CHAPTER NO 1

INTRODUCTION

1.1 INTRODUCTION TO PAKISTAN TELECOMMUNICATION:

In 1947 Pakistan’s Telecom sector inherited the British Post, Telegraph & Telephone [PTT]
Departments with a miniscule base of 7000 telephone lines. For 30 years this entity lumbered
and slumbered with its old mechanical, analog ‘Strouger" switches and analog telephone lines,
protected in its monopoly, both local and global. By 1962 this PTT Department was split up into
the Telephone & Telegraph Department and the Postal Departments. By 1991 this was further re-
organized thorough the PTC Act 1991 opening this public sector to the private sector companies.
Licenses were granted for non-basic services where the PTT had no experience base. These were
Data Network Services, Paging, Manufacturing of Small Telephone Exchanges [“Digital
Communications" being the first company to do so].

Once [ 1995] the Internet exploded onto the Global Telecom scenario, it was evident that the old
Pakistan Telecom monopoly was no longer able to cope with the influx of new revolutionary
technologies . As recently as 1994, trained basically in voice telecomm technologies , a
Divisional Engineer at a PTCL city exchange could not believe that data could also be sent over
a telephone line. By 1995 PTCL General Managers were being advised by private sector telecom
companies that Voice Mail and Email should be added to the services offered by PTCL.

The Pakistan Telecommunication Ordinance 1994 provides a legal framework for active
participation of the private sector in the development of telecommunication services. The Act
also provides a legal base for the establishment of the following:
1. Pakistan Telecommunication Authority -- (PTA) mandate was to regulate the telecom sector.

2. The Frequency Allocation Board (FAB) was made responsible for frequency spectrum
management and its monitoring...

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3. National Telecomm Corporation was set up to provide telecommunication services to public
sector (Govt & Defense) organizations.

4. Pakistan Telecommunication Employees Trust (PTET) was created as a trust to takeover

statutory function to disburse pension and other benefits to the employees of the PTCL.

5. Pakistan Telecommunication Company Limited (PTCL) was incorporated as a public limited

company, with the objective of providing domestic and international telecommunication and
related services. About 95% of the assets and liabilities of PTC, at net book value, were
transferred to PTCL whereas the remaining 5% assets were vested in PTA, FAB, NTC and
PTET. The vesting of assets to new entities took place with effect from 1st January 1996.

By 1996, PTCL management was operating in defense mode trying to play catch-up, which it did
well to learn fast. It sent its engineers to various western countries and companies to learn new
Data Networking and Internet and Wireless Technologies but the sheer size of this New Wave
Technologies was of Tsunami proportions, as the western countries and companies also learned
to their discomfort and loss of competitive advantage. It manufactures some basic Microwave
technology cards in its factory in Haripur i.e. T.I.P

No indigenous PTC digital telephone exchange design or manufacturing capability was built
during 1947 to 2003. Some local software expertise was created by Alcatel in its operations in
Islamabad. But nothing took place as it did in India during 1985-1990, when Sam Pitroda , a U.S.
venture capitalist and telecom entrepreneur[ originally from Orissa, India— made his money by
selling his telecomm company in 1970’s to Rockwell in Chicago, USA . Pitroda found a
receptive ear in Rajiv Gandhi. Rajiv Gandhi thanks to his basic telecoms exposure as an Airline
Pilot was able to see the importance of an Indian Telecomm industry. Against a similar
bureaucratic infra structure to Pakistan’s PTCL, Sam Pitroda created C-DOT [center for the
development of telematics. In doing so the first low-cost, non-air-conditioned, Rural Telephone
Exchange [called RAX] of about a 1000 to 5000 lines was made and later its license sold too

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many Indian companies. It was also exported to about 30 African and Asian countries earning
valuable foreign exchange for India.
The subsequent moves by the PTCL management are noticeable in their "creative destruction"
strategy.

6. Pakistan Telecom Foundation [PTF] was formed in 1997 to defend the Data Network sector
against private sector data network operators.

7. By 1999 PakNet / Pak Data Comm. was split off from Pakistan Telecom Foundation to look
after the pure Data Network sector and Pakistan Telecom Foundation was left with retired PTCL
engineers to run more mundane and less specialized engineering of Laying Telecom Cables.

8. More recently [1994-2003] as Private cellular operators [Paktel, Instaphone, Mobilink] raced
ahead with Mobile Voice Networks [both AMPS and GSM]; PTCL launched their private
Mobile Network company Ufone.

9. More recently PTCL is trying to enter the area of Hybrid Fiber Cable [HFC] -TV networks
after the initial launch of World Call’s HFC networks in Lahore and Karachi affluent suburbs.
By first quarter of 2003 these payphones numbered 21,000.

10. Arfeen which started with Instaphone Wireless and Supernet Data Networks [Frame-Relay
Networks] has launched Telecard Pay phone initially using land lines from PTCL. In 2000 it
launched fixed wireless [using CDMA technologies] payphones in Karachi under the name
"Foree Fone & Na Taar Na Intizzar”. By first quarter of 2003, these payphones were operating
from Karachi, Lahore and Islamabad at a total number of 50,000.

11. By December 2003 PTCL obtained an extension of the De-Regulation of the Telecom sector
deadline set by WTO and March 2003 was the new deadline

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PAKISTAN TELECOMMUNICATION COMPANY LIMITED:

Pakistan Telecommunication Company Limited (PTCL) is the primary provider of

Telecommunication services in Pakistan. The range of services include basic telephony,
telegraph, fax, telex, Public data, Internet, E-mail, ISDN (Integrated Services Digital Network),
Universal Access Numbers (UAN), and other value added services. Pakistan
Telecommunication Company Limited is a professionally managed company and has initiated
measures, with active support of the Federal Government, to inculcate a corporate culture that
befits a business like company. Pakistan Telecommunication Company Limited believes that it
has an inherent potential that it can exploit to emerge as an important and active business entity.
Pakistan Telecommunication Company Limited has some basic strength and the potential that
needs to be exploited into real business opportunities. The Directors of the Company feel that a
firm and unwavering commitment towards provision of a complete range of market driven
telecommunication services to its customers using state of the art technology proven products
and a customer care approach is essential in a rapidly expanding telecom market. The radical
change from a monolith state controlled culture to a: open market competitive environment. The
customer is becoming and more conscious of the value of telecom services in an improving
business environment. The advent of digital systems, increasing application of computer
technologies and development of wide-band systems has generated new customer needs.
Innovative products and services such as cellular mobile, facsimile, high-speed data, Internet etc
are much in demand. The current decade has proved to be the period of sector restructuring and
growth globally. To keep pace with the changes and to meet the emerging new demands,
Pakistan Telecommunication Company Limited has adjusted its programs to meet the
requirements of the market. Traditional telecom monopolies like Pakistan Telecommunication
Company Limited need to explore new avenues of technology and financing to accomplish a
quantum leap in growth and bridge the gap between demand and supply, still remaining
financially viable. The Company has taken initiatives and a change is gradually becoming visible
through expanded capacity and increasing revenue.

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 Pakistan Telecommunication Company Limited has taken decisions to cope with the
competition, within the next few years. The initiatives taken resulted in the establishment of
100°/o Pakistan Telecommunication Company Limited owned subsidiaries like Pak Telecom
Mobile Limited.

Paknet and Pak Telecom Pay Phone services limited. These new entities shall provide
cellular mobile information technology, Internet, payphone, prepaid calling cards and other range
of services, Pakistan Telecommunication Company Limited made a conscious decision to enter
the cellular business as it has tremendous potential and an accelerated annual growth of about
60% which is likely to continue for many years.

Pakistan Telecommunication Company Limited has been successful in obtaining a

Cellular Mobile License for its subsidiary and has selected the GSM 900 state -of the—art
technology, which is growing at a much faster rate internationally. Par. Telecom Mobile Limited
was incorporated on 18th July 1998 to establish and run this new business independent of
Pakistan Telecommunication Company Limited with full accounting separation thus creating a
level playing field for industry competitors.

Pakistan Telecommunication Company Limited is following a business-oriented policy

to associate private entrepreneurs in telecom sector development. The options are based on
interconnect and revenue sharing arrangements with license operators and through oul-sourceing
revenue sharing with 0 & M contractors as business partners. PTCL has successfully entered
into arrangements with foreign and local telecom companies and has signed three contracts
prepaid calling card service to promote international traffic.

The Government of Pakistan in has encouraged I lie growth of the telecom sector to
enable Pakistan to keep pace with the rapid technological advancement in the field of
telecommunication. The tariff stricture remains under constant review of the government to
rationalize from the point of providing adequate returns to the telecom operators and to tap the
tremendous potential of the growth in the demand and market for telecom services. The GOP has
reduced the CED on telecom services, encourages the use of value added services with special

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emphasis on proliferation of Internet. It has also reduced the import duties on telecom equipment
and allows tax exemption.

1.2 Vision Statement:

To be the leading Information and Communication Technology Service Provider in the region by
achieving customer satisfaction and maximizing shareholders' value'.

The future is unfolding around us. In times to come, we will be the link that allows global
communication. We are striving towards mobilizing the world for the future. By becoming
partners in innovation, we are ready to shape a future that offers telecom services that bring us
closer.

1.3 Mission Statement:

To achieve our vision by having:

• An organizational environment that fosters professionalism, motivation and quality

• An environment that is cost effective and quality conscious
• Services that are based on the most optimum technology
• "Quality" and "Time" conscious customer service
• Sustained growth in earnings and profitability

1.4 Core Values:

• Professional Integrity
• Customer Satisfaction
• Teamwork
• Company Loyalty

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 CHAPTER NO 2

PRODUCTS AND SERVICES

2.1 VALUE ADDED SERVICES:

Marketing department is providing value added services to its subscribers (both individual &
organizations) and aims at improving its efficiency by offering discounts and other benefits to its
subscribers.

Marketing Department is offering the following value added-services to its subscribers.

• Toll Free Numbers.

• Universal Access Number.

• Digital Facilities.

• Domestic and Commercial ISDN Service.

• Internet/E-Mail Services.

• Digital Leased Lines/Cross Connect.

• CLI Service.

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2.2 TOLL FREE NUMBER:
Field service representative no longer needs coins or a Telephone card to call their service center
for important information.
Mail order companies and whole sellers can use free Telephones to allow their customers to
place order over the phone free of charges and increase their turnover considerably.
Free phone helps Banks and Insurance companies to improve customer services and provides
better customer support.
Free phone can help answer many of the key questions in modem marketing. It facilitates the
quick and easy collection and evaluation of customer feedback and can help individual
customers and customer segment.
Air Line, Travel Agencies, Freight. Forward and Hotels can offer free phone to the
Customer to give them unique opportunity for free of cost reservations and orders.

2.3 UNIVERSAL ACCESS NUMBER:

It is the facility offered to the subscriber for dialing a single number in all the cities. Presently it
is available in 35 major cities of Pakistan. No additional charges are required by the Pakistan
Telecommunication ccompany Limited to install this facility. UAN can be activated on the
existing telephone line. Code for UAN is 111. UAN service is of great value for those
organizations that have of offices at different cities of the country. Without UAN facility,
customers have difficulty of remembering different numbers for offices in different cities. But
UAN service provides one telephone number for offices in different cities. By the use of UAN
facility, customer can contact the office of his organization at any city by dialing single number
of course; he has to dial the code respective city if he is not local.
For example 111-222-333 111-222-222 etc
There are following advantages of UAN facility
1. It makes easier for customers to contact by dialing a single and simple number
And easy to remember.
2. A quick and easy access to make question and complaints increase customer satisfaction.

3. It is cost and time saving.

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2.4 DIGITAL FACILITIES:
Pakistan Telecommunication Company Limited offers the digital facilities that are available to
the subscriber of digital exchanges. There are following digital Telephone facilities with very
nominal price excluding the secret coding and detailed printed bill (which are without any cost).
2.5 CALL TRANSFER:
You can receive your call at another number when you are away from your Telephone. As long
as you wish the incoming calls will be diverted automatically to the number of your choice.

2.6 CALL TRANSFER ON BUSY:

If your number is busy, an incoming call will automatically transfer to another number
programmed by you. You may Specify maximum five Telephone numbers as an alternative.
If you don't pick up the receiver within five rings, an incoming call can be automatically
transferred to another number specified by you. Maximum five Telephone numbers can be
programmed as an alternative.

2.7 CONFERENCE CALL:

While your call is in progress, you may ring to a third party to setup three party conference call
(with help of ISDN Facility, a videoconference can also be made).

2.8 ABBREVIATED DIALING:

Instead of dialing the whole number, which may consists of up to 15 digits, you may dial a single
digit that will be converted in the exchange into full number. Maximum ten telephone numbers
can be programmed as single digit (0-9) and one hundred Telephone numbers as two-digit code.

2.9 DON’T DISTURB:

You may program in a way, so that it would not ring at a specified time. The caller will hear the
announcement "please don't disturb; call later".

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2.10 WAKE UP CALL:
Your Telephone will ring up as an alarm clock to wake you up at the time specified by you.

2.11 CALL WAITING:

If you are already busy with a call, you can put the new incoming call on hold. The caller
receives a ring back instead of busy lone and yon will hear a beep to put your attention to the
new incoming call.

2.12 HOTLINE:
This is really hot, you pick up the receiver and if you don't dial for five seconds, you will
automatically connect with the number programmed by you.
This package has got the excellent popularity due to its pricing package. It is expected that
Pakistan Telecommunication Company Limited will generate additional revenue by selling this
package to the business as well as the domestic subscribers.

2.13 DOMESTIC AND COMMERCIAL ISDN SERVICE:

Integrated Service Digital Network (ISDN) is faster, clearer voice and fax communication plus a
new way to send and receive video images, graphics and complex computer data on a phone line.
Pakistan Telecommunication Company Limited offers two types of Integrated Service Digital
Network connections.
1. Basic rate access is suitable for households and small to medium sized organization it provides
two 64Kb/s user channels plus one 16Kb/s-signaling channel.
2. Primary rate access used for larger applications and PABXs. It provides thirty 64Kb/s
signaling channel.

2.14 ADVANTAGES OF INTEGRATED SERVICE DIGITAL NETWORK:

• High speed computer to computer data communication

• Computer based videoconference.

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 • Caller line identification.

• Eight times faster than fax transmission.

• High quality video communication.

2.15 INTERNET AND E-MAIL SERVICE:

Pak Telecom, as a part of their program for providing advanced data communication facilities,

have established a countrywide packet switched public data network called PAKNET. PAKNET

is now providing domestic and international services via local data links. E-mail and fax

gateways.

2.16 DIGITAL LEASED LINES/CROSS CONNECT:

Pak Telecom offers end of end global digital connectivity for data communication on
comprehensive rates.
Pakistan Telecommunication Company Limited has developed a platform for digital leased lines
networking. It can provide corporations and other knowledge based organizations with
competitive, flexible and reliable data services and support. Potential customers for digital
networks are as under:

• Corporate Customers.
• Software Exporters.
• Private Data Operators.
• Air Lines/Travel Agencies.
• Oil Exploration Companies.
• E-Mail/ (ISP’s)
• Shopping Lines.
• Financial Institution
• Aviation and Security Control.
• Courier Services

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2.17 CLI SERVICE:
Pakistan Telecommunication Company Limited has recently started offering CLI service to its
valuable customers. With the help of CLI service, customers can see the numbers of incoming
calls. Customer can see whether the call is from relative or friend before talking. Customer can
also identify the wrong calls and can take necessary action against them.

2.18 NEW SERVICES INTRODUCED:

• Domestic & International ISDN Services

• Universal Access Number (UAN)
• Toll Free (0800)
• Internet, E-mail and Electronic Information
• Intelligent Network Services
• Data Network Services
• Digital Leased Lines/Cross Connect
• Help line (106) and coil-free hotlines introduced in Karachi and Islamabad to redress
customer complaints.
• CLI made available in major cities
• Prepaid Calling Card Service—Three Platforms for International Calls

2.19 QUALITY OF SERVICE:

PTCL has improved considerably in this area. At present there are much fewer complaints
pertaining to dropping of calls, cross talk and wrong dialing due to achievement of 82%
digitalization of its network but there are still some complaints like late delivery of bills and
excessive billing, poor response from 17, 18, 109 and higher faults. PTCL is taking following
measures to further improve the quality of service:-

• Upgrade old Outside Plant

• Good management of digital transit/local exchanges
• Optimize optical fiber links and digital radios

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 • Effective monitoring and fault management
• Achieve call completion ratio of 50% inland and 55% on international calls
• Improve response time and quality on 17, 18 & 109
• Modernize Directory service and distribution
• Expand and improve Customer Service Centers
• Create customer care culture
• Providing diversity on main arteries for National & International circuits including
leased lines to mobile operators for interruption free service during breakdown and Universal
Access Numbers __ access to mobile networks.

2.20 NEW PROJECTS AND SERVICES IN PIPELINE:

PTCL is also in the process to complete the following projects:
• Addition of 300,000 new telephones during 1999-2000.
• Replacement of 229,000 EMD lines with Digital lines in 1999-2000.
• 160,000 Wireless Local Loop Payphones.
• Turnkey project for 275,000 lines contract with ZTE-China Wanbao.
• Expansion of Internet service - 150,000 new connections.
• Quetta-Shikarpur Optic Fiber Cable installation work in progress
• Global Mobile Personal Communication by Satellite (GMPCS)
• Voice Messaging Service.
• Video Conferencing.
• Intelligent Network Platform
• Electronics/Radio Based Burglar Alarm System/Service
• Prepaid Calling Card Service for NWD Calls

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 CHAPTER NO 3

CRITICAL ANALYSIS

3.1 SWOT ANALYSIS:

Strengths are positive internal characteristics that the organization can exploit to achieve
its strategic performance goals.

STRENGTHS:

Biggest Foreign Exchange Earner

PTCL is the biggest source of foreign exchange for Pakistan. It earns a lot of foreign
exchange form its international traffic and interconnects revenue.

Modern Technology
PTCL is running modern technology to develop its products and services and improve the
quality of services. In this connection it has replaced the old exchanges with new digital
exchanges. It has computerized billing system for domestic landline customers. Due to this
technology thousand of complaints have been reduced. PTCL has also entered in the business of
Mobile phone, internet services, IPTV (PTCL SMART TV). Its product line is continuously
expending. Also it now it has licenses of SMW3 and SMW 4, two optical fiber cables. In case
one gets disconnected under sea; other can take its load of traffic.

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Good Will
Good sound image is prolonged through innovation and as long as a company has well
image, its share market will be growing. It should be remembered that even very good image,
starts smelling badly without innovation. PTCL was privatized and its shares were purchased on
higher price because PTCL is the biggest telecom company of Pakistan and stands among higher
ranks of the telecom industry of sub continent region.

Largest Installed Network

PTCL has the largest nationwide installed network infrastructure capability which
includes switching, transmission, fiber optic backbone, co-location and international capacity.
This provides an ample space and unique state to offer these services on turnkey basis to the
upcoming list of carriers including Mobile, WLL (Wireless Local Loop), ISPs (Internet Service
Providers) and Resellers.

OSS (One Stop Shop) Provider

To simplify IPLC ordering and billing, a concept called One Stop Shopping (OSS) was
developed. OSS allows an organization to place a single order with a single carrier for two
private leased circuits for two offices in two different countries. In the past, an organization had
to contact each carrier in each country to order the two circuits, which included two separated
invoices. OSS consolidated the billing for both circuits into a single invoice, handles all currency
issues, and allows the organization to report all problems from either circuit to one carrier.

WEAKNESSES:

Communication Barriers
There is ineffective communication between the higher and lower staff; this is due to less
qualified lower staff. During process of restructuring many new employees with greater
qualifications are recruited. However the lower permanent employees, who either didn’t take
VSS by themselves or VSS was not applicable to them, are having almost obsolete skills
incapable for re-usage in new structure. The old employees are not comfortable working with
new employees.

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Lack of Professional Staff in Region
It is observed the offices PTCL in the region lack professional staff and qualification and
thus they can’t cope with modern and competitive requirements of the market.

Low Employee Work Morale

The morale of older employees is much low. The new employees are really motivated
and are well incorporated into corporate culture. But the old employees are not motivated to
work. The come late to offices, spend most of the time chatting with colleagues, leaves office
early. It is because they consider themselves to be inferior now. A new young, agile employee of
nearly half of their age performs work better than them and is getting their supervisor praise.
They feel that their experience, years of serving to PTCL and loyalty has gone wasted.

Ambiguity in Strategic Direction

PTCL is doing business very well but only to that extent to which customers respond.
Though company is transforming itself to “Customer Oriented business” and has declared this
year of “Customer Care” but vision is not clearly shared by all. Also it is thoughtful that a
company declares a year of “Customer Care” and its employees are on strike sitting in a 42
degree Celsius. Though strike issue has been solved but a company needs a transformation first
in its employees. Employee care and customer care should go side by side. Although PTCL is
generating revenue from its value added services but it doesn’t have any solid financial strategic
outline, which can cope the entire complex financial situation and recovery of bad debts. Also
ambiguity exists in implementation strategic financial plans. Externally PTCL has competitors so
it has no benchmark to gauge financial performance of its different departments with those of
competitors.

Lack of Training Program

There is no proper training program to improve the skill of PTCL employees to cope with
every changing telecommunication sector. Less skilled & inefficient workers are creating hurdles
in its growth. Though 8,931,500 Rs. has been budgeted for training year 2008-2009 but is almost
equally distributed among Administration, HRD and finance. No need based division of budget

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is done. Training on employee motivation, team building and about new processes and software
are essential.

Essence of Bureaucratic Touch

The organization has transformed to company and emphasis is on corporate culture but
still the classical touch of a bureaucratic organization exists. Especially some of the officers at
the senior or middle management level like to enjoy power in the bureaucratic style and want to
see the acceptance of their command down the order.
The awareness with modern management concept is the part of the “change of culture”
program which has been stated at all management level.

OPPORTUNITIES:

• Increasing Awareness Rate

PTCL can show its interest in educating people & increasing literality rate in this way,
PTCL will not only fulfill its social responsibility but will also be able to increase awareness rate
& it will be helpful in the expansion of PTCL
• Skillful Human Resources

PTCL can improve the skill of its manpower by providing them the opportunities of
advanced courses that will make them to cope with the ever changing condition in field of
telecommunication.
• Telecom facilities in the rural areas

All the value added services and digital facilities are available only in the main cities of
Pakistan like IPTV, DSL etc. PTCL can expand its business by providing value added telecom
facilities in rural areas, which is only possible when adequate planning is done.
• Addition to the Product line

Top management of organization can make additions to its existing product line by
providing more services. In this way it can increase its revenue and customer satisfaction. This

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requires market research. PTCL has already captured the industry so all kind of the opportunities
are for PTCL till the end of monopoly. PTCL can launch “Wireless Internet Services” for
excelling in telecom sector.
• Licensing as a Source of Revenue

Private mobile companies are getting license from PTA, which is a source of revenue has
also launched its own mobile services. New licenses though will reduce market share for Ufone
but will also help in revenue transformation.
• IT and Communication: Vehicles of Modern Businesses

PTCL being the biggest telecom operator of the country has huge potential for growth.
Company can expand its services through innovation. The broad band market is nascent market
with very low levels of penetration. The market potential for broadband is up to 2 million lines
and by unique nationwide landline infrastructure PTCL can dominate this segment.

THREATS:

• Unstable Economic and Political Condition of Pakistan

The economic situation of Pakistan is unstable. The unstable economic condition of

Pakistan is a great threat to PTCL. In strong economic conditions, the growth of business is very
frequent. The poor economic conditions increase the inflation rate that decreases the buying
power which is very threatening for PTCL. Also political and economic instability creates
uncertainness. Stock market and shares can sustain bearish or bullish trend but it cannot tolerate
uncertainty.

• Decrease in Market Share Due to Competition

Entering into the new era of competition may pose difficulties. Many dissatisfied
customers may shift to those telecom service providers who they think would offer better
services than PTCL, and will increase customer satisfaction. Decrease in market share would
decrease the profitability of PTCL, which will be a real threat in near future. PTCL broadband is

18
unable to compete with other private DSL’s like Link Dot Net by Orascom Company limited and
Wateen telecom in service quality.
Also in mobile sector the share of Ufone has decreased due to entry of China Mobile and
Telenor and it can further decrease if more companies will enter.

• Increased Competition and Turnover

Due to emergence of bulk of WLL, ISP’s, Mobile companies and WLL operators,
company would have to compete for quality human capital also. Though the pay structure has
greatly improved after privatization of PTCL, but as new employees are on contract so company
should provide competitive pays to its employees. Otherwise the human capital trained and
developed by PTCL would be captured by bulk of other telecom industry companies.

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3.2 PEST ANALYSIS:

The macro-environment includes all factors influencing a company that are not within its
control. These include political, social, economic and technological factors. These are known as
PEST factors. A technique of analysis of the macro environment is PEST analysis. Since the
Telecom industry is very much influenced by changes taking place in the environment and has
undergone rapid and dramatic changes during the last decade, this analysis is especially
important for PTCL.

POLITICAL FACTORS:

Political factors always have a great influence on PTCL due to its monopoly in the market. In
recent years it has been observed that government played an active role in increasing competition
in the Telecom industry. Pakistan has achieved some political stability in recent years. If the
management of PTCL believes that the present government will perform well (consistently), then
there will be more co operation by the government and PTCL can excel in latest technology in
this competitive environment. The company would become better and will grow resulting in
more suitable products for customers and would capture more market share then the mobile
companies.PTCL should take the advantage of suitable policies of government because it would
help them to gain larger market share.

ECONOMIC FACTORS:

Currently, PTCL has major competitors like mobilink, warid, zong, ufone etc, these are its
indirect customers but they are gaining more market share and are economically well going, so
PTCL would have to think to target its customers to its best extent. Customers‟ purchase
behavior depends very much on quality and innovative latest technology. So PTCL would have
to provide best service to be a leader in the market. It has got monopoly in the market in land line
but PTCL has to think far away from this.

As inflation rate is unstable in Pakistan, spending power of consumers has effected in the long
term. In fact growth in Pakistani economy has resulted in an increase in spending power and has
positively impacted PTCL. The new services and products has got fame in the minds of young
generation,e.g:EVO,DSL Student packages etc.so right now PTCL economically is far better
than the other cellular companies but it’s not the point for PTCL to stop it has to go along way
yet.

SOCIAL FACTORS:

The social structure of Pakistan is closely tied. The trend is now changing as the general public is
educated and is pursuing professional goals. Customers are more aware of market conditions and
available options and want to get best value for their money. They spend considerable time and

20
money on entertainment hence increasing the need for entertainment systems. Also, word of
mouth has a significant impact in the use of PTCL services. EVO attracts a huge number of
customers. The social environment of Pakistan is turning liberal. So PTCL has to take advantage
of the situation that customers are now getting more informative and it should focus more on its
advertising policies.

TECHNOLOGICAL FACTORS:

Technology is vital for competitive advantage and is a major driver. Major technological changes
are taking place in PTCL with innovations in products and services.EVO and SMART CARD
are such examples of these innovations. Internet plays a key role as it’s a vital need for all
customers and PTCL internet packages are better than its competitors like WATEEN,WI-
TRIBE, etc, which has helped it gain market share.PTCL phone sets have gain fame in the mind
of the customers, these small sets are given by the franchises and PTCL provides the RUIMS.this
is an advancement towards the competitive environment and PTCL is excelling and gaining
market share.

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3.3 PORTER’S FIVE FORCES:

Porter five forces for Pakistan Telecommunication Company limited are as fallows

Threat of new entrant

Power of suppliers
Power of buyers
Threat of substitutes
Competitive Rivalry

The five forces for Pakistan Telecommunication Company limited are now discussed
In detail.

Threat of New Entry:

As government of Pakistan is showing liberalism in case of telecommunication

sector and opened its policies to award new licensees to new mobile service
providers so threat of new entry is high.
As set-up cost is in billions of dollars so in this case threat of new entry is low,
but there are companies who are working to achieve licenses and approaching
PTA to know terms and conditions for this.
As for this business companies need a well established distributions and
franchises network so threat of new entrant is high in this case.

Bargaining Power of Buyers:

Power of buyer is high in telecommunication sector. There are six market players
and players are offering different packages at different prices and a situation of
price war is running. Buyers have a power to buy any package which is suited to
them.

Cost of switching from one company package to other company package is low.
Hence, power of buyers is high.

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Bargaining Power of Suppliers:

The power of suppliers is low in case of telecommunication sector.

But the fact is that numbers of suppliers are few in the market but they are
competing in the market to make agreements with mobile service providers.

Threat of Substitute Products:

Government also gave so many land lines and wireless local loop licenses to
different companies like PTCL wireless local loop, GO CDMA etc. these services
in future will be like mobile phone services like they are planning to offer services
a lot but currently they are offering SMS and CLI services to their customers.

Competitive Rivalry:

Currently there are six market players but in future they will be eight and nine or
even more.
Thruway satellite service is offering subscribers freedom of mobility and
uninterrupted service. Thruway’s satellite technology supplements of existing
mobile service providers, overcoming the challenges of large geographical areas.

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3.4 MARKETING MIX OF PTCL:

PRMOTIONS:
PTCL is using following components of promotional mix for the promotion 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 hotline0800-44544
´,Caller line identification (CLI),Voice Messaging Service, Digital Facilitie,,PTCL Prepaid
Calling Cards, Inquiry 1217,Complaint 1218,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.
PTCLs Commercials on, CLI, Voice Messaging, Digital Facilities, EVO
wireless, Broadband Pakistan etc. are also broadcast immediately on electronic
media as reminders to Customers.

SALES PROMOTION:
PTCL charges 1rps/min for all Pakistan to all ptcl and vfones 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.
And also student internet packages and special packages time to time to attract customers.

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. They can also get connected their telephone bills and get duplicate
bills from these outlets. 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.

PLACEMENT:
The Head Office of Pakistan Telecommunication Company Limited is situated in SectorG-8/4.
PTCL products and services are all over Pakistan because it has a monopoly. The phone sets are
of different frequency for different areas In settle Ares PTCL phone sets have a frequency of

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1900 and in northern areas they have a frequency of 450.the placement of product and services
for PTCL is all over Pakistan whether urban or rural areas.
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, an Exchange, Franchisor, Call Centers, Customer Care Centers are available
to facilitate the customer need.

PRICE:

Being a government organization, PTCL is not authorized to determine the prices of its products
itself; the Telecom Regulator Authority viz. Pakistan Telecommunication Authority (PTA) 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
as part of GoP Telecom Sector policy for privatization of this sector. It was mainly focused on
rebalancing the domestic process like NWD, international, local call, line rent etc. Rebalancing is
completed by the end of 2009 (as per Tariff rates) with the objective to position PTCL for
competition.

PHYSICAL EVIDENCE:

EXTERIOR:
PTCL built very good and attractive buildings of its offices as well as its franchises
In order to attract the customer and as physical evidence.

INTERIOR:
Interior as well manage but not as like its competitor like Moblink, Telenor there franchises are
well mange internally and attractive their internal environment as too much attractive and an
educated stuff is present there in order to facilitate the customers but in PTCL franchises mostly
not manage in region like Multan. But well Manage In all the cities of Pakistan.

PEOPLE:
The employs of PTCL nearly equal to 30000 who are working in all over in the Pakistan they are
the assets of the company and they are the responsible for the goodwill of the company.

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Company also focuses on the status of their employees and gives them performance appraisal
program and gives them incentives and also gives them medical treatment.
CHAPTER 4

EXPERIENCE IN PTCL

My internship in PTCL:

The time period of my internship in PTCL was of 6 weeks. During this time period I worked in
configuration center and in OSS (one stop shop) in westridge office.

4.1 Configuration center:

I worked in configuration center for 3 weeks. In configuration center I use to configure PTCL
phone sets through a software that would read the phone set serial number, authentication key
number and middle directory number and then it was configured that whether there is a fault in
the set or not. If not then the data of the phone set was automatically saved by the software.
I used to keep the data of ruims that were given to the customers from configuration center.
Basically the back end data was kept in configuration of both phone sets and ruims and the faults
and problems were removed from this end.

4.2 Oss (one stop shop):

I worked in OSS for 3 weeks. In OSS my job was to directly deal with customers and refer them
to the right person or officer who would solve their query or problem. Basically OSS (one stop
shop) is the front office of PTCL, where customers first enter and then they are directed to the
right officer who would deal with them and solve their problem.
Application for closing of number, activation of new number
, Billing, data related to the number, application for DSL service Etc, and these all things were
done in OSS.

Detail:
I was send as an internee from the head office of PTCL to configuration center westridge
exchange. I was working under SHAHID JAMAL, Assistant manager and under him there were
four subordinates. Basically in configuration center all the stock was stored in a store. This store
had the phone sets, Ruims, brushers, pamphlets, and PTCL demonstration charts etc.customers

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were directed from OSS to configuration if they were facing any problem regarding phone sets
or ruims.
PTCL does not cell products to its customers directly. It sells it to its franchises
and then they sell it to the customers’ was working in PTCL westridge exchange. Under the
configuration center of this office three regions were there. So it was covering a big area. The
day when an order was submitted to the configuration center from any franchise for phone sets,
at that day we use to configure the sets through PST software that would read the phones data
and would show that whether there is a problem in the set or not. We used to keep the data of
Ruims e.g. serial number and ICC id number in the excel sheet and then this data was being send
to the head office of PTCL.

The franchises were given information regarding any new policies or rules
and regulations related to PTCL about its products and services. Because franchises are the direct
customers of PTCL.During my internship in PTCL a training session was held by our Assistant
manager in which employees of different franchises from Rawalpindi and Islamabad came and
they were given information about some new technology introduced by PTCL.this training
session helped in increasing my knowledge because all well trained employees that were in the
market gave their views’ noticed the way they communicate, their professionalism etc.

I was directed by my Assistant manager to keep an eye on the store, the products that
were going in and going out, their data, their maintenance and the record of the defaulted sets’
was also directed to check all the important emails from the head office.
This was my work experience related to configuration center in the start 3 weeks of my
internship.

After first 3 weeks of my internship I was transferred to OSS (one stop shop).here the
work experience was more interesting and I was able to develop my communication skills and it
helped me really to build my confidence.
Basically in OSS my job was to directly interact with the customers’ used to listen their
complaints and then direct them to the right officer that would solve their problem. Furthermore I
used to enter the application for new connection of PTCL phone sets or DSL connection. Here I
worked under the supervision of SIR MANSOOR Assistant manager OSS.
OSS helped me groom my communication skills because every customer has a different mind
and behavior. Managing these customers properly was a great experience for me.OSS is
basically the front office. Customers used to come to get information about PTCL products and
services, mostly customers were asking questions about the products,e.g EVO,RUIMS,PTCL
phone sets,PTCL small mobile sets which PTCL does not sell they are sold by the franchises.etc.

As a whole my experience in PTCL was simply great. I learned a lot from my

supervisors, they all had a vast experience related to market or practical field. Working in
configuration center and OSS helped me to learn how is the practical field, what are the hurdles
you face, how will you interact with customers, your colleges and your boss. My internship

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helped me a lot to learn about PTCL, its internal environment and working here helped me to
gain knowledge about all other government and semi government organizations.
My internship in PTCL helped me to make good relationships and links with employees of
PTCL.These all employees are on executive posts and had a vast experience. I interacted with
them, asked various questions about the market, organization etc and gained knowledge from
them.
As a whole I had a very nice and great experience in PTCL.

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 CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 CONCLUSIONS:

In the modern era, Human is being viewed as an important asset rather than as a cost. Human
being play vital role to run any organization efficiently and effectively.

No organization can grow or even survive with de-motivated internal customers; external
customers can only be satisfied when internal customers of an organization are satisfied.
Unfortunately, PTCL in these days is running with de-motivated internal customer. The genuine
rights of the employees have been denied due to which they are de motivated. The work of
excellent employees is not being appreciated in kind of incentive and rewards. The competitive
Telecommunication industries are paying far more to their employees than PTCL. Company
itself is paying manifold to contract employees of same designation than its regular employees
with lots of experience. Undefined and ambiguous human resource policies have negative effect
on overall performance of the employees and company.

PTCL had gone through a big change and restructuring process, now it was the time to move on
towards success by removing all the hurdles.

There were very few people who realized their responsibility of contributing their part for the
well being of the organization. Others were just trying to switch their jobs to some better
organization even after working for PTCL for 12 years. This shows the low level of employee
commitment with their jobs and with their organization. Besides, some other problems also exist
in PTCL:

• No justice and proper procedures are followed in the organization. Employees have to
fight and struggle for their rights of promotions and transfers.

• Labor unions strike and fight for their due rights for increments in pay and medical
facility, etc; no proper procedure is followed by these employees and they create a
situation of clamor in the organization.

• Proper performance appraisal system doesn’t exist in PTCL, that’s why the existing
system of evaluating the performance of employees isn’t reliable and practical.

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 • Proper training programs for employees don’t exist in PTCL which proves itself as a
hurdle in the development of the organization.
• Proper compensations and bonuses aren’t given to the employees, which leads to the
de-motivation of employees.

• There isn’t any proper system to determine the GAP between the job description and
job specifications of the employees. And if GAP is determined, no proper system is
there to fill the GAP.

5.2 RECOMMENDATIONS:

• Performance appraisal system must be improved in the organization. It will help the
employees to get to know of their flaws and they will try to remove them
.
• Proper system must be introduced to determine the GAP between job description and
job specification and according to the determined GAP proper training programs must
be scheduled.

• Policies implemented by the government must be thoroughly replaced by the policies

given by the new management of PTCL because it leads to the occurrence of clash
between these two different policies, and consequently affects the performance of the
organization.

• Proper communication must exist between the upper level management and middle
level management, so that issues could be resolved at a better pace.

• The conflict between permanent and NTC employees must be resolved because this has
created an environment of tension in the organization.

• Proper benefits must be given as it encourages employees to perform better.

• PTCL should revise its organizational structure to make it more competitive to deal
with the change and commercialization process.

• Government interference in PTCL affairs especially those relating to hiring and

contractual employees should be eliminated so that PTCL operate independently as an
autonomous body.

• Management of PTCL should communicate changes to its key people (all levels of
management) by sharing information and ensuring its acceptance.

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• Before the implementation of any task, training of all those employees should be
ensured who will perform those tasks.

• PTCL should make improvements in Human Resource Department and policies, such
as Performance Appraisals and Job Descriptions as soon as possible.

• PTCL should treat its employees as assets and should devise some policies to make the
best use of human capital to move forward on the road which leads to ultimate success.

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REFERENCES:

Abbasi, F. A. Data Billing and Payments (2008): Orientation report. Unpublished manuscript,

Pakistan Telecommunication Company Limited, Islamabad, International Revenue

Department.

Anonymous Billing and Receivables-International business. (2000). Follow up actions for

overdue balances, c.6.2, p.19.

Jabeen, A. Orientation report (2008). Unpublished manuscript, Pakistan Telecommunication

Company Limited, Islamabad, Advisory Section.

M.Fahim Tariq Accounts Officer (1986), Ceiling/TreasuryPakistan Telecommunication

Company Limited, Islamabad.

Third Quarter Report Pakistan Telecommunication Company Limited, (2008) Islamabad, p.13.

PTCL Annual Report (2006 – 2007 – 2008) Islamabad.

ONLINE REFERENCES:

• http://www.pta.gov.pk/
• http://www.hoovers.com/ptcl
• http://www.ptcl.com.pk
• http://www.ptcl.net

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