Internship Report On: Pakistan Telecommunication Company Limited

Internship report
on
Pakistan telecommunication company
limited
Presented by: Maham butt

Bc14164
Punjab University (Gujranwala Campus)

INTRODUCTION TO THE REPORT
I have prepared this report as an essential requirement for the completion of the degree of
Bachelors in commerce. It has to be written after the completion of six weeks internship, which
is a necessary part of the degree completion with the aim to provide the students with actual life
experience and use their knowledge in practical.
Reason for selecting the specific industry

The Telecom Sector is spreading all over the world and it is going to be the essential part of the
lives of the humans. It is going through a process of rapid change in the world of technology. In
line with global trend and for meeting the emerging demand, major initiatives have been taken
by PTCL too to upgrade its network and also to introduce a range of new value added services
like Broadband and IPTV.
As it has separate sector of finance and I had my specialization in finance so its better for me.
And so I have also selected department of finance.
Purpose of the Internship

There are many reasons:
1. To fulfill the requirements for the degree of the B.com , a four year program from the
University of Punjab Gujranwala campus.
2. To see the practical world of what we studied during the four years program.
3. To understand how the practical organizations apply the knowledge of the theories.
4. To study the organization for its function and analysis on the basis of the study.
5. To make recommendations on the basis of the study done.

Scope of the Study
During the internship, I straddled in the department of Finance along with the field work
associated with the department, such as:
1 .SAP
2. Excel
3. BRC preparation
4 File checking
5 General discussion on accounting transaction
6. Discussion of politics situation
These are explain below with detailed.
Methods of Collecting Data

I have collected the data for this report in many ways. I used Primary data, as well as secondary
data for completing the task of report writing about my internship. Some of the methods I used
are discussed below.
Use of Primary Data
I used Primary Data for completing the report by the following ways:
i. Self Observation
ii. Discussions with the officers
iii. Marketing
iv. Informal interview from the customers
Use of Secondary Data

I also used Secondary Data for completing the report writing. Some of these methods are as
follows.
i. PTCL Brochures
ii. PTCL Website
iii. Internship reports of seniors and friends
iv. Staff Training program guides

ORGANIZATIONAL
PROFILE

Introduction of the organization:
The telecommunications industry is at the forefront of the information age—delivering voice,

data, graphics and video at ever increasing speeds and in an increasing number of ways. Whereas
wire line telephone communication was once the primary service of the industry, wireless
communication services and cable and satellite program distribution make up an increasing share
of the industry.
The largest sector of the telecommunications industry continues to be made up of wired

telecommunications carriers. Establishments in this sector mainly provide telephone service via
wires and cables that connect customers’ premises to central offices maintained by
telecommunications companies. The central offices contain switching equipment that routes
content to its final destination or to another switching center that determines the most efficient
route for the content to take. While voice used to be the main type of data transmitted over the
wires, wired telecommunications service now includes the transmission of all types of graphic,
video, and electronic data mainly over the Internet.
These new services have been made possible through the use of digital technologies that provide
much more efficient use of the telecommunications networks. One major technology breaks
digital signals into packets during transmission. Networks of computerized switching equipment,
called packet switched networks, route the packets. Packets may take separate paths to their
destination and may share the paths with packets from other users. At the destination, the packets
are reassembled, and the transmission is complete. Because packet switching considers alternate
routes, and allows multiple transmissions to share the same route, it results in a more efficient
use of telecommunications capacity as packets are routed along less congested routes.
Wireless telecommunications carriers are deploying several new technologies to allow faster data
transmission and better Internet access that should make them competitive with wire line
carriers. One technology is called third generation (3G) wireless access.

With this technology, wireless carriers plan to sell music, videos, and other exclusive content
that can be downloaded and played on phones designed for 3G technologies. Wireless carriers
are developing the next generation of technologies that will surpass 3G with even faster data
transmission.
Another technology is called “fixed wireless service,” which involves connecting the telephone
and/or Internet wiring system in a home or business to an antenna, instead of a telephone line.
The replacement of landlines with cellular service has become increasingly common because
advances in wireless systems have provided data transmission speeds comparable to broadband
landline systems.

Overview of the Organization:
History of the organization:
From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan
Telephone & 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 mobile and data services subsidiaries in 2001 by the name of Ufone and
PakNet 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 PakNet brand

has effectively dissolved over the period of time. Recent DSL services launched by PTCL
reflects this by the introduction of a new brand name and operation of the service being directly
supervised by PTCL.
As telecommunication monopolies head towards 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.
Last Year, in middle of 2005 Government of Pakistan had decided to sell at least 26 percent of
this company to some private agency. There were three participants in the bet for privatization of
PTCL. Etisilat, a Dubai based company was able to get the shares with a large margin in the bet.
Last year when Government was going to privatize the company there was country wide protest
and strike by PTCL workers. They even disrupted Phone lines of some big Government
institutions like Punjab University Lahore and many lines of public sector were also blocked.
Military had to take over the management of all the Exchanges in the country. They arrested
many workers and put them behind bars. The contention between Government and employees
ended with a 30% increase in the salaries of workers.
There have been various changes in the company due to privatization. Such examples include the
VSS (Voluntary Separation Scheme for its employees), ERP (SAP based), restructuring, B& CC
(Billing and Customer Care Software) etc. Another seemingly minor change was change of
brand identity (logo) that will present PTCL's new face after privatization, with greater focus on
customer satisfaction and bringing about of new advancements in telecom for Pakistani
consumers.

Deregulation Policy:
Telecommunication de-regulation policy (“Policy”) has been prepared in line with Government’s
objective to de-regulate and liberalize various sectors of the economy. The Policy applies to
opening up of the fixed-line telecommunication sector. The exclusive rights of Pakistan
Telecommunication Company Limited (“PTCL”) to provide basic telephone services (local, long
distance, international and leased line services), which it enjoyed under The Pakistan
Telecommunication (Re-Organization) Act 1996 (“Telecom Act 1996”), have expired since 31
December 2002.
Restructuring 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 economy. A successful deal would demonstrate the government’s
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 the 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
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 overall revenue growth. Future 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 shares. Some estimates placed the value of the trance at around $1 billion. PTCL’s net profit
for the year ending June 2003 was 23 billion rupees ($400 million). The new buyer would gain
management control.
Splitting up PTCL could take at least two years or longer, complicating hopes for a quick
disposal. Leading international investors that publicly stated their interest in the sale include
Singapore Telecommunications Ltd., Egypt's Orascom Telecom Holding, Saudi firm Oger and
the Menara Telecom consortium. Unsolicited offers were reportedly made the planning process a
moving target. The eventual new owner(s)’ greatest challenge was considered to be
organizational. PTCL needed a fundamental shake-up of its corporate culture, and a massive
reduction in staff.
Privatization of PTCL:
PTCL was sold to Etisilat at a loss of $394 million with the share price reduced from the original
bid of $1.96 per share to $1.66, according to a report. The original bid offered in June 2005 by
Etisilat priced PTCL at $ 2.599 billion while the revised bid approved by the cabinet in March
2006 valued the company at $2.205 billion. However, the government denied giving any
concessions to Etisilat. Officials said the price of 26 percent PTCL shares remained the same i.e.
$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 Etisilat bid of $2.599 billion, said a report in the
Gulf Today.
The PTCL privatization agreement with Etisilat allegedly inflicted a further loss of billions of
rupees to the national exchequer besides unprecedented concessions offered in the long term, in
direct 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 Etisilat lapsed in September 2005 after the non-payment of the dues by the winner bidders.
Brief History of PTCL:
1947 Post and telegraph Dept. established
1962 Pakistan telegraph & telephone Dept.

1990-91 Pakistan telecom corporation
1995 About 5% of PTCL assets transferred to PTA,FAB & NTC
1996 PTCL formed listed on all Stock Exchange of Pakistan
1998 Mobile & internet subsidiaries
2000 Telecom policy finalized
2003 Telecom deregulation policy announced
2005 26% Shares by Etisilat UAE through open bidding
2006 Etisilat Takes Over PTCL's management

Present Status of the Organization:
After having brief introduction from past end of PTCL now we move towards the current
situation of the company .In this part focus will be on the Structure of organization Technical &
operational Network Services provided by PTCL Financial front of PTCL Competitors and
subsidies Structure of organization An Organizational Structure clarify the roles of personnel of
an Organization and to determine who has to do what task, which is responsible for what,
objectives to be achieved, who 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 called “President”. Then come the SEVPs
(Senior Executive Vice Presidents), i.e. SEVP(Finance), SEVP (Operations), SEVP (Technical),
and SEVP (Human Resource Management), SEVP (Marketing & Business Development). Then
there is a chain of Executive Vice- Internship Report Presidents (EVPs) like EVP (Finance
Central), EVP (Marketing),EVP (HR Central), EVP (Accounts), EVP (Operation), EVP
(Information Technology, Training & Research), and EVP (Revenue).
All these are appointed at Pakistan Telecommunication Company, Headquarters at G-8/4,
Islamabad. Apart from these EVP, there are also EVP (Operation), EVP (HR) etc who are
heading the other regions of PTCL in major cities country wide. Then there are Chief Engineers
and General Managers at H/Qs who report to their relevant EVP. Then there are Senior
Managers, Deputy Directors, Assistant Directors, 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 come the Senior
Managers (Operations), Senior Engineers (Operations), Engineers to look after the telecom
system of Regions. There are also Senior Managers Finance, Account Officers and Accountants
to Handle Regional account and billing matters. Manager HR & his staff are responsible to take
care of Personnel affairs at Regional Level. In non-gazetted staff there are Engineering
Supervisors Operations /Switching /Power plant /Optical Fiber system/M.W Media, Account
Assistants, Stenographers, Assistants, Key Punch Operators, Telecom Technicians, Upper
Division Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers, Exchange Cleaners,

Naib Qasids and Peons etc. All the staff is recruited by the HR Department headed by SEVP HR.
The HR experts are responsible for hiring & to further streamline its recruitment process.
PTCL SUBSIDIARIES:
 Ufone
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its
operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has
expanded its coverage and customer base at a rapid pace and established itself as one of the
leading cellular service providers in Pakistan. Ufone is now considered to be one of the most
active, aggressive and innovative players in the mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful implementation of the
telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications
(MOIT&T) and the support, guidance and timely enforcement of regulatory process by the
Pakistan Telecommunication Authority (PTA).
Maskatiya Communication:
PTCL acquired Maskatiya Communications (Pvt.) Limited (MAXCOM). MAXCOM is an
internet service provider operating in Karachi and some parts of Hyderabad. Its customer base is
around 6,000 subscribers. The 100% shareholding of MAXCOM has been transferred in PTCL’s
name. MAXCOM customers are now eligible to enjoy superior PTCL broadband and other
products and services.

Nature of Organization:
PTCL offers both products and services. PTCL is the largest telecommunication provider in
Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million
V-Fone customers. The company maintains a leading position in Pakistan as an infrastructure
provider to other telecom operators and corporate customers of the country. It has the potential to
be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fiber Access
Network in the major metropolitan centers of Pakistan and local loop services have started to be
modernized and upgraded from copper to an optical network. On the long distance and
international infrastructure side, the capacity of two SEA_ME-WE submarine cable is being
expanded to meet the increasing demand of international traffic.
PTCL is the largest telecommunication provider in Pakistan. PTCL also continues to be the
largest CDMA operator in the country with 0.8 million V-fone customers. The company
maintains a leading position in Pakistan as an infrastructure provider to other telecom operators
and corporate customers of the country. It has the potential to be an instrumental agent in
Pakistan’s economic growth. PTCL has laid an Optical Fiber Access Network in the major
metropolitan centers of Pakistan and local loop services have started to be modernized and
upgraded from copper to an optical network. On the long distance and international infrastructure
side, the capacity of two SEA_ME-WE submarine cable is being expanded to meet the
increasing demand of international traffic.
PTCL is currently operating in two basic services
 Fixed local loop services
 Wireless local loop services
PTCL the incumbent operator still retains virtual monopoly in both fixed and wireless local loop
services. The company has maximum presence across the country for both wireless and fixed
local loop network. PTCL has market of only 3-4 million subscribers while no major bundle
package for the cellular mobile segment was announced that has market of more than 100
million subscribers. PTCL is offering array of value added services to the subscribers with

connections of both fixed and wireless including high speed broadband, IPTV, free voice mail
service, free email account, Personal Global Number, WiFi services and many more.
Long Distance International services are an integral part of Pakistan’s telecom industry which is
responsible for carrying international traffic from Pakistan to abroad and terminating
international traffic in Pakistan. PTCL is also in that business as well.
PTCL has also maximum market share in the broadband market. Today incumbent is offering
broadband services in more than 100 cities of Pakistan. And is aspiring 3 million subscribers in
the next 5 years.
Recently PTCL has also entered into the smart TV market and offering wide coverage in big
cities of Pakistan.
With the emerging technology of 3G and other wireless services PTCL has now set up strong
businesses and offer variety of products.
There is centralized structure in PTCL and most of the decision making authority is given to the
top level of management.

VISION AND MISSION
STATMENT

VISION:
“To be the leading information and communication technology service provide in the region by
achieving customer satisfaction and maximizing shareholder value”
MISSION:
To achieve our vision by having
 An organizational environment that fosters professionalism, motivation and quality
 An environment that is cost effective and quality conscious services that are based on the
most optimum technology
 "Quality" and "Time" conscious customer service
 Sustained growth in earnings and profitability

PTCL Core Values:
 Professional
 Customer Satisfaction
 Teamwork
 Company Loyality
PTCL’S CORE OBJECTIVES
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.
The following are the long-term objectives of the organization.
 Provision of Telecom services all over the country.
 Plan, establish and maintain telecommunication
 Acquire, promote and manage research and development, transfer of technology and
software development including manufacturing of telecommunication equipment and
plant
 Enhance efficiency, improve quality and expand the system to meet customer
satisfaction and provide service on demand.
 Create congenial climate for binding of human skill and horizon of employees through
training and education.

 Convert its cash basis single entry accounting system to accrual basis double entry
system meeting the commercial international accounting standards.
 To introduce computerized directory assistance and complaint services reform billing

and a revenue collection system.
 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 Centers by deputing qualified persons

who are well aware of public relation techniques.

MANAGEMENT
HIERARCHY

STRUCTURE OF PTCL
Structure of Organization
An Organizational Structure clarify the roles of personnel 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 called "President". Then come the
SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance), SEVP (Operations),
SEVP(Technical), and SEVP (Human Resource Management), SEVP (Marketing & Business
Development).Then there is a chain of Executive Vice Presidents (EVPs) like EVP (Finance
Central), EVP (Marketing), EVP (HR Central), EVP (Accounts), EVP (Operation), EVP
(Information Technology, Training & Research), and EVP (Revenue). All these are appointed at
Pakistan Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from these
EVP, there are also EVP (Operation), EVP (HR) etc who are heading the other regions of PTCL
in major cities country wide. Then there are Chief Engineers and General Managers at H/Qs who
report to their relevant EVP. Then there are Senior Managers, Deputy Directors, Assistant
Directors, 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 come the Senior
Managers (Operations), Senior Engineers (Operations), Engineers to look after the telecom
system of Regions. There are also Senior Managers Finance, Account Officers and Accountants
to Handle Regional account and billing matters. Manager HR & his staff are responsible to take
care of Personnel affairs at Regional Level.
In non-gazetted staff there are Engineering Supervisors Operations/Switching/Power

plant/Optical Fiber system/M.W Media, Account Assistants, Stenographers, Assistants, Key

Punch Operators, Telecom Technicians, Upper Division Clerks, Lower Division Clerks, Line
Men, Wire Men, Drivers, Exchange Cleaners, Naib Qasids and Peons etc.
All the staff is recruited by the HR Department headed by SEVP HR. The HR experts are
responsible for hiring & to further streamline its recruitment process.
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:
 Islamabad Telecom Region,
 Rawalpindi Telecom Region,
 Hazara Telecom Region Abottabad,
 Northern Telecom Region-I Peshawar,
 Lahore Telecom Region (South),
 Lahore Telecom Region (North),
 Multan Telecom Region,
 Faisalabad Telecom Region
 Southern Telecom Region-I Hyderabad
 Southern Telecom Region-II Karachi
 Southern Telecom Region-V Sukkur
 Western Telecom Region Quetta.
 Switching network Central region Lahore.
 Gujranwala regional office
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.

Organizational Hierarchy:
Regional GM
NTR-I
Peshawar

Business Volume
Installed capacity More than 5273091
Working connections 4,405,161
Total Exchanges 2962
Telephone density per 100 population 2.9
Countries on ISD 242
Customer service centre 154
NWD stations 2092
UIA stations 1898
Total length of main optical fiber link 4591 km
Optical fiber short haul links 127.2 km
Optical fiber spur links 3241 km
Number of Employees
Currently 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 and give them incentives and also give them medical treatment.
Product Lines

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(Postpaid and Prepaid)
 Broadband
 PTCL Smart TV
 PCTV
 EVO Wireless Broadband
 PTCL Calling Cards
 3G Nitro

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
calls at RS. 199/month. PTCL also launched ‘International Plus’ 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
Local Call Charges:
PTCL Charges and timing for local call unit will be as under:
Local

Landline to Mobile Rs. 2.50 per minute

Landline to Landline and Rs 1.00 per minutes
Vfone

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.

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
introduced. PTCL will have the following data rates for all its broadband existing and new
customers with effect from July 15th 2010.
 1Mbps at Rs. 1250/-
 2Mbps at Rs. 1550/-
 4Mbps at Rs 2100/-
 6Mbps at Rs. 5000/-
 8Mbps at Rs 7000/-
 10Mbps at Rs 9000/-
 12Mbps at Rs 12000/-
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 all 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 / 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 allows 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.

4- Pak Internet Exchange:
It is the only IP enabled network with 40 (number increase) point-of-presences (POP) in 26

cities. The existing 16G active bandwidth is used for internet, data, video and video-conferencing
services and for voice of LDI. All PTCL Broadband users, narrow band users, corporate, mobile
operators, and ISP are connected to this network.
5- EVO Wireless Broadband:
EVO wireless Broadband is the latest service from PTCL that offers High speed wireless internet
Access and is the lates evolution in internet. It has been introduced in big strata’s. 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
PTCL EVO 3G Wireless Broadband:

 Three simple steps to High speed On-the-Go connectivity, Just Plug in—Click &
Connect and experience high speed on the go internet connectivity with the country’s
largest and the fastest growing 3G network;.
 EVO offers its customers a “superior 3G internet experience”, with flexibility to roam
freely like never before, in more than 100 cities Nationwide.

 Just plug and play or work at home, in the office or anywhere in between with the
unsurpassed & amazing speed of up to 3.1Mbps, backed by the country’s largest Wireless
service provider; experience the evolution of broadband revolution at its best.”
EVO 3G Nitro:
Introducing EVO 3G Nitro in Pakistan; “The World’s first & most cutting edge EV-DO Rev.B
commercial network”. PTCL is the first operator in the world to commercially launch EV-DO
Rev.B products which offer blazing fast speeds of up to 9.3 MBPS.
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.
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:
Package Price Volume

EVO Tab Unlimited Rs.2000 Unlimited data volume
EVO Tab 5 GB Rs.1500 5GB Data Volume
EVO Tab 2 GB Rs.1000 2 GB Data Volume
Corporate Products

 UAN (Universal Access Number-111)
 UIN (Universal Internet Number-131)
 Business DSL
 DPLC (Domestic Private Leased Circuit)
 IP Connect
 EDSL ( Enterprize )
 ISDN BRI (Integrated Services Digital Network Basic Rate Interface)
 ISDN PRI (Integrated Services Digital Network Primary Rate)
 Co- locations
 DXX Connectivity
 Call Centers
 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)

DEPARTMENTS OF PTCL

Departments:
Every organization is divided into definite departments. Each department performs different kind
of jobs and requires staff with specialized skills to handle particular job. This increases the
efficiency of workers and makes `
There are several aspects on which departmentalization in an organization can be based. The
division can be done on the basis of function, product, customers or geographical locations.
The PTCL Head Quarters is comprised of several departments. The division is made on the basis
of function they perform. Hence it can be concluded that PTCL has adopted the policy of
functional departmentalization. The main departments of PTCL are mentioned below.
2. Finance Dept.
1. Human Resource Management Dept.
3. Commercial Dept.
4. Operational Dept.
5. Technical Dept.
6. IT Dept.
7. Customer care department
8. Special Projects Dept.

1.Overview Of Finance Department:
Hierarchy of Finance Department
Senior Finance
Manager
Finance Accounts
Manager Manager
Assistant
Manager
Computer
Cashier Record Keeper
Operator

Employees in Finance Department:
Employee Name Designation Qualification Benefits

Number (Salary)
RS.
10050917 Nadeem Senior MBA 110,000
Anwar Manager
Cheema
10065249 Irshad Manager FCMA,CIA,DAIBP,SAS,SAP,PMP 101,000
Hussain Finance
10076578 Umer Assistant MBA (Finance) 46,000
Hayat Manager
10086789 M. Data Entry Graduation 34,000
Tariq
10053690 Nafees Computer Graduation 36000
Ahmad operator &
Record keeper
10075540 Adnan Cashier Graduation 37000
Ali
10098431 Arshad Assistant Metric 31,000
Majeed
Brief Overview of Finance Department Members:

Mr. Nadeem Anewar Cheema (Senior Manager Finance):

He is the head of finance department. His grade is 19 and he is employed in PTCL in contractual
basis. He overall controls all the activity in finance department. Main responsibilities endorsed
to SM Finance are as following:
 Ensure preparation and maintenance of financial reports.
 Maintenance of financial records.
 Final review of bills and fund transferring
 Preparation of operational, budgets and annual development program.
 Disbursement of funds against budget for revenue expenses.
 Overall all the main activity in finance department is controlled by Mr. Irshad.
 Ensuring creditor, debtor and debt management processes maximize organizational financial
outcomes
 Ensuring that an efficient, timely and compliant payroll function is maintained.
 Other duties as reasonably directed by the GM Finance
 Funds based management.
Mr. Irshad Hussain: (Finance Manager):

He is grade 18 officers and employed on contractual basis. He is responsible for different phases
of financial activities including operational cash handling, bank dealings, sage keeping of
financial records and check books and recording of all transactions on a daily basis. Most of his
working is in SAP. Currently he is also acting as accounts manager.
Some of its primary responsibilities are.
 Oversee and coordinate financial activities for all Gujranwala division.
 Ensure preparation and maintenance of financial reports.
 Maintenance of financial records.
 Prepare monthly bank reconciliation certificate.
 Posting of bills in SAP.
 Responsibilities to check all the bills amount and rates and also report to the SM finance
and also to the manger with concerned bills.

 Ensure timely disbursement of staff payroll, pay slips and updating of relevant salary
sheet.
 Preparation of operational, budgets and annual development program.
 Disbursement of funds against budget for revenue expenses.
 Monthly analysis of variances with budgets.
 Control of financial transitions in billing.
 Computerization of billing for all services using SAP.
 Maintenance and operation of bank accounts.
 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.
Mr. Umar Hayat: (Assistant Manager Finance):

 He is assistant manager of finance department.
 He is currently working as to check all the email forward to the finance department.
 When the bills received in finance department he mails to the concerned manager to
check whether that bills is of his cost Centre.
 He also emails to cost Centre when there is error in some bills.
Mr. Adnan Raza: (Cashier):

 He worked in PTCL finance department as a cashier.

 He has record of ceiling and non-ceiling of budget allotted in the finance department.
 When a cheque is made then he mails to the defined person to collect the cheques, which
is then given to the person after verification. He maintains monthly record of all the
cheques issued.
 He is also responsible for tax collection and then submits it to the FBR.
Mr. Tariq: (Computer Operator):

 He is currently working on SAP and is responsible of parking and posting of the bills and
also for the transfer of the funds to related bills.
 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.
Mr. Nafees (Record Keeper):

 His job is to keep to record of all the bills.
 Mr. Nafees is one of the most experienced people in finance department.
 The bills which are processed are given a specific code which gives a unique idea to him
to keep record and also the amount issued against those bills.
 He also has an additional task of travel management. All the bills related to traveling are
checked by him.
 The bills related to employees
 Travelling allowance
 Employee training
 Stationery expenses
 Entertainment

 Uniforms
 Merit scholarship
 Local training
 Overtime allowance
 Postage and courier services
 Advance salary
Mr. Arshad (Office Coordinator):

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
Functions and Operations in Finance Department:

Finance Department is responsible for the budgeting, planning and transaction relating expenses,
pricing control funds and treasury measure and direct taxation.
PTCL recently introduced SAP in its functions to ensure better management. In finance
department SAP is also used which is directly connected to headquarter office. It is very
expensive software and its training is also expensive.
Functions of finance department is as under
 PTCL head office Islamabad approves budget for region and then handover it to the
RGM for further distribution.

 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
center 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 mail 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.
 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 M/S 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.
Shortfall in Finance Department:

Following are some of shortfall in finance department in PTCL Gujranwala
 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.
Critical Analysis of Management Patterns in finance department:

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 other 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.
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 ha 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 manger still able to gets the
best out his employee in these conditions
2. Marketing Department:
Marketing Strategy
Segmentation

PTCL has made segments on the basis of customers they are serving
 Residential
 Corporate
It has also made segments on the basis of service it is providing
 Telephone
 Internet
 TV
Target Market:
PTCL provides landline services in almost every area of the Pakistan. It is also the sole landline
provider in Pakistan. With broadband PTCL is currently providing its products to the mostly to
those customers who are in big cities. But now it is expanding its business to rural areas as well.
Currently it has 6.5 million customers. Broadband Pakistan is now available in over 605
cities/town including Lahore, Karachi, Islamabad, Rawalpindi. Quetta, Faisalabad, Multan,
Hyderabad, Peshawar, Gujrat, Gujranwala and Bahawalpur.
PTCL is currently targeting only developed markets where there is large number of customers.
PTCL has launched its outlets in Islamabad, Karachi, Lahore and Rawalpindi and planning to
target customers in small cities and towns in near future.
The service of Smart TV is available in 15 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.
PTCL also target corporate users and provide different products for them like UAN, business dsl,
IP connect etc.
Positioning:
Because PTCL is only provider of landline and covers almost all cities of Pakistan so it is market
leader in this segment.

It is position itself on the basis of
 Innovative
 Evolving
 Trustworthy
 Human
 Quality Conscious
Positioning Statement:
Hello to the Future:

The first key word “Hello” captures the essence of the whole telephony network that is the
backbone of PTCL. “Hello” 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 “Hello”, 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.
The font style selected is bold, straight and modern. The font depicts the brand values that PTCL
fosters.
Differentiation:
PTCL has by far the largest network coverage, competitive price, and a range of Value Added
services including Phone book, messaging, and call logs. PTCL wireless service gives voice
quality of a landline with country-wide coverage, employing the state of the art CDMA 2001x
technology and nationwide availability.
Promotional Activities:

PTCL is using following components of promotional mix for the promotion and Publicity of its
product/services.
 Advertising
In promotional mix, PTCL’s main stress is on advertising in print and electronic media. PTCL
periodically places its advertisements in print media on services like “H/Qs hotline 0800-44544”,
“Caller line identification (CLI)”, “Voice Messaging Service”, “Digital Facilities”, “PTCL
Prepaid Calling Cards”, “Inquiry 17”, “Complaint 18”, phone bill cards prepaid telephone etc. to
remind the customers of these services. Sometimes, corporate ads are also released to print media
to mark special occasions.
PTCL’s Commercials on “Prepaid Calling Card”, “CLI”, “Voice Messaging”, “Digital
Facilities” etc. are also broadcast immediately on electronic media as reminders to Customers.
 Sales Promotion:
PTCL charges 1/3rd rates on national calls from 06:00 pm – 07:00 am and local calls are free
from 11:00 pm to 06:00 am to promote the usage of its telecom network. Moreover, PTCL offers
special rate packages on special occasions like Ramadan Package and EID package, which offer
customer reduced rates for specific timings.
For Example, In EID Package PTCL charges half rates from 6:00am - 6:00pm and quarter from
6:00pm – 6:00 am to attract customers to use its telephone service. These rates result in increased
revenue for PTCL and also facilitate the customers to talk to their near and dear ones on these
special occasions on affordable rates.
 Personal Selling:
As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales
force because the company has not felt any strong need to use the Services of a sales force for
increasing the sale of its products. At the moment, PTCL’s Customer Services Centers are
playing the role of sales outlets. Customers can make telephone calls; send fax messages from

these Customer Services Centers. They can also get connected their telephone bills and get
duplicate bills from these outlets.
However, with the establishment of Marketing Department in PTCL, The marketing
professionals are now in the process of inducting professional sales force for the company.
Physical Evidence:
Exterior:
PTCL built very good and attractive buildings of its offices as well as its franchises in order to
attract the customer and as physical evidence.
Interior:
Interior as well manage but not as like its competitor like Mobilink, Telenor there franchises are
well mange internally and attractive their internal environment as too much attractive and an
educated stuff is present there in order to facilitate the customers but in PTCL franchises mostly
not manage in region like Multan. But well Manage in Big cities like Lahore And Islamabad.

Pricing:
Pricing should take into account the following factors into account:
1. Fixed and variable costs.
2. Competition
3. Company objectives
4. Proposed positioning strategies.
5. Target group and willingness to pay
An organization can adopt a number of pricing strategies, the pricing strategy will usually be
based on corporate objectives.

Competitors of PTCL:
Although tremendous growth has taken place in the Pakistan telecom sector but most of it can be
attributed to the cellular growth. Fixed line is still awaiting a takeoff.
There is no meager competitor of PTCL in landline but with the growth of telecommunication
industry of Pakistan competition increasing specially in mobile phone sector, PTCL have to face
competition as mobile phone sectors is alternative of landline. In total there are more than 100
million subscribers of mobile phone. There are 5 big players in mobile phone industry.
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL faces a tough
competition with other big 4 operators of mobile phone in Pakistan. Ufone is now considered to
be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. It
has 20,533,787 subscribers in Pakistan. It has market share of 19.7% in cellular market.
Mobilink is a largest mobile phone company of Mobilink is currently having more than
33,378,161 users base which is the 32.5% of total cellular industry of Pakistan. Mobilink is
basically competing Ufone which is subsidiaries of PTCL. Mobilink is offering very competitive
monthly tariffs when considering that PTCL is offering 1 Mbps at 2000. Mobilink is offering 1
Mbps at PTCL‟s tariff for 512 kbps at 1200, but CPE cost is still very high for common people,
reasoning slow penetration.

With the splendid growth and numbers growing to 26,667,079.Telenor is amazingly grabbing the
market slowly. Right now they are at number 2 position as compare to Warid (number 4), though
they both started their operation in Pakistan almost together. It has been also said that Telenor
has the best HR among all the telecom companies. Telenor Pakistan has recorded impressive
results increasing the revenue by 80% compared to the same period in 2007. In 2010 telenor has
market share of 23.9%
Warid fought back by adding the largest number of subscribers of 375,180 in recent years with
the total of 17,387,798. Warid Telecom awarded a $300 million contract to Sweden's Ericson to
expand and upgrade its GSM/GPRS network in Pakistan, and announced its commercial launch
with Aero Mobile an in-flight connectivity solution provider partnered with Emirates Airlines.
Warid has started LBS services. Currently market share of Warid is 17.1% in cellular market.
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.
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.

Wateen: A PTCL competitor is Wateen which is
providing most popular product against the PTCL. Wateen is now a days leading company in
Pakistan. It not only provides landline service but also providing GSM service like
23 Warid telecom. It’s providing grant package against the PTCL and making problem for
PTCL. Wateen different product which is as……..
1. Telephony:
It is provide faster landline service agents the pt cl with the low rate of call Rs call 1.20per 30sec
it price little low rather than PTCL.
2. Broadband:
Wateen provide different types of broadband services according to the customer want and need.
Rather than the PTCL provide different packages. it price and services it high against the PTCL
Brand. It’s not provide Student package which make little down against PCL
3. Wateen TV:
Against the PTCL smart TV Wateen also loach V service with the DVD picture quality and
provide 100 TV channel with demand. it price very aging the PTCL TV. But this is available
only in Lahore not all over Pakistan.
4. Wateen WIMA
Wateen Wi-max it a new services of Wateen internet answer for you. No busy phone lines, no
more waiting and no problems. Our 'always-on' high-speed “Wireless” connection 24.
Other competitors are

 World call
 Link dot net
Major players of EVO Broadband:

 Wateen (Wimax)
 World call (E-video)
 Mobilink Infinity
 Ufone Edge
 Telenor Edge
 Zong Edge
 Warid Edge
 Wi-tribe
Basic Telephony Services

 World Call
 Tele Card
 Wateen
 Link Direct
 NTC
 Great Bear

3.Human Resource Department
Major HR Policies and Practices
Human resource in PTCL has following functions
 Recruitment, selection, and on boarding

 Organizational design and development
 Business transformation and change management
 Performance, conduct and behavior management
 Industrial and employee relations
 Human resources (workforce) analysis and workforce personnel data management
 Compensation, rewards, and benefits management
 Training and development (learning management)
Functions of HR department
PTCL HR department maintain, review all the developmental plans and long term policies, an
effective employees 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 employees 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

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.
The refreshing courses enhance the Human Resource department of PTCL. The PTCL
has won repute in the field of land line & WLL services for the domestic & commercial
customers .It has been achieved only due to the proper and exact functionality of
the Human Resource Department .The Head of the Human Resources Department is the
SEVP and his team comprises of EVP's & General Managers of different zones . The
Human Resource Department may advice the administration and the board of directors on
special issues of the company and then it offers services in order to accomplish the task.
The human resources are the ultimate deciders provided by the Human Resource Department. It
not only gives advice, offers services but also control the policies of the administration.
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.
Employee’s recruitment & selection

The process of recruitment and selection for employment in PTCL relates to searching the most
eligible and skilled people for the deserving job. The process of recruitment and selection of
employees is conducted from head quarter of PTCL at Islamabad.
Sources of candidates
There are internal as well as external sources of candidates for certain jobs in PTCL.

Internal sources of Recruitment
Internal sources of job applicants involve sons/daughters of the employees working in PTCL,
reference of relatives of employees, etc.
External source of Recruitment

External sources involve several means which involve newsletters, questionnaires, interviewing,
newspapers, etc.
Employment selection proceed

Employment selection process involves job description, job satisfaction and job evaluation.
Staff role of HR PTCL

The Human Resource department of the company operates in an auxiliary, advisory, or
facilitative relationship to other departments in the organization. Any staff unit, whether it be
personnel or otherwise, exists to help the line effectively. It has been created in the first place to
take advantage of specialized talent and knowledge. The H.R department of the company
generally performs the following roles:
 Policy Initiation and formulation

 Advice
 Service
 Control
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 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 is the necessity of each organization and it is maintained by the
Human Resource Department of the company. If an employee is creating problems for the
administration for nothing, he may be warned and depending upon the severity of the matter and
allegation he may be suspended and even terminated.
Work Place Training

Work place training is one of the important components of HR department. It is an integral part
of the policy and practices of HR. currently PTCL introduced SAP. So Hr role become vital to
achieve objectives of work place training to ensure better performances on the job.
Refreshing Course
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.
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.
2) Promotion on seniority bases.
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 .It is obvious that the Human resources Department is of key
importance and is playing a complementary role in the development and promotion of the
company.
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. The miner health problems are
dealt by PTCL own medical facility/staff & other in which patient is to be admitted or
operated are forwarded to the panel hospitals.

Benefits to Employees:
 Life insurance
 Hospital and medical insurance
 Sickness leave pay plans
 Supplemental unemployment compensation
 Loan funds
 Credit unions
 Social programs
 Recreational programs and college tuition refunds plans.
 Traveling allowance
Relationship Management
Main Feature at PTCL
 Providing 24/7 call centre and technical support.

 Calling customers and getting their feedback.
 Customer care department that could be reached through emails
 Providing personalized account details that customer’s could check at any time.
 Online Complaint Registering System
 Online Billing and Payment Option
Customer Care
 Information stored in databases
 Live chat support
 FAQs
 Technical Help
 Smart Payment Solution
 Contact Us

 Career Opportunities
 Get Connected
 Live Chat
 Subscribe for updates
 FAQs
 Services and Coverage
 Smart Payment Solutions
Internal Customers
 Competitive Pay
 Secure Working Environment
 Employee Empowerment
 Career Opportunities:
 PTCL Core Value
Operational Department
Manages operations of PTCL HQ, with regional offices, branches, and, subsidiaries as
well as with other corporations.
Technical Department
This department is engaged in the management and control of technical aspects of the
company, e.g. technical manpower, technical training, technical equipment, etc.
IT Department
This department is established to introduce new and advance technology in PTCL. Due to
IT department working system is converted in a computerized system.
Corporate Development Department
This department deal corporate level issues such as PTA, International Telecom Union,
Legal and Regulatory affairs etc.
Special Projects Department
This department is doing their activities on behalf of president.

Future Prospects of PTCL
PTCL, no doubt, has got the largest operational network and infrastructure within ICT
(Information & Communication Technologies) segment. They don’t lack numbers and potential
if we mention human resources. Their financial strength has further become their strategic
strength after Etisalat has joined them as investment arm. PTCL enjoys market leadership in LL,
WLL and Fixed telephony. PTCL is market challenger in GSM segment. Overall they have the
largest consumer clout on average from the whole telecom industry. Even their competitors still
depend upon their network either directly or indirectly. All this adds to their strategic strengths
and after having all that in their basket they lack at area where they are supposed to have
developed core competence. PTCL, so far has not been able to nurture its growth around
customer services oriented strategy, this has translated into inadequate brand loyalty for them.
Internal organizational & business processes issues, monopolistic culture has further added to its
complexities. For many individual prospects like me, using PTCL offerings was a purchase
decision made as no other option was available.
All they have to do is to follow a holistic approach towards growth, besides focusing on
Customer Support & Services, reverting back to competitive and service centered operational
culture, spending upon marketing communications to revamp Brand Image, improving existing
network and existing products for market penetration and developing innovative new products
and services for long term growth. The following “Strategy Map” depicts a guideline for holistic
growth around Financial, Customer, Internal Business Process and Organizational learning &
Growth perspectives.

WORK DONE DURNING
INTERNSHIP:

1. Duties and Accomplishment
I was not given any specific duty in PTCL. My supervisor gives me different tasks on daily basis
depending on the work available for them.
In PTCL finance department I performed following duties
As assistant of finance manager

I worked as assistant of finance manager. I helped him in checking bills, vouchers and other
information. There is certain guideline available in finance department. First I got overview from
that guideline and then also from finance manager. Then under the assistance of finance manager
I performed following duties
 Prepared Bank reconciliation certificate
 Checked travelling allowance bills and their rates and ensured that their rates are in
accordance to the standard set by PTCL headquarter.
 Checked salary sheet of employees in PTCL GTR
 Calculate tax on TCS bills and checked amounts in those bills
 Arranged all the bills in sequence and checked their amounts and match them with
amounts in the excel sheet before audit.
 Prepared bonuses and allowances sheet
 Checked Advance salary account
 Working and posting in SAP
 Checked maintenance and construction bills.
 Amounts in stationery bills
I also worked with other employees of the finance department

With computer operator:
His task is posting of all the bills. Along with him I performed following tasks
 Parked and posted some bills in the SAP
 Prepared cheque for some vouchers
 Checked all the cheques and arranged them in sequence in accordance with their unique
code number
With record keeper:

Along with him I performed following duties
 Put record on maintenance bills on excel sheet
 Prepared salary sheet of the employees of GTR
 Entered record of traveling bills
 Also prepared record of advance salary bills.
 Store all the vouchers and bills in store room.
With others:
I also worked with assistant manager, clerks, cashier and other members in the finance
department. Checked bills of Power (electricity, gas), vehicles and employees related and also
checked the approved signature of respective manager

2.Preparation of bank reconciliation certificate:
Bank statement

Bank register:

Cash Intansist

Bank reconciliation Certificate:

Ratio Analysis of PTCL

1.Liquidity Analysis
Definition:
“The ability of a business to pay its short term debt is called liquidity.”
Years involved:
Current year: 2016
Base year : 2015
Items involved:
Current assets
Stores
spares and loose tools
Stock in trade
Trade debts
Loans and advances
Investment in finance lease
Accrued interest
Recoverable from tax authorities
Receivable from the Government of Pakistan
Deposits, prepayments and other receivables
Short term investments
Cash and bank balances
Absolute liquid assets

 Derivative financial instrument
 Cash and bank balances
Current liabilities
 Trade and other payables
 Markup accrued
 Short term borrowings - secured

 Current portion of long term financing
Name of Ratio 2016 2015 Result
Current Ratio 1.23 1.55 unfavorable
Quick Ratio 1.19 1.49 unfavorable
Graph:
Critical Analysis
Result:
The comparative analysis of PTCL company’s two years indicates that the company is not
efficiently managing its liquidity in effective way as in current year all ratios calculated shows
unfavorable results and less than standard.
Reason & impacts:

The liquidity is unfavorable because of both factors, current assets decrease and current
liabilities increase . It means the unfavorable short term debt paying ability has dual resistance.

The company not managing its investment in current assets but also increase its short term
finance.
1. The increase in account receivables is associated with increase in sale as it is increasing

which means the increase in account receivables is because of extra sale.
2. The decrease in cash is considered as a positive element in current ratio or short debt
paying ability because idle cash will never earn anything for the business
3. The increase in accounts payable is associated with the increase in inventory which
means that the company is availing the credit.
4. The increase in inventory is associated with the increase in sale as it is increasing which
means the increase in inventory is because of extra sale.
Conclusion:
The overall analysis shows that the company’s short term debt paying ability is decreasing from
the base year. The lower liquidity is because of defensive management of short term
investments and short term finance.
2.Profitability Analysis
Definition
“The ability of the business to generate profits for its owners.”
Items involved:
 Net profit after tax
 Gross profit
 Sales
 Operating profit

 Operating expense
 Total assets
 Total equity
 Operating fixed assets
Concerned years
 Current year: 2016
 Base year : 2015
General profitability ratios:

Name of Ratio 2016 2015 Result Reason % change
G.P Margin 36.6% 38.5% Unfavorable Sales ↑ 110%
Operating profit 12.83 11.45 Favorable Operating profit ↑ 608%
margin
Net profit margin 9.57 11.56 Favorable Net profit ↑ 1323%

Return analysis:
Graph:
Critical analysis :
The analysis of PTCL profitability show that all the indicators calculated to check the
profitability are favorable in current year as compared to the base year.

ROA 7.89 10.11% unfavorable
ROE 8.08 9.82 unfavorable
The

DuPont analysis
1. Return on asset
ROA N.P margin (profitability) × total asset turnover(activity)

2012 1.77% × 0.26 = 0.46
2013
12% × 0.54 = 6.48
Results Favorable Favorable
The positive ROA is contributed by both profitability and activity. So company not only increase
its profit margin but also sales.
2. Return on equity
ROE profitability × activity × solvency

N.P/ sales × sales/ total assets × total asset/equity
2012 1.77% × 0.26 × 2.15 = 0.98%
2013 12% × 0.54 × 2 = 13%
Results Favorable Favorable Unfavorable
The further analysis indicate that only one factor should b considered FLM. The company should
focus on the composition of assets which should be more from debt side.

3. Return on operating asset
ROOA O.P margin (operating profitability)× operating asset turnover( operating activity)
2012 5.67% × 0.41 = 2.32%
2013
19% × 0.84 = 15.9%
Results Favorable Favorable
The further analysis indicates that both operating profitability and operating activity contributing
towards positive ROOA. Company not only increasing profit but also sales.
3.Market analysis:
“The strength of the company in market”.

OR
“The strength of the business in the market to achieve the objectives of owners”.
Items involved:
 EPS
 Market price per share
 Total equity
 No. of shares
 Book value per share
Concerned years
Table:
Name of Ratio 2016 2015 Result Reason
DFL 1.05 1.69 Unfavorable EBT ↑

Dividend Yield 7.03% …… Favorable Dividend ↑
Payout ratio 80.34% …… Favorable Dividend ↑
Retention ratio 19.66% …… Unfavorable EPS ↑
P/E ratio 11.42 (109.52) Favorable EPS ↑
Market to book ratio 1.21 0.78 Favorable MP ↑
DFL P/E ratio

1.8 20
1.6
0
1.4 1 2
1.2 -20
DFL P/E ratio
1 -40
0.8
0.6 -60
0.4 -80
0.2
-100
0
1 2 -120
Critical analysis:
The Comparative analysis of PTCL investor analysis indicates that it is between Favorable and
unfavorable for the investor in current year. Dividend yield , payout ratio, price earning ratio and
market to book ratio are favorable but DFL and retention ratio are unfavorable.
The rise in dividends , better payouts and high market price are the reasons for this positive
analysis of the investor.
The result indicate that the company cannot optimized its EPS by changing its operating profit as
fixed cost has negative role.

The return to the investor is also a positive indicator for the investor. The results shows that the
company is a good choice for the investors to invest as the high payouts gives a satisfaction to
the investor. This also indicate the lack of availability of positive NPV project for the company
along with the higher availability of external finance.
The result shows the strength of the company in the market. The indicators calculated show that
the company has strong market potential.
As the market to book ratio increase from the last year so in conclusion it is suggested that the
PTCL is an attractive investment company for the investors.
4.Cash flow analysis:
“Cash flow analysis is a combined analysis of company’s four types of ratios including liquidity
ratio, solvency ratio, activity ratio and profitability ratio”.
Items involved:
 Operating cash flows
 Current portion of long term debt
 Total debts
 No. of shares
 Cash dividend
Concerned years

Operating Cash to currently maturing 2.34 1.81 Favorable
debts
Comments:

This ratio belongs to the liquidity as it shows whether the company is able to pay its current
liabilities portion with its operating cash or not. As the answer is favorable and greater than 1 so
the company is strongly able to pay its long term debt timely in current year as compared to base
year.
Operating Cash to total debts 0.36 0.11 Favorable
Comments:
The cash to total debts ratio shows the solvency of the company (ability of the company to pay
its long term debt) which is favorable in the year 2013 as compared to year 2012. The favorable
results are due to increase in operating cash flows and decrease in total debts .
Operating Cash per share 8.65 2.80 Favorable
Comments:
The cash flow per share ratio shows the profitability of the company which is favorable in the
current year as compared to base year. It indicates how much cash is available against 1 share.
This ratio will determine the payout policy of the co.(how much cash dividend will be paid). The
favorable results are due to increase in operating cash flows.

Operating Cash to cash dividend 4.32 ….. Favorable
Comments:
This ratio belongs to investor ratio. This shows how much cash is available against current cash
dividend. As the ratio is favorable in current year as compared to base year which will attracted
the investor regarding the collections and operating performance.

5.Solvency Analysis
Definition:
“The ability of a business to pay its long term debts.”
Items involved:
Time interest earned ratio
 Earnings before interest and tax
 Interest expenses
Debt ratio
 Subordinated loans
 Long term financing
 Deferred liability
 Deferred tax liability
 Trade and other payables
 Markup accrued
 Short term borrowings
 Current portion of long term financing
 Stores, spares and loose tools
 Stock in trade
 Trade debts
 Advances
 Trade deposits, short term prepayments and balances with statutory authority
 Interest accrued

 Other receivables
 Property, plant and equipment
 Long term advance
 Long term deposits and prepayments
Debt to equity ratio

 Long term financing
 Share capital
 Reserves
Concerned years
Current year: 2013
Base year : 2012
Table:
Name of Ratio 2016 2015 Result Reason
Time interest 58.26 23.85 Favorable Interest expenses ↓
earned ratio EBIT ↑
Debt ratio 44.55 41.08 Unfavorable Total liabilities ↑
Asset ↓
Debt/equity ratio 28.72 21.79 Unfavorable Total liabilities ↑

Equity ↓
Debt to tangible 47.57 36.88 Unfavorable Total liabilities ↑

net worth Tangible Assets ↓

Critical Analysis:
The analysis of Pakistan Telecommunication Limited long term debt paying ability shows that
there is favorable trend regarding solvency position of company.
Periodic Payment Paying Ability:

One factor of solvency is Periodic payment paying ability which shows the positive results in
comparative periods the high earning and low interest rate both causes the ratios favorable. It
means company perform its operation in efficient way.
Payment of original debt:

The analysis of Pakistan Telecommunication Limited shows that the company is not focusing on
its debt policy as there is increase in debt to equity, debt to intangible and debt ratio regarding
the payment of original debt.

6.Activity Analysis
Definition:
The effectiveness of management towards utilization of resources to:
 Generate sales
 Manage sales
 Manage receivables
 Manage cash conversion cycle
Items involved:
Accounts receivable turnover:
 Trade debts
 Sales
Inventory turnover:
 Stock in trade
 CGS
Total asset turnover
 Stores, spares and loose tools
 Stock in trade
 Trade debts
 Advances
 Trade deposits, short term prepayments and balances with statutory authority
 Interest accrued
 Other receivables

 Property, plant and equipment
 Long term advance
 Long term deposits and prepayments
 Sales
Collection period:
 Trade debts
 Sales
Payment period
 Creditors
 Material consumed
Operating cycle
 Trade debts
 Sales
 Stock in trade
 CGS
Concerned years:
Current year: 2016
Base year : 2015
Table:
Accounts receivable turnover 4.77 3.06 Favorable
Inventory turnover 183 130 Favorable
Total Asset turnover 0.54 0.25 Favorable
Collection period 49 days 92 days Favorable
Payment period 970 days 749 days Favorable

Operating cycle 50 days 93 days Favorable
Cash conversion cycle 90 days 70 days Unfavorable
Accounts receivable turnover Total Asset turnover

6 0.6
5 0.5
4 Accounts 0.4 Total Asset

receivable turnover
3 turnover 0.3
2 0.2
1 0.1
0 0
1 2 1 2
Critical Analysis
To check the management effectiveness regarding the use of resources is favorable in current
year in 2013 as compared to the base year 2012.
The positive activity of PTCL Company is majorly because increase in sales and decrease in
some of the resources like total assets.
The increase in accounts receivable turnover along with sales indicates that the company is
doing its major sales on cash basis. so it means the reason of better activity of the company in
comparative years (2013-2012) is due to decrease in assets and increase in sales.
Further segregation shows the following impacts:
Turnover Analysis:-
(i) The quick collections, rate of receivable show the lower figure of receivable which
means the company has made cash sales. Sales of the company have also decreased,
so it is obvious. The activity of company regarding cash collection is good this year.

(ii) One of the reasons of the high sales is this year inventory available was enough. In
case of this company, sales and inventory both are increasing .
Company management should focus on inventory management and increase its sales. This
year better activity of company is based on sales as sales have increased this year, this better
activity of company is based on not only receivable’s collection which means that you have
got the cash for previous sales.
Period Analysis:-
(i) Collection System

Collection system indicates that it is comparatively favorable because of quick
collections which is very good this year as compare to base year. Although, our
collection is slower as compare to our payable but still it is favorable because last
year the collection-payment gap is better than last year. This means as compare to
2012, this year company needs less financing to pay off its payments on time.
(ii) Operating Cycle

Comparative analysis of the operation shows that if checked against standard our
collection system is good because, our collections are quick and have enough time
for payment.
But when focus on comparative study it reveals that our gap between collection and
payment has decreased, which is favorable. Operating Cycle this year is favorable all
backed by quick collections as age of inventory for both years.
Cash Conversion Cycle

The unfavorable result of cash conversion cycle is due to other negligence of management
because the other results are showing favorable results.

Comparison of current year with 2013 revenues:
Supported by higher revenues from its broadband and cellular business, the Pakistan
Telecommunication Company Limited (PTCL) has managed to earn profits of more than
Rs1 billion every month in the first half of 2014, according to its financial results, released
on Tuesday.
PTCL’s after-tax profit increased to Rs8.2 billion or Rs1.62 per share for six months ending June
2014. This translates to an increase of 4.7% compared with Rs7.8 billion or Rs1.51 per share it
earned in the corresponding period of 2013.
The financial results were accompanied with an interim cash dividend of Rs10 per share,
according to a notification sent to the Karachi Stock Exchange.
The broadband giant grossed Rs68.5 billion in sales during the review period, up 4.7% when
compared with Rs65.4 billion it grossed in the same period last year.
“We attribute an increase in revenues to the surge in cellular and broadband subscribers with
major increase in EVO wireless segment,” Topline Securities said in a statement. “Moreover,
other income increased 3.4% to Rs2.5 billion while financial charges decreased to Rs1.2 billion
in the first half of 2014, down 30%,” it said, adding the company’s cost of sales surged to Rs42.5
billion. Resultantly, gross margins improved by 1% point to 37.3%
On a quarterly basis, the company’s revenues increased by 5.6% to Rs35.1 billion compared with
Rs33.2 billion of April-June quarter of 2013, the Topline report said. “Although, a monthly
average of long distance international (LDI) minutes witnessed a decline of around 11%,
improvement in revenues is linked to surge in cellular and broadband subscribers.”
The report said that 8.6% higher cost of sales offset incremental benefit of revenue growth for
the quarter. “As a result, gross profits remained stagnant at Rs12.6 billion while gross margins
declined by 2% points to 35.8%.”

Higher admin, selling and distribution costs further dented revenue, according to the Topline’s
report – admin cost increased by 17% to Rs5 billion while selling and distribution cost increased
by 25% to Rs2.4 billion.
The report further stated that on a quarter-on-quarter basis, higher cost of sales resulted in 3%
fall in gross profits despite a 5.3% increase in revenues. During the quarter, financial charges
increased by 119% to Rs854 million.
In the second quarter of 2014, the company posted consolidated earnings of Rs3.9 billion or
Rs0.76 per share as compared to Rs4.5 billion or Rs0.89 per share in the same quarter last year,
the report said.
SAP in PTCL

Currently SAP is used in finance department of PTCL.

Snapshot of SAP software

Snapshot of SAP

“SWOT Analysis”
SWOT Analysis

Strengths
• Oldest Telecommunication Company of Pakistan founded in 1947.
• All the telecommunication companies operating in Pakistan directly or indirectly dependent

upon PTCL network.
• PTCL maintain the records of customers in an organize way that is not the case with other
private
• Telecommunication companies in which the numbers are allocated without proper verification.
• PTCL can be used as a backup network if the mobile networks are down due to any reasons.
• It has been offering speedy Internet DSL connection to the customers and also offers
concession to the students.
• PTCL is offering multiple services which includes TV, Internet and Telephone using local
loop.
• The largest landline network of Pakistan.
• It offers low rates for the national calls as compared to mobile networks.
Weaknesses
• Flat organizational structure

• Bureaucratic environment.
• Political intervention in decision making.
• Extra employee overhead due to extra hiring.
• Customer service is very poor specially in Internet services
• Vwireless coverage and service is very poor.
• Functional units are not well organized.
• Bad debts due to non payments of bills.
• Weak marketing of new services.
• Lack of technical staff in DSL technical support.
• People used to give bribe for new connection of Landline.
• Form processing for new connection takes more time in larger cities.
Opportunities
• Joint ventures with other telecommunication companies for introducing new services.

• Improvement in customer services.
• Hire technical staff to reduce the level of DSL issues in order to increase customer satisfaction.
• Proper planning and implementation is required to Improve wireless PTCL and Evdo services
in Pakistan.
• Aggressive marketing is required to promote offered services and give hard time to
competitors.
• Increase market share of Internet services.
• Adopt latest technology.
Threats
• Strong competition from telecommunication companies.
• Inflation in the country may increase the cost of services which will finally transferred to
customers.
• Energy crises throughout the country.
• Rapid raise in Government taxes.
• New players in the industry.
• Political instability.
• Security issues.

• Cyber crimes percentage is increasing.
• Inconsistent and Adhoc decisions by Company management.
Recommendations:

Keeping in view the aforementioned hurdle / problems the following are some remedial
measures, which help to create a better system.
 This study shows that there are very few programs for career development of the
employees. People working in one section or department from years are still with the
same knowledge and style of doing job. There should be proper career planning of
employee that not only sharpens the skills of the employee & improve its efficiency but
also results in better and improved output for the organization.
 Existing system is not up to the slandered and must be replacing with an efficient one.
 A comprehensive financial information system is required to be streamlined, so that
availability of accurate data records may be insured.
 All the tool of enforcement of strict financial discipline may be under taken in order to
monitor the whole system.
 All the records should be computerized and for this purpose special computer program
should be used.
 Employees should be equipped with up to date IT skills and for this purpose refresher &
training courses should be designed.
 The officer may be trained to adopt company culture soft-spoken, good relations with
customers and target oriented.
 Finance and marketing offices and engineers may be sending to international seminars/
workshops to get knowledge of new technique and procedures.
 There should be effective human resource department in order to get right people on the
right job. Promotion should be made the basis of performance rather than seniority.
 Most of the PTCL personnel are non-professional; I suggest that the competent authority
of PTCL should be appointing professionals.
 There should be effective human resource department in order to get right people on the
right job.

 Over staffing and unbalanced distribution of employees in departments. Like all the
government and semi government institutions PTCL has also excessive staff than
required. In order to increase the efficiency of worker job is assigned to its caliper to
develop his interest in work that increase the out put and decrease the overall cost of
organization.
 Some techniques should be developed by the top level managers to start proper co-
ordination among the different departments.
 There should be a proper procedure of installing new connections to the new customers
of Broadband. Like Line testing, etc.
 Build an environment of trust with the employees in order to create an environment
where employees are more open to ideas and more willing to discuss possibilities and
problems associated with change.
 Link the change effort to a common team value in order to help employees feel they can
relate to the change effort at a personal level. This increases the desire and motivation to
change.
 Articulate and communicate a clear message about why the change effort is needed and
will help the team. This links the facts and figures supporting the change to the team
value. Communication should frequent throughout the effort.
 Establish a vision with the employees regarding the possible advantages of making the
change in order to help the team define for themselves where the change will take them.
Conclusion:

We have completed our internship report for about six weeks. During this period we have gained
a lot of knowledge and practical experience. After a complete research work we will conclude
that decision making power in PTCL is fully centralized. All the powers lie in the hands of CEO
of the company. Main decisions are made by board of directors. And confirmation of their
decision is given by president of the company. We analyze the organizational structure of PTCL.
Organizational structure of PTCL is fully straight forward. We can conclude that since the HR
department of PTCL has been re-organized in 2005, there is still a long way to go for achieving
the competitive advantage. Although strategies they are adopting are good but they still need
further improvement for the satisfaction of their employees and best utilization of human
resources so in return they would be able to increase their market share. Because no doubt PTCL
is enjoying monopoly but the time is came when competition will force company to change its
policies to become favorite telecom service provider in the market & keep its current place &
customer base.
PTCL offers many innovative products now. Overall PTCL still behaves as a monopoly. It has to
change its attitude. At a minimum, avoiding billing errors and providing competent and
courteous service to its customers is essential if PTCL wants to show that it is transforming itself
to a competitive company which cares for its customers. It is said that the best assets of a
company go home to their family in the evening. Can the culture of PTCL be changed to
performance and service based organization?

Bibliography
For the successful completion of this report, we have utilized different available resources, from
which we have obtained required data. Most of information is collected during the internship
program. Information is also collected through the internet. We are thankful to the company
management who had welcomed and corporate with us. Resources which are consulted are
discussed below:
 www.ptcl.com.pk
 Google.com
 Business recorder.com
 Security and exchange commission of Pakistan
 Annual Report 2016
PTCL Glossary

FWP Fixed wireless phone
CSR Customer service representative
BNCC billing and customer care system
WLL warless local Loop
SMS Short message service
CNIC Computerized national identity card
CDR Call data record
MSC MOBLE SWITICHING CENTER
WIN WIRLESS intelligent network
MDN Main directory number
NTC New telephone connection
PSTN Public switching telephone network
HLR Home location register
ISD International subscribing dialing
NOW National Wide Dialing
UIN Universal internet no.
PSTN Public Switching telephony network
Accounts payable - a record of all short-term (less than 12 months) invoices, bills and other
liabilities yet to be paid. Examples of accounts payable include invoices for goods or services,
bills for utilities and tax payments due.
Bank reconciliation - a cross-check that ensures the amounts recorded in the cashbook match
the relevant bank statements.
Break-even point - the exact point when a business' income equals a business' expenses.
Budget - a listing of planned revenue and expenditure for a given period.
Cash flow - the measure of actual cash flowing in and out of a business.
Disbursements - money that is paid out by a business.
Equity - the value of ownership interest in the business, calculated by deducting liabilities from
assets.

Financial statement - a summary of a business' financial position for a given period. Financial
statements can include a profit & loss, balance sheet and cash flow statement.
Intangible assets - non-physical assets with no fixed value, such as goodwill and intellectual
property rights.
Line of credit - an agreement allowing a borrower the ability to withdraw money from an
account up to an approved limit.
Mark up - the amount added to the cost price of goods, to help determine a selling price.
Essentially it is the difference between the cost of the good/service and the selling price, but it
does not take into account what proportion of the amount is profit.
Tax invoice - an invoice required for the supply of goods or services over a certain price. A valid
tax invoice is required when claiming GST credits.
Working capital - the cash available to a business for day to day expenses.


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Internship Report On: Pakistan Telecommunication Company Limited

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Internship report

Presented by: Maham butt

Punjab University (Gujranwala Campus)

Reason for selecting the specific industry

Purpose of the Internship

Punjab University (Gujranwala Campus)

Methods of Collecting Data

Use of Secondary Data

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

The telecommunications industry is at the forefront of the information age—delivering voice,

The largest sector of the telecommunications industry continues to be made up of wired

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

As telecommunication monopolies head towards an imminent end, services and infrastructure

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Brief History of PTCL:

1947 Post and telegraph Dept. established

1962 Pakistan telegraph & telephone Dept.

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

To achieve our vision by having

 An organizational environment that fosters professionalism, motivation and quality

 "Quality" and "Time" conscious customer service

 Sustained growth in earnings and profitability

Punjab University (Gujranwala Campus)

PTCL’S CORE OBJECTIVES

The following are the long-term objectives of the organization.

 Provision of Telecom services all over the country.

 Plan, establish and maintain telecommunication

Punjab University (Gujranwala Campus)

 To introduce computerized directory assistance and complaint services reform billing

 Strengthen relation with foreign international administration, entities, services

 Expand customer awareness of all value-added services of PTCL.

 To improve the efficiency of Customer Service Centers by deputing qualified persons

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

In non-gazetted staff there are Engineering Supervisors Operations/Switching/Power

Punjab University (Gujranwala Campus)

These Regions provide Telecommunications services to the customers in their

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)

Installed capacity More than 5273091

Working connections 4,405,161

Total Exchanges 2962

Telephone density per 100 population 2.9

Countries on ISD 242

Customer service centre 154

NWD stations 2092

UIA stations 1898

Total length of main optical fiber link 4591 km

Optical fiber short haul links 127.2 km

Optical fiber spur links 3241 km

Punjab University (Gujranwala Campus)

Punjab University (Gujranwala Campus)