Professional Documents
Culture Documents
Sohail Ahmed Internship Report
Sohail Ahmed Internship Report
GUJRANWALA CAMPUS
PREFACE
The internship program offered by PTCL (Pakistan Telecommunication Company Ltd) is an
enlightening opportunity for those who have recently passed out their master or graduate
programs and are wishing to polish their skills. PTCL is an effective platform to enhance the
field knowledge of new entrants and preparing them to face the world confidently and
courageously. It imparts the necessary theoretical knowledge about the field and also provides an
opportunity to practically experience the application of the business fundamentals in the
corporate as well as the non-corporate sector.
I tried to remain to the point, in writing the report. Brief history, organizational structure of
PAKISTAN TELECOMMUNICATION COMPANY LIMITED and my work at branch
suggestions, for improvement are also given in it.
This work is a collection of my observations and experience during the internship period and
afterward. The sources of my information for the preparation of this report also include the
written notes & verbal discussion with staff members, senior students and my fellows. Internship
Program is a conventional constituent is part of total spectrum of B.com (hons). The information
contained in the report is based on my personal observations, practical working and interviews
with the staff during my internship training.
In the end, I would like to say that nothing is perfect in this world. Yet we must put all activities
to reach near the line of perfection.
Every praise is due to ALLAH alone and his prophet (peace be upon him) who is forever a
torch of guidance and knowledge for humanity as a whole.
I thank Allah, who is the holder of my breaths, without his order nothing is possible.
I am highly thankful to my respectable teachers and friends and family members who were my
supporters throughout my educational career, further I thank all the employees of the PTCL,
where I have done my internship.
I have set light, an ever-burning flame of gratitude and deep sense of obligation to my honorable
Supervisor PROF AMER SOHAIL for their valuable guidance, constructive criticism and inspiring
attitude during my studies. I appreciate and thanks to all the member of the faculty. Besides, this
internship program makes me realize the value of working together as a team and as a new
experience in working environment, which challenges us every minute. I really praise to the
great efforts of my teachers who give me a chance to enhance my abilities and skills.
Their constant encouragement and supports made the successful accomplishment of this report.
They provided me all types of guidance to complete my report.
And also, staff of revenue and collection department of PTCL, especially Mr. Muhammad Ali
and Mr. Muhammad Umar and all the other staff of PTCL, Thanks to all of them whose
inspiration, experience, skill, scholastic approach and valuable suggestions guided me
throughout the preparation of this report. The whole program really brought us together to
appreciate the true value of friendship and respect of each other.
Last words are lacking to express my feelings and indebtedness to my affectionate Family and
Friends for their love, appreciations, which always stand by me mentally and spiritually during
all years of my study.
EXECUTIVE SUMMARY
The focus of the report is to summarize my internship experience at Pakistan Telecommunication
Company Limited. Our main focus in this report is to check the working of Finance department
of PTCL. PTCL today offers the widest range of services to its customers. 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. This
report is being started with the brief and complete introduction of organization, its historical
background, its services and its products. Pakistan Telecommunication Company Limited
(PTCL) is the largest telecommunication company in Pakistan. This company provides telephony
services to the nation and stil holds the status of backbone of country‘s telecommunication
infrastructure. The company consists of around 2000 telephone exchanges across country
providing largest fixed line network. GSM, CDMA, Broadband Internet, IPTV, Wholesale data
and backbone services are other major resources of PTCL, making it a gigantic organization.
The range of services include basic 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 use a
corporate culture that benefits 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.
I have described the overall working of PTCL regarding all departments at regional level and
cooperate level. I have completely observed the company management system in detail, its
management styles, procedure of operations. I have a comprehensive analysis of the marketing
of PTCL in which I completed the four P‘s of marketing mix. I have also done financial analysis
of PTCL, its accounting and finance procedures with the help of trend analysis and ratio analysis.
I have also done a comprehensive analysis of the working of HRM department and details of the
employees their incentive, benefits, and compensation. Find out their weaknesses and give
suggestions for improvements. My Internship report contains all the information about my work
experience in PTCL. As an Intern, I spent good time in learning.
As an intern it was an immensely learning experience. I learnt to deal with different situations
and gained experience of organizations working environment, which affects an employee
performance and attitude towards work and had good time in learning and performing duties
Finance Intern. Confidence, on time decision making, consistency, hard work, teamwork,
seeking success out of dark, innovation, creativity, organizational survival and customer
handling techniques are the key learning‘s out of my training and I would like to say that it wil
be one of my best skills that would remain with me and help me in future. I would like to
highlight this that my experience with PTCL was very memorable and full of leanings where I
found lot of positive changes in my attitude learning and behavior.
Contents
Chapter:1............................................................................................................................................................. 1
Introduction to Report .............................................................................................................. 1
Introduction of Internship Organization ................................................................................................ 1
Objective of study .................................................................................................................................. 2
INTRODUCTION OF TELECOM INDUSTRY ........................................................................................... 2
COMPANY BACKGROUND .......................................................................................................................... 4
INTRODUCTION OF PTCL ........................................................................................................................... 5
HISTORICAL BACKGROUND ..................................................................................................................... 7
PRIVATIZATION OF PTCL: ......................................................................................................................... 8
LOCATION OF PTCL WHERE I HAVE DONE ................................................................................ 9
PTCL’S CORE OBJECTIVES ...................................................................................................................... 12
LONG-TERM OBJECTIVES OF THE ORGANIZATION ...................................................................... 13
CORE VALUES............................................................................................................................................... 14
PTCL POSITIONING STATEMENT .......................................................................................................... 15
Chapter:2........................................................................................................................................................... 16
CURRENT SITUATION OF PTCL ...................................................................................... 16
STRUCTURE OF PTCL: ....................................................................................................................... 16
Senior Managers............................................................................................................................................... 17
Main Offices ............................................................................................................................ 18
Organizational Hierarchy................................................................................................................................ 19
Hierarchy of Model Town R&C Office ......................................................................................................... 20
Critical Analysis of Management patterns .................................................................................................... 21
Strengths .................................................................................................................................. 21
Weak Areas ....................................................................................................................................................... 22
BOARD OF DIRECTORS ...................................................................................................................23
MANAGEMENT ..................................................................................................................................24
AUDITORS ............................................................................................................................. 24
Bankers .............................................................................................................................................................. 25
REGISTERED OFFICE ......................................................................................................... 25
Business Volume ............................................................................................................................................................. 26
NO OF EMPLOYEES .................................................................................................................................... 27
ADMINISTRATIVE/MANAGEMENT STYLE ...................................... Error! Bookmark not defined.
Chapter:3........................................................................................................................................................... 28
Hierarchy of Finance Department .................................................................................................. 28
Impact of different styles on efficiency of workers ...................................................................................... 30
Brief Overview of Finance Department Members ................................................................. 30
Mr. Saleem: (Senior Manager Finance) ................................................................................................ 30
Mr. Irshad Hussain: (Finance Manager) ..................................................................................... 30
Mr. Umar Hayat: (Assistant Manager Finance): ......................................................................... 31
Mr. Adnan Raza: (Cashier) .......................................................................................................... 31
Mr. Tariq: (Computer operator) .................................................................................................. 31
Mr. Nafees: (Record Keeper) ................................................................................................................32
Mr. Arshad .............................................................................................................................. 32
Mr. Zia..............................................................................................................................................................33
Mr. Kafayat Ullah............................................................................................................................................. 33
Functions and Operations in Finance Department ................................................................ 33
Revenue and Collection Department: ........................................................................................................... 36
Shortfall in Finance Department: .................................................................................................................. 36
Critical Analysis of Management patterns ............................................................................. 37
Strengths ............................................................................................................................................................ 37
Weaknesses .............................................................................................................................. 38
Departments ...................................................................................................................................................... 38
Operational department .................................................................................................. 38
Switching Department .................................................................................................................... 39
Customer Care Centre............................................................................................................................. 39
Human Resource Department ................................................................................................................ 39
Pay Scales & Opportunities .................................................................................................................... 39
Compensation ................................................................................................................... 40
Financial Rewards .................................................................................................................................... 40
Medical benefits................................................................................................................................. 41
Interview Methods ................................................................................................................................... 41
Chapter:4........................................................................................................................................................... 42
Product Lines .......................................................................................................................... 42
Products ............................................................................................................................................................. 42
Consumer Products ................................................................................................................... 43
1.PTCL Landline (PSTN) ....................................................................................................... 44
Local Call Charges ........................................................................................................... 44
Features ................................................................................................................................... 46
PTCL EVO 3G Wireless Broadband ............................................................................................................. 49
EVO 3G Nitro: ............................................................................................................................ 49
3G EVO TAB.................................................................................................................................................... 50
Packages .................................................................................................................................. 50
Corporate Products.................................................................................................................................. 51
Success and failure of different products of PTCL: .............................................................................51
EVO Wireless Broadband ...................................................................................................... 51
Broadband Pakistan ................................................................................................................ 52
IPTV Service (Smart TV): ...................................................................................................................... 53
V-ƒone ................................................................................................................................................. 54
Re -launch of V Wireless as Vfone .................................................................................................................. 55
Chapter:5........................................................................................................................................................... 55
PTCL MARKETING MIX .............................................................................................. 55
Who are the customers ............................................................................................................................ 55
Domestic Customers ................................................................................................................ 55
Corporate Customers: ............................................................................................................. 56
What are the customer’s needs? ............................................................................................................ 56
Levels of Customer Satisfaction .............................................................................................. 56
SERVICES ................................................................................................................................... 57
SERVICES FOR DOMESTIC CUSTOMERS............................................................................................ 57
New PSTN/NTC Connections ................................................................................................. 57
Services for Consumers ........................................................................................................................... 57
New Telephone Connections ................................................................................................................... 57
Value Added Services .............................................................................................................. 57
E-Bill Payment ........................................................................................................................... 58
Digital Facilities ............................................................................................................................... 58
Prepayment Telephony Services (PPT): ............................................................................................... 58
SERVICES FOR CORPORATE CUSTOMERS ........................................................................................ 59
Universal Access Number (UAN) ............................................................................................ 59
Voice Messaging Service (VMS) ...................................................................................... 59
PTCL Messaging Plus.............................................................................................................................. 59
Co-Location Centers ................................................................................................................. 59
Universal Internet Number (UIN) ................................................................................................ 60
Virtual Private Network (VPN) ............................................................................................................. 60
ISDN BRI/PRI ................................................................................................................................... 60
How are the firm’s products or services perceived? .................................................................................... 60
Marketing Strategy of PTCL.................................................................................................. 61
TARGET MARKET: ...........................................................................................................................61
7 P’s of Marketing ................................................................................................................... 62
Marketing mix ....................................................................................................................................................... 62
Product Planning.............................................................................................................................................. 63
Pricing strategy .....................................................................................................................................63
Placement Strategy: ................................................................................................................ 64
Promotional Strategy ...........................................................................................................................64
Promotional Mix of PTCL ...................................................................................................... 65
Advertising ....................................................................................................................................... 65
Personal Selling ........................................................................................................................................ 66
Major Competitors of PTCL .................................................................................................. 66
Mobilink ...............................................................................................................................................67
Telenor..................................................................................................................................... 67
Warid Tel ........................................................................................................................... 67
SWOT ANALYSIS........................................................................................................................................... 70
Strengths .................................................................................................................................. 70
PEST ANALYSIS............................................................................................................................................. 72
Political Analysis ..................................................................................................................... 72
Factors that creates Threats ............................................................................................................ 72
Political instability........................................................................................................................... 72
Factors that creates opportunities .................................................................................................................. 73
Industrial safety regulations .................................................................................................... 73
Development of PTA ............................................................................................................. 73
Economic analysis ............................................................................................................................................ 73
Factors that creates threats ............................................................................................................. 73
Economic conditions influenced by government .................................................................. 73
Factors that creates opportunities .................................................................................................................. 74
Foreign direct investment (FDI) ...................................................................................... 74
Lowest labor rates ........................................................................................................................... 74
Fastest growing industry in the Pakistan ............................................................................. 74
Social analysis ................................................................................................................................................... 74
Factors creating opportunities ................................................................................................ 74
The Pakistani people are more social.................................................................................... 74
Factors creating threat: ................................................................................................................................... 75
Uneducated people .................................................................................................................... 75
Corruption ........................................................................................................................... 75
Technological analysis ..................................................................................................................................... 75
Factors that creates opportunity..................................................................................................... 76
Technology is changing the attitude and behavior...................................................................... 76
Factors that creates threats ............................................................................................................................. 76
Focus on increasing the coverage ..................................................................................... 76
CONTRIBUTION OF PTCL TOWARD ECONOMIC DEVELOPMENT ............................................ 76
Chapter:6........................................................................................................................................................... 78
Major HR Policies and Practices ............................................................................................ 78
Functions of HR department .................................................................................................................. 78
Human Resource department of PTCL ........................................................................................ 79
Sources of candidates ....................................................................................................................................... 79
Internal sources of Recruitment ............................................................................................. 80
External source of Recruitment .............................................................................................. 80
Employment selection proceed....................................................................................................................... 80
Staff role of HR PTCL ............................................................................................................ 80
Training ..................................................................................................................................................... 80
Chapter:7........................................................................................................................................................... 83
CRITICAL ANALYSIS OF THE COMPANY ..................................................................... 83
Financial Analysis .................................................................................................................................... 83
VERTICAL ANALYSIS OF BALANCE SHEET:...................................................................................... 83
VERTICAL ANALYSIS OF INCOME STATEMENT: ............................................................................ 84
HORIZONTAL ANALYSIS OF BALANCE SHEET ........................................................... 84
HORIZONTAL ANALYSIS OF INCOME STATEMENT ....................................................................... 85
RATIO ANALYSIS ......................................................................................................................................... 85
Current Ratio ................................................................................................................... 85
Quick Ratio ...................................................................................................................................... 86
FINANCIAL RATIO OVERVIEW............................................................................................................... 90
COMPARISON OF FINANCIAL ANALYSIS WITH KEY COMPETITORS ..................................... 91
Currently SAP is used in finance department of PTCL ........................................................ 94
Snapshot of SAP software ............................................................................................................................... 95
Chapter:8........................................................................................................................................................... 96
Work Done During Internship ............................................................................................... 96
Weekly Timetable .................................................................................................................................... 96
Second week timetable ............................................................................................................ 96
Third week timetable .............................................................................................................. 97
Forth week timetable .............................................................................................................. 98
Fifth week timetable.......................................................................................................................... 99
Sixth week timetable ......................................................................................................................... 99
DUTIES ............................................................................................................................................ 100
NEW KNOWLEDGE ACQUIRE:............................................................................................. 101
PROBLEMS ENCOUNTERED ................................................................................................................... 101
HOW INTERNSHIP EXPERIENCE IMPACTS YOU CAREER ...................................... 102
CONCLUSION ..................................................................................................................... 102
RECOMMENDATIONS .............................................................................................................................. 104
Critical analysis of the management patterns, week areas that need to be improved......... 104
GLOSSARY........................................................................................................................................ 106
Web Pages ............................................................................................................................. 107
ORGANIZATIONAL PROFILE
Chapter:1
Introduction to Report:
The main purpose of this report is to completion of the requirements for the course of BBA
BANKING & FINANCE. For the completion of this requirement every student of that course is
require to undertake internship in any relative organization, for a period of 6 weeks.
The other purpose of this training is to understanding the corporate culture and practice of the
theoretical knowledge that we have gained in the class rooms.
This report is about the Pakistan Telecommunication Limited, Model Town Exchange
Gujranwala, where I learned different things during the period of internship about
Telecommunication sector that will discuss in soon after in the other portion of this report.
Introduction of Internship Organization
Pakistan Telecommunication is the largest telecommunication company in the country. PTCL
enjoys the monopoly in the market. PTCL has the around about 2000 exchange in the country
and PTCL is the largest landline provider company in Pakistan. In 1996 Pakistan
telecommunication Company (PTCL) was established under Pakistan telecommunication
reorganization act.
Objectives:
The main objective of studying this organization is to get the knowledge about this organization
that how does it works, what are its departments and their function, as it was required by my
institute to do internship in an organization and acquire knowledge about its working.
Scope of study:
As there was, I have little time for the study of Revenue and collection department of Pakistan
Telecommunication Company and their corporate culture of revenue and collection department.
But this report mostly focuses on the function of the organization.
1
Aim of study:
The main aim of my internship in Pakistan Telecommunication Company Limited is learned the
procedure and the operation of the telecommunication sector in Pakistan and get the complete
knowledge and information that can help in preparation of my internship report.
Objective of study:
During the period of internship, I have achieved following objectives
To apply the theory in practical situations.
Good work behaviour and sagacity of dependability is produced.
To develop my attitude supportive to valuable interpersonal affairs.
To recognize how the key business method are carried out in business.
To know how of the information that is used in an organization for decision
making at diverse stages.
To get professional know-how in an actual testing situation.
2
Six years into a year‘s century, the telecom sector of the world finds itself at crossroads, after
changing itself almost beyond recognition over the last 20 years. Privatization and competition
are the order of the day, with a majority of countries having adopted these policies to advance
their telecom sector. The results have been impressive: the industry has grown at an
unprecedented pace. Although there has been phenomenal growth in Pakistan, especially in
cellular mobile communication and in the internet, yet the tele- density remains almost stagnant.
Prices are likely to go up. Analysts say that Mobilink will perform best in terms of revenues in
future. They are likely to use their position by getting more aggressive in pricing. Telenor will
not remain behind in increasing prices. Experts say that they will not get as aggressive as
Mobilink but they will twist the tariffs to increase their margins. Ufone and Zong are likely to
remain price efficient networks. Cellular companies are likely to focus on new innovative
services that can get popular.
PTCL will remain the dominant player in broadband market. The telecom sector of Pakistan has
also entered into a new era. The monopoly of PTCL is now over and the sector is moving
towards liberalization. While liberalization and competition are synonymous, the future scenario
also poses some challenges to the market dominance of PTCL. The company is ready to face this
challenge and maintain its revenue streams in the face of forthcoming competition.
The telecommunication industry has been the highest contributor to the government exchequer.
Last year alone, it was responsible for 133 bil ion rupees to the government‘s income in the form
3
of various taxes. The telecom industry experienced a new boom in the first decade of the 21st
century. This led to massive investment in, both foreign and domestic.
With a volatile growth of Information and Communication Technologies over the past few
decades involving broadcasting, satellite communication, public telephony and IP networking the
telecommunications have observed evolutionary escalation. The Global telecommunication
industry break through was the breakup of AT&T and the privatization of British Telecom in
1984, which led to a wave of deregulation and liberalization movement. However, in developing
countries it took time to kick off and join the deregulatory bandwagon. Having all the facts at
hand, the industry is considerably reliant on development, both infrastructural and technological.
COMPANY BACKGROUND
From the beginnings of posts and Telegraph department in 1947 and establishment of Pakistan
Telephone and Telegraph department in 1962, PTCL has been a major player in
telecommunication in Pakistan. Despite having established a network of enormous size, PTCL
workings and policies have attracted regular criticism from other smaller operators and the civil
society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and
functions from Pakistan Telephone and Telegraph Department under Pakistan
Telecommunication Corporation Act 1991. This coincided with the Government‘s competitive
policy, encouraging private sector participation and resulting in award of licenses for cellular, card-
operated pay-phones, paging and, lately, data communication services. Pursuing a progressive
policy, the Government in 1991, announced its plans to privatize PTCL, and in 1994 issued six million
vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements.
Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in
mid-1996. In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for
PTCL monopoly over basic telephony in the country. The provisions of the Ordinance were lent
permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same
year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of
Pakistan. PTCL launched its
4
mobile and data services subsidiaries in 2001 by the name of Ufone and Pak Net respectively.
None of the brands made it to the top slots in the respective competitions. Lately, however,
Ufone had increased its market share in the cellular sector. The Pak Net brand has effectively
dissolved over the period of time. The first major product initiative taken towards a changing
PTCL during the year 2006-07, was the launch of PTCL‘s Broadband service. PTCL achieved
unprecedented success in Broadband service as it added over 10,000 customers within the first
120 days of its launch. As telecommunication monopolies head toward an imminent end,
services and infrastructure providers are set to face even bigger challenges. The post-monopoly
era came with Pakistan‘s Liberalization in Telecommunication in January 2003. On the
Government level, a comprehensive liberalization policy for telecom sector is in the offering.
INTRODUCTION OF PTCL
Pakistan Telecommunication Company Limited (PTCL) is the primary provider of
Telecommunication services in Pakistan. The range of services include basic telephony,
5
telegraph, fax, telex, public data, Internet, E-mail, ISDN (Integrated Services Digital Network),
Universal Access Numbers (UAN), another value-added services.
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, high-speed data, Internet etc. are much in demand. The current decade has
proved to be 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. Pakistan
Telecommunication Company Limited has taken decisions to cope with the competition within
the next years.
6
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 outsourcing
revenue sharing with O & M contractors as business partners. PTCL has successfully entered
into arrangements with foreign and local telecom companies.
Private sector data and Internet services providers are operating under license and revenue shares
arrangements. Internet & information technology services are now very popular in the market
and numbers of new entrants are competing, providing Pakistan Telecommunication Company
Limited an opportunity lease capacity. Its available IT & Internet infrastructure both for private
sector licensed operators and Pakistan Telecommunication Company Limited own customers.
PTCL is fully aware of the same, and future policies feature a strong conviction of healthy
competition.
HISTORICAL BACKGROUND
ALIS: 850,000
7
1998 Mobile & Internet subsidiaries established
PRIVATIZATION OF PTCL:
The government‘s efforts to restructure and privatize PTCL have been on –again off-again since
1991. It had an offer in the late 1990s for 26 percent equity, reputedly totaling $3 billion, but
held out in negotiations and ultimately missed the unique global market window at that time.
Since then, it has had difficulty attracting potential buyers.
Investors have been concerned about political risk, and appropriate support from the government
to transform the utility into a commercially-oriented corporation. With fortunes rising in the local
telecom sector, the government hoped to make privatization of the company a landmark deal for
broader reform of the company. A successful deal would demonstrate the governments
increasing support for market capitalism and, it was hoped to; boost anemic levels of direct
foreign investment.
PTCL and the government were contemplating different strategic options for restructuring. Plans
were vetted for both a geographic and functional split of operations. Analysts believed that most
likely scenario is a break-up into three new companies, tracking with the firm‘s largest business
units: local, long distance and mobile. This approach mirrors the policy environment fashioned
for new competitive entrants. From the government perspective, breaking up PTCL prior to a sell-
off will help curtail the market power of any one single service provider, thereby stimulating competition.
Unbundling the sale was also likely to increase revenues for the government. The risk, of course, was
that the mobile company, PTML (branded as ―Ufone‖), was disproportionately more
8
attractive than the other businesses. According to AKD Securities, PTML‘s contribution to
PTCL‘s total revenues was expected to rise to 12.5% over the next five years and was assumed
to contribute 39% of PTCL‘s overal revenue growth. Further growth of mobile, both in terms of
subscribers and net revenues, was considered to almost certainly outstrip demand for fixed line
services. The target was to sell up to a 26 percent stake in PTCL; the government held 88 percent
of $2.6 billion, and then any lowering of bid price in the revised agreement approved by the
cabinet in March. The official documents state that the accumulated bidding price in the revised
bid came down to $2.205 billion against the original Etisalat bid of $2.599 billion, said a report
in the Gulf today.
The PTCL privatization agreement with Etisalat allegedly inflicted a further loss of billions of
rupees to the national exchequer besides unprecedented concessions offered in the long term,
indirect conflict with Article 30 of the Public Procurement Rules 2004, it said. By far, the PTCL
has been the highest profit earning state-owned company with real-estate assets worth billions of
rupees across the country including commercial plazas, residential colonies and exchanges.
According to the government documents, the Share Purchase Agreement (SPA) of the PTCL
with Etisalat lapsed in September 2005 after the non-payment of the dues by the winner bidders.
After further negotiations with the Etisalat management, the government agreed to additional
concessions and modifications to the transaction structure offer.
9
Exchange Code Exchange name Bills
10
541 WSD-QILA-DIDAR SING 5477
VISION
―To be the leading Information and Communication Technology Service Provider in the region
by achieving customer satisfaction and maximizing shareholders' value‖.
11
MISSION
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
An organizational environment that fosters professionalism, motivation and quality
12
Responding to the rapid economic and technological growth, the company is determined
to meet the challenge of expanding needs of telephone and data communication such as
public data network, integrated services digital network and Internet services.
The major focus of attention is to improve and expand the services, minimize the faults
and provide communication facilities to rural areas.
It is also one of the major objectives of management that the company should not
improve its performance but also encourage the private sector to enter the Tele business.
The company has entered the domain of free market economy, which necessitates the
liberal management policies and private sector.
The following basic policy steps have been taken to meet the objectives laid in PTCL Act
to expand and operate telecommunication services in the country.
The main objective of any company is to earn the profit and minimize expenses by
winning goodwill in the market.
13
Strengthen relation with foreign international administration, entities, services providers,
international and regional telecom organizations for better international communication
and technical cooperation in telecommunication business.
Expand customer awareness of all value-added services of PTCL.
To improve the efficiency of Customer Service Centres by deputing qualified persons
who are well aware of public relation techniques.
CORE VALUES
Profession
al Teamwor
Integrity k
Core
Values
Customer Loyality to
Satisfactio the
n Company
14
PTCL POSITIONING STATEMENT
“Hello to the Future”
―Hel o to the future‖ is an amalgam of our vision, brand philosophy, brand values and strategy.
The essence is ―futuristic approach‖. The positioning statement ―Hel o to the Future‖ is basical y
comprised of two words ―Hel o‖ and ―Future ―that provides the inward communication through
the word ―Hel o‖, i.e. PTCL welcomes its customers and the future. Also, it offers the outward
communication through the word ―Future‖ by promising customers the futuristic ideas and
products. The first key word ―Hel o‖ captures the essence of the whole telephony network that is
the backbone of PTCL. ―Hel o‖ is a word which is related to the telecommunication history and
has been used ever since and will be used in future. This word expresses the welcoming nature of
the PTCL brand, its customer-oriented approach and warm environment. Everyday most conversations
and relationships start with the word ―Hel o‖, hence it portrays the relationship building of
PTCL with its customers.
The second key word ―Future‖ translates PTCL philosophy in a nutshell to provide planned and
proactive solutions and products to its customers. PTCL is constantly evolving and taking its customers
into the future. The word ―Future‖ holds the promise that PTCL is committed to, by providing
complete customer satisfaction through innovative and futuristic services and products. PTCL
is breaking the stereotypical perception launching into the Future embracing it as the mission to
transform the world of telecommunication and the way its customers communicate. PTCL
establishes itself as a futuristic entity which is working constantly towards inventing paramount solutions
for its customers.
15
MANAGEMENT HIERARCHY
Chapter:2
STRUCTURE OF PTCL:
An organizational structure clarifies the role of person of an organization and to determine who
has to do what task, which is responsible for what, objectives to be achieved, who is to report to
whom and to remove the obstacles for performance caused by confusion and uncertainty of job
assignment as well as to make easy decision making and communication networks reflecting and
supporting organization objectives.
The head of Pakistan Telecommunication Company limited is cal ed ―President‖. Then there are
SEVPs (Senior Executive Vice Presidents) i.e. SEVP Finance, SEVP human resource, SEVP
(Marketing and business Development). Then there is a chain of Executive Vice President
(EVPs) like
EVP (Finance)
EVP (HR Central)
EVP (Marketing)
EVP (Operations)
EVP (Information Technology)
EVP (Revenue)
16
All these are appointed at the Pakistan telecommunication company; Headquarters at G-8/4,
Islamabad. Apart from these EVP, there are also EVP (HR and Operations) who are heads of
other regions of PTCL in major cities of Pakistan. Then there are Chief engineers and General
Managers, Account Officers, Assistant Account Officers, Financial Analysts, Marketing
Managers, Computer Programmers and IT Specialists. Etc.
There are also Regional Heads (General Managers) to head PTCL Regions. Then there are:
The Marketing Department is responsible for the development of new policies and objectives to
satisfy the customers and the fast-moving change of Telecommunication technology bring
drastic competition in the communication era.
There are also senior managers Finance, Account Officers, and Accountants to handle the
Regional account and Billing matters. Manager HR and his staff are responsible to take care of
Personal affairs at the Regional level. In non-gazetted staff, there are Engineering Supervisors
Operations/ switching /Power plant / Optical Fibre System / M.W Media /.
Senior Managers
Account Assistants
Stenographers
Assistants
Key punch operator
Telecom technicians
Upper division clerks
Lower division clerks
Line man
Wire men
17
Drivers
Exchange cleaners
Naib qasabs
Organizational
Structure
Main Offices:
The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4,
Islamabad, which is headed by the ―President‖. Besides, it has Regional Headquarters like:
18
Organizational Hierarchy
President &
CEO
Muzaffaraba
GM d GM GM
19
Hierarchy of Model Town R&C Office
senior
account
Assisten
t officer
manage
r junior
Manage account
r (Financ officer
e)
R&C
assisten
t senior
manager clerk
(R&C)
20
Critical Analysis of Management patterns:
Management in practical life is very different from what we have studied in textbooks. In real
life it is much more difficult to be a manager. In PTCL there is load of work in finance
department that even it is difficult to get the time for a cup of tea. So, it requires lots of skills for
a manager to compete in these circumstances.
Management in finance department of PTCL is very effective. Senior manager finance and
finance manager have enough abilities to cope with all the difficulties they are facing. Here is
strength and weakness of manager finance.
Strengths
Strong leadership skills
Very Hard working
Motivate the entire employee in finance department and get the work done.
He is involved in everything related to finance department whether it is meeting or audit
or anything else
Control accounts and finance activity of GTR at the same time
Very honest in his work. He does not leave his work for others.
Uses SAP software to control all the activities in finance department.
Interconnected systems to keep in touch with another department of the PTCL.
Unity among the members of finance department
According to SM finance manager, finance department GTR is one of the best finance
departments of PTCL. Even with their shortage of staff, manager finance is still able to
get the job done
21
Weak Areas
Employees are too much dependent on finance manager, In the absence of finance
manager, employee do not work effectively
Some of the staff is not related to the finance department. They are not specialized in
finance. But they are working in finance department. So, finance manager has to do
all the activity which are unknown to the employees
Due to lots of work in finance department and shortage of staff there is chance of
errors in financials accounts.
In PTCL most people are not selected on merit in the past and many people are not willing to
work. Although recently due to privatization PTCL has made lots of changes but still there are is
culture of Govt. organization there. So, management has to work in these conditions. It requires
extra effort to motivate those people. However, in finance department manager still able to gets
the best out his employee in these conditions.
22
BOARD OF DIRECTORS
Mr khalifa Alshamsi
Member PTCL Board
Mr Hatem Dowidar
Member Of PTCL Board
23
MANAGEMENT
AUDITORS:
KMPG Taseer Hadi & Co,
Chartered Accountants
24
Bankers:
Allied Bank Limited
Askari Bank Limited
Bank Alfalah Limited
Bank Al Habib Limited
The bank of Punjab
Dubai Islamic Bank
Faysal Bank Limited
Habib Bank Limited (HBL)
Habib Metropolitan Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
NIB Bank Limited
Silk bank Limited
SME Bank Limited
Standard Chartered Bank (Pakistan) Limited
United Bank Limited
REGISTERED OFFICE:
PTCL Headquarters Block-E, Sector G-8/4,
Islamabad-44000, Pakistan
Fax: +92-51-2263733
E-mail: Company.Secretary@ptcl.net.pk
Web: www.ptcl.com.pk
25
Business Volume:
Installed capacity More than 5273091
26
NO OF EMPLOYEES:
PRESIDENT & COMPANY SECRETARY 02
Chief Engineers 26
General Managers 94
ES, Assistant. PA, Tech, LM. UDC, KPO, Khakroob, Mali, 47,000 (almost)
HC, etc.
Number of employees
After the restructuring of PTCL, many of employees adopt VSS. Now there are more than 30000
employees in PTCL who are working in all over in the Pakistan they are the assets of the
company and they are the responsible for the good will of the company. Company also focuses
on the status of there employees and give them performance appraisal program with incentives
and medical treatment.
27
ADMINISTRATIVE/MANAGEMENT STYLE
Chapter:3
Hierarchy of Finance Department
Senior
Finance
Manager
Financ Account
e s
Manage Manage
r r
Assista
nt
Manage
r
Compute Recor
Cashi r d
er Operator Keepe
r
28
Employees in finance department:
RS.
29
Impact of different styles on efficiency of workers:
30
Funds based management.
Settlement of total accounting rates.
Complains with indirect taxes.
Preparation of management of accounts.
Co-ordination with Government Authorities on financial matters and related issues
All the bills which are initially checked by concerned person in finance are then
checked by him. He then signed those bills after then it is approved by Senior
Manager Finance.
Help other employees of the finance department in their problems.
Also responsible for adjustment in the accounting entry.
Overall all the main activity in finance department is controlled by Mr. Irshad.
31
The bills which are approved by the SM and finance manager are proceeded towards
to him. He parks it into the SAP. It generates a unique code after entering into the
SAP.
He then posts the bills and transfers the funds.
He also makes the cheques against bills.
After entering code of each bill, he recorded entry and at the end attach cheque with
the application.
All of his working is in SAP.
Currently he has responsibilities of parking, transferring funds and posting.
32
Overtime allowance
Postage and courier services
Advance salary
Mr. Zia:
He also checks the bills at initial stage. He checks whether rates and amount in bills is accurate
and also it approved by concerned person. He also has record of those bills. He is currently
working on following types of bills and vouchers.
All the bills related to power. That is which include electricity bills, gas bills of PTCL
exchanges.
Maintenance bills which includes both internal and external bills.
Fuel oil and lubricants (generators)
Fuel oil and lubricants (Vehicles)
Vehicles
Building and office works
PTCL head office Islamabad approves budget for certain region and then handover it
to the RGM for further distribution.
33
Then budget is transferred to the concerned cost centre by finance department at the
time of payment on case to case to basis.
Vouchers are directly received by SM finance and then forward to the concerned
person depending on the type and nature of vouchers and bills.
Initially bills, their rates, amounts and signature of the concerned manager of the cost
centre are checked by employees in the finance department
Then at the end Finance manager checked those bills and vouchers and then signed
those bills which later on approved by the Senior manager
Then those bills or vouchers are forward to the computer operator who then parked
those bills, transfer funds for those bills and then posted those bills in SAP.
Finance manager also posted some bills. But because currently he is responsible for
other accounts activity as well so most of the posting is done by computer operator.
Computer operator then also prepares cheques for those bills.
Then cheque along with bills is forward to the cashier.
Cashier first checked those cheques and then signed them from finance manager and
senior manager. He then mails to the concerned person about those cheques.
Every effort is being made to release the payment at earliest
Allotment and SAP work is being looked after by finance manager and assistant
manager finance
Assistant manager also mails to concerned cost centre and confirm the receipt of bills
or vouchers
Record keeping is an important part in finance department. He uses excel sheet and
SAP to keep record of all the bills and vouchers.
Every bill that is posted has a unique code which is helpful in keeping record of the
data.
Record keeping is also important for auditing purpose.
Auditor come at the end of fiscal year and checked all the record and bills.
Accounting system is currently maintained finance manager.
He also made adjustment accruals or prepaid.
34
Finance manager also prepare bank reconciliation certificate at the end of the month
He also involves in preparation of financial records and accounts.
Following are authority of the certain manager to approve bills which later on transfer by
the finance department
Salary budget is being allocated to Senior HR manager and are approved by GM HR.
The budget of medical expenses and security guards is being allocated to SM HRA as
the case relates. Payment is being made on the verification from SM medical services
and sanction of RGM. All the cases are being processed by the HR i.e. from
collection of bills from hospitals to technical verification from the local doctors and
then verification from the cost centre.
Liveries and uniform, death compensation, marriage grant, education grant and legal
fees cases are being dealt by the SM HR&A and finance department receive sanction
of RGM in each case
POL bills are being paid to Ms PSO after the approval and sanction of RGM. PSO
payment is being made centrally to avoid the surcharge payment. For fixing the limit
in the card finance department get the approval of RGM.
The electric bills payment is being made on the verification of SM Network.
Upon the approval of RGM we give Ty advance for buildings to SEs to maintain the
network and building maintenance.
Development works are being carried out by the region through contractor Abdul
Razzaq etc and through own staff of PTCL. All are the projected works being carried
out on the SAP through Project No, and activity No etc. the payment is being made
on the approval and sanction of RGM dully vetted by the Quality Assurance.
Estimated buildings works are being carried out by the approved contractors and by
observing all formalities. The building works are being looked after by the Manager
Estates Gujranwala.
Telephone bills are being distributed to the concerned SEs as per approval of RGM
on case to case to basis
35
Building and L & W budget is distributed on the monthly basis upon the approval of
RGM.
All TA cases are being approved from RGM and paid on the actual basis.
Marketing budget is being utilized by the SM consumer sales and approval is being
granted by RGM.
PTCL have made centralized contract with Ms TCS to lift the courier from all offices
and centralized payment is being made from region upon the sanction of RGM.
Purchase of IT Equipment‘s is being made from the approved vendors of PTCL
Headquarter.
Responsible for delivery of bills, income collection, and debt recovery administration to
customer and clients
To check the bills registered i.e. record keeping
Analyse arrears accumulation and Billing vs Realization
Check caller reports on daily basis
Make correction in bills on the request of the customers
To check negative arrears
To make online adjustment
To monitor delivery of telephone bills
Liaison with banks
Bring improvement in the process of delivery of bills to the customer.
36
There is shortage of staff in finance department. There should be two separate
managers for accounts and finance. But currently MR. Irshad has responsibility of
both.
Some of the staff is not related to the finance department. They are not specialized in
finance. But they are working in finance department.
There is still paper work in finance department which can create problem. Although
now most working is done in SAP software.
Finance department is too much dependent on finance manager. When he is not there
no work is done.
Overall working in finance department is very good. All the members are work hard and often
use over time to complete their tasks.
Management in finance department of PTCL is very effective. Senior manager finance and
finance manager have enough abilities to cope with all the difficulties they are facing. Here is
strength and weakness of manager finance.
Strengths:
Strong leadership skills
Very Hard working
Motivate the entire employee in finance department and get the work done.
He is involved in everything related to finance department whether it is meeting or
audit or anything else
Control accounts and finance activity of GTR at the same time
Very honest in his work. He does not leave his work for others.
37
Uses SAP software to control all the activities in finance department.
Interconnected systems to keep in touch with another department of the PTCL.
Unity among the members of finance department
According to SM finance manager, finance department GTR is one of the best finance
departments of PTCL. Even with their shortage of staff, manager finance is still able
to get the job done
Weaknesses:
Employees are too much dependent on finance manager, In the absence of finance
manager, employee do not work effectively
Some of the staff is not related to the finance department. They are not specialized in
finance. But they are working in finance department. So, finance manager has to do
all the activity which are unknown to the employees
Due to lots of work in finance department and shortage of staff there is chance of
errors in financials accounts.
In PTCL most people are not selected on merit in the past and many people are not willing to
work. Although recently due to privatization PTCL has made lots of changes but still there are is
culture of Govt. organization there. So, management has to work in these conditions. It requires
extra effort to motivate those people. However, in finance department manager still able to gets
the best out his employee in these conditions.
Departments
Following are the different departments of Gujranwala model town exchange.
Operational department
Operational department is responsible to maintain the whole infrastructure of PTCL that is the
maintenance of cables, exchanges and other assets of PTCL. This department is also
responsible for NTC installation. i.e. installing new landline numbers. This department is also
responsible for external restoration.
38
Switching Department
Switching department is the department which is operated with in exchange. The responsibility
of switching department is providing or disconnecting services to subscribers. If there is new
subscriber that it is the switching department that provides services with the collaboration of
operational department. If the subscriber wants to disconnect the landline number then
subscriber have to obtain NOC from R&C department and have to show NOC to switching
department in order to disconnect subscription.
DSL Maintain Department
Digital subscriber line (DSL) is the department that provides internet service and other online
facilities such as smart TV to its customers. The key responsibility of DSL department is
providing facilities to new subscribers and providing superior services to existing subscribers.
39
b) PTCL employees have less pay if we compare them with other private sector Employees
comparable at same designations and jobs.
c) Rests of the benefits and compensations as well as allowances are as per government
rules.
Compensation:
It is a system in which an employee is rewarded on the effective and efficient required
performance. PTCL has a very organized and effective compensation system according to the
rules and regulations of Government of Pakistan. They are offering 30% more pay then other
Government Organizations. The rewards, benefits, allowances that are offered by PTCL for its
employees and workers as well as officers are as follows:
Financial Rewards:
Pension 60% to 65% of basic pay
Disability Pension as per Government Rules
Death Benefits Funeral amount + 5-6 months‘ pay Loan
Facility
Car &motorcycle loan loan will be deducted from monthly salary
Provident Fund 8.25% of salary + interest of 15%
Non-Financial Rewards
Maintenance Company provides maintenance of Employee‘s car
& motorcycle
Pick & Drop Busses are used for this purpose
40
Holiday 6 days in a week. Sunday is off
Earned Leaves 45 leaves per year
Casual Leaves 20 leaves per year (with Pay)
Maternity Leaves 120 days
Medical benefits:
PTCL also give medical benefits to its workers and employees.
PTCL employees have free medical treatment. In all over Pakistan there are 38
dispensaries which are working and providing free treatments to PTCL employees. This
benefit is also for the family members of the PTCL employees.
After retirement too PTCL provide the medical benefits to its former employees.
Employees from grade 1 to 16 are entitled for medical facility up to five years of the
retirement. Employees in grade 17 and above have lifetime entitlement for the facility
Interview Methods:
The interview method depends on the situation and conditions but two of them are in focus of
PTCL while carrying out Selection.
Structured Interviews
Unstructured Interviews
Structured Interviews
Structured Interviews are those which are preplanned and predefined in order to check the skills,
abilities, knowledge, behavior, and required potential of the candidates.
Unstructured Interviews
Unstructured Interviews are those which are not predefined and preplanned but they are based on
conditions and possibilities.
41
PRODUCTION FACILITIES
Chapter:4
Product Lines:
42
Products:
In PTCL, so far products had been planned and developed by the engineering department and
marketing pro fissional had no role in product planning as there was no marketing department in
the Company. But now marketing professionals have been inducted in the Company and they
will definitely have a close coordination with engineering department in planning and
development of products to satisfy customers‘ desires. It should also be kept in mind that PTCL is
a technical organization enjoying state-of-the-art telecom technology.
The services offered by PTCL are built in the technology and with the passage of time; PTCL
rolls out these products in the market even many products, which have become obsolete in
developed countries, are launched as new products by PTCL. But we cannot deny the fact that
being monopolist, PTCL is depriving customers of many digital services that are available free in
many other countries. However, as the Marketing department has been established now, it is
expected that in future there will be close coordination and liaison between marketing
professionals and engineers for planning and developing customers oriented pro ducts.
PTCL is also in the process of hiring brand Managers to manage its different products.
Consumer Products
PSTN (Public Switch Telephone Network)
V-phone (Post-paid and Prepaid)
Broadband
PTCL Smart TV
PCTV
EVO Wireless Broadband
PTCL Calling Cards
3G Nitro
43
1. PTCL Landline (PSTN)
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, including heating competition for
PTCL. In this situation PTCL‘s counter strategy for landline services, during the years 2007-08
was aimed to increase ARPU, acquire new subscriber 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 cal s at RS. 199/month.
PTCL also launched ‗International Plus‘s package to facilitate cost effective International calls at
unmatchable rates
PTCL 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 the cities and towns of the country
PTCL Charges and timing for local call unit will be as under:
Loca
l
Landline to Mobile Rs. 2.50 per minute
44
2- PTCL V-fone:
PTCL also continues to be the largest CDMA operator in the country with approximately 1.25
million V-fone customers.
It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology,
ours is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural
areas. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO
Broadband.
45
3- PTCL Broadband Services:
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. Since its
launch on 19 May 2007, PTCL has acquired 668,376 Broadband customers in over 800 cities and
towns across Pakistan, leading the proliferation and awareness of Broadband services across
Pakistan.
PTCL provides Experience of the internet at its fastest with high speed access Broadband
Pakistan, simultaneously; enjoy Voice service over the same line without any extra cabling
connections. Broadband offers DSL service reliability, affordability and connectivity.
Features:
Cost effective always on internet access
High speed data download
Unlimited download
Free Modem
Convenient Ordering on phone and web
No upfront charges
PTCL has doubled its broadband data rate speed and upgraded all its existing 2Mbps customers
to 4Mbps data rate on the same tariff and all existing 4Mbps customers have been upgraded to
6Mbps data service at the same tariff. In addition, a new 8Mbps package has also been
46
introduced. PTCL will have the following data rates for all its broadband existing and new
customers with effect from July 15th 2010.
Broadband Pakistan is now available in over 800 cities/town including Lahore, Karachi,
Islamabad, Rawalpindi. Quetta, Faisalabad, Multan, Hyderabad, Peshawar, Gujrat, Gujranwala
and Bahawalpur.
With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where
till a couple of years back there was very little awareness in the country about broadband & high-
speed internet services. PTCL made the broadband technology affordable by lowering the
barriers to entry, by geographically bringing the service within the reach of a common user
across Pakistan and by continuous improvements in customer care for the service.
3- Smart TV Services:
Using its state-of-the-art Broadband network, PTCL entered the media sector on 14th August
2008, by launching a digital interactive television service for the first time in Pakistan.
Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a
few countries across the globe that offers this state-of-the-art interactive TV service to its
subscribers.
Branded under ‗PTCL Smart Line‘, the service includes Interactive Television, Broadband and
voice telephony al at the same time on PTCL‘s telephone line. Besides offering the highest
digital quality TV picture, the most revolutionary section of this offering is the ability to ‗rewind‘
and ‗pause‘ live TV channels through TSTV (Time Shift Television) feature, the ability to block
47
/ unblock any TV channel for parental lock and the ability to search through video on demand
content. Currently PTCL Smart TV offers its viewers 125 live channels and over 500 Movie
titles through its Video on Demand service‘. The service is available in 600 cities including
Karachi - Lahore - Islamabad - Rawalpindi - Gujranwala - Faisalabad - Peshawar - Sialkot
- Multan - Sargodha - Jhelum - Wah Cantt - Taxila - Hyderabad &- Abbottabad however it
is planned to be expanded to all the major cities and towns across Pakistan during the year 2010.
Launched for the first time in Pakistan using the flexible Internet Protocol (IP) technology,
PTCL‘s Smart TV is service which al ows customer to be more interactive and more in control
with their TV service as compared to conventional TV broadcast or cable TV. Smart TV delivers
television programs to households via broadband connection and requires a subscription, a set-
top box, and offers key advantages over existing cable TV.
48
5- EVO Wireless Broadband:
EVO wireless Broadband is the latest service from PTCL that offers High speed wireless internet
Access and is the latest evolution in internet. It has been introduced in big strata. one can get up
to 10 times the peak data rate of the next best public wireless solution up to 3.1 Mbps download
and up to 2.4 Mbps upload speed. It also allows the user to be connected wherever they are not
only for email, but also for downloads, large files, photo, spreadsheets, etc.
EVO 3G Nitro is all set to meet the next-generation‘s need for ultimate speed & superior
performance. It is the next step in Evolution of the Wireless Broadband Revolution!
Whether it is streaming High Definition video or music, conducting a video conference while
simultaneously browsing the Internet or uploading multimedia content, in the Nitro Universe
everything happens at the speed of light.
49
3G EVO TAB:
Introducing Pakistan‘s First 3G Enabled Smartphone Android Tablet—3G EVO Tab. Powered
by Google Android Froyo2.2 OS, EVO Tab is a 7‘‘ capacitive multi gestures touch screen tablet
packed with features of both a tablet and a GSM phone that lets you surf, talk, tweet & do a lot
more simultaneously on-the-go in more than 100 cities nationwide.
Packages:
50
Corporate Products:
UAN (Universal Access Number-111)
UIN (Universal Internet Number-131)
Business DSL
DPLC (Domestic Private Leased Circuit)
IP Connect
EDSL (Enterprise)
ISDN BRI (Integrated Services Digital Network Basic Rate Interface)
ISDN PRI (Integrated Services Digital Network Primary Rate)
Co- locations
DXX Connectivity
Call Centres
Audio /Video Conference
VPN (Virtual Private Network)
Premium Rate Service)
V-Connect
PTCL Webhosting
Payphones
IPLC (International private leased circuit)
DPLC (Domestic private leased circuit)
51
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 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.
No doubt Evo provides lots of facilities to its customers, but also there are lots of complains by
Evo customers, it can be breaking down, and having signals problem. Because the wireless
internet services having shared data upload and download speed. If there are more users the
speed will be the lesser. Now there is another product in EVO named as EVO nitro.
Broadband Pakistan:
52
PTCL broadband is the largest and fastest growing service in Pakistan. In less than three-year o it
launches, pct. has acquired approximately 392,648 Broadband customers in over 318 cities and
towns across in Pakistan, Leading the explosion and awareness of Broadband services across
Pakistan.
With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where
till a couple of years back there was very little awareness in the country about broadband & high-
speed internet services. PTCL made the broadband technology affordable by lowering the
barriers to entry, by geographically bringing the service within the reach of a common user
across Pakistan and by continuous improvements in customer care for the service.
Unique offers that make PTCL‘s Broadband unmatchable are special packages for the student
segment, free modem and installation. Availability of Wi-Fi modems, free dial up service for its
Broadband customers and free access to movies, music classical Pakistani dramas, cricket
matches, online gaming, educational and religious contents on PTCL‘s entertainment portal
BUZZ. PTCL recently doubled its broadband speed for its existing and new customers at the
same price.
PTCL SMART TV Using its state-of-the-art Broadband network, PTCL entered the media sector
on 14th August 2008, by launching a digital interactive television service for the first time in
53
Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the
list of a few countries across the globe that offers this state-of-the-art interactive TV service to its
subscribers.
Currently PTCL Smart TV offers its viewers 125 live channels and over 500 Movie titles
through its Video on Demand service‘. The service is available in 16 cities including Karachi -
Lahore - Islamabad - Rawalpindi - Gujranwala - Faisalabad - Peshawar - Sialkot - Multan -
Sargodha - Jhelum - WahCantt - Taxila - Hyderabad - Abbottabad and Sukkur however it is
planned to be expanded to all the major cities and towns across Pakistan during the year 2013.
V- ƒone:
PTCL also continues to be the largest CDMA operator in the country with 125 million V-ƒone
customers. It offers fixed wireless telephone for your home and business. It is the largest WLL
with 2.6 Mb, covering the 10,000 urban and rural areas.
The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVO
Broadband
PTCL V-ƒone is a superior phone connection with advanced features like internet, caller ID,
speaker phone, address book etc., which lets you to connect wireless to the whole world.
54
Re-launch of V Wireless as Vfone:
As Vfone becomes the Wireless substitute to landline in un-served areas, it will be a strong line
for voice, data and fax services for use at home and in the office. Firstly, PTCL launches V-
wireless for their customers, but unfortunately it was not becoming popular among the people.
And they re-launch v wireless as v-ƒone with additional features.
PTCL basically has two types of customers Domestic Customers and Corporate Customers.
Domestic Customers:
These customers are households. And the nature of connection that install at home according to it
and charges are charged from them according to domestic level.
55
Corporate Customers:
These are business customers such as Firms, Business Organizations, Institutions, Public Call
Office, etc. Different packages are given according to the nature and size of the organization.
Levels of Needs:
56
Meet expectations Satisfied
SERVICES:
What are the Services being provided by the company to build strong relationships with its
customers?
57
Prepaid Calling Cards
PTCL Calling Card is the most popular choice of millions of customers all over the country. It is
now available with balance transfer facility and follow on call facility,
Digital Facilities
PTCL offers a variety of digital services to its customers which are as followed;
Hotline
Abbreviated Dialling
Call Waiting
Don‘t Disturb
Call Transfer on (a) Busy (b) No Reply (c) Immediate
Wake Up Call
Absent Subscriber
Code Barring
58
Telephony cards against their telephone number thereby generating an account on I/N platform
and any call made from that telephone will be charged to this account. The service will provide
state of art technological facilities to the subscribers.
Co-Location Centers:
Pakistan Telecommunication Company Limited has taken land mark decision to establish Co-
Location Centers throughout the country. This service is basically for telecom data and I.T
Companies. These companies will install their equipment directly in PTCL premises in ready
59
fitted environment. The primary purpose is to provide a number of resilient and centralized
connection and control facilities in which co-location centre‘s communication can be located.
ISDN BRI/PRI:
It is a near broadband experience suitable for household and small/medium sized organizations.
60
Wide Network
High speed internet provider
Wide range of facilities and Value-added services
Normally, a marketing strategy identifies the target markets, the desired position in each market
and the marketing mix that will persuade those target markets to part with their money. Market is
targeted through market segmentation. Segmentation can be done on four types i.e. Demographic
Segmentation (age, gender, race/ethnicity, household type, home ownership, education,
employment, income etc.), Geographic segmentation.
TARGET MARKET:
PTCL‘s 80% revenue comes from just 20% customers, who are corporate customers and other
big and small business organizations. The main focus of PTCL marketing efforts is on retaining
and satisfying that 20% chunk of key customers at any cost. For this purpose, PTCL is now
established Corporate Customer Service Centre‘s in major cities to take care of these vital
customers. Apart from these important customers, PTCL targets general public and other small
61
business companies for sale of its landline telecom services like telephone, fax, Internet, as well
as other services like CLI, VMS, and Digital Facilities etc.
7 P’s of Marketing
Pakistan Telecommunication Company Limited focuses on 7 P‘s of marketing which are
product, price, place, promotion, physical evidence, placement and people, which are discussed
in detail as below;
Marketing mix:
Marketing mix is the sum of 4 p‘s.
Product
Price
Place
Promotion
62
Product Planning:
In PTCL, so far products had been planned and developed by the engineering department and
marketing professionals had no role in product planning as there was no marketing department in
the Company. But now marketing professionals have been inducted in the Company and they
will definitely have a close coordination with engineering department in planning and
development of products to satisfy customers‘ desires. It should also be kept in mind that PTCL
is a technical organization enjoying state-of-the-art telecom technology. The services offered by
PTCL are built in the technology and with the passage of time; PTCL rolls out these products in
the market. Even many products, which have become obsolete in developed countries, are
launched as new products by PTCL. But we cannot deny the fact that being monopolist, PTCL is
depriving customers of many digital services that are available free in many other countries.
However, as the Marketing department has been established now, it is expected that in future
there will be close coordination and liaison between marketing professionals and engineers for
planning and developing customers-oriented products.
PTCL is also in the process of hiring brand Managers to manage its different products in a
thorough professional way.
Pricing strategy:
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 cal s 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 PTCL‘s 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.
63
Placement Strategy:
The Head Office of Pakistan Telecommunication Company Limited is situated in SectorG-8/4,
Islamabad, which is headed by the ―President‖. Besides, it has Regional Headquarters like:
These Regions provide Telecommunications services to the customers in their respective areas.
Apart from these, PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber
System Islamabad, each headed by a General Manager to install, operate and look after optic
fiber systems/cables. In each District and Tehsil, an Exchange, Franchisor, Call Centers,
Customer Care centers are available to facilitate the customer need.
Promotional Strategy:
PTCL is using following components of promotional mix for the promotion and Publicity of its
product/services.
64
Promotional Mix of PTCL
Advertising:
PTCL‘s main stress is on advertising in print and electronic media. PTCL periodical y places its
advertisements in print media on services like H/Qs hotline 0800-44544 Caller Line
Identification (CLI) Voice Messaging Service Digital Facilities PTCL Prepaid Calling Cards
Inquiry 17 Complaint 18 phone bill cards prepaid telephone, etc. to remind the customers of
these services. Sometimes, corporate ads are also released to print media to mark special
occasions.
PTCL‘s Commercials on Prepaid cal ing Card‖, ―CLI‖, Voice Messaging‖, ―Digital Facilities‖ etc.
are also broadcast immediately on electronic Media reminders to Customers.
Sales Promotion:
PTCL offers 1/3rd rates on international calls and local calls as well to promote the usage of its
telecom network. Moreover, PTCL offers special rate packages on special occasions like
Ramadan Package and Eid Package, which offers customer reduced rates for specific timings.
These economical packages result in increased revenue for PTCL and also facilitate the
customers to talk to their near and dear ones on these special occasions on affordable rates.
65
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 product. At the moment, PTCL‘s Customer Services Centers are playing
the role of sales outlets. Customers can make telephone calls; send fax messages from these
Customer Service 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 professionals‘ sales force for the company.
66
There are 4 big players in mobile phone industry but 3 of them are the competitor of PTCL.
Mobilink
Warid
Telenor
Zong
Mobilink:
Mobilink is a largest mobile phone company of Pakistan. Mobilink I currently having more than
31,958,597 users base which is the 36% of total cellular industry of Pakistan. Mobilink is
basically competing Ufone which is subsidiaries of PTCL.
Telenor:
Telenor is another cell phone company it has 17,841,074 subscribers which is 20 % of total
mobile industry.
Warid Tel
Warid tel is also providing cell phone facilities in Pakistan. Warid tel is having more than
15,114,678 subscribers which are 17% of Pakistan mobile industry.
67
Zong:
China mobile company has invested $721 million in telecom sector in Pakistan during 2007 and
it would further invest $7 million in Pakistan this year. Trying to make service and rates as
simple as possible, they are relying on simple formula to enter in the Red Ocean, i.e. low price,
extensive advertising and far-reaching distribution channels.
Zong is covering the cities of Gilgit, Hunza, Skardu, Besharn and Sust. It has added over 2000
sites since its launch and the network cell sites have grown from about 900 to over 3000 today.
By the end of 2009, the cell sites are targeted to grow to over 10,000. Currently it has 6.8%
market share in Pakistan cellular market. It has total 7,453,034 subscribers by the end of 2010
years.
68
Who are the competitors of PTCL?
Product/Subsidiary Competitor
Multimedia & Broadband (ISP Product) There are about 100 competitors of product
throughout the country to provide Internet
service to the customers. However, some of
the major competitor ISP‘s of product are
Cyber net, World online, Apollo, World Call
and Comsats WOL etc.
PTCL Calling Cards Hello Cards, Call Point Cards, Call Mate
Cards, And Global Telecom Cards.
Wireless Local Loop (V-Fone) Go CDMA, Sateen Telecom & World Call
are the Fixed Wireless Telephone
competitors of V-PTCL.
69
SWOT ANALYSIS:
SWOT analysis is carried out in order to access the organization internal strengths, weakness and
external opportunities and threat in order the environment in which the organization operates, so
that organization can understand these factors in developing strategies in the modern and
competitive world.
Strengths:
Following are the strengths of PTCL.
a) It is the, largest and the oldest, telecommunication company of Pakistan.
b) PTCL, enjoy monopoly, situation in market.
c) The chain, of command, is very efficient.
d) PTCL provides, round the clock, services.
e) PTCL has, strong research and, development department.
f) Nationwide, reach, through its broad network.
g) Largest operational, infrastructure as compared to other companies in telecommunication,
sector.
h) Provides, support services, through its call centers.
i) Competitors, depend on PTCL, directly or indirectly.
70
j) Experience, telecom human, resources.
Weaknesses:
a) Following are the weakness of PTCL
b) Lack, of internal, customer focus.
c) Low productivity.
d) Implementation, of rules and policies, are not assured.
e) Employee, skills are inconsistency.
f) Low, quality of services.
g) Lack, of focus on, external customers.
h) Inefficient utilization, of resources.
i) No proper, maintenance, of infrastructure.
j) PTCL-V, the fixed wireless, phone service is poor
Opportunities:
Following are the opportunities for PTCL.
a) Huge market, potential and, size.
b) Providing, superior services, to all.
c) Adopt, latest technologies
d) Capture, internet market, though, its broad band services.
e) Employee, training can, result in customer satisfaction.
f) PTCL have, heavy amount of, fixed, assets that can be leveraged, for growth or
providing, customer‘s, superior, services.
Threats:
Following are the threats that PTCL might face.
a) Market, competition can be intense.
b) Migration, to cellular network.
c) Reduction in, international calling rates.
71
d) Government, policies regarding, telecommunication sector.
e) Ability to, retain qualified employees.
PEST ANALYSIS:
PEST analysis is carried out in order to understand what the external factors that might affect
the organization. This analysis is essential in order to understand external factors so that one can
make strategies to cope with these factors, because external factors are uncontrollable by
organizations.
Political Analysis:
Political factors are those factors which are directly controlled by government and political
parties and these factors directly or indirectly influence on the organization operations.
72
Rapid change in regulations
In Pakistan government changes policies very rapidly without any focus on consequences.
Economic analysis
Economic factors are directly controlled by the financial institutions. They help the industry to
provide the financial resources in the time of financial crises.
73
increase in the value of loan payable that is another major threat for telecommunication sector.
Efficiency of financial markets is not good
In Pakistan all the financial institutions are controlled by government rather than the head of
financial institution State Bank of Pakistan. Rate of interest is increasing day by day then any
country in the world so it‘s made impossible for the telecommunication industry to take loan.
Social analysis:
Social factors are the factors that are directly attached with culture and with the people of a
specific region.
74
family and other at any cost. These occasions are Eid celebrations Jaehn-e-Baharat and other
cultural festivals. They create a lot of opportunities for telecommunication industry so they make
calls to their relatives on that particular occasions.
Population is increasing rapidly:
The total population of Pakistan is approximately 200 million. The population is increasing
rapidly which increase the cellular usage and increasing profit.
Uneducated people
Low educated people could not be able to understand the language and the system of
telecommunication sector that creates ambiguity in the minds of customers
Corruption
Corruption is the major threat for any industry in the Pakistan that is because people are unaware
and uneducated but now a day‘s telecom companies are working on that like
i. AJ NAE BOLO GAY TO KAL BHUHTOO GAY (khamsin ka boycott)
ii. KRO MUMKIN (Telenor)
These are all campaign to educate people and develop the positive behavior in that social culture.
Destroying cultural norms:
Although these companies are bringing positive change in the society but also destroying the
social culture and providing the negative attitude to the young generation of the country by
providing late night services that is affecting the cultural norms and education of young
generations.
Technological analysis:
Technology is the most known word in the modern world so an advancement in the technology
affects the industry if industry settles them accordingly them it opens a lot of doors of success
and achievement if they do not respond towards the advancement then that particular company
goes in to darkness.
75
Factors that creates opportunity
Technology is changing the attitude and behavior
Telecommunication technology is changing the behavior of people and providing them
opportunities to get the bright future.
Impact on cost structure
Due to last technology the cost of telecommunication industry is destroying and they are giving
lowest rate to peoples to remain in contact with relatives and their family.
76
emergent broadband market - both in wire line and wireless segments, With the 61 per cent
growth in Broadband customers, respective revenues have grown and increased by 77 per cent.
For the PSTN customers, introduction of various new packages commensurate with the needs of
different segments of society as well as rationalization of the tariff helped in increasing the
landline usage thus arresting the revenue decline. Concurrently, PTCL group revenue turned up
to be Rs 28.3 billion which is 9.7 per cent higher as compared to the same period last year.
Harmonizing the corporate services also registered an increase of 5 per cent in its revenues. Of
this, PTCL's revenue was Rs 14.8 billion. Likely, continuing with its vision of providing quality
services an increase of 9 per cent in company's administrative expenses was recorded which is
fair enough. Though Pakistan experienced the revolution of telecom industry in the last decade,
PTCL has been working in this sector from its birth, which was many decades before from the
revolution in the telecom sector; while during the last decade, other companies from around the
world have jumped into the playing field with PTCL. However, the company seems determined
to remain the leading information/communication technology service provider in the region by
achieving customer satisfaction. Keeping the previous growth records of the company in mind it
can be easily predicted, that the revenue gains will continue to improve the bottom line in
coming quarters as PTCL is readily diversifying its revenue streams away from the Voice
business and going aggressive in segments like wireless broadband. Which is the manifestation
of the fact that privatization of PTCL has played a far-reaching and paramount role in bridging
the gap of global communication. In short, the biggest private company's determination and
efforts to come up with all the leading edged strategies and tactics stipulates a bright future for
Pakistan's telecommunication industry and revenue growth. Undoubtedly PTCL has been playing
an important role as an instrumental agent for every segment of society as it is a company
committed to excellence and paving the way to a brighter future for the country.
77
Chapter:6
Major HR Policies and Practices:
Functions of HR department:
PTCL HR department maintain, review all the developmental plans and long-term policies, an
effective employee‘s development program, appropriate compensation and benefit plan and good
governance model in line with statutory requirement and best practices. It ensures the
Governance and HR policies and procedures are aligned with strategic vision and core objectives
of the company. This function includes recruitment, selection, and induction into the
organization. The initial decision to add someone to the payroll is made by line management. It is
also its responsibility to determine the content of the job to be performed and the employee‘s
qualifications necessary to perform the job satisfactorily. Very commonly, statements of job
content and employee qualification have been previously worked out jointly between line
management and the H.R. Dept. These are recorded in the form of job descriptions and job
specification. The H.R. Dept must develop and maintain adequate sources of labor. It must set up
and operate the employee selection system, which may include interviews, selection tests, a
medical examination, and reference checks. Quite commonly the role of the H.R. Dept is one of
screening with the final decision to hire or reject being made by the supervisor who requested the
new employee. However, in the case of large-scale hiring program of unskilled or skilled
78
workers, the H.R. Dept is commonly granted full and final authority to make the hiring
decision. The new employee‘s supervisor bears important responsibilities for introducing his/her
to the new work environment. This is often called orientation.
Recruitment:
The department first determines the need of employees to be hired. The post against each
vacancy is advertised and then the applications are invited from the applicants. If there is a post
of manager cadre; the SEVP personally is the interviewer of the interviewees along with his
team.
Sources of candidates:
There are internal as well as external sources of candidates for certain jobs in PTCL.
79
Internal sources of Recruitment
Internal sources of job applicants involve sons/daughters of the employees working in PTCL,
reference of relatives of employees, etc.
Training:
Then the qualified candidates undergo a training period under the banner of Human Resource
Department. There are Telecom Staff colleges at Lahore & Hari Pur. Then the specified persons
are appointed against each specified post so the best results are expected and hence the
performance and good will of the PTCL is increased.
Transfer:
Human Resource Department of the company also deals with the transfer of the Employees
because the Human Resource Department knows the demands of the job and the right person are
80
employed over the right place by transferring him to that post.
Health and safety matters are also handled by the Human Resource Department in the
organization. As there are no apparent dangers to the employees and customers hence it is the
responsibility of the Human Resource Department to see through the matter.
Evaluation:
The employees are then properly evaluated by different evaluation criteria and
procedures in order to motivate them and to enhance the performance. The job appraisal system
comprises of different questionnaire depending upon which the whole system is forwarded.
Discipline and discharge are the necessity of each organization and it is maintained by the
Human Resource Department of the company.
Refreshing Course:
The refreshing courses enhance the potential capabilities of the staff and the
performance as well. The refreshing courses are conducted by Regional Telecom Training
Schools (RTTS) and sometimes by Telecom Staff Colleges & are attended by the staff
members on the recommendations and behalf of the H.R. Department. Refreshing
courses are for the managerial and Technical staff. So, they are equally and firmly evaluated and
enhancement of their capabilities is achieved.
Pay Package:
Human Resource department also determined pay packages of employees of every department.
All this is done on the basis of performance, ACR, qualification and seniority. Normally in
PTCL pay package is on seniority but in recent years it is more based on ACR.
81
The managerial posts are filled directly by the Human Resource Department. On the other hand,
the Technical Lower and mid-level supervisory staff is hired by the means of:
1) Direct Hiring.
The promotions are on the seniority cum fitness basis. So, the qualified and the efficient Workers
are supposed to come up to the top. Human Resource Department also deals with the retention
and firing of the employees. In case of deceased employee, one of his children gets the job in the
company according to his qualification. According to Qualification and skills it ensures the
employee benefits. More over the Human Resource Department also cares for the old age
benefits of the employees.
Information Technology:
PTCL has set up SAP in its HR department. There is specific code given to every employee
which is called employee number. Information about any employee is made available to head
office through SAP which can later on use for strong HR practice. PTCL has introduced HRIS
system to serve all the employees efficiently and effectively.
Medical Facilities:
HR in PTCL has also function of giving medical facilities to PTCL employees. There is specific
budget available for that and medicines are available at no cost the main elements are
engineering, education and enforcement. PTCL is offering both its own medical facility setup &
the private hospitals on its panel.
Benefits to Employees:
Life insurance
Hospital and medical insurance
Sickness leave pay plans
Supplemental unemployment compensation
Loan funds
82
Credit unions
Social programs
Recreational programs and college tuition refunds plans.
Traveling allowance
Chapter:7
CRITICAL ANALYSIS OF THE COMPANY
Financial Analysis:
In the financial analysis of P.T.C.L we will analyze some important information about the
company. As I did my internship in Revenue & Collection department, but it has not an
independent organization so I have to analyze the P.T.C.L for the analysis purpose.
Liabilities:
83
Total long-term liabilities 13.71238 21.89099 25.4083
Equity:
84
Total Assets 92.43105 143.216 138.5099
Liabilities:
RATIO ANALYSIS
Current Ratio
2009 2010 2011
85
Current ratio is measure of the firm ability to pay off obligation.
PTCL Current Ratio in 2009 was 1.81 and it decreased in 2010 and after that slight increase in
2011. Although current assets increase in 2010, but increase in current liability results in
decrease in current ratio in 2010. PTCL current assets in 2010 was 54 Million to that of 45
Million in 2011; but current liability also decreases and hence that this ratio has an increasing
trend.
Quick Ratio
2009 2010 2011
It is measure of firm‘s ability to pay off short term obligation without relying on the sale of
inventories. Quick ratio in 2009 was 1.58 and that it decreases in 2010and then slight increase in
2011.
DSO 28.5 24 65
It is used to measure the average length of the time that the firm must wait after making a sale
before receiving cash which is average collection period. In 2010PTCL was receiving its
receivables in 24 days, in 2011 its averages days are 65 which is not a good sign for the
company. It has tremendously increased in these two years.
86
Debt Ratio
2011 2010 2009
The ratio of total debt to total assets, generally called the debt ratio, measures the percentage of
funds provided by creditors: Debt Ratio of PTCL is increase in 2010and then reduced from 35.4
to 33.8 in 2011 which indicates that financial position of the company is good and they have paid
off some portion of debt which they were having in 2010. This is because they had to pay for
voluntary separation scheme in 2009.
In 2009 there is less debt payable as compared to 2009. And in 2011 it is further reduced. Due to
which TIE increase respectively. In 2011 there is huge decrease in debt due to Voluntary
separation scheme (VSS) payable was not there. So, TIE increases twice. It means that PTCL net
income can cover interest 36.42 times.
87
Total assets turnover ratio, measures the turnover of the entire firm‘s assets; it is calculated by
dividing sales by total assets. In year 2011 PTCL paid PTA for WLL license fee. Furthermore,
PTCL paid Loan to the wholly owned subsidiary – PTML (UFONE) as well. These two entities
together were a big expense for PTCL because of which the cash in 2011 is reduced, which
eventually resulted decrease in total assets.
The profit margin on sales, calculated by dividing net income by sales, gives the profit per
dollar of sales. In 2009 net profit margin on sale is negative. But it increases in 2010 to 15.45 and
further increase to 16.26 although its revenue decrease in 2011 from 2010 but that in increase in
profit is because in 2010 there was voluntary separation scheme payable. So net profit increases
in 2011 and hence profit margin on sales increases.
The ratio of net income to total assets measures the return on total assets (ROA) after interest
and taxes. Return on assets increases from 2.01 to 5.91 in 2010 and further increased to 6.16 in
2011. This return results from PTCL‘s good basic earning power and low interest costs which
resulted from its average use of debt, both of which cause its net income to be relatively high.
The result is also due to PTCL less usage of debt in this period. In 2010 company have paid their
debts and also again reduce its debts in 2011.
88
Return on equity (ROE)
2011 2010 2009
Ratio of net income to common equity is measure of return on common equity (ROE). ROE
increases from negative value in 2010to 9.33 in 2011. This somewhat better result is due to the
company‘s greater use of debt.
No. of shares outstanding of PTCL are 5.1 Mil ion in 2009 and 2010. In year 2011 PTCL‘s Net
income increased from last year. This increase in Net income resulted in increasing the earning
power per share from 1.79 in 2010 to 1.82 in 2011.
Price/earnings (P/E) ratio shows how much investor is willing to pay per unit of reported
profits. Price to earnings ratio increases in 2010 and in 2011. It was (69.7) in 2009 and increased
to 9.77 in 2011. Since it is in negative in 2009 and has increased substantially increase which
means it has large growth prospects. This also shows that firm is less risky.
89
Market Value per share
2011 2010 2009
Market value per share of PTCL decreases in 2010 and then it is slightly increase in 2011.
90
9 Return on equity Net Income/Common equity 9.33 9.28 (2.71
)
1 Earnings per share Net Income/No. of share outstanding 1.82 1.79 (0.55
0 )
1 Market Value per Market value per share 17.8 17.2 38.64
2 share 0 4
91
92
93
Debt Ratio:
2019 2018
Debt ratio 55.39 53.92
The ratio of total debt to total assets, generally called the debt ratio, measures the percentage of funds
provided by creditors: Debt Ratio of PTCL is increase in 2018 and then incease from 53.92to 55.39 in 2019
which indicates that financial position of the company is good and they have paid off some portion of debt
which they were having in 2018. This is because they had to pay for voluntary separation scheme in 2018.
94
Ratio of net income to common equity is measure of return on common equity (ROE). ROE increases
from negative value in 2008to 9.33 in 2010. This somewhat better result is due to the company’s greater use of debt.
Earnings per share:
2019 2018
Earnings per share (1.24) 1.46
No. of shares outstanding of PTCL are 5.1 Million in 2018 and 2019. In year 2019 PTCL’s Net income
increased from last year. This increase in Net income resulted in increasing the earning power per share
from 1.24 in 2018 to 1.46 in 2019.
Price to Earnings Ratio
2019 2018
Price to Earnings 7.52 6.60
Ratio
Price/earnings (P/E) ratio shows how much investor is willing to pay per unit of reported profits. Price to
earnings ratio increases in 2018 and in 2019. It was (6.60) in 2018 and increased to 7.52 in 2019. Since it is
in negative in 2008 and has increased substantially increase which means it has large growth prospects. This
also shows that firm is less risky.
Market Value per share:
2019 2018
Market Value per 9.36 9.61
share
Market value per share of PTCL decreases in 2018 and then it is slightly increase in 2019.
95
Financial Ratios overview
Ratios 2019 2018
96
97
98
Currently SAP is used in finance department of PTCL:
99
Snapshot of SAP software:
100
Chapter:8
Work Done During Internship
Weekly Timetable
First week timetable:
20-06-2018 Interaction with manager of revenue and collection department. In first
interaction I gave him detail introduction about myself. In which institute
I am studying. In which programmed I am enrolled, what is the scope of
my study. What are my future plans etc.
21-06-2018 Introduction of PTCL invoice with the detail description about the
customer ID, NTN number and exchange code
22-06-2018 Learned about how to deal with defaulter customers, how to deal with
those customers which have issues in their invoices like extra charge,
Bill not received on due date.
23-06-2018 This is my first day of working in which they gave a list of roundabout
150 newly installed landline numbers in order to confirm that customers
are provided superior services and they don’t have any issue regarding
services or bill collection
24-06-2018 Holiday
25-06-2018 Today they gave me the same job i.e. list of roundabout 150 newly
installed landline numbers in order to confirm that customers are
provided superior services and they don’t have any issue regarding
services or bill collection
101
26-06-2018 Today they gave me the same job i.e. list of roundabout 150 newly
installed landline numbers in order to confirm that customers are
provided superior services and they don’t have any issue regarding
services or bill collection
27-06-2018 They gave another list of rounds about 134 newly installed landline
numbers in order to confirm that customers are provided superior
services and they don’t have any issue regarding services or bill
collection.
28-06-2018 Customer dealing i.e. resolving customer’s issue regarding their bills
and adjustments of bill, installments of bills and maintaining record.
29-06-2018 Customer dealing i.e. resolving customer’s issue regarding their bills
and adjustments of bill, installments of bills and maintaining record.
30-06-2018 Customer dealing i.e. resolving customer’s issue regarding their bills
and adjustments of bill, installments of bills and maintaining record
01-7-2018 Holiday
02-7-2018 Customer dealing i.e. resolving customer’s issue regarding their bills and
adjustments of bill, installments of bills and maintaining record
03-7-2018 Collect the adjusting bills and make record the entries of adjustment in
software and sent it to the manager
05-7-2018 Calling of those customers that have issue in the collection of bills and
102
then re-check the address of the customer and acquire an email ID for
providing bill through email.
06-7-2018 Recording of adjusting bills on MS-excel and sorting them on the basis
of their adjustment date.
07-7-2018 Recording of adjusting bills on MS-excel and sorting them on the basis
of their adjustment date.
08-7-2018 Holiday
09-7-2018 Recording of adjusting bills on MS-excel and sorting them on the basis
of their adjustment date.
10-7-2018 Recording of adjusting bills on MS-excel and sorting them on the basis
of their adjustment date.
11-7-2018 Recording of adjusting bills on MS-excel and sorting them on the basis
of their adjustment date.
12-7-2018 Recording of adjusting bills on MS-excel and sorting them on the basis
of their adjustment date.
14-7-2018 Helping staff in order to prepare list of demand notice in order to report
to headquarter and make them updated for new customers.
15-7-2018 Holiday
103
Fifth week timetable:
16-7-2018 Make lists of complaints about bills that are not delivered to the
customer address on due date.
17-7-2018 Today task was to arrange the bills regarding their exchanges and then
delivering them to their relevant exchanges.
18-7-2018 Visit of TCS office regarding billing issues because all the bills of GTR
region are wrong printed that are received by the Lahore headquarter
printing department through TCS. Then I work with the team that is
working for the correction of NTN number on bills.
19-7-2018 Make a list of saving certificates of NSC 1 which are hand over to the
National saving center for reissuance of new certificates.
21-7-2018 Make a list of saving certificates of NSC 2 which are hand over to the
National saving center for reissuance of new certificates
22-7-2018 Holiday
23-7-2018 Make bundles of bills of different exchange and then hand over these
bills to the parties (who delivered the PTCL bills like TCS, Pakistan Post
etc.)
104
26-7-2018 Holiday for elections
28-7-2018 Last day of my internship, I prepare a list of those numbers whose bills
has been adjusted due to extra charge in the bills
29-7-2018 Holiday
DUTIES:
As an intern in PTCL my duty was in finance department. There are no specific rules for an
intern over there, my supervisor Mr. Muhammad Umar daily guide me and taught all finance
related activities. Mostly I spent my time with finance manager Mr. Muhammad Ali. He also
introduces me with his all works and sent me to sit with all his worker for knowing what is there
role in finance department. In this department I have already explained the members whose are
performing their job. With every member I did work and learn lot of things from them and also
help them to perform their work
During my period of internship several performed several activities and several responsibilities
are assigned to me. In startup days I have given a list of NTC numbers (newly installed landline
numbers).My responsibility is to call individual customer either on his landline number and if
not answered than on cell phone number to take feedback from customers regarding services
delivered to them and to confirm that they properly received customer invoices on their
registered addresses. If the customers dint received invoices on their address then the address is
reconfirmed and report is sent to manager.
Another responsibility during my internship is customer dealing i.e. resolving customer queries
regarding their invoices. For example, some customer claim that extra charges are in their bill, in
this situation the customer invoice and PTCL database is cross checked and corrective action is
105
taken. If there are some remaining charges then the whole story is told to customer and if there is
problem in invoice than extra charges are deducted and the database is updated. Sometimes the
customers are unable to deposit their charges in single attempt for these customers installments
are made so that they deposit their dues conveniently.
During internship my manger give me a responsibility to sorting of the Adjusting bills and then
recording of bills in software.
As, my professional career is going to start this opportunity is greatest ever opportunity to know
about the market trends. In the start of career this is one is greatest opportunity to make public
relations that help me to start my career with great position with passion
PROBLEMS ENCOUNTERED:
PTCL is great place to work. As such I do not face any major problems during my internship.
Because Mr. Muhammad Ali helped me in every issue I am facing in my internship. However, I
was nervous at the time when I have to enter the employee‘s leaves on the SAP system. I worked
106
many time on that and after that I was able to complete my task. The other problem is that I
could not get much overview of all departments in PTCL. Most of the time I was worked in
finance department. I have learnt majority of things in this department but I was not able to learn
more things by doing myself in other departments. So, I was not given specific duty to perform
myself with complete control. I could not get any access to any of the systems in PTCL.
Chapter:9
CONCLUSION:
PTCL is one of the biggest and the leading organization in telecommunication sector. All the
telecommunication service provider in Pakistan directly or indirectly depends on PTCL for their
services. However, another edge PTCL has is that it is overlooked by state government and have
bargaining power.
After the completion of internship, it is concluded that it‘s my luck that I have able to do
internship in well renowned organization. During my internship I am able to learned enough
knowledge about true corporate culture, how things are run in corporations, in which way power
is distributed, how employees are controlled, how customers queries are solved and how to keep
tight controlled on every aspect. Today the difficulty is challenging Pakistan Telecommunication
Company limited is that there is no implementation of rules and regulation that may cause the
low productivity of the employees. The presence of worker and employees‘ unions in Pakistan
Telecommunication Company that practice to play organizational politics rather than of creative
107
work that may lead company performance on the track of success. According to my view, the
miserable customer relationship management, miserable customer dealing, miserable discipline
are some factors which can damage the branch of Model town exchange at macro level. Pakistan
Telecommunication Company limited has many products that may give large amount of profit if
they use aggressive marketing strategies at the time of launching of new products. PTCL give the
tough competition to its competitors in the communication sector if they use aggressive
marketing strategies. Pakistan Telecommunication Company increases the profit ratio if the
hierarchy of the organization is re-structured in future. Currently PTCL have many valuable
assets that may return more if these assets are utilize properly on time. The profit of Pakistan
Telecommunication Company Limited decrease as compare to previous year that may the cause
of inefficient use of resources and low productivity of the employees. Pakistan
Telecommunication Company Limited enjoys the monopoly in the market but the profit ratios
according to this are very low. The qualities of PTCL internet services are very low as compare
to its competitors that are due to the lack of technical expertise in the organization. PTCL can
improve the quality of the services by the hiring of efficient employees and through the training
of the employees.
PTCL is well renowned and the largest organization in telecommunication sector and is growing
day by day but there are numerous shortcomings that management have to consider. There is
lack of internal customer focus management have to consider employees because these are the
people who directly in contact with customers if they are not satisfied than they are unable to
serve customers in an effective way.
Another problem is low productivity of employees, the work load on employee is too much due
to which their productivity is low.
Another weakness is that the implementation of rules and policies are not assured. The policies
are implemented without taken any consideration of outcomes.
The quality of services in specific region is another problem. Due to infrastructural problem the
services in specific region is very low there is anxiety in customer because there is mismatch
between price paid and quality of services.
108
There is inefficient utilization of resources in PTCL due to its vast infrastructure and there is no
proper maintenance of infrastructure.
PTCL-V, the fixed wireless phone service is poor.
RECOMMENDATIONS:
On the basis of PEST and SWOT analysis following are some recommendations that PTCL have
to consider.
i. Focus on internal customers (employees). Because these are the people through which
you provide services to customers.
ii. There must be proper system for check and balance of employee productivity.
iii. In these days PTCL management focus on over employment issue. They are offering
people golden handshakes and limits on new hiring due to which there is threat of job
loss. Management have to give job security to rise employee satisfaction.
iv. Management has to consider the wants and needs of external customers.
v. More efficiency is required in customer care system
vi. An efficient system for effective utilization of resources and infrastructure must be
ensured.
vii. During development of policies and procedure the outcomes must be considered.
viii. The billing disbursement method must be ensured.
ix. After due date bill deposit method requires certain improvement.
x. The method of employee claim of expenses must be enhanced and queries must be
entertained without any delay.
xi. Sub offices with delegated power must be established for customer convenience.
Critical analysis of the management patterns, week areas that need to be improved:
According to my information, following points should be improved in the organization.
PTCL should set up to the International Standards as it is the only one biggest
Telecommunication Company in Pakistan.
109
Staff should be Hire on the basis of Merit and on Fair means rather hire Staff on the basis
of Biasness or some kinds of Personal Links.
Employees are less motivated so the organization should set such kinds of Challenging
tasks and activities which help them to become Motivated Person.
For training Purpose high skilled trainees should be hire which help the employees and
train them according to the international Standards with a modern education and the
technology.
The compensation system for the employees should be Equivalent to the other
International and Multinational organizations.
Well there are only 38 dispensaries for 32000 Employees all over the Pakistan which is
not enough, number of dispensaries should be increase.
Promotion should be given on the basis of achievements, performance, behaviour,
attributes rather on superiority or by any other means.
When the Employees got the training, they should be on the right place for which they
are trained for.
A high Computing System with latest Technology should be provided.
110
GLOSSARY:
111
REFRENCES:
Web Pages:
I. http://earnup.hubpages.com/hub/historyof_ptcl
II. http://www.scribd.com/doc/11170075/PTCL-Company-Analysis
III. http://www.onlinetaleem.com/ptcl/introduction-and-history-of-ptcl.html
IV. http://www.ptcl.com.pk/pd_content.php?pd_id=41
V. http://www.scribd.com/doc/63214835/Pest-Analysis-of-PakistanTelecommunication-
Industry
VI. http://www.scribd.com/doc/37848431/Final-Internship-Report-on-Ptcl
VII. PTCL Revenue and collection office model Town Gujranwala.
VIII. PTCL annual Report 2017-2018
IX. PTCL Official website
X. PTCL Revenue & Collection department‘s manager
MR.MUHAMMAD.ALI # Cell. No 03338106847
112