Corporate Development:
This department formulates Master plan with short, medium and long term objectives, strategies and KPIs based on Available market data, Competitive /strategic landscape, Input from internal stakeholders. Choosing strategic projects and closely monitoring domestic and international market for new investment opportunities is also
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part of the responsibilities. Effective Corporate communications, formulation of corporate strategy, Management of Intl Business Relations, Carrier Services and wholesale and dealing with Regulatory Affairs are the prime areas of corporate development.
Operations
The core functions of operations are to focus on activities relating to IP Services, Switching and Transmission. This key area indulges in the day to day operational, engineering activities and makes sure that the processes are streamlined so as to provide best services to the valued customers.
Commercial
The Commercial Department develops strategic business plans, sales strategy, budget, policies and procedures, relations with major accounts and marketing plan for PTCL. It plans for maintaining and increasing the market share, 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- North, Business Zones South This department is responsible for developing business plans, sales strategies and manages all the operations performed in the three zones of PTCL. This department is taking care of overall management of all the matters relating to the EVPs Business in the Zone areas. Formulate strategies to enhance utilization of PTCL available businesses, also implement business and marketing plans for sustained growth of PTCL
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revenues. Plan and approve business areas for implementation of IT, E-commerce, Web-hosting and host of new services.
Finance
This department drives financial visions and direction of the company in line with the overall business strategies. It delivers increasing shareholders value, directs and monitors financial system and strategies. The principal functions include financial policies and procedures, costing and regulatory affairs, Budget control, Treasury, Revenue accounts.
Procurement & Administration

Procurement department is responsible for every kind of purchase. Procurement is done by issuing tenders or by price negotiations. Tender is issued only in the funded institutions or Govt organization and price negotiation is done in private organizations. In PTCL, procurement is done by issuing tenders as well through price negotiation.
Information Technology
This department is responsible for all IT related issues and network issues with in the company. Furthermore, it is responsible for overall PTCL IT Operations and Data centers. IT department builds, manages and maintains PTCLs IT Infrastructure and ensures the availability and the stability of the IT systems and solution. Responsible for the implementation of SLA with other departments
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2.8.3OTHER IMPORTANT AREAS

Legal Affairs
The department handles Commercial and Corporate, Regulatory, Employment Laws and HR, Litigation, and Subsidiaries Affairs.
Internal Audit
This department carries out the General Internal Audit and IT Audit. It performs a wide range of services including financial audits, compliance audits, operational audits and information technology audits.
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, identify revenue generation streams, 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.
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2.9STRUCTURE 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
Assistant Sales Manager
Deputy Marketing Manager
Executive Sales Support
Assistant Marketing Manager
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2.10FUNCTIONS OF THE DEPARTMENT

Key activities of Marketing and Sales Department: 1. Formulates an integrated commercial strategy covering marketing, sales, CS policies, new product evaluation market research advertising and promotion as well as strategic client relations. 2. Develops an integrated and comprehensive planning and research program that identify product/ service opportunities in order to achieve PTCLs goals and business objectives. 3. Formulates, recommends and manages pricing, 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. 4. Design, 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. 5. Develops and expand business opportunities for specific market segments, 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. 6. Plans and organizes the marketing communication strategies, systems and programs with end view of maintaining and strengthening PTCLs image. Evolves plans for the continuous upgrading of customer care and advertising programs as well as for the effectiveness of services provided to all customers. 7. 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.
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2.11DEPARTMENTS OPERATIONS
In internship, 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. In Sales & Distribution departments, people are doing dual job. They not only promote products and services of PTCL but contribute in sales function. Following operations are being conducted in corporate services and product development.
Corporate Services & Product Development

Key activities of Corporate Services & Product development:
Defines
Commercial.
a strategic commercial plan under the direction of the SEVP-
Ensures efficient and effective deployment of people, means and systems within
agreed budgets and in line with corporate strategy, brand and people values.
Sub areas of Corporate Services & Product Development:

a. Market Segments & Strategy b. Product Development c. Business Development a. Market Segments & Strategy:
Devise telecommunication solutions for a particular industry segment. Recommends telecom solutions that are technically and economically viable.
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level.
Analysis of economic data and dissemination of the data in order to devise

solutions and sales strategies
Derives information with trends, annual reports and relevant new sources so that
effective sales strategies can be devised. b. Product Development:
Facilitates the offering of PTCLs products to the market. 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 new technologies used for the evolving of the Telecommunications
market.
Applies processes and systems required in order to bring product to market.

c. 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.
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COMMERCIAL PLANNING & SUPPORT

Key activities of Commercial Planning & Support: Directs the Companys overall marketing and strategic planning programs
geared toward maximizing the companys share of the market and its profits while ensuring that the companys customers are satisfied.
Facilitates customer development through marketing and customer service

programs. Work in conjunction with advertising and promotion companies to promote Company Image, Brand Awareness Products and Services and to attract potential users.
Reports and analyses companys performance against key metrics (measures key
performance indicators such as overall market and product penetration, market share, brand awareness, ROI of campaigns, profitability of market segments and products), regularly track key developments in the market to identify trends and spot business opportunities. Sub areas of Commercial Planning & Support: a. b. c. a. Market Research & Intelligence Market Communication Commercial performance control Market Research & Intelligence
Responsible for improving sales and marketing effectiveness by tracking and

analyzing marketing, sales, advertising, and sales promotion data.
Leads custom research efforts to collect data and information on market

environment (customers, competitors, companies, industries, historical data,
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benchmarks, market segments, etc.) to understand consumer insights in support of business plans. b. Market Communication
Translates the corporate values into a visible brand experience, to increase

awareness of the company and its services, to create a favorable image of the company.
Manages the creation, development, and execution of advertising and promotion

plans and sales information that support the marketing and sales objectives of the company. Develops and manages the base of inside and outside resources to support implementation of advertising and promotion plans that maximize companys revenue. c. Commercial Performance Control
Ensures that services are achieving their targets, and if not, the needed
corrective action is planned and executed to improve service performance.
Manages and develops Archiving & Customer Profiling staff in order to

improve customer service and to achieve departmental objectives.
Controls the processing of all documents requiring data entry to the

Customer Management and Billing system and ensure that quality targets are met.
Controls all accounts related activity and to ensure that quality targets are
met.
Ensures all office administration including post, filing, and faxing and
distributions carried out for Customer Management to the agreed level of service.
52 Conducts planning, scheduling, and preliminary analysis for assigned

KPIs projects.
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.
Develops and monitors the Management Information Systems (MIS) and

ensure the full utilization of the MIS and Data warehouse.
Conducts a comparison analysis between the actual performance and

targeted performance and highlights corrective action plans.
Consumer Services
Consumer service is the main job of the department where internship is being accomplished. So some highlights of consumer services operations and working is as under: Key activities of Consumer Services:
This department is primarily responsible for Consumer sales, establishing sales

targets, implementing systems to ensure the timely attainment of these targets, 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, quantity, budget/cost, timeliness and Companys brand values.
To define a strategic commercial plan along with the EVP P&S and EVP
Corporate Sales under the direction of the SEVP-Commercial .Also, to drive the department to generate commercial revenue, customer satisfaction and retention. As well as to ensure efficient and effective deployment of people, means and systems within agreed budgets and in line with corporate strategy, brand and
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people values. That should lead to contribute to the profitability and expansion of the company.
Development and implementation of corporate mission, strategy, objectives and

action plans, with specific regard to the commercial angle.
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; Visiting key accounts; negotiating and concluding major contracts; prospecting
the market.
Handling complaints by In-direct Sales partners.

Sub areas of Consumer Services: a. Direct sales b. Channel sales c. Business development d. Sales & distributions a. Direct Sales Direct sales deals with:
Ensuring the appropriate establishment and organization of Regional sales

teams.
Fostering co-operation and team spirit; assessing teams, advising on selection

and training needs.
Evaluating performance and appraisals on performance, productivity and quality

of work.
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b. Channel Sales Channel Sales deals with:
Increasing indirect revenues by working closely with all channel partners; Providing strategic direction for the development and growth of the indirect
channel including recruiting new strategic (and/or major) partners;
Increasing direct sales revenue opportunities through business development with

complementary strategic partners such as other Value Added Resellers (V.A.R.) vendors and consulting companies.
Coaching and developing In-direct sales teams in order to improve Channel

Partners sales, to achieve individual sales targets and customer satisfaction c. 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.
Understands customers business, buying behavior and decision criteria;

anticipates their needs and communicates them to Product Marketing and PreSales/ Bid Management.
Monitors data entry procedures and quality standards by all parties to ensure
optimum corporate customer information is captured.
Conducts analyses from databases as required for planning & controlling.
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d. 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, quantity, budget/cost, timeliness and brand values.
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;
Approves the design and the implementation of channel-specific marketing

programs.
Approving the design and the production of necessary channel sales and training
tools and materials;
Increases direct sales revenue opportunities through business development with

complementary strategic partners such as other Value Added Resellers (V.A.R.) vendors and consulting companies.
Responsible for resource allocation including budget and personnel. Analyzing and reporting accurate information on the Channel Partners sales
results and market feedback.
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2.12ROLE OF PTCL MANAGERS

A notion about leadership Weak leadership can wreck the soundest strategySun Zi The role of manager in PTCL to establish / maintain relations with other industrial institutions in terms of accounts, management and production management is a key job. PTCL make able and train its key personnel to be active and become a market leader. To meet the many demands of performing their functions, managers assume multiple roles. A role is an organized set of behaviors. Henry Mintz berg has identified ten roles common to the work of all managers. The ten roles are divided into three groups: 1. Interpersonal The interpersonal roles ensure that information is provided. The three interpersonal roles are primarily concerned with interpersonal relationships. In the figurehead role, the manager represents the organization in all matters of formality. The top level manager represents the company legally and socially to those outside of the organization. The supervisor represents the work group to higher management and higher management to the work group. In the liaison role, the manger interacts with peers and people outside the organization. The top level manager uses the liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of work. The leader role defines the relationships between the manger and employees.
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2. Informational The informational roles link all managerial work together. The direct relationships with people in the interpersonal roles place the manager in a unique position to get information. Thus, the three informational roles are primarily concerned with the information aspects of managerial work. In the monitor role, the manager receives and collects information. In the role of disseminator, the manager transmits special information into the organization. The top level manager receives and transmits more information from people outside the organization than the supervisor. In the role of spokesperson, the manager disseminates the organization's information into its environment. Thus, the top level manager is seen as an industry expert, while the supervisor is seen as a unit or departmental expert. 3. Decisional The decisional roles make significant use of the information. The unique access to information places the manager at the center of organizational decision making. There are four decisional roles. In the entrepreneur role, the manager initiates change. In the disturbance handler role, the manger deals with threats to the organization. In the resource allocator role, the manager chooses where the organization will expend its efforts.
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In the negotiator role, the manager negotiates on behalf of the organization. The top level manager makes the decisions about the organization as a whole, while the supervisor makes decisions about his or her particular work unit. 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. Senior Manager plays a key role in establishing and maintaining sound relationship with other public, industrial and business institutions like Government offices, Limited companies, banks etc. Senior Manager deals with other companies who make phone hand set like Hawaii. It makes smart set for Vfone which is a PTCLs growing product. Similarly, PTCLs 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.
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2.13USE OF ELECTRONIC DECISION MAKING
DATA
IN
Data-Driven Decision-Making focus uses marketing available data and relevant background information, to inform decisions related to planning and implementing instructional strategies at the branch, towns, stratas and individual managerial levels. 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. PTCL has made a website for its personnel and they have given a user name and login ID for communication. Personnel communicate by this information system and share information they required. Almost, every type of communication is being done by Internet in all its branches through specific information systems. Personnel in all branches are provided a personal ID and password. This facility has been provided to all departments. They take decisions and disseminate information within seconds in the whole country. When new packages are introduced and incentives are announced for the employees, personnel know everything within seconds all about. Customers can complain online through website or their PSTN numbers.
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2.13.1DIFFERENT 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. They allow users to look at data from multiple operational systems across multiple dimensions, including time. 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. (b) Data Analysis & Reporting Systems: These systems provide the ability to measure organizations performance across a wide array of variables and oriented to any scale: big cities, small cities, towns or departments. These systems are designed primarily as analytical and reporting tools for management, and can also provide useful summary data for managers.
(c) Complaint Management System (CMS): This is an online information system for customers complaints and other related issues. (d) Billing & Customer Care System (BNCC): This is also an online information system for new connections, shifting of telephones, bill correction and all other matters regarding PTCL billing.
(e) Customer Service System: This is also an online information system for communication within the department.
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(f) Microsoft Word: This is used for paper communication in the organization.
(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. (i) Microsoft Outlook: This is used as mailing program. (j) Microsoft Access Database: This is also used for compiling complex data and view reports as they required.
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Part3
Analysis
Part-3 Objectives
Critical Analysis Financial Analysis Future Prospects of PTCL
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3.1CRITICAL ANALYSIS 3.1.1ANALYSIS ENVIRONMENT OF EXTERNAL
Pakistan followed a gradual approach to liberalize its telecom market. During 1990s, as a first step, market was opened for value added services and competition was introduced in cellular mobile sector as four licenses were issued (Mobilink, PTML, Paktel and Instaphone). The government monopoly was retained in fixed line services, however, PTCL legal monopoly ended with effective from 31st December 2002. The government announced Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and 2004 respectively. The telecom regulatory, issued new licenses for Long distance International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL) and Cellular Mobile. With the issuance of new licenses the market is now open for full competition in all segments of the sector. Industrial Structure Pakistans telecom sector has finally begun moving and looked set for an era of phenomenal growth. The sector has witnessed tremendous growth in recent years with Teledensity depicting major expansion after deregulation. 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. Current Teledensity in Pakistan has expanded exponentially from 4.3 percent in 2002-03 to stand at 49.2 percent in 2007-08 with currently standing at over 51 percent, with better services and competitive rates. Also, increasing inflow of foreign investment in the telecomm sector has resulted in the introduction of new cut throat technologies
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for provision of various telecom services including cellular, wireless and internet services. In recent times, the focus has increasingly shifted from Fixed Lines to Cellular and Wireless Fixed Lines (WLL), with better portability and convenience. In the urban markets introduction of Broadband internet services by various Telecomm giants such as PTCL, WorldCall and Wateen has further benefited the consumers to access timely information over the internet with competitive rates. The broadband penetration however has not depicted as much growth as expected growing with 4.3mn subscribers in 2008 against 3.5mn subscribers in 2007. PTA estimates broadband subscribers to grow to over 5mn by 2010. WorldCall has initiated cable television services with PTCL expected to follow suite by providing IPTV services through its Triple Play services, ensuring diversification of products and services. Recent conducive environment provide by PTA has resulted in increased FDIs in the sector with investments of USD2.7 bn during the last five years making it the largest recipient of highest FDI during the past few years. The future for telephony lies amongst unexplored rural regions of Pakistan with all major telecom operators looking forward to tap these markets with a major contribution by WLL and Cellular segments due to cheaper installation costs. With healthy competition instigating lower local and international tariffs and availability of alternative services has progressively benefited the consumers overall. Fixed Line Subscribers
5,227,531
5,400,000 5,200,000 5,000,000 4,800,000 4,600,000 4,400,000 4,200,000 4,000,000
4,501,171
5,240,012
2003-04
2004-05
2005-06
2006-07
4,826,206
2007-08
Graph-1-Fixed Line Subscribers
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4,416,417
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Market Operation Pakistan Telecommunication Company Limited, or PTCL, keeps callers connected from Karachi to Islamabad. The communications services provider offers consumers and businesses with basic landline, DSL broadband, interactive television, and IP telephony services. The company also provides wholesale services such as traffic routing and call termination to other carriers. PTCL's subsidiaries include wireless phone services provider Pakistan Telecom Mobile, which operates as Ufone. In 2006 Emirates Telecommunications (Etisalat) acquired a 26% stake in PTCL and assumed management control of the company. Demand is driven by technological innovation and by growth in business activity. The profitability of individual companies depends on efficient operations and good marketing. Large companies have big economies of scale in providing a highly automated service to large numbers of customers, and have the financial resources required building and maintaining a large network. Smaller companies can compete effectively only in small markets or by providing specialty services.
3.1.2TOP PTCL COMPETITORS

Worldcall China Mobile Wateen Telenor
3.1.3COMPETITORS ANALYSIS FOR EVO

PTCL has introduced EVO Wireless Broadband in the market initially for big cities. It is a new product of PTCL and expected to be got a big market share among
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other players. All the team members in marketing as well as in sales department are focusing it in all big stratas rather than focusing other products except another more Vfon Wireless. Following are the major players in Wireless Broadband. I was asked to analyze about the EVO Wireless Broad band when it was introducing in Gujranwala first time. I analyze the following key areas for EVO 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, video streaming, images/ videos/ Files sharing etc.
Simplicity: Faster deployment, easy to move Provides superior Value through Reliable, Secure, High-availability network Option to switch between EVDO and CDMA 1X mode Supported OS: Windows 2000 / XP / Vista All Pakistan Roaming - Automatic switch over to 1 X in non EVDO Coverage
areas.
USB Interface - Compatible with Desktops & Laptops. Access rich media applications like live video, streaming, web casts, online
games and a host of other applications.
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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.2,000 0 Rs.6,000 0 Rs.4,000 Rs.2,000 Rs.2,000 Rs.500 for Rs.500 for 12 months 18 months -
Rs.6,000 Rs.4,000 Table-2-EVO Packages
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Functionality Comparison of EVO

Mobilit Bandwidth y Wateen Y N 256Kbps-1Mbps Worldcall Y Y 256Kbps-1Mbps Evo Broadband Wireless Y Y 3.1Mbps 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. 400+ tax /month Mobilink Infinity 5-15GB Rs 450- 1500 Warid Unlimited One month Free trial Rs.500 Table-4- Competitor Tariffs for Wireless Broadband
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EVO Coverage Area
Coverage Area
Currently PTCL is offering Lahore Karachi Islamabad/Rawalpindi Mirpur Gujranwala 300 Kbps ~ 500Kbps. Max Speed can go up to 2MB/sec (as tested on www.speedtest.net) Actual internet speed will depend on multiple factors like location, time of the day, number of simultaneous users, web page accessed, etc. 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 3.1MB and download avg.
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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 1.7 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 1.3 Min 1.7 Min
Table-5- 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- Feature Comparison of EVO
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3.1.4CELEBRATING YEAR OF CUSTOMER CARE 2008-09
In view of PTCLs customer-centric philosophy, the coming year 2008-09 has been dubbed as the Year of Customer Care. As a result, critical measures will be takenup to further improve the standard of services-as PTCL believe that winning over the customer can guarantee success. What is Customer for PTCL? The customer is a vital link in the business world. Realizing the customers importance spells the success for us.
Courteous and charismatic dealing with the customers. Take care of customers welltreating their success or failure as our success or
failure.
Furnish the customers with products of exceptional standards. So that they form
a positive view of the company and its human resource. Empathize with the customer and prioritize timely solution with utmost sincerity.
Value the customers time and facilitate them in everyway. A satisfied customer helps not only the manager but the organization.
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3.1.5MARKETING 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, 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
3.1.6SWOT 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)
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Lack of aggressive marketing Lack of customer services Ambiguous management style Lack of corporate culture Social responsibility OPPORTUNITY Growth in telecommunication industry. More aware and technology understanding consumer a base that is growing at a fast rate. Market open for more number of products less dependence on single category or product. Opportunity to introduce High Value Added Products / High margin products for the new, more aware consumer. Time to establish brand loyalty, anticipate competitors, invite partners, invest in technology and networks. THREATS Increased competition in long distance continues to exert pressure. VOIP use is increasing despite ambiguous and discriminatory policies Exposure to market competition Migration to Cellular Networks Reduction in International Settlement Rates
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This pictorial diagram shows cellular penetration in the whole country
Graph-2-Province-Wise Cellular Penetration
3.1.7PROMOTION
PTCL is using following components of promotional mix and Publicity of its product/services. Advertising In promotional mix, PTCLs main stress is on advertising in print and electronic media. PTCL periodically places its advertisements in print media on services like H/Qs hotline 0800-44544, Caller line identification (CLI), Voice Messaging Service, Digital Facilities, PTCL Prepaid Calling Cards, Inquiry 17, Complaint 18, phone bill cards prepaid telephone etc. to remind the customers of these services. Sometimes, corporate ads are also released to print media to mark special occasions.
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PTCLs Commercials on Prepaid Calling Card, CLI, Voice Messaging, Digital Facilities etc. are also broadcast immediately on electronic media as reminders to Customers.
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Its advertisement is usually ethically sound and representative of Pakistan.
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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. Moreover, PTCL offers special rate packages on special occasions like Ramadan Package and EID package, which offer customer reduced rates for specific timings. For Example, in EID Package, PTCL charges half rates from 6:00am - 6:00pm and quarter from 6:00pm 6:00 am to attract customers to use its telephone service. Broadband service is offered for free in Ramadan. 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. In broadband service, PTCL offers numerous benefits to the students as well as corporations and its valued customers.
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Personal Selling As PTCL is enjoying monopoly in fixed-line telephony, 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, PTCLs Customer Services Centers are playing the role of sales outlets. Customers can make telephone calls; send fax messages from these Customer Services Centers i.e. One Stop Shop (OSS). They can also get connected their telephone bills and get duplicate bills from these outlets. Fifteen (15) sales outlets are working for V-fone in Gujranwala region. However, with the establishment of Marketing Department in PTCL, The marketing professionals are now in the process of inducting professional sales force for the company. For this purpose, Sales and Distribution department was established but marketing professionals are in few numbers in this department. Majority of the customers learn about the firms product and services from the newspapers ads, franchises and friends etc. 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. However, some of the major players in ISPs product are Cybernet, World online, World U-fone (Cellular service provider) PTCL Calling Cards Wireless Local Loop (V-fone) Call and Comsats WOL etc. Four competitors exist against U-fone in cellular phone industry i.e. Mobilink, Zong, Warid, Telenor. Hello Cards, Call Point Cards, Call Mate Cards etc. Wateen Telecom and World Call are the Fixed Wireless Telephone competitors or V-PTCL
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3.1.8PLACEMENT
The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4, Islamabad, which is headed by the President. Besides, it has Regional Headquarters like: Islamabad Telecom Region, Rawalpindi Telecom Region, Hazara Telecom Region Abottabad, Northern Telecom Region-I Peshawar, Lahore Telecom Region (South), Lahore Telecom Region (North), 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. Switching network Central region Lahore. These Regions provide Telecommunications services to the customers in their respective areas. Apart from these, PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber System Islamabad, each headed by a General Manager to install, operate and look after optic fiber systems/cables. In each District and Tehsil level, an Exchange, Franchisor, Call Centers, One Stop Shop are available to facilitate the customer needs.
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Need for Channels for the Product and Services

Firm point of view 1- Easy availability of product and services to the customers 2- Easy availability for providing basic services and value added services 3- Easy complaint handling 4- To cover target market Customers Point of view 1- Easy availability of Product and Services 2- Time and Money saving 3- Fast Service System and Resolve Conflict For improvement of channels, PTCL try to convert traditional channel into remote channel, and should install connection on customers single call.
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3.1.9PRICE
Being a semi government organization, PTCL is not fully authorized to determine the prices of its products itself. Pakistan Telecommunication Authority (PTA) and its partner fixes the prices of telecom services. The process is such that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls consumers representatives, journalists and other interested groups for discussion on the proposal. After listening to the viewpoints of all the interested parties, PTA gives its decision. If PTA approves PTCLs proposal, the new rates are enforced. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. PTCL also rationalizes its tariff with the passage of time. Tariff rationalization process started in 1997. It was mainly focused on rebalancing the domestic process like NWD, international, local call, line rent etc. Rebalancing is completed by the end of 2008 (as per Tariff rates) with the objective to position PTCL for competition. Customers react positively due to monopoly of PTCL so they give purely positive response to the prices of PTCL. Effective Pricing The best price is always the one that provides a customer with the most longterm profits. Price in terms of value rather than cost. Cost-plus pricing is worst choice. When we start pricing more intelligently, we will have a real advantage over most of our competitors and due to this PTCL has an edge over its competitors.
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3.1.10PTCL STRATEGIES
Strategic Notions
The difference between now and five years ago is that information systems had limited function. You werent betting your company on it. Now you are. (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). Without a strategy, an organization is like a ship without a rudder, going around in circles. Its like a tramp; it has not place to go (Joel Ross and Michael Kami) A strategists job is to see the company not as it isbut as it can become (John W.Teets, Chairman of Grehound, Inc.) Edward De Bonos 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. Sur-petition refers to creating a synergy through corporate level, business level and functional level strategies and eminent implementation thereafter in order to go beyond competition. In layman language, it is a phenomenon which can be described as Survival of the fittest. Therefore, instead of focusing on individual growth objectives, enterprises must adopt a holistic approach towards achieving organizational goals. As the past incumbent and current Significant Market Player (SMP), PTCL, no doubt, has got the largest operational network and infrastructure within ICT (Information & Communication Technologies) segment. They dont lack numbers and
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potential if we mention human resources. Their financial strength has further become their strategic strength after Etisalat has joined them as investment arm. PTCL enjoys market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony. PTCL (Ufone) is market challenger in GSM segment. Overall they have the largest consumer clout on average in the whole Pakistan telecom industry. Even their competitors still depend on PTCL network either directly or indirectly. 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. PTCL, so far has not been able to nurture its growth around customer services oriented strategy, this has translated into inadequate brand loyalty for them. Internal organizational and business processes issues, monopolistic culture has further added to its complexities. For many individual prospects like me, using PTCL offerings was a purchase decision made as no other option was available. PTCL can turnaround very well by reaping the benefits of Sur-petition in the shape of Sur-petitive Advantages in comparison to competitive advantages. All they have to do is to follow a holistic approach towards growth, besides focusing on Customer Support & Services, reverting back to competitive and service centered operational culture, spending upon marketing communications to revamp Brand Image, improving existing network and existing products for market penetration and developing innovative new products and services for long term growth. Following Strategy Map depicts a guideline for holistic growth around Financial, Customer, Internal Business Process and Organizational learning & Growth perspectives.
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Value & Strategy Profit Revenue growth Initiative Launched broadband across all the major cities in Pakistan, 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, reducing mean time to the market, aggressively introduced customer facilitation centers with new and rather strong brand image Product leadership New Product Development Broadband Pakistan, brand revitalization of WLL, phone n net, carrier service, IPTV Network Enhancement Operational support plans, improving network redundancy, converted to ONUs
Leadership
Buzz Marketing
Buzz marketing is a word-of-mouth about our brand. Buzz travels in invisible networks. It's the aggregate of all informal communication about our particular product, service, or company at any point of time. To benefit from buzz marketing, PTCL design its
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product and marketing activities in such a way that it will give people an opportunity to talk about its product or service. Corporate leadership Employee Productivity & competency KPIs introduced with smart objectives, VSS to retain effective HR, Supportive feedbacks, surveys, training etc Business process enhancement Development and assurance of SOPs for departments, service delivery, support, procurement, network etc. 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, Etisalat, the UAE based telecom player being the highest bidder emerged as the buyer of the 26 percent share in PTCL in April 2006. PTCL, despite being a giant, had to face many bottlenecks in its operations with such large network. 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. Introduction of various diversified products and services to sustain its market share, 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, translates PTCLs long term goals of operational effectiveness into practice. The telecom giant PTCL has observed cutthroat competition from various service providers after the implementation of the deregulation policies by the PTA. However, through the vast infrastructure and being the carriers carrier, PTCL with diversification of its
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various services has enjoyed well-built position and posses immense potential for growth, while need for telecom services is on rise as economy continues to grow on the right track. 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. PTCL is bound to comply with these obligations within a stipulated time frame. 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.
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3.2FINANCIAL ANALYSIS
3.2.1Financial 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. Rs. Rs. % Times Rs. Rs. Rs. (m) 18.15 25.20 15.45 10.96 4.90 9.28 16:86 36.66 15.43 1.50 1.36 2.75 1.79 19.49 83.60 0.88 1.50 17.24 87,92 4 2008 24.67 (5.45) (4.26) (3.34) 5.35 (2.71) 15:85 27.48 (5.26) 1.81 1.58 (0.88) (0.55) 19.19 2.01 38.64 197,06 4 2007 26.33 34.13 22.01 18.76 4.86 14.45 14:86 27.92 46.54 2.19 2.03 4.66 3.07 21.75 65.22 2.62 2.00 57 290,70 0 2006 34.50 39.43 26.16 25.53 4.76 20.22 14:86 31.27 92.07 1.66 1.54 6.07 4.07 20.68 122.73 1.96 5.00 40.6 207,06 0 2005 41.63 45.50 30.46 34.83 5.35 25.45 13:87 25.65 86.35 1.89 1.73 7.71 5.22 19.61 38.34 3.58 2.00 70.25 358,27 5 2004 51.37 53.94 35.73 38.46 5.14 28.20 13:87 23.91 64.34 2.78 2.67 8.5 5.72 21.39 87.42 1.97 5.00 42.15 241,965
Rs. (m) Rs. (m) Rs. (m) Rs. (m) Rs. (m) Rs. (m) Rs. (m) Rs. (m)
59,23 9 14,02 1 9,151 7,650 51,00 0 32,18 3 99,39 0 54,22 0
66,336 (4463) (2825) -
71,068 23,744 15,639 10,200
69,085 30,974 20,777 25,500
87,356 39,296 26,606 10,200
81,633 43,360 29,170 25,500
51,000 32,183 97,888 39,603
51,000 32,249 110,91 3 53,561
51,000 31,992 105,47 5 50,168
51,000 32,008 100,11 4 39,269
51,000 32,000 109,100 48,294
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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
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3.2.2ANALYSIS 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 companys 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 Governments 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.
3.2.2.1Financial 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
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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.
3.2.2.2Profitability 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
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segment due to competition and reduction in tariffs. However, PTCL is making all efforts to boost revenue by improving customer service and launching new services to turn around the situation.
3.2.2.3Liquidity Position
The liquidity position of the company suffered a setback in FY08. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. 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. This may provide an edge to the company over its competitors. Although the liquidity stance of the company is fairly satisfactory at the moment, but a continuation of the current negative trend may spell trouble for the company.
3.2.2.4Leverage Position
The debt ratios showed a decreasing trend in the FY09. The debt to asset ratio of the company had declined considerably in FY05 but the trend reversed in FY06, staying at same position in FY09. It is important to note that the company maintains a largely unleveraged capital structure, with the current trend in debt ratios bought about largely by changes in current liabilities of the company. 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. 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.
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Further, the FY06 also saw an increase in short term borrowings of the company, complemented by increases in other components of current liabilities. Increases in assets, mainly arising from higher cash and bank balances, could not prevent the trend of the debt ratios.
3.2.2.5Activity Position
Financial highlights of PTCL witnessed an upward trend throughout the period under analysis, except in FY08 when an improvement was marked. The ratio jumped up considerably in FY09, completely nullifying the effect of the decline in FY08, and exacerbating the already long collection period of the company. The decline in FY08 illustrates that management of PTCL is constantly striving for improvement and enhancement despite stiff competition. As a result, the operating cycle has also decreased in FY08 but then began to increase in 2009. 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. Sales/equity declined with the increase in equity of the company.
3.2.2.6Dividends
PTCL has had a history of paying out significant portion of its earnings to its shareholders. However, with huge cash requirement for Voluntary Separation Scheme, PTCL is unlikely to announce any cash payout during FY08. Therefore, once the ongoing process of VSS is through, which requires a cash outflow of Rs.23.2bn, dividend payout is likely to resume to its initial levels. In 2009, PTCL announces 7.65bn dividend to its shareholders which was a proof that PTCL is again mounting up with the time being.
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3.3FUTURE PROSPECTS OF PTCL

PTCL seems destined to continue to grow and be profitable. Some of this growth will be accomplished through future mergers and acquisitions with other telecom institutions. Future of PTCL falls on its better products and superior services. 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. But due to cheaper call rates, quality sound, improved services, quick response to customers, launching new packages competing with other networks; it can get its position in the telecom sector. Measures to achieve Set Targets The management of PTCL has been adequately preparing itself to face the forthcoming challenges of deregulated environment. Appropriate structural changes have either been initiated or these are underway. To face the challenge, 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 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. High standard customer service is an integral part of PTCLs customer value proposition. As part of strategy PTCL has invested huge some of money to improve the environment & efficiency of its service centers. With all together complete change in outlook, services to customers & facilities available, these centers are called One Stop Shop. They are aimed to provide better services to our valued customers for sales of products and after sales services. These OSS are nine in number and are in Major cities of Pakistan. By the end of this year there will be 19 OSS operational in 11 cities of Pakistan. Customer
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feedback about services standards at these OSS is very positive; these centers help to provide better service to PTCL customers. Some other initiatives are as follows: PTCL Coming Back Strong PTCL has consistently been facing market criticism with respect to its strategic management, policy, procedures, quality assurance, product flavors and orientation towards customer services. If PTCL continues on the same path with focus on product, market & corporate leadership, they have all the means to differentiate for clear competitive advantage. 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, for instance, revenues & finance. Today, many large corporate entities across the world have adopted the BSC technique to exceed the overall growth objectives. The initiatives taken by the PTCL may not be enough for an abrupt change, however, if the strategic focus and strategy remains correct and effective as stated above, the list of initiatives will keep on increasing and shall lead PTCL towards Leadership in all the segments it serves. 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.
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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. Cross Subsidization PTCL is providing range of services i.e. Fixed Line, Cellular Mobile and Internet etc. As the world experience shows, 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. Analyzing PTCL position against this experience and seeing the prevailing competition environments of Pakistan, it can be safely concluded and seeing the prevailing competition environments of Pakistan, it can be safely concluded that cross subsidization is not possible in Cellular Mobile and ISP markets. However, in Fixed Line segment, there is a real possibility of cross subsidization. PTCL can lower rates of line rent, 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. Alternatively as part of overall business strategy, it can offer different packages i.e. residential and corporate customers, rural and urban and economy groups etc. within each package the prices can be cross subsidized. This practice can have adverse effects on the growth of other licenses particularly those not having vertical integration. This abuse can be controlled through license conditions and accounting separation which will determine the existence of cross subsidization.
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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 internetwork 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. Vertical Price Squeeze PTCL can increase the price of upstream input (local access). It monopolizes, and keep the downstream services (ISPs, DSL and Payphones etc.) price same. The effect would be reduction or elimination of the profit of downstream service providers because their margins would be squeezed. To increase the squeezing effects, PTCL can also reduce downstream price of its own services. To control price discrimination, the regulator can impose wholesale cost imputation requirements. Brands that can take it up IPTV (PTCL Smart TV), Broadband Internet, Vfon can take PTCL up because these are called future brands of PTCL. IPTV can replace local TV cable and dish antennas if it is provided on cheaper rates and to everywhere in the country. Similarly, Broadband internet has key importance in our daily lives not only for teachers and students but also in public and private offices, in homes, in mobile shops etc. Vfon GSM can become a new product of PTCL if it converts Vfon wireless to Vfon GSM and can take lead over its rivals.
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Part4
Finding and Recommendations
Part-4 Objectives
Short-falls / weaknesses of PTCL Conclusion Recommendations
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4.1SHORT-FALLS PTCL
WEAKNESSES
OF
PTCL has not been able to nurture its growth around customer services oriented
strategy.
Pathetic management who always makes trying to sell its assets on cheaper
rates.
Customer is not focused but designations of personnel are changed day by day to
get results.
Internal organizational and business processes issues. Conflict between management and PTCL workers. Corporate culture similar to government departments and this ex-culture of
Government owned PTCL is not being abolished.
Unknown charges like following news cutting
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losses due to poor management and lack of network optimization.
PTCL-V, the fixed wireless phone service is poor. Over employment & low productivity. PTCL helpline services are very poor. Customer has to wait for its complain and
has to listen its commercial advertisement tape on helpline service. He is also charged for double call when company representative receives call after almost 7 minutes.
Dealers margin for Vfon brand is too little where its franchisers are working. Corporate support for Customer Facilitation Camps (CFC) is very poor. Slow decision making including external interferences. Increased competition in long distance continues to exert pressure. VOIP use is increasing despite ambiguous and discriminatory policies. Exposure to market competition. Migration to Cellular Networks. Less ability to attract & retain quality professionals. Reduction in international settlement rates. Bogus calls and new packages are imposed to users without their will.
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4.2CONCLUSIONS
No business can do everything. Even if it has the money, it will never have enough good people. It has to set priorities. The worst thing to do is a little bit of everything. This makes sure that nothing is being accomplished. It is better to pick the wrong priority than none at all. (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. Going forward, PTCL is poised to align itself in to a more customer friendly and commercially oriented organization. This will be achieved through improved customer experience, 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. Automation and simplification of internal process, optimization of operational expenditure, migration of services to Next Generation Networks, enhancement of national backbone infrastructure, expansion of robust and resilient IP infrastructure and proliferation of broadband services are few of the milestones for the way forward.
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4.3RECOMMENDATIONS
PTCL must adopt customer oriented strategy to bring back its valued products. Highly qualified professionals must be hired at management level and ex-Govt.
culture must be abolished.
Internal organizational and business processes issues must be resolved and must
not kept pending.
PTCL needs innovative service offerings currently it doesnt 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.
Conflict between PTCL management and workers must be come to an end. Overall PTCL still behaves as a monopoly it has to change its attitude. At a
minimum, 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.
Fixed telephone line services must be provided on-time. PTCL helpline services must need improvement and give quick response to the
customers.
Franchisers margin for its key products must enhance so that they feel attraction
for getting PTCL business.
EVO Wireless Broadband must available in even small towns where PSTN
connections are not available.
Vfon Internet connectivity rate must be enhanced. Corporate support for CFC camps must be included and staff should equipped
with knowledge of well designed market strategy.
PTCL must introduce GSM technology in Vfon. Lowest price calling cards must be introduced.
102 Card validity must be increased to maximum period. Easy balance must be introduced as other organizations are giving (i.e. easy load
etc.).
After sale service quality should be improved. Accessories for all the products must be available at OSS and also provide to
franchisers.
Customer must get involved in the whole campaign by giving them value and
satisfaction.
Strategic Business Units (SBUs) must be fully involved in marketing activities. Integration Market Communication (IMC) Process should be adopted. Availability and visibility of all the products during the CFC campaign. Media vehicle must run before the CFC campaign. Facilitate SBUs. Demo must be shown to the viewers at CFC campaign Line rent must not be deducted as it is burden to PTCL users. PTCL must reduce the worries of their workers. 8000 workers employed in New Contract Group are worried about their jobs
so PTCL must facilitate them.
PTCL must give more and more facilities in this competition era so that people
get new PTCL connections rather than disconnecting them.
It is said that the best assets of a company go home to their family in the
evening. Can the culture of PTCL be changed to a performance and service based organization? According to the latest directors report from PTCL the organization is being revamped. Only time can tell the impact
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Part5
Completion of Training Report
Part-5 Objectives
After studying this part, we shall know about the following:
References Annexes Persons Consulted Documents Consulted
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5.1REFERENCES
(a) PTCL annual reports 2004, 2005, 2006, 2007, 2008, 2009 (b) PTCL broachers and magazines (c) www.ptcl.com.pk (d) Reports of Sales & Distribution Department of PTCL (e) Principles of Marketing11th Edition by Philip Kotler and Gary Armstrong (f) Marketing Management12th Edition by Philip Kotler and Kevin Lan Keller (g) Business Communication (International Edition)7th Edition by Herta A.Murphy, Herbert W. Hildebrandt and Jan P. Thomas (h) Fundamentals of Financial Management12th Edition by James C.Van Horne & John M. Wachowicz, JR (i) Management8th Edition by Stephen P.Robbins and Mary Coulter (j) Strategic Management11th Edition by Fred R.David (k) Electronic Learning Assessment Resources (ELAR) www.elar.com (l) www.google.com (m)www.1000ventures.com/business_guide/marketing (n) Daily Nawa-I-Waqt (o) Daily The News for financial highlights and business trends (p) Pakistan Telecommunication Authority reports
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Annexes-I
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Annexes-II
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Annexes-III
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Annexes-IV
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Annexes-V
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Annexure-IV
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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 Callers Line Identification Prepayment Telephony Services Network Switching System Complaint Management System Billing & Customer Care System Long Distance International Wire Local Loop Voluntary Separation Scheme
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1

Pakistan Telecommunication Company Limited (PTCL)

Pakistan Telecommunication Company Limited (PTCL)

1.5SCHEME OF REPORT Part-I includes introduction to the report Part-II

includes different types of analysis of PTCL business and its

Part-IV includes finding and recommendations for Pakistan Telecommunication

Pakistan Telecommunication Company Limited (PTCL)

2.1OBJECTIVES OF STUDYING PTCL

Pakistan Telecommunication Company Limited (PTCL)

marketing analysis etc.

leading Telecom Company. improve performance goals.

Pakistan Telecommunication Company Limited (PTCL)

2.2OVERVIEW OF THE ORGANIZATION

Pakistan Telecommunication Company Limited (PTCL)

2.2.1 Historical Background

Pakistan Telecommunication Company Limited (PTCL)

2.2.2Nature of the Organization

PTCL Stock Price

Table-1-PTCL Stock Price

Pakistan Telecommunication Company Limited (PTCL)

Pakistan Telecommunication Company Limited (PTCL)

BUSINESS VOLUME in terms of revenue, deposits,

Pakistan Telecommunication Company Limited (PTCL)

SEVP Corporate Development

SEVP Procurement & Admin

SEVP Special Projects

EVP Internal Audit

EVP GM SM Manager Specialist MT Non Management

EVP Legal Affairs

Pakistan Telecommunication Company Limited (PTCL)

2.5PRODUCTS AND SERVICES

Pakistan Telecommunication Company Limited (PTCL)

15 PTCLs services are available for two types of Customers:

Pakistan Telecommunication Company Limited (PTCL)

16 1-PSTN (Public Switch Telephone Network):

2-VFONE FIXED WIRELESS ACCESS NETWORK:

Pakistan Telecommunication Company Limited (PTCL)

3-V FONE POSTPAID

Pakistan Telecommunication Company Limited (PTCL)

5-PTCL SMART TV:

Pakistan Telecommunication Company Limited (PTCL)

6-VOICE MESSAGING SERVICE (VMS):

7- PTCL INTERNET FACILITY:

Pakistan Telecommunication Company Limited (PTCL)

8-KEHDO SMS (VOICE SMS):

Pakistan Telecommunication Company Limited (PTCL)

21 10- EVO WIRELESS BROADBAND

Pakistan Telecommunication Company Limited (PTCL)

22 11-CALLING CARDS DENOMINATIONS:

Pakistan Telecommunication Company Limited (PTCL)

1-UAN (Universal Access Number):

Pakistan Telecommunication Company Limited (PTCL)

2-UIN (Universal Internet Number):

4-Domestic Private Leased Circuit (DPLC):

6-ISDN BRI (Integrated Services Digital Network Basic Rate Interface):

7-ISDN PRI (Integrated Services Digital Network Primary Rate Interface):

9-Digital Cross Connect (DXX):

Pakistan Telecommunication Company Limited (PTCL)

13-Premium Services (0900):

16-PTCL Web Hosting Services:

Pakistan Telecommunication Company Limited (PTCL)

2.5.3Value Added Services for Consumers

Pakistan Telecommunication Company Limited (PTCL)