Project Report on Pakistan Telecommunication Company Limited (PTCL)

Prepared by: Peer Usman Shabbir 4999-FMS/MBA/S11 usmansh7@hotmail.com 03008551017 Hassan Masood 5000-FMS/MBA/S11 hassan_masood777@hotmail.com 03215838285

Submitted to: Professor Muhammad. I . Ramay

1.

Background:

Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. The company was founded in 1947 as Posts and Telegraph department. In 1962 the company was renamed as Telephone and Telegraphs department (T&T). The department at that time was being run by the government and played multiple roles as regulator, policy maker, operator and service provider in the country. In 1991 Pakistan Telecommunication Corporation (PTC) took over operations and functions from Telephones and Telegraphs Department (T&T) under Pakistan Telecommunication Corporation Act 1991. The primary objective of this structural change was to create an entity financially independent of the government while maintaining the existing inflows into the government treasury. In 1991 Government also announced its plans to privatize PTCL, and in 1994 issued 6 million vouchers exchangeable into 600 million shares of the would-be Pakistan Telecommunication Company Limited (PTCL) in two separate placements. Each had a par share value of Rs. 10 per share. These vouchers were converted into Pakistan Telecommunication Corporation Limited (PTCL) shares in mid 1996. In 1995 Pakistan Telecommunication (Reorganization) Ordinance was issued. The ordinance formed the basis of Pakistan Telecommunication Company Limited (PTCL) monopoly over basic telephony in the country. In exercise of the powers stated under the ordinance, Pakistan Telecommunication Company Limited (PTCL) was created on January 1, 1996 and took over all the business of Pakistan Telecommunication Corporation (PTC) except 5 % which went to National Telecommunication Corporation (NTC). The provisions of the ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act .The same year Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan. Pakistan Telecommunication Company Limited (PTCL) launched its mobile and data service subsidiaries in 2001 by the name of Ufone and PakNet respectively. Ufone have been successful in capturing a fair share of mobile communication market in recent years, however PakNet has effectively been dissolved over the period of time and its assets and customers have been merged into the parent company. In 1992 the government through ministry of communication appointed a high level advisory consortium headed by Bear Stearns & Co to study telecom sector in general and Pakistan Telecommunication Corporation (PTC) in particular to make recommendations for deregulations of the telecom sector and the privatization of Pakistan Telecommunication Corporation (PTC). Based on the outcome of that activity it was decided that Pakistan Telecommunication Corporation (PTC) would be sold as a single company with a monopoly on basic telephony services and through a transfer of minority shareholding but with control of management of the company. Therefore, in 2005 government of Pakistan decided to sell 26% of this company to some private corporation. Three corporations took interest in the privatization of Pakistan Telecommunication company limited (PTCL). Etisalat, a Abu Dhabi based company was able to get the share with a large margin in the bet. Etisalat after the takeover of management is using an aggressive approach to provide services that are at par with international standards. To keep with modern telecommunication needs Pakistan Telecommunication Company Limited (PTCL) has undergone many changes in past decade. It installed a nationwide optical fiber network which is 3870 km in length and allows digital transmission across the country. Pakistan Telecommunication Company Limited (PTCL) also established a gateway exchange in Karachi to cater the increasing demand of international communication. In late 90s and early 2000s company also beca me part of the consortiums who established SEA-ME-WE international optical fiber networks to keep the country connected with the world and to enable local user to enjoy high quality services which are available in developed countries.

2.

What is Pakistan Telecommunication Companys Limited (PTCL) current business?

2.1 Home & Personal services Pakistan Telecommunication Company Limited (PTCL) has an array of services designed to satisfy the needs of small commercial and domestic users. It was the main domain of business for the company for very long time, which at first only included landline telephones. In later years company has enhanced its product portfolio for this segment by adding new services that are at par with international standards. Below we take a brief look at the services which Pakistan Telecommunication Company Limited (PTCL) is currently providing to this particular segment

Landline
Pakistan Telecommunications Company Limited (PTCL) copper infrastructure is spread all over Pakistan and connects every major city and town in the country. The network has over 6 million PSTN installed lines across Pakistan with more than 3.5 million subscribers. Once Pakistan Telecommunication Companys Limited (PTCL) landline was major medium of communication in the country but with the rise of wireless and mobile communication fixed landline growth is slowing down. However this trend of slowdown in fixed landline subscription is observed globally. Pakistan Telecommunication Company Limited (PTCL) is using various marketing strategies to attract new customers. It is also offering various bundle incentives such as line rent waiver, bundled tariffs, attractive value added services and reduced international tariffs to attract new customers and retain its existing consumers. In recent years Pakistan Telecommunication Company Limited (PTCL) has also reduced nationwide dialing rates to compete with growing mobile sector. While looking at provincial scenario Punjab has the maximum subscribers fallowed by Sindh, khayber Pakhtoon Khawa (KPK) and Balochistan.

Broadband
Pakistan Telecommunication Company Limited (PTCL) broadband is the largest and fastest growing broadband service in Pakistan. Broadband which is usually called Digital Subscriber Line (DSL or xDSL) is a technology that provides digital data transmission over wires of local telephone network. The benefit of Digital Subscriber Line is that it uses a high frequency and normal telephone uses a low frequency so both can be used simultaneously on a single line. There was a rapid growth in broadband consumer market in recent years. According to Pakistan Telecommunications Authority (PTA) annual report 2009-10 there are 1 million broadband subscribers in Pakistan and Pakistan Telecommunication Company Limited (PTCL) holds 53% share of broadband market with 4,74,387 subscribers combining both DSL & EVDO subscribers. Pakistan Telecommunication Company Limited (PTCL) offers a mix of flexible and economical broadband packages to its customers starting from 256kbps up to 10MB. It is also offering Wi-Fi broadband services to its customers who desire to be connected on the go. The company is also providing subsidized broadband to students to aid them in their research and study projects. It should also to be noted that Pakistan Telecommunication Company Limited (PTCL) aspires to add 3 million more broadband subscribers to its already huge customer base within next five years.

EVO 3G Wireless Broadband

Pakistan Telecommunication Company Limited (PTCL) is the pioneer of 3G Wireless broadband services in Pakistan. The service was launched in June 2009. The Wireless service offers convenience and mobility to those customers who have more demanding web needs. Moreover EVO is easy to operate with its plug n play feature. It is worth mentioning at this point that Pakistan Telecommunication Company Limited (PTCL) was the first company to introduce EVO 3G nitro 9.3 (revB) in the world.

Smart TV
Pakistan Telecommunication Company Limited (PTCL) Smart TV is an Internet Protocol Television (IPTV) service that was launched on August 14, 2008. The service uses flexible Internet Protocol Technology which allows customer to be more interactive and more in control of their TV services as compared to conventional TV broadcasts and cable TV. Smart TV delivers TV programmers to households via broadband connection. The advance features Smart TV offers include Time Shifted Television (TSTV), Parental Control, Electronic Program Guides (EPG), Global Television Channels, Video on Demand (VOD), Near Video on Demand (NVOD) and many more interactive features. The service offers 125 digital quality channels to its customers. The service is currently available in 16 major cities including Karachi, Lahore, Islamabad, Rawalpindi, Gujranwala, Faisalabad, Peshawar, Sialkot, Multan, Jhelum Sargodha, Wah Cantt, Taxila, Sukkur, Hyderabad, Abbottabad.

Vfone
Pakistan Telecommunication Company Limited (PTCL) Vfone is the largest Wireless phone network in Pakistan based on CDMA technology. CDMA or Wireless Local Loop (WLL) was introduced because laying copper lines across the country is an arduous and time consuming operation. Moreover it is a costly operation. Vfone offers convenience and ease of use to those users that do not have a conventional landline present close to their premises. Moreover it offers the added benefit of mobility. The system has been so successful that according to the annual report of Pakistan Telecommunication Authority (PTA) Wireless Local Loop services have increased their share to 44% of total Local Loop Subscribers. Vfone also caters the web needs of its user by providing dialup internet services.

Dialup
Pakistan Telecommunication Company Limited (PTCL) introduced basic dialup in Pakistan in 1990. Pakistan Telecommunication Company Limited (PTCL) started offering access via nationwide local call network in 1995. However Pakistan Telecommunication Company Limited (PTCL) started its own subsidiary ISP by the name of PakNet in 2001. PakNet was successful in its earlier years however the company was later Phased out of business after the wide success of digital subscriber line (DSL) when conventional dialup lost its position as dominant internet service provider medium. Now Pakistan Telecommunication Company Limited (PTCL) itself provides dialup services to its customers on very affordable rates.

2.2 Business services

Pakistan Telecommunication Company Limited (PTCL) caters to the need of its corporate and SME customers by providing the latest services that make their working efficient and easy. The services offered by Pakistan Telecommunication Company Limited (PTCL) to its corporate customers are divided into 5 categories which are

Business Connectivity
Pakistan Telecommunication Company Limited (PTCL) Business connectivity offers secure reliable and integrated end to end domestic and Global Connectivity Solutions for its corporate and enterprise users like ISDN (PRI) BRI, IP-connect, Leased Plus, IPLC, DXX, Business DSL, Business VPN, DRS, 3G-Connect, VSAT.

Business Communication
Pakistan Telecommunication Company Limited (PTCL) Business Communication product Portfolio enhances business enterprises productivity by services like Audio Conferencing, Personal Collaborator, Video Conferencing, EVO (3G Wireless Broadband), Toll Free Number and Universal Access Number.

Managed Services
Pakistan Telecommunication Company Limited (PTCL) Managed Network Services offers corporate customers comprehensive solutions like Managed Services, NOC and Telepresence.

Hosted Solutions
Pakistan Telecommunication Company Limited (PTCL) offers its business clients a combination of business acumen and technical expertise by providing them with services like Data Center, Unified Communications, and Web Hosting.

Business Security
Pakistan Telecommunication Company Limited (PTCL) provides its corporate and business customers Business Security solution by its service i-sentry.

2.3 Carrier Services and Wholesale

Pakistan Telecommunication Company Limited (PTCL) provides services to its corporate clients so that they may server their clients better. This business section is divided into 2 categories which are

Wholesale Services
Pakistan Telecommunication Company Limited (PTCL) customers can now provide services to their customers without undertaking large scale investment by using the services like Calling Cards & LDI, Network Capacity Services, Payphones, and Broadband.

Telecom Operators
Pakistan Telecommunication Company Limited (PTCL) now provides services like Leased Circuits (IPLC/DPLC), International IP Service, PTCL Metro Fiber Network, Interconnection Services and Wavelength Services to its telecom operator clients.

2.4 Subsidiaries Ufone

Ufone (Pakistan Telecom Mobile Ltd) a wholly owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) commenced its operations on January 29 th, 2001 as a GSM 900 service provider. Ufone initially targeted the middle class by introducing low rates and packages with Urdu names like Jazba. After the privatization of Pakistan Telecommunication Company Limited (PTCL) Ufone is now owned by Etisalat. Under the agreement Huawai provides its future oriented EnerG GSM solution to expan d Ufones network to more than 1500 cities, towns, villages and major highways in the country. The network also enables Ufone subscribers to enjoy high speed wireless data services. The GSM contract also includes Huaweis new generation dual density BTS with features of high integrated and receiving sensitivity which improve the network performance and lower the cost of network construction.. Ufone markets its prepaid services as prepay and its primary market is teenagers and students. It offers more affordable rates and packages that are flexible. Postpaid services are marketed by the name postpay and are targeted towards business community. According to Pakistan Telecommunication Authority (PTA) annual report published in 2010 Ufone has a subscriber base of 19.6 million customers in Pakistan. In the same report it is also highlighted that Ufone has a market share 19.7%. In the year 2010 Ufone introduced the Ghanta offer in which Ufone subscribers can call Pakistan Telecommunication Company Limited (PTCL) landlines and Vfone by paying 3.50 Rs for an hour. According to Pakistan Telecommunication Authoritys 2010 annual report Ufone is the 3 rd largest mobile operator in Pakistan.

MAXCOM
In 2009 Pakistan Telecommunication Company Limited (PTCL) acquired Maskatiya Communication Company (PVT) Ltd (MAXCOM). The company was operating in Karachi and some parts Hyderabad. The company had a subscriber base of 6000. The company ownership has been completely transferred to Pakistan Telecommunication Company Limited (PTCL). Now the customers of MAXCOM can enjoy superior services provided by Pakistan Telecommunication Company Limited (PTCL).

2.5 Financials:

Year Share capital Revenue Profit Earnings per share

2010 51 billion 57.17 billion 9.29 billion 1.82 Rs

2009 51 billion 59.23 billion 9.15 billion 1.79 Rs

Figure 1. Pakistan Telecommunication Company Limited (PTCL) Logo

3. Management Hierarchy

Chairman PTCL board

MEMBER PTCL BOARD

MEMBER PTCL BOARD

MEMBER PTCL BOARD

Member PTCL BOARD

MEMEBER PTCL BOARD

MEMBER PTCL BOARD

MEMBER PTCL BOARD

Figure 2. Pakistan Telecommunication Company Limited (PTCL) Board of Directors

President & CEO Deputy President & DEP CEO

SEVP special project SEVP Finance SEVP Technical SEVP IAR SEVP Commerci al SEVP Corporate

Business
EVP Internation al Business WLL GM EVP Commerci al DSL GM EVP Broadband

EVP Consumer

EVP Whole Sale

GM North Operations

GM Centre Operations

GM South Operations

Corporate GM

PSTN GM

IPTU GM

Others GM

SM EVO

SM WLL

SM etc

Manager

Manager

Manager

Manager

Assistant Manager

Assitant Manager

Figure 3. Head Office Management

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4.

What have Pakistan Telecommunication Company Limited done in the past?

Pakistan Telecommunication Company Limited (PTCL) has been the back bone of Telecommunication in Pakistan. The company started its humble beginning as Post and Telegraph office in 1947. In 1962 the department was changed into Telephone and Telegraph (T&T) office. Later in 1991 Pakistan Telecommunication Corporation (PTC) was formed which took over the functioning of Telephone and Telegraph (T&T) office. In 1995 Pakistan Telecommunication ordinance was issued which formed the basis of Pakistan Telecommunication Company Limited (PTCL). In January 1996 Pakistan Telecommunication Company Limited (PTCL) was formed and was listed in all three stock exchange of Pakistan. Government of Pakistan also decided in early 90s to privatize the company. In 2006 the company 26% shares were sold to Etisalat and Abu Dhabi based company along with the control of the company. Pakistan Telecommunication Company Limited (PTCL) over the years has been pivotal to the telecommunication needs of Pakistanis. The company established a vast copper line network throughout the country which connects every major city and town in the country. The other important aspect is that the company not only managed and improved the conventional line network but it also extended it over the time. It is also important to mention here that although Pakistan Telecommunication Company Limited (PTCL) enjoyed a monopoly status in the country yet unlike monopolies it always embraced change and innovation generally in technology sector and particularly in telecommunication sector. It always kept its product and services at par with international standards and brought new services to its customers as they became available in global market. Over the years the company has successfully launched and managed internet services in the country. The company also established an optical fiber network that is 3870 km in length and able to transfer data at high speeds through the country to meet the demanding telecommunication needs of future. The company is also part of SEA-ME-WE (South East Asia-Middle East-Western Europe) network consortiums. The company has also established an international gateway exchange in Karachi for international communication. One aspect that should also be highlighted here is that because of successful operation of the company, the company provided many employment opportunities to local workforce contributing to the betterment of Pakistani society.

5.

What is Pakistan Telecommunication Company Limited doing now?

Pakistan Telecommunication Company Limited (PTCL) is currently the largest telecommunication operator in the country. In this regard it provides a vast array of services in telecommunication sector. Its service mix consists of services for individual user to services needed by other telecommunication companies and corporate clients. Below we will take brief look at their current business

Home & Personal Services

Home and personal services are designed to meet the needs of individual users and households. In this category Pakistan Telecommunication Company Limited (PTCL) offer services like basic landline telephone service and Vfone (WLL or wireless local loop) for basic telecommunication needs. It also provides to its home and personal users services of Digital Subscriber Line (DSL), EVO 3G (3G technology based wireless high speed internet) and Dial up to cater their internet needs. Pakistan Telecommunication Company Limited (PTCL) recently introduced High Definition Television (HD TV) service under the name of Smart TV which is the first High definition Television service in the country.

Business services
Pakistan Telecommunication Company Limited (PTCL) provides various services to its corporate and business clients. The company provides its corporate and business customers service of business communication which beside basic telephone services offers facilities of Audio and Video conferencing, Toll free numbers and universal access numbers. The company also provides internet based services to its corporate and business clients which include services like ISDN (PRI) BRI, IP-connect, Leased Plus, IPLC, DXX, Business DSL, Business VPN, DRS, 3G-Connect and VSAT. Moreover the company also provides Managed Network Services like NOC and Telepresence to its corporate and business clients. Pakistan Telecommunication Company Limited (PTCL) also offers its business and corporate clients combination of business acumen and technical expertise by providing customers with hosting services like Data Center, Unified Communications and Web Hosting. Pakistan Telecommunication Company Limited (PTCL) provides its customers Business Security by the name i-sentry.

Carrier Services and Wholesale

Pakistan Telecommunication Company Limited (PTCL) being the largest telecommunication company in the country provides wholesale services to other telecom operators in the country. The services which the company is currently offering its telecommunication sector clients are services like Leased Circuits (IPLC/DPLC), International IP Service, PTCL Metro Fiber Network, Interconnection Services and Wavelength Services. Moreover the company also provides solutions like Calling Cards & LDI, Network Capacity Services, Payphones, and Broadband to those businesses that dont want to undertake large scale investment to establish their own infrastructure.

6.

What is Pakistan Telecommunication Company Limited Future Plan and Vision?

Pakistan Telecommunication Company Limited (PTCL) has been a progressive and innovative company in the past and is striving to excel in the future. Currently Pakistan Telecommunication Company Limited (PTCL) is working under the brand message and philosophy Hello to the Future. The essence of this statement is the futuristic approach company plans to work on in coming years. The word Hello represents Pakistan Telecommunications Company Limited (PTCL) customer oriented approach and its relationship building philosophy. It expresses the welcoming nature of Pakistan Telecommunication Company Limited (PTCL) brand. The word Future represents Pakistan Telecommunication Company Limited (PTCL) philosophy to provide planned and proactive solutions and products to its customers. The philosophy is centered on the notion that Pakistan Telecommunication Company Limited (PTCL) should constantly and continuously evolve and take customers into future by providing futuristic and innovative services. Pakistan Telecommunication Company Limited (PTCL) wants to break the conventional stereotypical perception about telecommunication and wants to transform the telecommunication industry and way its customers communicate by launching innovative and futuristic products and services. To achieve this Pakistan Telecommunication Company works under the brand philosophy comprising following core values: Evolving Innovative Human Trustworthy Quality Conscious

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What media says about them?

Like most organizations Pakistan Telecommunication Company Limited (PTCL) has been praised and criticized for its policies, products and services. Below we take a look at criticism and praise directed on Pakistan Telecommunication Company Limited (PTCL) and also looks at a general perception of the company in the country. Criticism Pakistan Telecommunication Company Limited (PTCL) has been criticized for introducing its Optical Network Units (ONU) based service in Pakistan. According to the critics of the service copper wires dont need any equipment to boost their signa ls however optical network needs ONUs to boost its signals and ONU run on electricity. Although ONUs improve service quality they still require power and they question the merits of implementing an electricity requiring system in a country that is already struggling with power shortage issues. Moreover they point out that although the company claims that the systems have their own backup batteries to keep them running during the power outage customers are still facing problems and many a times service is disconnected completely. Pak Tribune in an article writes that the general perception is that private companies are more efficient and caring about their customers. The performance of Pakistan Telecommunication Company Limited (PTCL) has, on the contrary, become worse since its privatization. Its total efforts have gone into fleecing its customers through various packages enforced arbitrarily and by reduction of local call duration. On the other hand its ability to provide quality service is nowhere to be seen. Lately it has introduced an automated complaint system. First of all this facility cannot be accessed through National Telecommunication Corporation (NTC) and one can only register their complaint through a Pakistan Telecommunication Company Limited (PTCL) number. But after the registration of a complaint nothing happens no matter how many times one tries to approach the authorities concerned and the process takes weeks and even months. One feels more frustrated because Pakistan Telecommunication Company Limited (PTCL) officers have become completely inaccessible and it is next to impossible to trace their contact numbers. It is strange that despite so many complaints against the company, the government has not taken any action. Praises: Pakistan Telecommunication Company Limited (PTCL) won the best consumer choice award for its product EVO in 2010. The award was handed to SEVP South MR. Abdullah Youseff in Karachi by federal minister Makhdoom Amin Faheem. The Financial daily in an article published on November 30, 2010 commends Pakistan Telecommunication Company Limited (PTCL) efforts to facilitate it valued customers by providing new cost effective international calling rates for several international destinations. Pakistan Telecommunication Company Limited is charging Rs 300 for international calling packages and for that offer 250 minutes to variety of destinations around the globe.

The media most of the time has a positive approach about the company and its activities. Company is considered a national asset and when issue of its privatizations came up there were many who voiced their concerns. However the company receives a mix of views depending on its policy, product and situation. In august 2010 it was criticized by many quarters about the employees strike and the problems for customers. But in the same year the company received customer choice award for EVO and managed to launch new products and enhance its services and already existing products. So it is generally observed that Pakistan Telecommunication Company Limited (PTCL) gets mixed reviews from media about its performance and service and these reviews are situational.

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8.

Management, Service and Social issues observed in Pakistan Telecommunication Company Limited (PTCL)?

In the old days organizations operated within the boundaries of law but without the pressure of social stakeholders. An organization was only considered liable to its stakeholders viz. its employees and owners. But the global financial landscape is changing and organizations have to be more responsible to survive in the age of media and awareness. No corporation or company today can think of escaping the lens of media or think about covering lapses in management, services to customers or social issues within the organization. These issues not only high light the problem but put active pressure on management to solve them and also make rules and procedures so these lapses should not occur in future. In the long operating history Pakistan Telecommunication Company Limited (PTCL) has also faced many issues that were the result of practices which were not in line with present day expectations from an organization. Some of these issues were resolved successfully while some other still need the attention of management. Below some of the issues arisen in the past in the company have been highlighted.

Protests in Lower Dir on absence of services

On 20th March, 2011 In Timergara the District headquarter of Lower Dir a protest was organized by customers of Pakistan Telecommunication Company Limited (PTCL) Zaimdara exchange. The protesters told Daily Azadi Swat a local newspaper that the exchange is locked for more than two years but they were billed for the services the y didnt receive. They burned the bills and demanded early restoration of telephone exchange.

Pakistan Telecommunication Company Limited (PTCL) pensioners protest in Karachi

On February 7th 2011 Pakistan Telecommunication Company Limited (PTCL) pensioners held a protest against the managements decision to raise their pensions only 8% against the original notification which was supposed to be of 15% pension raise. The protest rally was taken from I.I.Chundarigar road to press club Karachi. The protester demanded that the notification of 8% raise should be taken back and another notification of 15% raise should be issued immediately. The rally was managed by Govt pensioners Pakistan Telecommunication Company Limited (PTCL) Sindh and Baluchistan.

Employee strike over salary difference

In August 2010 Pakistan Telecommunication Company Limited (PTCL) employees held a 18 day strike over salary issues. The Government of Pakistan had issued a notification of 50% increase in current salaries of employees but Pakistan Telecommunication Company Limited (PTCL) management took the stance that this notification was not for private sector organizations however to give relief to employees against current inflation gave 50% increase but on the salaries that employees used to get in 2008. Enraged by the decision of top management the employees went on strike. The situation worsened when Pakistan Telecommunication Company Limited (PTCL) top management issued a notification that those employees that are not on job will not get their monthly salaries as well as Eid allowance. The notification also indicated to regional director to evaluate the performance of employees in their regions. The strike went on for 18 days while several talk sessions were held between top management and union leaders. Later the strike was postponed and employees resumed their duties, but the issue is still unresolved. Several union leaders were confined to prison for several days. More than 600 employees were sacked and their case is still pending in Supreme Court of Pakistan. It is to be noted that this strike affected more than 1 million Pakistan Telecommunication Company Limited (PTCL) customers.

Show cause notice by Pakistan Telecommunication Authority (PTA)

In February 2010 Pakistan Telecommunication Authority (PTA) issued show cause notice to Pakistan Telecommunication Company Limited (PTCL) for poor quality service based on joint quality of service (QoS) survey conducted recently by Pakistan Telecommunication Authority (PTA). Pakistan Telecommunication Authority (PTA) has been repeatedly informing Pakistan Telecommunication Company Limited (PTCL) of its poor performance and advised the company to take measures to improve the quality of service as per license agreement; however Pakistan Telecommunication Company Limited (PTCL) failed to improve quality of service despite the fact that Pakistan Telecommunication Company (PTA) provided ample time for improvements. The survey in question was conducted across Pakistan using method agreed upon by Pakistan Telecommunication Company Limited (PTCL). It was the first time Pakistan Telecommunication Company Limited (PTCL) was issued a show cause notice. The above mentioned issues are few examples of the incidents in recent past which show management lapses, social and service issues arising in the Pakistan Telecommunication Company Limited (PTCL).

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9.

Conclusion:

Pakistan Telecommunication Company Limited (PTCL) is and has always been the backbone of telecommunication in Pakistan. In the past the company catered to the basic telecommunication needs in the country by joining all major cities and towns in the nationwide telecommunication network. Recently there has been a rapid progress in the global telecommunication market due to advancements in technology. These rapid changes have completely changed the way people used to communicate. To keep pace with these advancements Pakistan Telecommunication Company Limited (PTCL) has also introduced many products and services that are at par with international standards. Moreover it has changed from a government owned monopoly to a competitive corporation in recent past. Although it still holds monopoly in the basic telecommunication sector as per government policy but in other modern technology orientated products such as digital subscriber line technology (DSL), 3G, Web Hosting services and mobile telecommunication services it has many private sector competitors. In recent years Pakistan Telecommunication Company Limited (PTCL) has managed to install an infrastructure that is compliant with the demanding needs of customers in future. After the privatization under new management company is striving to enhance efficiency. The company has also a new corporate message that represents companys philosophy providing futures orientated products, and to continuously enhance the existing product portfolio. The Company over the years has evolved into a successful business entity.

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10. Important queries

1.

Is the company socially responsible?

2.

Is the future of the company looking bright?

3.

Does Company is technically advance than its competitors?

4. What type of impact privatization had on the company ?

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11. Helping Note:

The company is socially responsible in its activities as it is now globally excepted corporate norm that companies should give back to the environment in which they are operating. One example of companys commitment to its responsibility is that in 2010 floods that devastated a larger population and vast area of Pakistan they companies CEO MR. Walid Irshaid presented a check of 40 million rupees to the Prime Minister Of Pakistan to help in relief efforts being carried out by the government. Another example of this commitment to social responsibility is companys involvement is universal Services Fund (USF) programme of Digital subscriber Line (DSL) for all in which company established community run service centers providing high speed internet facility in far off areas of Pakistan to close the educational and awareness gap in the country. Pakistan Telecommunication Company limited has bright future prospects. In the past company has managed to keep its network and service mix up to date with global trends. The companys philosophy and vision clearly show its commitment to evolve in future by updating its current product mix and by introducing new services and products as they become available. Pakistan Telecommunication Company Limited is offering products and services that are more advanced than its current competitors. One example of this is introduction of EVDO 3G nitro Rev B in Pakistan. The service is launched for the first time in world and provides wireless internet services at a blistering speed of 9.3 Mbps. Privatization had a positive impact on the outlook and performance of Pakistan Telecommunication Company Limited (PTCL). Before privatization the company acted as monopoly in many fields. It still has monopoly in basic telecommunication sector but it is now competing with many local and foreign competitors. Moreover after the privatization the new management is striving to increase the efficiency of the company. It is also necessary to point out that after that privatization the company has introduced a vast range of innovative products in a very short period of time, which clearly shows managements commitment to betterment and change.

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References:

1. http://en.wikipedia.org/wiki/Pakistan_Telecommunication_Company_Ltd (retrieved on 12-052011) 2. http://www.privatisation.gov.pk/telecom/history.htm#1 (retrieved on 12-05-2011) 3. http://www.scribd.com/doc/11170075/PTCL-Company-Analysis( retrieved on 12-05-2011) 4. http://www.ptcl.com.pk/pd_content.php?pd_id=161 (retrieved on 12-05-2011) 5. http://en.wikipedia.org/wiki/SEA-ME-WE_3 (retrieved on 12-05-2011) 6. http://en.wikipedia.org/wiki/SEA-ME-WE_4 (retrieved on 12-05-2011) 7. http://www.underseacable.net/History.htm (retrieved on 12-05-2011) 8. http://urdupages.com/showthread.php?t=28011 (retrieved on 12-05-2011) 9. http://www.ptclsmart.com.pk/packages.html (retrieved on 12-05-2011) 10. http://en.wikipedia.org/wiki/PTCL_Smart_TV (retrieved on 12-05-2011) 11. http://kninn.blogspot.com/2010/04/history-of-ufone.html (retrieved on 12-05-2011) 12. http://en.wikipedia.org/wiki/Ufone (retrieved on 12-05-2011) 13. http://ufone.wordpress.com/2007/05/21/3/ (retrieved on 12-05-2011) 14. http://www.ptcl.com.pk/page_category.php?pd_id=11 (retrieved on 12-05-2011) 15. http://www.ptcl.com.pk/page_category.php?pd_id=10 (retrieved on 12-05-2011) 16. http://www.ptcl.com.pk/page_category.php?pd_id=9 (retrieved on 12-05-2011) 17. http://telecompk.net/2007/04/29/ptcl-performance-review-recommendations/ (retrieved on 12-05-2011) 18. http://www.ptclworkers.com/news/karachi-ptcl-pensioners-protest-on-february-7-2011/ (retrieved on 12-05-2011) 19. http://propakistani.pk/2010/08/20/protesting-employees-wont-get-salaries-and-eid-bonus-ptclmanagement/ (retrieved on 12-05-2011) 20. http://www.allvoices.com/contributed-news/6673933-ptcl-employees-on-strike-since-last-18days (retrieved on 12-05-2011) 21. http://www.ptclworkers.com/news/rush-at-ptcl-office-as-workers-resume-their-duties/ (retrieved on 12-05-2011) 22. http://propakistani.pk/2010/08/30/ptcl-strikes-enter-14th-day-management-at-last-talks-tounions/ (retrieved on 12-05-2011) 23. http://propakistani.pk/2010/08/17/ptcl-employees-went-on-strike-over-salary-differences/ (retrieved on 12-05-2011) 24. http://www.ptclworkers.com/news/terminated-ptcl-employees-in-supreme-court-hearingfixed-on-november-22-2010-daily-dawn-15-11-2010/ (retrieved on 12-05-2011) 25. http://propakistani.pk/2010/02/04/pta-issues-show-cause-notice-to-ptcl-on-poor-services/ (retrieved on 12-05-2011) 26. http://www.ptcl.com.pk/pd_content.php?pd_id=216 (retrieved on 12-05-2011) 27. http://www.paktribune.com/news/index.shtml?204663 (retrieved on 12-05-2011) 28. http://pakspider.com/ptcl-gives-rs-40-million-for-flood-relief-activities/ (retrieved on 12-052011) 29. http://urdupc.blogspot.com/2009/09/ptcl-onu-service-point-of-criticism.html (retrieved on 1205-2011) 30. http://www.pakreviews.com/bank-legal-services/update/ptcl-evo-wins-best-consumer-choiceaward (retrieved on 12-05-2011) 31. http://pakspider.com/ptcl-onu-service-point-of-criticism/ (retrieved on 12-05-2011) 32. http://thefinancialdaily.com/tfd-weekly/telecom-review/ptcl-now-sweetens-int%E2%80%99lcalls-talk-time-32613.aspx (retrieved on 12-05-2011) 15

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1. Telephone network Pakistan Telecommunication Company Limited (PTCL) is the largest and only fixed landline telephone service provider in the country. In this respect company has monopoly over fixed landlines in the country. Pakistan Telecommunications Company Limited (PTCL) copper infrastructure is spread over every city and town in Pakistan. The network has over 6 million PSTN installed lines across Pakistan with more than 3.5- 4 million subscribers. Once Pakistan Telecommunication Companys Limited (PTCL) landline was major source of communication in the country but with the rise of wireless and mobile communication fixed landline growth is slowing down. However this trend of slowdown in fixed landline subscription is observed globally. Pakistan Telecommunication Company Limited (PTCL) is using various marketing strategies to attract new customers. It is also offering various bundle incentives such as line rent waiver bundled tariffs attractive value added services, reduced international tariffs to attract new customers and retain its existing consumers. In recent years Pakistan Telecommunication Company Limited (PTCL) has also reduced nationwide dialing rates to compete with growing mobile sector. While looking at provincial scenario Punjab has the maximum subscribers fallowed by Sindh, khayber Pakhtoon Khawa (KPK) and Balochistan. 2. Broadband network (DSL) Digital Subscriber Line (DSL or xDSL) is a technology that provides digital data transmission over wires of local telephone network. Digital Subscriber Line uses a high frequency and normal telephone uses a low frequency so both can be used simultaneously. 12. Smart TV Pakistan Telecommunication Company Limited (PTCL) Smart TV is an Internet Protocol Television (IPTV) service that was launched on August 14, 2008. The service uses flexible Internet Protocol Technology which allows customer to be more interactive and more in control of their TV services as compared to conventional TV broadcasts and cable TV. Smart TV delivers TV programmers to households via broadband connection. The advance features Smart TV offers include Time Shifted Television (TSTV), Parental Control, Electronic Program Guides (EPG), Global Television Channels, Video on Demand (VOD), Near Video on Demand (NVOD) and many more interactive features. The service offers 125 digital quality channels to its customers. The service is currently available in 16 major cities including Karachi, Lahore, Islamabad, Rawalpindi, Gujranwala, Faisalabad, Peshawar, Sialkot, Multan, Jhelum Sargodha, Wah Cantt, Taxila, Sukkur, Hyderabad, Abbottabad. 13. Cellular network Ufone (Pakistan Telecom Mobile Ltd) a wholly owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) commenced its operations on January 29th, 2001 as a GSM 900 service provider. Initially Ufone started its services in Karachi, Lahore, Islamabad and Rawalpindi and on major highways. Later the services were expanded to Peshawar, Quetta and other town and cities. Ufone initially targeted the middle class by introducing low rates and packages with Urdu names like Jazba. After the privatization of Pakistan Telecommunication Company Limited Ufone is now owned by Etisalat. Under the agreement Huawai provides its future oriented EnerG GSM solution to expand Ufones network to more than 1500 cities, towns, villages and major highways in the country. The network also enables Ufone subscribers to enjoy high speed wireless data services. The GSM contract also includes Huaweis new generation dual density BTS with features of high integrated and receiving sensitivity which improve the network performance and lower the cost of network construction. In addition Huawei will also provide mobile Softswitch solution based on advanced R4 architecture to satisfy Ufone network expansion requirements. It will enable telecom service provider to evolve in to 3G smoothly. Ufone markets its prepaid services as prepay and its primary market is teenagers and students. It offers more affordable rates and packages that are flexiable. Postpaid services are marketed by 17

the name postpay and are targeted towards business community. According to Pakistan Telecommunication Authority (PTA) annual report published in 2010 Ufone has a subscriber base of 19.6 million customers in Pakistan. In the same report it is also highlighted that Ufone has a market share 19.7%. In the year 2010 Ufone introduced the Ghanta offer in which Ufone subscribers can call Pakistan Telecommunication Company Limited (PTCL) landlines and Vfone by paying 3.50 Rs for an hour. According to Paksitan Telecommunication Authoritys 2010 annual report Ufone is the 3rd largest mobile operator in Pakistan
14. Nationwide transmission optical fiber network To keep with modern telecommunication needs Pakistan Telecommunication Company Limited (PTCL) installed a nationwide transmission optical fiber network. The optical fiber cable has a capacity of 622 mb and its length is 3870 fiber km.in addition to the above the company has also installed optical fiber cable on 18 subsidiary routes and has commissioned 41 new optical fiber routes with 292 digital radio systems to provide connectivity to rural areas. It has also commissioned 18 TDMA systems to provide telecommunication services to more villages.

In addition Huawei will also provide mobile Soft switch solution based on advanced R4 architecture to satisfy Ufone network expansion requirements. It will enable telecom service provider to evolve in to 3G smoothly

15. International gateway exchange II Karachi

Pakistan Telecommunication Company Limited (PTCL) completed installation of a stand-alone switching system and operator position sub-systems for a new millennium compliant Ericsson gateway exchange at Karachi. The system has been loaded to 98 % of the traffic on most circuits.

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Current financial analysis:

15.1

SEA-ME-WE Optical Fiber Systems

Pakistan Telecommunication Company Limited (PTCL) is part of consortiums that runs SE ME WE 3 & SE ME WE 4 networks. The SEA-ME-WE 3 (South East Asia-Middle East-Western Europe 3) is an optical submarine telecommunication cable that connects 92 countries. The cable is 39000 KM in length. The cable uses a Wavelength Division Multiplexing (WDM) with Synchronous Digital Hierarchy (SDH) transmission to increase the capacity and enhance the quality of the signal over long distances. The cable has 39 landing points with one in Karachi Pakistan. Pakistan Telecommunication Company Limited (PTCL) is also part of consortium of 16 companies that run SEA-MEWE 4 (South East Asia-Middle East-Western Europe 4) optical fiber submarine cable network. This cable is approximately 18800 KM in length. This cable provides primary internet backbone between South East Asia, the Indian Sub Continent, the Middle East and Europe. The cable system started operating in November 2005.the cable uses Dense Wavelength-Division Multiplexing (DWDM) allowing for increased communications capacity per fiber. The cable has 16 landing points with one in Karachi Pakistan. The importance of the cables is such that when in 2005 and later in 2008 these cables were damaged it crippled the internet communication of the country

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