Pakistan Telecommunication LTD: Misbah Mushtaq Burki - Roll No 101 - B.B.A Viii Semester

PAKISTAN TELECOMMUNICATION LTD
MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

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Supervisor
Miss. Ayesha Riaz
UNIVERSITY OF EDUCATION
OKARA CAMPUS

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Dedication
I dedicate this project to
Almighty Allah, The Creator of worlds
And
Hazrat Muhammad (P.B.U.P), the cause of
The creation of the Universe
And
To my parents,
To the persons who loved me,
persons whom
I loved and for all those who prayed for me.

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Acknowledgment
First of all thanks to Almighty Allah, who have given me the strength and
knowledge to complete this project.
I would like to specially thank for the help of my finance teacher
Miss. Ayesha Riaz who helped me a lot regarding this project.
I have learned a lot with the kind guidance of Miss. Ayesha Riaz and I
think I have achieved my goal of learning practical things.
BBA (Hons) Finance
Table of Contents
Sr. No Description

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1. Executive Summary
2. Vision Statement
3. Mission Statement
4. Company Achievement
5. Production process
6. Exports
7. Purchases
8. Personnel Management
9. Organization Culture
10. SWOT Analysis
11. PEST Analysis
12. BCG Matrix Analysis
13. Summarized Balance Sheet
14. Trend Analysis of Balance Sheet
15. Vertical analysis of balance sheet
16. Summarized Income Statement
17. Trend Analysis of Income Statement
18. Ratio Analysis
19. Recommendations
20. Conclusion
EXECUTIVE
SUMMARY

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INTRODUCTION OF
INDUSTRY
HISTORY OF TELECOMMUNICATION IN PAKISTAN
A BRIEF HISTORY OF TELECOMMUNICATION IN PAKISTAN

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The history of telecommunication in the sub continent is as old as the history

of our slavery. In the subcontinent before independence this sector was
under the Indian post and telegraph department and developed as a
successful industry. The role of telecommunication in Pakistan can be
broadly divided in to four phase.
PAKISTAN POST AND TELEGRAPH
At the time of independence and telecommunication services were

performed by a single department known as Pakistan post and telegraph
(P&T).his department started its telephone service with only 12346
telephone lines and seven telegraph offices all over Pakistan. All the
telephone service at that time was manual. This department continues its
business up to 1962.the government of Pakistan adopted the government of
India telegraph act 188 to control and direct the activities of
telecommunication.
PAKISTAN TELEPHONE AND TELEGRAPH (PT&T)
The first step towards reform in telecommunication sector was made in

1962.when the ayyub khan government decided to split up the (PT&T)
department into two separate departments Pakistan post and Pakistan
telephone & telegraph (PT&T) under the presidential ordinance. The PT&T in
fact a civil service department under the minstrel controls. This department
was headed by director general. The decision making power was
concentrated with the post of dg, whilst the responsibilities were delegated
to general managers and chief engineers and general managers reporting
directly to the director general. The centralized structure of PT&T caused
inefficiency in operations and long delay in implementing decisions. At the
time of inception of PTCL the total number of employees working in PT&T
was 45686 and total network comported of 922,000.
PAKISTAN TELECOMMUNICATION CORPORATION (PTC)
The decade of 1990s brought about many changes in the economic structure
of Pakistan. The government of Pakistan pursued the deregulation and
liberalization policy in production and service industry. The major change in
this regard was privatization and deregulation of many of the departments of
government of Pakistan. The objective was to reduce the burden of the
government minimize the bureaucratic influence and improve the efficiency
of these departments.

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A major break through in the history of telecommunication in the country

occurred with the gradual deregulation and privatization of t) t, at the first
stage Pakistan telephone and telegraph department (PT&T) was converted
into a statutory corporation Pakistan telecommunication corporation. On
December 5th, 1990 the PT&T department was transformed into Pakistan
Telecommunication Corporation with a legal identity separate from the
government. This change in the statute introduced by the government of
Pakistan enabled PTC to move from administrative to contractual
relationship with its customer. It provided the opportunity for the
development of telecommunication facilities to an unprecedented level and
also for an increased customer satisfaction. Working under the PTCL act
noxv111 of 1991, the corporation was responsible for establishment
maintenance and operation of telecommunication services telephone
telegraph telex, tele fax and data transmission with in the country and
establishment of international link with all member countries of ITU
(international telecommunication union
Pakistan telecommunication corporation in it five years life spread the

network of its services all over the country and the total number of
telephone lines expanded TP 2127344 in addition to telegraph the telex
services. The total number of employees at the end of 1995 was 53705.
In addition to inland telephone network PTCL did a lot to improve the

international communication. The international communication network of
PTCL comprised of variety of satellite earth stations, terrestrial systems,
submarine cable system and coastal radio systems, as well as international
gateway exchanges.
PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCL)
Pakistan telecommunication Company Limited (PTCL) is a company

established to undertake the telecommunication business formally carried on
by Pakistan.
Telecommunication corporation (PTCL) Pakistan telecommunication

corporation (PTCL) was transformed into Pakistan telecommunication
company limited (PTCL) on January 1st ,1996 under Pakistan
telecommunication reorganization act 1996 according to which PTCL took
over all the properties assets rights and obligations of PTCL. Under the PTCL
reorganization act, 1996 the telecommunication sectors were split up into
four bodies.

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· Pakistan Telecommunication Company limited (ptcl)
· Pakistan telecommunication authority (PTCL)
· National Telecommunication Corporation (NTC)
· Frequency allocation board (FAB)
Pakistan telecommunication authority is a regulatory body responsible for

monitoring the telecommunication business in Pakistan. It frames rules and
regulation for private telecom companies such as mobile phone companies,
internet service providers, paging companies and pay card phone
companies. It also issues licenses to the new companies in entering to this
business.
National Telecom Corporation (NTC) is responsible to provide the

telecommunication services to the various departments of government and
armed services.
Pakistan Telecommunication Company limited is the primary provider of
telecommunications services in Pakistan. The range of its services includes
basic telephone, telegraph, fax, telex, email, digital cross connect, public
data network, internet, isdn, and other digital facilities. The total number of
installed telephone lines (ali) at June 30, 1998 was 35, 19,877 while the
total number of actual lines in service (alis) was 26, 60,898. The difference
between Ali and Alis issue to pending and potential future demands

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INTRODUCTION OF
COMPANY
PTCL – PAKISTAN TELECOMMUNICATION LIMITED
Introduction of PTCL
PTCL is the largest telecommunications provider in Pakistan. PTCL also

continues to be the largest CDMA operator in the country with 0.8 million
V-fone customers. The company maintains a leading position in Pakistan as

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an infrastructure provider to other telecom operators and corporate

customers of the country. It has the potential to be an instrumental agent in
Pakistan’s economic growth. PTCL has laid an Optical Fiber Access Network
in the major metropolitan centers of Pakistan and local loop services have
started to be modernized and upgraded from copper to an optical network.
On the Long Distance and International infrastructure side, the capacity of
two SEA-ME-WE submarine cables is being expanded to meet the increasing
demand of International traffic.
With the promulgation of Telecommunication (Re-Organization) Act

1996, the Pakistan Telecommunication Authority was established as the
Telecom Regulatory body. Following the open licensing policy in BUY @ PKR
45.40 accordance with the instructions of Government of Pakistan and in
exercise of powers conferred by Pakistan Telecommunication (Re-
Organization) Act 1996, the basic telephony was put under exclusivity and
PTCL was given a seven years monopoly over basic telephony which ended
by December 31, 2002. The year 2006-07 in the telecom sector witnessed a
phenomenal growth in the mobile phone sector in Pakistan, which doubled
its subscriber base to 60 million. The Teledensity increased from 26% to
40%, helping to spread the benefits of communication technology across the
country. PTCL's mobile phone subsidiary Ufone's subscriber base grew by
more than 87%, from 7.49 million to 14 million.
The year also witnessed the entry of major telecom companies, most
notably China Telecom and Singtel, into the market. Restructuring and re-
engineering are in their final stages along with the implementation of ERP
system. From the end customer's perspective, a major initiative was put in
place in the shape of 'Broadband Pakistan' service launch as a first step
towards providing its customer with more value added service and
convenience. With this offering, the PTCL not only bringing the benefit of
high speed Internet access to subscribers in major cities but will also
generate new revenue streams for future growth. The company also
continued to invest in infrastructure development and addition of network
capacity with a view to enhance services and to expand its reach across the
country.
MISSIN STATEMENT

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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
VISION
STATEMENTS

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Vision
“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.

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CORE
VALUES

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Core Values
• Professional Integrity
• Customer Satisfaction
• Teamwork
• Company Loyalty
• Corporate Information
Company Profile

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Company Profile
PTCL is all set to redefine the established boundaries of the
telecommunication market and is shifting the productivity frontier to new
heights. Today, for millions of people, we demand instant access to new

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products and ideas. More importantly we want them for their better living
standards with increased values in this ever-shrinking globe of ours. We are
setting free the spirit of innovation.
PTCL is going to be your first choice in the future as well, just as it has been
over the past six decades.
• Business & Corporate Users:
For clear communication the first choice of business circles is PTCL

telephone for local, nationwide and international calling. Today businesses
can have 10-100 lines with modern day services to meet their needs. Now
you get options like Caller-ID, call-forwarding, call-waiting, Call Barring, to
name a few.
• Other business specific services include:
0800-Toll free number, 0900-Preminum rate services, VPN-Virtual

Private Network, Audio Conference Service, Digital Cross Connect (DXX),
ISDN (Policy), Teleplus(ISDN/BRI), Digital Phone Facilities/ Modification
Charges, UAN, UIN.
• Nationwide Infrastructure:
We have the largest Copper infrastructure spread over every city, town
and village of Pakistan with over million installed lines.
The network has over 6 million PSTN lines installed across Pakistan with
more than 3 million working. Furthermore installed capacity of broadband is
more than 0.6 million ports spread across 318 cities and town of the
country
• National Long-haul Core Network:
We have over 10,400 km fully redundant, fiber optics DWDM backbone

network. It connects over 840 cities and towns with 270G bandwidth.

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• Carriers Services
As carriers-carrier, we provide the core infrastructure services to the

cellular, LDIs, Local Loop operators, ISPs, Call Centers and payphone
operators.
We provide all carrier services, right from inter-connects and tele housing to
DPLC and IPLC connectivity. Our interconnect services are provided from our
3200 exchange locations that connect your carriers networks domestically,
in addition to providing IPLC bandwidths to connect you internationally
through our four international gateways and SEA-ME-WE3 and SEA-ME-WE4
international submarine, also IMWE submarine cable will be added by the
end of the year. Furthermore to provide connectivity to operators in the
extreme remote areas of the country, PTCL launched its state of the art
satellite service (Skylink). PTCL satellite service (Skylink) is provided using
the Intelsat Satellite System, an undisputed leader in satellite
communications.
• White Label Services:
PTCL customers can now provide uninterrupted services to their clients

without undertaking large scale investment in infrastructure or developing
expertise in their own network.
PTCL White Label Services are focused on speed and simplicity at minimal
capex. This will enable our customer to offer their own branded WLL, DSL
etc to customers nationally, together with an array of key support services.
• EVO Wireless Broadband
PTCL EVO 3G Wireless Broadband is Pakistan’s fastest wireless internet

which offers its customers – “superior 3G internet experience”. Evo Wireless
Broadband is enabling the wireless broadband revolution in Pakistan with
flexibility to roam freely like never before. PTCL Evo has revolutionized the
way people connect to the internet by offering true mobility. PTCL Evo is
currently offering its services in more than 18 cities on EV-DO technology
offering speeds up to 3.1 Mbps. PTCL Evo gives its customers the advantage
of nationwide roaming with seamless internet connectivity across Pakistan.
The coverage of Evo is not limited to 18 cities as Evo customers can enjoy
CDMA-1X data rates of up to 153.6 Kbps at more than 1000 destinations
across Pakistan.

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The portable, small & stylish Evo USB device is a multipurpose device which
not only delivers fastest wireless internet but can also be used for Voice Calls
by inserting a Vfone SIM and for data storage by inserting a standard Micro
SD Card.
President's Message
The challenges faced by PTCL became even tougher in the
past year where Pakistan experienced a spillover from the

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global recession. However, with unwavering determination and strong

passion we have remained steady and focused on our course – to be the
leading customer oriented ICT Company in Pakistan.
This year PTCL has achieved numerous milestones, from some of which
customers can benefit today while other long term initiatives will bring a
fruitful tomorrow. Broadband Pakistan became the largest broadband service
in Pakistan. EVO launched in June 2009 and made the Company the first 3G
wireless broadband provider in Pakistan. This service is set to become one of
the primary products of PTCL for years to come
As is evident from the excellent reception it has received.
PTCL continues to enhance and consolidate its position as the leading and
premier broadband provider in the country and undoubtedly the sole
Integrated Telecom Service Provider offering
Bundled Voice, Data, and Internet and TV services at compelling and
competitive rates to a wide audience.
At the corporate front, we have remained equally successful. PTCL today is

the backbone for businesses throughout Pakistan through Voice, Data and
Internet services. This year has seen the revolutionary roll out of customized
services and state of the art audio and video conferencing facilities.
With the launch of our Data Centre in Karachi and subsequently in other
cities, corporate customers now have access to highly secure, reliable and
networked hosting facilities for critical applications and services.
Continuing with its efforts to improve and diversify Pakistan’s international

connectivity with the rest of the world, PTCL has embarked on an ambitious
project to link the country to the future data highway. Along with eight other
international telecom providers, PTCL signed the Construction and
Maintenance Agreement (C&MA) for IMEWE Fiber Submarine Cable System
linking Karachi with Western Europe directly. The capacity of this system, to
enter service shortly, will meet and cater to the growing and expanding
demand for the broadband internet traffic for years to come.
We fully realize in PTCL that while we work dedicatedly to enhance our

Systems and Processes,
Network, Products and Services our real reward and success originates from
our customers, consumers and users from all over the country. It is
therefore vital that PTCL continues to strive towards providing the highest
quality of customer service to the full satisfaction of our users.

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In this respect, we continue to work on several projects and initiatives to

improve our efficiency and response to customer demands and complaints.
Also, we remain confident that our customers will see a marked and
noticeable improvement in our services. With this in mind, we shall continue
to invest in our people and workforce to cultivate a culture of service and
differentiation and inculcate in them a new sense of purpose and self worth
for reaching out to our customers. In view of the above achievements and
undertakings, I am confident that our future is bright and promising and we
look forward to successfully delivering on our commitments.
Best Wishes
Walid Irshaid
President & CEO
Corporate Information
Management

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Walid Irshaid
President & Chief Executive Officer
Muhammad Nehmatullah Toor
S.E.V.P (Finance) / Chief Financial Officer (C.F.O)
Mohammad Nasrullah
Chief Technical Officer (C.T.O)
Mr. Javed Mushtaq
Chief Information Officer (C.I.O)
Syed Mazhar Hussain

S.E.V.P (HR / Admin & Procurement)
Sikandar Naqi
S.E.V.P (Corporate Development)
Naveed Saeed
S.E.V.P (Commercial)
Mr Tariq Salman
S.E.V.P (Business Zone North)
Mr Abdullah Yousef
S.E.V.P Business Zone South
Mr Hamid Farooq
S.E.V.P Special Project
Farah Qamar
Company Secretary
Legal Affairs
Dr. Syed Mohammad Anwar Shah
Bankers
Askari Bank Limited
Citibank N.A.
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
National Bank of PakistanRBS (formerly ABN AMRO)
Standard Chartered Bank Limited
United Bank Limited
Registered Office
PTCL Headquarters,

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Block-E, Sector G-8/4,

Islamabad-44000, Pakistan.
Tel: +92-51-2263732 & 34
Fax: +92-51-2263733
E-mail:company.secretary@ptcl.net.pk
Web: www.ptcl.com.pk
Auditors
A.F. Ferguson & Co.

Chartered Accountants
Ernst & Young Ford Rhodes Sidat Hyder,
Chartered Accountants
Share Registrar
M/S FAMCO Associates (Pvt.) Limited

Ground Floor,
State Life Building 1-A
I . I Chundrigar Road
Karachi 74000
Tel: +92-21-2422344, 2467406
Fax: +92-21-2428310
Board of Directors

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Mr. Naguibullah Malik

Chairman PTCL Board
Secretary IT & Telecom Division, Ministry of Information
Technology Government of Pakistan,
Islamabad
Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani

Chairman & Chief Executive Officer,
Etisalat International Pakistan L.L.C
Executive Vice President Contracts & Administration
Etisalat, UAE.
Mr. Salman Siddique

Secretary (Finance), Ministry of Finance
Government of Pakistan,
Islamabad
Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh

Chief Human Resources Officer
Etisalat, UAE
Mr. Mushtaq Ahmad Bhatti

Member Telecom
Government of Pakistan,
Islamabad

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Mr. Fadhil Mohamed Erhama Al Ansari

Executive Vice President Engineering
Etisalat, UAE
Mr. Khursheed Ahmed Junejo

Ambassador, Embassy of Pakistan
Abu Dhabi, UAE
Mr. Abdulaziz Hamad Omran Taryam

General Manager, Northern Emirates
Etisalat, UAE
Dr. Ahmed Al Jarwan

General Manager
Real Estate
Etisalat, UAE
Ms. Farah Qamar

Company Secretary PTCL
PTCL Headquarters,
Islamabad

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CORPORATE
RESPONSIBILTY

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Corporate Responsibility
PTCL employees donate One-Day salary for IDPs
Pakistan Telecommunication Company Limited employees have contributed

their one day salary that amounts Rs. 20 million for the support of internally
displaced people of Swat and other affected areas.
CEO and President of PTCL Mr. Walid Irshaid called on Prime Minister Syed
Yousuf Raza Gilani at PM’s House and presented him a cheque of Rs. 20
million on behalf of PTCL employees for PM’s Special Fund for the Relief of
Victims of Terrorism.
While thanking PTCL employees for their generous contribution and
appreciating their willingness to help IDPs, Mr. Waild Irshaid said that PTCL
employees have exhibited their profound sense of sharing and empathy on
this occasion. This highly speaks of the strong commitment of our employees
with this national cause.”
“Contribution from our employees during these days specially donating one
day salary for IDPs in these testing times shall be greatly helpful in
mitigating IDPs miseries and will go a long way in their rehabilitation
process.
Donation to SOS Villages
PTCL keeping with its healthy tradition of supporting non-governmental

organizations recently donated a sum of Rs.2.5 million to the SOS Villages.
As most people would be aware, SOS is an organization that looks after the
well-being and education of orphans and the destitute.
Last year, PTCL organized a special event at the SOS Village Rawalpindi,
which the then Prime Minister of Pakistan, Mr. Shaukat Aziz, attended. He
handed over a cheque of Rs.2.5 million, donated by PTCL for this noble
cause, to the SOS Children’s Village.
PTCL as a socially aware and responsible entity is determined to do its

utmost in furthering worthy causes that contribute to the lives of individuals
and help better the standards of society as a whole.

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Scholarships for Persons with Disabilities
Another recent CSR initiative taken by PTCL was announced at the World
Telecommunication Day held on May 17, 2008. This year the worldwide
theme for the Day was “Connecting Persons with Disabilities.” To raise
awareness of this theme and support initiates focusing on less privileged
persons, PTCL chose to become the lead sponsor of the World Telecom Day
event in Islamabad contributing PKR 6.8 Million.
During his address at the event, PTCL’s President/CEO, Mr. Walid Irshaid
announced five academic scholarships per year for persons with disabilities
so that they could pursue their career of choice by obtaining higher
education at any university with Pakistan. PTCL would bear the full tuition
costs and living expenses of those awarded these scholarships. PKR
1.5Million was announced focusing on the education of the special people
Collaboration with Universal Service Fund (USF)
The Universal Service Fund (USF) and PTCL have entered in a contract to
provide basic telephony and data services to the population in the yet un-
served areas of Baluchistan districts of Pishin, Killa Abdullah and Quetta.
PTCL is making consistent efforts to enhance Pakistan’s capacity to develop
and produce a globally competitive telecom sector and industry.
Making a determined effort develop Pishin, a far flung area of Baluchistan is

a clear manifestation of PTCL’s resolve to bridge the digital divide. With the
support of USF, PTCL is set to extend the benefits of its ubiquitous network
coverage to the under-served communities in the un-served areas. PTCL is
contributing Rs. 149 million to this endeavor in an effort to bring information
and communication technology to the remotest areas. The total costs of the
projects are PKR 2000 Million out of which PTCL contribution is PKR 1275
Million while USFCo contribution is PKR 725 Million.
Thus, PTCL, as a socially responsible corporate entity, has been pursuing

different social causes touching on areas of culture, sports, music,
environment and general welfare by supporting different initiatives. As such,

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PTCL’s CSR activities and new ventures are warmly welcomed.
Donation to Earthquake victims in Baluchistan
Earthquake struck the western telecom region Quetta leaving terrifying

effects in the region. Mr. Walid Irshaid President & CEO PTCL donated Rs.10
Million for the reconstruction and rehabilitation of the area.
Donation to Benazir Income Support Program
Mr. Walid Irshaid President & CEO PTCL donated Rs.10 Million to the Benazir
Income Support Program. This program directly focuses on the poor
populace of Pakistan.
Sponsoring Event at LUMS
PTCL was the lead sponsor for Synergies 2008; the 1st ever Business School
Competition in Pakistan organized by Lahore University of Management
Sciences costing PKR 1 Million.
PTCL President Mr. Walid Irshaid announces Rs 10 Million

for National Press Club Islamabad
The president of PTCL, Walid Irshaid has said that PTCL was still one of the
most profitable National organizations, despite all economic and financial
crises and back draws.
Addressing the inaugural of the new building, alongside president NPC
(National press Club), Tariq Chaudhry, general secretary Afzal Butt, and
other luminaries, including SEVP PTCL Sikandar Naqi, EVP Ali Qadir Gilani.
Walid Irshaid expressed the company's willingness and readiness to tackle
any impending challenges with élan and preparedness.
Mr. Walid Irshaid also assured press club about his full cooperation and
assistance, and during the lunch hosted in his honor by NPC also announced
a grant of Rs. 10 million, DSL Internet services, IPTV and other facilities
He said that PTCL would continue to work for betterment of media in
Pakistan, and also lauded media services rendered during the last few years

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PTCL Gets Environment Friendly
The Pakistan Telecommunication Company Limited (PTCL) has decided to

introduce a new bill format for its customers, effective February 2009.
This decision was taken to ensure that PTCL stir towards adopting
environmental-friendly and customer-friendly policies inline with the
government of Pakistan's efforts, which recommends companies and
institutions to go green.
This initiative of PTCL also coincides with the Government’s decision to
celebrate 2009 as the "Environment Year". PTCL's decision to reduce the
number of billing pages is an environment friendly initiative and is a way
forward towards becoming a paperless enterprise.
According to Dr. Sadik Al-Jadir, SEVP Commercial PTCL, preceding bill
format comprising multiple pages, would be replaced with a new one-page
bill format, thus packing all the essential billing details on a single page. This
single page bill format would help save, at least 12 million papers every
month that are being used for printing the billing details.
To facilitate the customers, itemized billing details would remain obtainable
and accessible. Customers would be able to obtain their itemized billing
details by visiting any customer service centre of PTCL and would also be
able to access essential billing details through IVR by dialing 1200. PTCL Call
center is also expected to start taking orders from customers for their
itemized billing details. Subsequently, these details would be delivered to the
customers through courier within a certain time frame.
Dr. Sadik said, “PTCL is determined to improve and build good relationship
with its customers by providing novel and superior telecom products and
services to its valued customers and is striving hard to meet their
expectations.”
PTCL, CISCO and NUST to establish Center of Excellence

for Internet Technologies
Islamabad: Under the banner of PTCL, CISCO and NUST, Center of

Excellence for Internet Technologies is being established at NUST SEECS,
Islamabad. The Center – a brainchild of Mr Walid Irshaid, President and CEO,

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PTCL - is to be set up in the state of the art. A MoU to this effect was signed
yesterday by the three parties, with the Chief Guest being Dr Ata Ur
Rahman, Chairman HEC. The occasion was also graced by high officials from
public sector, academia and industrial organizations. The ceremony was a
huge success and PTCL, CISCO and NUST’s leading role in taking up new
challenges to improve the quality of IT education in Pakistan was greatly
lauded by members of academia, industry and the media present at the
ceremony.
Mr Sikander Naqi Executive Vice President Corporate Development speaking

on the occasion said that by setting up such a Center, PTCL will be able to
benefit from world class research that will be of immense value to them. In
addition, the human resources that will be developed at this Center will be
able to export their skills and expertise to the region and beyond. This will
spur growth in the Pakistani IT sector, and will contribute towards enhancing
the quality and quantity of exportable IT related skills to the global
marketplace.
The Center, staffed by researchers from NUST, will work closely with Cisco
engineers in the US who will provide the thematic direction of the joint
research. The Center’s research is to be funded by the National ICT R&D
fund. Dr. Qasim Sheikh, the CEO of ICT R&D fund, stated that his
organization is pleased that PTCL, NUST and CISCO are forming a joint
research group that will work on significant problems that are relevant to
Pakistan. A research project under similar arrangements, funded by the
National ICT R&D Fund, is currently underway with Cisco scientists and
Pakistani researchers collaborating to develop open source tools for
performance monitoring of network traffic. The output of this work has
already generated An application for a US patent is being filed as a result of
the work carried out during the course of that research. In addition to its
research ambitions, the Center will also be providing high quality
professional training courses to PTCL and other telecom companies.

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PRODUCTS
&
SERVICES

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Products & Services
1. PTCL Landline
Since the deregulation of the telecom sector, a large number of foreign

investors opted for licenses in LL, LDI and cellular operations, identifying
Pakistan as an emerging market.
Investors entered the market forcefully in the cellular segment,

introducing heated competition for PTCL. In this situation PTCL's counter
strategy for landline service, during the year 2007-08 was aimed to increase
ARPU, acquire new subscribers and contain churn.
To increase operations, PTCL shifted from its conventional duration based

charging system to value based options, like 'Pakistan Package' that offered
5,000 minutes for on-net nationwide calls at Rs. 199/month. PTCL also
launched 'International Plus' package to facilitate cost effective international
calls at unmatchable rates alongside offering Voice messaging and Phone n
Net services, adding more value to the landline service.
To increase customers' base, 'order on phone' was introduced, allowing

customer to apply for a new connection by simply calling 0800-80800.
To tackle the churn PTCL established an outbound call center to reach out
to potential customers with an objective to attain higher level of brand
loyalty.

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2. PTCL V-Fone
PTCL V-Fone (WLL Service) was another major area of focus for PTCL
during the year. A few prominent measures taken in this area during the
year were launching of free home delivery service. No line rent package was
launched in September 2007. In June 2008, 30 seconds billing was
introduced contributing as an effective customer retention tool. PTCL has
expanded the network to provide coverage in all large and small cities
including over 10,000 villages in rural areas of Pakistan.
As Vfone becomes the Wireless substitute to landline in un-served

areas, it will be a robust line for voice, data and fax services for use at home
and in the office. In business markets it will be positioned as the CDMA
tellular extension to add trunk lines to the ever expanding business PABXs.
Vfone will be spearheading the launch of the new postpay and pre-pay tariffs
with no line-rent to meet the market demand. The tariff will include new
post-pay unlimited local and nationwide calling packages to bring traffic back
to PTCL’s networks to stabilize the revenues.
After the initial launch, the Company aims to retain the momentum by
offering different bundled packages for voice to increase the subscriber base,
including specifically targeting the rural areas where copper infrastructure
does not exist. On Wireless broadband front, a major upgrade of PTCL WLL
CDMA network is underway to provide Wireless broadband services in 17
major cities by end 2007. Currently technical trial is in progress which will be
followed by a pilot project on WiMax technology. This will enable PTCL to
maintain its competitive edge.

46
3. Ufone
(Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL

commenced its operations on 29th January 2001 as a GSM 900 service
provider. Since the outset, it has expanded its coverage and customer base
at a rapid pace and established itself as one of the leading cellular service
providers in Pakistan. Ufone is now considered to be one of the most active,
aggressive and innovative players in the mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful

implementation of the telecom deregulation and cellular mobile policy by the
Ministry of IT and Telecommunications (MOIT&T) and the support, guidance
and timely enforcement of regulatory process by the Pakistan
Telecommunication Authority (PTA).
Ufone's operational performance has been very encouraging despite

stiff competition in Pakistan telecom market which has led to reduction of
prices to bare minimum level. Ufone managed to improve its revenue and
operating profit by 35% and 47% respectively, as compared to the last year
through aggressive policies and exercising strict control over expenses.
4. Paknet Limited
Paknet was incorporated in year 2000 for providing internet related

services in the country is being wound up. However, PTCL has developed its
own voice, data and video infrastructure and services. Paknet's operations
have been closed and liquidator appointed for completing the formalities
involving the company closure. All customers, assets, liabilities and capital
stand transferred to PTCL in accordance with the special resolution passed in
General Meetings.

46
5. PTCL Broadband
The first major product initiative taken towards a changing PTCL

during the year 2006-07, was the launch of PTCL’s Broadband service under
the theme of ‘Broadband Pakistan’ by the Prime Minister of Pakistan. The
service was launched on PTCL’s new state of the art Broadband
Infrastructure that was added to our network during the last three quarters
of 2007 with the initial capacity of over 100,000 subscribers.
PTCL achieved unprecedented success as it added over 10,000

customers within the first 120 days of its launch while historically it had
taken four years collectively for all the other operators to achieve 30,000
customers in Pakistan! The hallmark of PTCL service was the removal of the
Traditional barriers such as the upfront costs of installation and customer
premises equipment and added bandwidth download.
This high customer take up also reflected on the Company’s trusted

image in the eyes of the nation. The service is already available in the five
largest cities of Pakistan and will be expanded into another dozen cities
during the coming year.
6. Smart Services
In March 2008, PTCL introduced a trial service that put PTCL on the
path of a paradigm shift. Branded under 'PTCL Smart Line', the service
included Interactive Television, Broadband and voice Telephony all at the
same time on PTCL's telephone line. The 'Smart TV', for the first time offered
TV viewers the power to control the TV channels interactively. This included
the ability to rewind and pause live TV channels, block / unblock any TV
channel for parental lock and search through video on demand content.
The Commercial launch of the PTCL Smart Line services across the
three largest cities in Pakistan was arranged on the 14th of August 2008
which will be expanded to the other cities during the course of the year.

46
Industry
Or
Environment
Analysis

46
ANALYSIS OF EXTERNAL ENVIRONMENT

Pakistan followed a gradual approach to liberalize its telecom market.
During 1990s, as a first step, market was opened for value added services
and competition was introduced in cellular mobile sector as four licenses
were issued (Mobilink, PTML, Paktel and Instaphone). The government
monopoly was retained in fixed line services, however, PTCL legal monopoly
ended with effective from 31st December 2002. The government announced
Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and 2004
respectively.
The telecom regulatory, issued new licenses for Long distance

International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL)
and Cellular Mobile. With the issuance of new licenses the market is now
open for full competition in all segments of the sector.
1. Industrial Structure
Pakistan’s telecom sector has finally begun moving and looked set for
an era of phenomenal growth. The sector has witnessed tremendous growth
in recent years with Teledensity depicting major expansion after
deregulation. The primary purpose of deregulation of the sector was to
encourage healthy competition while providing better quality products and
services to customers on lower prices as well providing best technology
available worldwide. Current Teledensity in Pakistan has expanded
exponentially from 4.3 percent in 2002-03 to stand at 48.4 percent in 2006-
07 with currently standing at over 52 percent, with better services and
competitive rates.
Also, increasing inflow of foreign investment in the telecomm sector

has resulted in the introduction of new cut throat technologies for provision
of various telecom services including cellular, wireless and internet services.
In recent times, the focus has increasingly shifted from Fixed Lines to
Cellular and Wireless Fixed Lines (WLL), with better portability and
convenience. WLL has shown an improvement from 0.7 percent to 1.1
percent in 2006- 07 from last year with subscribers of 2 mn.

46
Cellular segment remained the vital player with increase in total

Teledensity contributing 48 percent. In the urban markets introduction of
Broadband internet services by various Telecomm giants such as PTCL,
WorldCall and Wateen has further benefited the consumers to access timely
information over the internet with competitive rates. The broadband
penetration however has not depicted as much growth as expected growing
with 3.5mn subscribers in 2007 against 2.4mn subscribers in 2006. PTA
estimates broadband subscribers to grow to over 5mn by 2010. WorldCall
has initiated cable television services with PTCL expected to follow suite by
providing IPTV services through its Triple Play services, ensuring
diversification of products and services.
Recent conducive environment provide by PTA has resulted in

increased FDIs in the sector with investments of USD2.7 bn during the last
five years making it the largest recipient of highest FDI during the past few
years.
The future for telephony lies amongst unexplored rural regions of
Pakistan with all major telecom operators looking forward to tap these
markets with a major contribution by WLL and Cellular segments due to
cheaper installation costs. With healthy competition instigating lower local
and international tariffs and availability of alternative services has
progressively benefited the consumers overall.
2. Market Operation
Pakistan Telecommunication Company Limited, or PTCL, keeps callers

connected from Karachi to Islamabad. The communications services provider
offers consumers and businesses with basic landline, DSL broadband,
interactive television, and IP telephony services. The company also provides
wholesale services such as traffic routing and call termination to other
carriers. PTCL's subsidiaries include wireless phone services provider
Pakistan Telecom Mobile, which operates as Ufone. In 2006 Emirates
Telecommunications (Etisalat) acquired a 26% stake in PTCL and assumed
management control of the company.
Demand is driven by technological innovation and by growth in

business activity. The profitability of individual companies depends on
efficient operations and good marketing. Large companies have big
economies of scale in providing a highly automated service to large numbers
of customers, and have the financial resources required building and
maintaining a large network. Smaller companies can compete effectively
only in small markets or by providing specialty services.

46
Top PTCL Competitors
 China Mobile
 Orascom Telecom
 Telenor
3.Market Structure
Wireless Local Loop (WLL) is growing at a rate of about 100 percent
per annum as its teledensity has reached to 1.34 percent by end of
December 2007. The quarterly addition of WLL subscriber is approximately
0.14 million on an average.
PTCL is leading in terms of traffic on WLL in Pakistan, which has about

54 percent market share of total traffic of WLL segment. Two major players,
PTCL and Telecard have lost market share in WLL traffic in quarter
ending December 2007 when compared with the same quarter of the last
year.
PTCL share came down to 54 percent from 57 percent while Telecard

share in total traffic has come down to 22 percent from 30 percent.
WorldCall has gained 100 percent and its share reached to 22 percent at the
end of 2007 compared to the same quarter last year. PTCL, the incumbent
operator in fixed line in Pakistan has also emerged as market leader with 57
percent market share followed by Telecard and Worldcall with 19.6 percent
and 20.2 percent market share at the end of December 2007.
Great Bear International share is reported to be 3 percent, while

Wateen Telecom share is 0.2 percent, which started their services during the
quarter. PTCL has gained over 1 percent market share compared to the
same quarter of last year while Telecard added over 5 percent market share
during this period.

46
Great Bear International though a smaller shareholder in WLL market

but its share is increasing due to its quality of service as it reached to 3
percent as compared to 2 percent in December 2006.
It is believed that fixed-line tele-density will recover with WLL taking off due
to its cost effectiveness and in particular this technology suits for the hilly
areas and far-flung regions in the country.
The estimated WLL per line cost is around US$ 100-150 in comparison to
wire line cost which still remains to be more than US$ 250-350 per line.
PTCL has already covered over 11,500 cities/towns/villages while other
major operators like Worldcall, Telecard and Greatbear are increasing their
coverage too.
WLL system is used when low to medium subscribers densities are

located apart from each other and deployment of primary or secondary
copper network is difficult. WLL system is best suited for rural, sub urban
areas and very congested metropolitan areas.
4. Regulatory Environment
The local telecom market has altered significantly since the creation of
PTA as an independent regulatory agency and had enjoyed sizeable success
to open up the local market to competing operators. With the governments
deregulation policies, Etisalat, the UAE based telecom player being the
highest bidder emerged as the buyer of the 26 percent share in PTCL in April
2006. PTCL, despite being a giant, had to face many bottlenecks in its
operations with such large network.
PTCL has recently taken an initiative to right size itself by introduction

of VSS for its employees where about 28000 employees are accepted under
the scheme.
Introduction of various diversified products and services to sustain its

market share, Implementation of ERP solutions to provide integration of
various departments through acquisition of SAP software and state of the art
billing and customer service software, translates PTCL’s long term goals of
operational effectiveness into practice.
The telecom giant PTCL has observed cutthroat competition from

various service providers after the implementation of the deregulation
policies by the PTA. However, through the vast infrastructure and being the
carriers’ carrier, PTCL with diversification of its various services has enjoyed

46
well-built position and posses immense potential for growth, while need for
telecom services is on rise as economy continues to grow on the right track.
The telecom De-regulation and Cellular Mobile Policies announced by

the Federal Government place certain obligations on Pakistan
Telecommunication Company Limited (PTCL) to facilitate market
liberalization. PTCL is bound to comply with these obligations within a
stipulated time frame. These obligations are of paramount importance for
successful implementation of the policy and failure or any deviation thereof
may result in substantial damage to the deregulation process/liberalization
program.
Similarly Defense, NTC and SCO also depend on PTCL for many
facilities. Therefore, PTCL has important obligations towards Defense of the
country and other existing operators. In addition, PTCL has been declared
SMP operator. Under the status of SMP also, PTCL has certain obligations.
PTA, as regulator, has to ensure that new management of PTCL fulfils all
these obligations.

46
ANALYSIS OF INTERNAL ENVIRONMENT

Being a public limited company whose majority shares are controlled by
the Government of Pakistan, PTCL is responsible to provide
telecommunication services in the country on affordable prices while
ensuring that the telecom services become accessible throughout the
country.
Since exclusivity of PTCL has ended on 1st Jan 2003, the telecom sector
of Pakistan has entered into a new era and PTCL is slowly moving towards
competition in the basic telecom services. The company’s policy objectives
are as follows:
• Increase service choice for all consumers of telecom services at

competitive and affordable prices.
• Increase private investment in the telecom sector and encourage local

telecom manufacturing/service industry.
• Enhance long run benefits to the Government’s financial position by

expanding the taxable revenue base.
• Accelerate expansion of telecom infrastructure to extend telecom

services to unserved and undeserved areas.
• Encourage fair competition among service providers, while maintaining

leadership in the telecom sector.
• Maintain consistency with the Pakistan IT and internet promotion

policy of low prices for Bandwidth and Internet access.

46
1. Organizational Management Cycle

46
The cycle above describes the Organizational Management process at PTCL.

Yellow blocks describe the core functions of the Company performed at all
levels in the Organization. Blue Blocks are the Strategic functions which are
performed at the Strategic level only.
2. Financial Aspects
The structural adjustments undertaken by the company in response to

the increased competition and substitution impact of mobile expansion has
adversely hit the profitability of PTCL in the short run.
The first quarter of FY'08 recorded a drop in profitability of PTCL, as

the company's profit after taxation declined 41.5% over the three months
period to September 2007, as compared to the same period last year. Sales
revenue dwindled during three months period, reaching Rs 14.4 billion,
compared to Rs 16.9 billion last year, depicting a decline of 15%. A 6% rise
in operating expenses as a result of high provisioning against doubtful debts
and infrastructure development for high speed DSL connections, combined
with a 32% increase in financial charges, provided a further blow to the
bottom line.
Consequently, operating profit declined 46%. However the effect on

net profit was somewhat diluted by a 14% increase in non-operating income
of the company so that the company posted profit after tax of Rs 3.01billion,
compared to Rs 5.15 billion in1Q'07.
At the end of first quarter, the company stock was trading at a P/E
ratio of 18.20. As illustrated by the graph, the stock has performed
remarkably well relative to the market. The stock has shown consistent
performance over the three months, dropping only slightly as the rest of the
market dipped sharply during August. As a consequence of the fading sales
revenue for the period, the profit after tax of the company in FY06 declined
by 21.91% over FY05. The net profit margin has also been declining since
the FY'04 and the trend persisted in FY06.
The decline in profit margin may be attributed to a 5.25% increase in
operating expenses for the year.

46
Environmental
Scanning

46
SCANNING OF INTERNAL ENVIRONMENT
SWOT ANALYSIS
1. Strengths
• Largest operational network and infrastructure within ICT (Information
& Communication Technologies) segment.
• An integrated Monoply Market leadership in Local loop, Wireless local
loop (WLL) and fixed telephony.
• PTCL (Ufone) is market challenger in GSM segment Ufone is
performing well though Warid and Telenor are tough competitors.
• PTCL, Ufone’s profitability increased by 49.2 percent to Rs 977 million
in 1H/FY07 as compared to Rs 655 million in the corresponding period
last.
• Competitors still depend on PTCL network either directly or indirectly
• Experienced Telecom Resources
2. Weakness
• Not been able to nurture its growth around customer services oriented
strategy Internal organizational and business processes issues

46
• Monopolistic culture has further added to its complexities
• Paknet, the internet service provider arm of ptcl continues to incur
losses due to poor management and lack of network optimization
• Ptcl-v, the fixed wireless phone service is poor
• Over employment & low productivity.
• Slow decision making including external interferences.
• Corporate culture akin to government departments.
3. Opportunities
• Low teledensity of Pakistan.
• Have vast infrastructure and real estate assets which can be leveraged
further.
• Global connectivity reliability has been improved. PTCL is expanding
the long distance and infrastructure side through spreading out two
sea-me-we submarine cables...
• Partnership with new entrants in a deregulated environment. Scope for
efficient/cost effective operations.
4. Threats
• Increased competition in long distance continues to exert pressure.
• VOIP use is increasing despite ambiguous and discriminatory policies
• Exposure to market competition

46
• Migration to Cellular Networks
• Ability to Attract & Retain Quality Professionals
• Reduction in International Settlement Rates
SCANNING OF EXTERNAL ENVIRONMENT
PEST Analysis
In PEST
P stands for Political,
E stands for economical,
S stands for social
T stands for technological analysis
Of industry with respect to their environment. The organization's advertising
surroundings is made up from:
• The organization inner environment e.g. staff (or internal customers),

office, technology, wages and finance, etc.
• The organization external-environment e.g. our external customers,
agents and distributors, suppliers, our competitors, etc.
• The country forces affecting the environment e.g. political forces,
Economic forces, Socio-cultural forces, and Technological forces. These
are known as PEST factors.
a) Political Factors
• Political environment of Pakistan is stable in the current situation and

country is not progressing in terms of economic growth that was
expected.

46
• Environment is investor non-friendly & telecommunication sector is

under regulation.
• Before WTO implementation government already took steps in

regulation of Telecommunication sector.
b) Economic Factors
• Marketers should consider long term and short term state of a trading
market
• Inflation is being controlled by state bank and under strict eyes but
unemployment rate is going up & up with the increase of level of
poverty
• Economic instability is worsening day by day as liquidity crunch is

prevailing in the world
C) Socio-Cultural Factors
• The socio cultural environment summarizes demand and tastes, which

vary with fashion and disposable income, provide opportunities and
threats to telecom companies.
• As Pakistan is an Islamic country and people are very strict in case of

Islam any thing against the philosophy of Islam on either print or
electronic media are treated as against Pakistan. Most of the people
dislike anything extra-ordinary or 19 something which sabotage their
culture or subculture. Pakistani society is largely multilingual and
multicultural.
• The Pakistani people are more social and want to remain in contact
with other people. They celebrate lot of festivals like Jashn-e-Baharan,
Eid Celebrations and other cultural festivals. On these festivals they
make calls to relative and one of the key issues is sending SMS
regarding the event. This will influence the demand for the product.
• Increasing globalization has amplified the influence of "Western

culture" in Pakistan. The life style of Pakistani people is changing
rapidly. People are more conscious about status pat most all people

46
purchase multimedia mobile phones. And also there is trend for Black
berry sets by youth which will help in enhancing their product and
services.
• The total population of Pakistan is approximately 169,248,500. The

population is increasing rapidly which increase the number of cellular
usage and help in projecting high profits.
• Most of the people dislike anything extra-ordinary or something which

sabotage their culture or subculture.
• Companies who are targeting upper-end of market mostly published

and aired their advertisement in English language.
• In metropolitan cities women are doing work along with their other
responsibilities but other than metropolitan cities it is difficult for
women to convince their parents and spouses for work.
d) Technological Factors
• Advances in technology can have a major impact on business success.

Technological change impacts socio cultural attitudes as well as on
economy.
• Companies have technology with which they can compete in the

Pakistan and now companies are investing in their infrastructure to not
only expand coverage but also to upgrade their existing systems.
• The current focus in cellular industry is coverage and establishing

franchises which has a positive effect on the telecom industry.
• Introduction of CDMA technology in the Mobile SIMS which is also an

opportunity for the mobile companies.
• The latest technology of 3G mobile communications has been

earmarked and PTA will soon be inviting applications for 3G spectrum
auction. This technology will increase operating capacity and revenues
by using HSPA technology.

46
BCG Matrix

46
THE BOSTON CONSULTING GROUP (BCG) MATRIX

The BCG Matrix method is the most well-known portfolio management
tool. It is based on product life cycle theory. It was developed in the early
70s by the Boston Consulting Group. The BCG Matrix can be used to
determine what priorities should be given in the product portfolio of a
business unit. To ensure long-term value creation, a company should have a
portfolio of products that contains both high-growth products in need of cash
inputs and low-growth products that generate a lot of cash. The Boston
Consulting Group Matrix has 2 dimensions:
 Market share
 Market growth
The basic
idea behind it
is: if a product
has a bigger

46
market share, or if the product's market grows faster, it is better for the
company.
The four segments of the BCG Matrix

Placing products in the BCG matrix provides 4 categories in a portfolio
of a company:
• Stars (high growth, high market share)
o Stars are using large amounts of cash. Stars are leaders in the
business. Therefore they should also generate large amounts of
cash.
o Stars are frequently roughly in balance on net cash flow.
However if needed any attempt should be made to hold your
market share in Stars, because the rewards will be Cash Cows if
market share is kept.
• Cash Cows (low growth, high market share)
o Profits and cash generation should be high. Because of the low
growth, investments which are needed should be low.
o Cash Cows are often the stars of yesterday and they are the
foundation of a company.
• Dogs (low growth, low market share)
o Avoid and minimize the number of Dogs in a company.
o Watch out for expensive ‘rescue plans’.
o Dogs must deliver cash, otherwise they must be liquidated.
• Question Marks (high growth, low market share)
o Question Marks have the worst cash characteristics of all, because they have
high cash demands and generate low returns, because of their low market
share.

46
o If the market share remains unchanged, Question Marks will simply absorb
great amounts of cash.
o Either invests heavily, or sells off, or invests nothing and generates any cash
that you can. Increase market share or deliver cas
The BCG Matrix and one size fit all strategies

The BCG Matrix method can help to understand a frequently made
strategy mistake: having a one size fits all strategy approach, such as a
generic growth target (9 percent per year) or a generic return on capital of
say 9.5% for an entire corporation.
In such a scenario:
• Cash Cows Business Units will reach their profit target easily. Their
management have an easy job. The executives are often praised
anyhow. Even worse, they are often allowed to reinvest substantial
cash amounts in their mature businesses.
• Dogs Business Units are fighting an impossible battle and, even worse,
now and then investments are made. These are hopeless attempts to
"turn the business around".
• As a result all Question Marks and Stars receive only mediocre
investment funds. In this way they can never become Cash Cows.
These inadequate invested sums of money are a waste of money.
Either these SBUs should receive enough investment funds to enable
them to achieve a real market dominance and become Cash Cows (or
Stars), or otherwise companies are advised to disinvest. They can then
try to get any possible cash from the Question Marks that were not
selected.

46
Other uses and benefits of the BCG Matrix

• If a company is able to use the experience curve to its advantage, it
should be able to manufacture and sell new products at a price that is
low enough to get early market share leadership. Once it becomes a
star, it is destined to be profitable.
• BCG model is helpful for managers to evaluate balance in the firm’s
current portfolio of Stars, Cash Cows, Question Marks and Dogs.
• BCG method is applicable to large companies that seek volume and
experience effects.
• The model is simple and easy to understand.
• It provides a base for management to decide and prepare for future
actions.
Limitations of the BCG Matrix

Some limitations of the Boston Consulting Group Matrix include:
• It neglects the effects of synergy between business units.
• High market share is not the only success factor.
• Market growth is not the only indicator for attractiveness of a market.
• Sometimes Dogs can earn even more cash as Cash Cows.
• The problems of getting data on the market share and market growth.
• There is no clear definition of what constitutes a "market".
• A high market share does not necessarily lead to profitability all the
time.
• The model uses only two dimensions – market share and growth rate.
This may tempt management to emphasize a particular product, or to
divest prematurely.
• A business with a low market share can be profitable too.

46
• The model neglects small competitors that have fast growing market
shares

46
SUMMARIZED
FINANCIAL
STATEMENTS

46
SUMMARIZED BALANCE SHEET

46
Pakistan
Telecommunication
limited
PAKISTAN
Summarized TELECOMMUNICATION LTD
Balance
Sheet
As on 31 December 2009
Assets 2005 2006 2007 2008 2009
Current Assets Rs. Rs. Rs. Rs. Rs
Cash and bank 172,814,896 16,049,950 9,686,17 7,584,25 1,486,068,648
balances 7 9
Advances,deposits 97,068,120 169,580,242 117,185,85 88,430,07 2,310,94
and other receivables 3 6 1
Trade debtors (net) 48,589,001 67,760,129 44,812,70 69,394,33 187,557,975
3 9
Stock-in-trade
Raw material 69,433,646 239,587,504 678,544,47 813,116,25 1,085,638,458
8 2
Work in process 24,855,609 31,738,172 29,227,51 30,807,35 21,007,454
8 4
Finished goods 126,440,912 117,640,324 146,632,57 95,951,99 92,354,018
4 0
Stock-in-trade(net) 220,730,167 388,966,000 854,404,57 939,875,59 1,198,999,930
0 6
Sales tax refundable 45,952,94 9,680,642
2
Short term 169,036,86 138,494,73
investments 5 3
Stores, spares and 55,484,417 53,646,568 65,443,17 97,176,45 57,739,692
loose tools 1 1
Total current Assets 594,686,601 696,002,889 1,260,569,33 1,386,908,39 2,942,357,828
9 6
Fixed Assets
Operating Fixed 708,267,837 701,075,042 738,093,53 1,665,827,35
Assets 5 0
Investment Property 14,058 14,0 1,563,628,509
58
capital work-in- 19,626,598 11,370,049 444,708,15
progress 9
Long term 146,806,000 146,806,000 146,806,00 134,804,95 207,547,729
Investment 0 6
Long term Deposits 1,644,030 1,833,030 1,180,68 3,771,14 4,347,499
5 3
Total fixed Assets 876,344,465 861,098,179 1,330,802,43 1,804,403,44 1,775,523,737
7 9
Total Assets 1,471,031,066 1,557,101,068 2,591,371,77 3,191,311,845 6,493,405,302
6
Liabilities
Short term liabilities
interest/markup on 1,908,804 1,411,284 15,995,36 13,793,09 4 9,005,607
loans 3 0
current portion of 75,310,394 26,536,600 53,108,02 74,679,40 136,689,609
long term liabilities 9 5
Short term finances 297,885 134,520,221 584,313,02 768,552,57 1,394,354,879
2 9
Creditors 42,281,203 47,569,156 53,767,97 66,037,84 40,664,725
8 6
accurals and other 86,325,079 94,848,370 177,473,54 131,461,31 27,062,791
payables 2 6
Provison for taxation 1,745,999 2,291,263 3,266,41 1,300,65 6,900,809
0 0
Dividends 40,326,746
Total Current 248,196,110 307,176,894 887,924,34 1,055,824,88 1,605,672,81
Liabilities 4 6 3
Long Term Liabilities
Long term loans and 66,341,447 39,804,847 366,446,22 550,618,90 304,349,426
finances 3 0
Long term Payables 20,164,685 17,741,861 18,638,04 33,043,70 12,879,01
46
8 0 5
Total Long term 86,506,132 57,546,708 385,084,27 583,662,60 317,228,441
Liabilities 1 0
SUMMARIZED INCOME
STATEMENT

46
Pakistan Telecommunication limited
PAKISTAN TELECOMMUNICATION
Summarized income statement LTD
for the year ended 31 December 2009
2005 2006 2007 2008 2009
Rs. Rs. Rs. Rs.
Sales (Net) 3,172,585,33 3,909,712,71 2,878,130,066 3,839,168,820 1,708,153,092
2 8
Cost of goods
sold
Material 2,213,630,69 3,173,235,32 2,111,626,689 2,730,669,961 1 ,036,163,837
2 5
Labour 133,297,73 132,789,20 121,751,40 193,020,38 131,332,709
8 5 6 9
Foh 436,781,17 351,691,83 270,811,26 466,581,88 432,691,81
7 6 0 3 1
total factory 2,783,709,60 3,657,716,36 2,504,189,355 3,390,272,233 564,024,52
cost 7 6 0
Work in (4,450,3 (6,882,56 4,936,00 (1,579,83 21,007,454
process 73) 3) 3 6)
Finished (2,720,5 1,735,46 (21,397,55 46,424,39 92,354,018
Goods 08) 1 9) 4
Cost of goods 2,776,538,72 3,652,569,26 2,487,727,799 3,435,116,791 1 ,450,247,795
sold 6 4
Gross profit 396,046,60 257,143,45 390,402,26 404,052,02 257,905,29
6 4 7 9 7
Less Operating
Expenses
Admin 29,651,10 32,247,86 28,621,51 46,198,33 20,909,963
expenses 7 5 6 7
Selling 89,978,92 95,151,80 88,692,53 73,696,73 63,697,327
expenses 8 4 9 2
other operating 5,879,60 36,433,23 22,201,89 497,111
expenses 9 0 6
total operating 119,630,03 133,279,27 153,747,28 142,096,96 135,072,569
expenses 5 8 5 5
Operating 276,416,57 123,864,17 236,654,98 261,955,06 122,832,72
Profit 1 6 2 4 8
Add Other
incomes
Export rebate 3,424,29 1,657,74 697,73 4,32 5,437
on packing 7 5 0 1
material
Exchange 1,324,99 59,95 153,43 20,41 135,759
fluctuation 0 7 2 9
gain-net
Income on 1,255,30 438,69 75,54 123,92 321,834
bank deposits 3 3 6 1
dividend 7,078,70 4,121,02
income 0 5
others 3,407,40 6,169,97 280,96 38,699,41 4,704,749
0 7 7 4
total other 9,411,99 8,326,37 8,286,37 42,969,10 5,167,77
incomes 0 2 5 0 9
Less Other 14,079,92 16,125,11 15,461,70 20,326,63 17,623,607
Expenses 8 4 6 0
Profit before 271,748,63 116,065,43 229,479,65 284,597,53 110,376,90
Interest and 3 4 1 4 0
taxes
Less Interest 50,075,47 18,295,80 42,349,30 106,915,86 19,349,547
Expense 5 0 6 8
profit before 221,673,15 97,769,63 187,130,34 177,681,66 91,027,35
taxation 8 4 5 6 3
Less provision 28,683,08 41,720,99 36,209,67 67,553,74 15,549,420
for taxation 8 2 5 4
Profit after 192,990,07 56,048,64 150,920,67 110,127,92 75,477,93
taxation 0 2 0 2 3
Add 883,494,82
unappropriated 0 46
profit
Profit available 1,076,484,89

46

46

Pakistan Telecommunication LTD: Misbah Mushtaq Burki - Roll No 101 - B.B.A Viii Semester

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Pakistan Telecommunication LTD: Misbah Mushtaq Burki - Roll No 101 - B.B.A Viii Semester

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PAKISTAN TELECOMMUNICATION LTD

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

I dedicate this project to

Almighty Allah, The Creator of worlds

Hazrat Muhammad (P.B.U.P), the cause of

The creation of the Universe

To the persons who loved me,

I loved and for all those who prayed for me.

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

knowledge to complete this project.

I would like to specially thank for the help of my finance teacher

Miss. Ayesha Riaz who helped me a lot regarding this project.

think I have achieved my goal of learning practical things.

BBA (Hons) Finance

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

HISTORY OF TELECOMMUNICATION IN PAKISTAN

A BRIEF HISTORY OF TELECOMMUNICATION IN PAKISTAN

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

The history of telecommunication in the sub continent is as old as the history

PAKISTAN POST AND TELEGRAPH

At the time of independence and telecommunication services were

PAKISTAN TELEPHONE AND TELEGRAPH (PT&T)

The first step towards reform in telecommunication sector was made in

PAKISTAN TELECOMMUNICATION CORPORATION (PTC)

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

A major break through in the history of telecommunication in the country

Pakistan telecommunication corporation in it five years life spread the

In addition to inland telephone network PTCL did a lot to improve the

PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCL)

Pakistan telecommunication Company Limited (PTCL) is a company

Telecommunication corporation (PTCL) Pakistan telecommunication

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

· Pakistan Telecommunication Company limited (ptcl)

· Pakistan telecommunication authority (PTCL)

· National Telecommunication Corporation (NTC)

· Frequency allocation board (FAB)

Pakistan telecommunication authority is a regulatory body responsible for

National Telecom Corporation (NTC) is responsible to provide the

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

PTCL – PAKISTAN TELECOMMUNICATION LIMITED

PTCL is the largest telecommunications provider in Pakistan. PTCL also

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

an infrastructure provider to other telecom operators and corporate

With the promulgation of Telecommunication (Re-Organization) Act

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

To achieve our vision by having:

• An organizational environment that fosters professionalism, motivation

• 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

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

MISBAH MUSHTAQ BURKI | ROLL NO 101 | B.B.A VIII SEMESTER

“To be the leading Information and Communication Technology

Service Provider in the region by achieving customer satisfaction

and maximizing shareholders' value'”.

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.