Nauman Ahmed 01-112201-057

Hammad Suleman 01-112201-042

WHY THE PTCL GOT

DOWN
Case study
ABSTRACT

The aim of this study was to identify the major reason of company down fall in the recent
years and also to know how the Management of the PTCL company manage their resources
to overcome those issues efficiently and effectively. This study will tells us story of all those
reasons and Management decision which helped them to get out of this wickedest
conditions. initiative taken by the company have been account for in this case study.

Introduction

History
Pakistan Telecommunication Corporation
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 the award of licenses for cellular,
card-operated pay-phones, paging and, lately, data communication services.

Pakistan Telecommunication Company Limited

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

Pakistan Telecommunication Company Limited (PTCL) is the first and largest integrated
Information Communication Technology (ICT) company of Pakistan. With a humble start
from a telephone and telegraph department in 1947, it has evolved to offer latest digital
andtelecommunication technologies today. PTCL has the country’s largest land line
infostructure and holding the largest share of the market in the industry of fixed Broadband
services. Along with fixed Broadband PTCL also offer wireless internet devices EVO and
CharJI to their customer. The EVO services cover the more than 200 cities of Pakistan and
CharJI is operating in more than 10 big cities of Pakistan. PTCL is the first company to offer
the TV over internet with exciting features of rewinding and upcoming schedule recording.
Now the PTCL also has started to provide their customers online cloud storage through
which customer can remotely access their cameras for the security purposes. The Company
provides telecommunication services in Pakistan. It owns and operates telecommunication
facilities and provides domestic and international telephone services and other
communication facilities throughout Pakistan. The Company has also been licensed to
provide such services in territories of Azad Jammu and Kashmir and Gilgit-Baltistan.PTCL has
always played its part in development of the country and is committed to building
aprosperous and digitally connected Pakistan. Pakistan Telecommunication Company
Limited (“PTCL”, “the Company”) was incorporated in Pakistanon. December 31, 1995 and
commenced business on January 01, 1996. PTCL got registration certificate by registering as
Public Limited Company in Pakistan Stock Exchange earlier known as Karachi Stock
Exchange. After getting the business commence certificate PTCL started her operations in
1996
The company headquarter is located in Islamabad the capital city of Pakistan. Company
holds sub regional offices in big cities like Lahore, Karachi, Gujranwala, Multan. Customer
support office are also situated in Karachi, Lahore, and Rawalpindi which are proving 24/7
customer services to their customers. PTCL had faced some serious down fall in her revenue
in recent few years. There was a slightly decline in revenue and customer growth as well.
We will be discussing the reasons due to which the company faced these problems and how
their management eliminate the causes of decline. The year 2018 is being consider golden
year in the telecommunication sector and this sector has contributed large in Nation
revenues and companies themselves. According to economic survey of Pakistan Revenues
from telecom sector reached an estimated Rs 235.5 billion during the first two quarters FY
2017-2018. The commercial launch of 3G and 4G Long Term Evolution (LTE) services
opened new opportunities for revenue generation for the mobile operators The broadband
penetration jumped from 3.7 million to 52 million. During the first two quarters of the FY
2017-18 telecom sector contributed estimated Rs 78.62 billion to national exchequer in
terms of taxes, regulatory fees, initial and annual license fees, activation tax, and other
charges. This shows that industry got amazing growth and PTCL as well. Here is the
mentioned last 05 years performance record which shows the clear picture to us.

Major Reasons
Company’s profits were gradually decreasing and was facing very serious problems which
were needed to be addressed if the PTCL couldn’t take initiatives on emergency basis might
be company had gone in shutdown situation. Here is the presentation of company statistics
review which gives a very clear picture about the company affairs. It is said the decision
which is been taken on right time that is called the actually right decision. So fortunately the
CEO of that time Dr. Denial Ritz from Germany take corrective decisions and get back the
morality of the company. Company not only was suffering low revenues but also had been
facing the churn of the customer and on the daily basis hundred of the PTCL customers
wereshifting to other GSM data operators.
This data record has been taken from financial statements of PTCL annual audited and
published. The trend shows a mix of performance and profits of company gradually
decreases. By conducting this study the We have identify some core issue which causes this
downfall of company. Here are some important problems which have been identified
discussed in details.

1. Outdated Structure
Although PTCL has largest structure and deployment in Pakistan but structure was
not been upgraded since its installation. Moreover structure was based of copper
technology which has been replaced with fiber in many counties but this change was
 not been adapted by PTCL. Due to this reason PTCL faced decline in customer
subscriptions and bad experiences from the customer. Customer were shifting to
others mobile operators to fulfill their data requirements despite of this that mobile
operators were charging were high rates as compare to fixed broadband prices. This
was very serious concern for the company and as wave of awareness among peoples
and high speed internet demand was never experienced in past. This effect badly the
quality of all products offered by PTCL. As PTCL has very large structure so this is also
difficult for the company to manage and maintain it. In the most advanced countries
fiber tocology is being used for the batter experience and data transferability while
the PTCL whole structure was standing on copper which have lessor useful life and
quality of services. There was a need to upgrade this old technology. PTCL had not
given importance to this crucial factor and faced very serious consequences

2. Government Ownership and operational inefficacy

Like the other Pakistani’s companies which are under the ownership of government
are facing decline and there are lot of reasons behind this decline. Corruption is very
phenomenal and major cause of declines in Large Sector Organizations of Pakistan.
Railway, PIA, WAPDA, SUI GASS, and so many others are most popular examples of
this decline. Similarly this is found in PTCL as well and employees more often have
been found in this practice which effects and harms the image of company. There is
not only monetary Corruption but ethically as well. employees are not encouraged
to work hard and with integrity of their company. Many mall practices found in this
regard . PTCL had abounded of employees which are just causing operational
expenses and had more than the actual requirements of employees .An another
reason in government organizations has been noticed that is job security and there is
lack of computation. Employees of these organizations feels secure themselves and
so that they do not pay attention towards their job duties.

3. Conventional products .
The PTCL had very conventional product line like just only land line and fixed broad
band services were not enough to compete in today’s challenging and advanced
environment, the change and innovations in IT has putted a burden over the
companies to meet customer experience and capture the market. Moreover with the
addition of 3G and 4G technologies mobile operative companies got comitative
advantage and many PTCL users shifted towards mobile data companies . Which
passage of time and awareness among the peoples due to use of social media the
customers of today expect something more rather than conventional product. Now a
days customers are demanding the customize products which can enhance the
customer’s satisfaction and utility of product. A product is been consider main pillar
of any company. Innovation has become the part of products today there is a strong
need to moderate the products with needs of the companies.

How the strategies resulted opted by The PTCL Management?

As above we have discussed the important factors and problems which caused the
decline of growth. Here are some strategies which have been opened by PTCL and
with help of these strategies company has become able to retain her position and
again start growth. These strategies resulted a nominal impact in the growth of
company and in year 2018 again company started earning profits, moreover the
customer feedback also has changed and trend has been followed by people to again
use the services of PTCL. The major and important strategies have been as followed

1) Structure Transmission
.As this was discussed that PTCL had old structure and company decided to
upgrade her structure and opted for new technology. PTCL transmission stature
is being shifting into fibber technology and they have started new transition
projects. PTCL has launched GPON (Gigabit passive optical network) in large cites
which has enabled the PTCL to gain her loss identity back. Through this
technology customer can experience up to 100 Mbps high speed internet, dual
land line and multiple IPTV services. PTCL claim 1% Complaint rate in GPON
feasible areas and also has been verified by the customers as well. PTCL provides
GPON services to commercial and Private users in which they provide a
connection which encompasses optical fiber line starting from exchange to
customer premises. GPON services has got remarkably success and in a very
short time and recorded 42% increase in 2018 with total subscribers of 60K. A
part form this company also has started to shift many exchanges under the
project (New Transform pilot project ) and shift the services to MSAG
(MSAGs(Multi Services Access Gateways)PTCL also has upgraded many
exchanges under this project and installed VDSL ( very high speed Digital
Subscriber Line ) cards through which VDSL connections can be given to the
customers. PTCL Company possess the largest fiber footprint in the country
which is the backbone of providing quality service to our esteemed customers.
As such, the need to keep the fiber network in top operational condition cannot
be over emphasized. In this regard, PTCL has embarked on a complete revamp of
cable infrastructure and operations by revisiting the redundancy of fiber routes
to make them more resilient and hardened against the external threats resulting
in frequent cuts and damages. By doing these big changes in the structure PTCL
not only became capable to retain existing customers but also to attract new
customers. PTCL also got success in reducing the complaint rate and increasing
the customer satisfaction. Here is the mentioned data of first 03 exchanges
through which PTCL started. Analyses of data clearly shows the efforts results
2) Product Line operations improvement.
PTCL also has enhance their product line and with the help of addition of IPTV
and CharJI services made her compatible in the market. New packages and
promotions are also important in this regards which have used to gain customer
interest previously lost. PTCL also have given weightage to her promotion
department which previously seemed sleeping department. PTCL also has
purchased and shifted customers data in CRM (Customer relationship
Management ) by Sibel Company. This data management has provided a ground
and more organized form of data for the promotional and other operational
strategies. PTCL has parched data analyzer software from well renowned
company Nokia for the batter customer experience and immediately response to
issue identify quickly by this new software and use of this also helps to provide
FCR (First Call Resolution) over the helpline

Conclusion

At the end of this study we have concluded that once company got in some
terrible situationand there might be chances to went down fully. PTCL
management took some very important and timely corrective actions which save
the company life and get it back on the track of success. No doubt currently
company is in good condition and earning the profits but still there is a room for
the company and having the largest infostructure company should focus on
continuous development to become the leader of information technology
inPakistan. PTCL should develop their staff and trained them well to compete in
challenging environment . PTCL should focus on her products development and
should introduce new products. PTCL marketing department is not working
efficiently and company should focus on marketing of her products by creating
the awareness of her products in general public. PTCL should increase her CharJI
services in more cities.

References
Economic survey of Pakistan 2017-2018
PTCL official website
www.ptcl.com.pk
PTCL annual audited reports
PTCL NTP (New transformed exchanges list ) (internal reports)
PTCL complaints data FTY 2017 (internal )