My Project 112

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Hello to the Future….

Executive Summary

PTCL was once a government owned company which only dealt in telephony.

Ever since it was privatized, it became a full fledge telecommunications firm

which not only owned its telephony but now is offering a mix of different

Internet connection types. PTCL has served both individuals and companies

in Internet servicing. The focus here is to tell the company’s strategies and

polices and also its value chain analysis. It is to telling its Strength and

weakness in the internal environment analysis, opertunity and threats in the

external environment analysis of the company.

PTCL is focusing to its customers and the target which now they want to

achieve is to capture the student market because there are 50% students of

internet users all around the Pakistan.

They are providing different internet packages to their customers they are

motivating their customer through their land line to give them land line

packages like Sunday free package. Their new slogan is that they are

welcoming the future because they are now using fiber optics cable instead

of copper wire. PTCL is now standing at the top in the field of communication

and that’s why they are called the leader of the market. They achieved 95%

of its customers market and soon they are bring new technologies for theircustomers. There are many products which PTCL is now launching.

They are using vertical structure in their organization and also they have

narrow span of control in their organization. There are some financial and

statistical controls of the organization which their financial department do.

I N T R O D U C T I O N

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Introduction of PTCL:

Pakistan Telecommunication Company Limited (PTCL) is the largest

telecommunication company in Pakistan. This company is providing

Telephony services, Internet Broadband service and V-fone wireless to the

nation and still holding the status of backbone for country's

telecommunication infrastructure despite arrival of other telecommunications

including telecommunication giants like Telenor and China Mobile. The

company consists of around 2000 telephone exchanges across country

providing largest fixed line network. GSM (Global System for Mobile

Communication), CDMA (Code Division Multiple Access), BroadbandInternet, IPTV (Internet Protocol Television), wholesale data and backbone

services are other major resources of PTCL, making it a related organization.

The Government of Pakistan sold 26% shares and control of the company to

Etisalat in 2006. The Government of Pakistan retained 62% of the shares

while the remaining 12% are held by the general public.

Pakistan Telecommunication Company Limited (PTCL) was

incorporated in Pakistan on December 31, 1995 and commenced business on

January 1, 1996. The Company is listed on Karachi, Lahore and Islamabad

stock exchanges. 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. In 2006 PTCL

was privatized and management control was handed over to Etisalat

Mohammad Essa Al-Taheri. The registered office of the Company is situated

at PTCL Headquarters, G–8/4, and Islamabad.

Products of

Ptcl

http://en.wikipedia.org/wiki/Pakistan

http://en.wikipedia.org/wiki/Government_of_Pakistan

http://en.wikipedia.org/wiki/Etisalat

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http://en.wikipedia.org/wiki/Pakistan


http://en.wikipedia.org/wiki/Etisalat

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1. PTCL V-FONE

There is no wire required for V-fone. It works like mobile just insert the sim of

PTCL and activate the package of unlimited call any corner of PAKISTAN.

PTCL V-Fone (WLL Service) was another major area of focus for PTCL during

the year. A few famous measures taken in this area during the year were

launching of free home delivery service. No line rent package was launched

in September 2007. In June 2008, 30 seconds billing was introduced

contributing as an effective customer retention tool. PTCL has expanded the

network to provide coverage in all large and small cities including over

10,000 villages in rural areas of Pakistan.

PTCL WIRELESS BROADBAND ON THE GO

The first major product initiative taken towards a changing PTCL during

the year 2006-07, was launched of PTCL’s Broadband service under the

theme of ‘Broadband Pakistan’ by the Prime Minister of Pakistan. The service

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was launched on PTCL’s new state of the art Broadband infrastructure that

was added to our network during the last three quarters of 2007 with the

initial capacity of over 100,000 subscribers. PTCL achieved extraordinarysuccess as it added over 10,000 customers within the first 120 days of its

launch while historically it had taken four years collectively for all the other

operators to achieve 30,000 customers in Pakistan! The hallmark of PTCL

service was the removal of the traditional barriers such as the upfront costs

of installation and customer premises equipment and added bandwidth

download. This high customer take up also reflected on the Company’s

trusted image in the eyes of the nation. The service is already available in

the five largest cities of Pakistan and will be expanded into another dozen

cities during the coming year.

VSAT (Skylink)

PTCL has introduced “Skylink” satellite communication service for Corporate

Customers. Being the largest, interacted telecommunications services

provider in Pakistan they are offering SKYLINK satellite communication

services for corporate customers for domestic and international

communication applications.

PTCL is the most experienced operators in the satellite communication

domain and has extensive ground support, operations and implementation

infrastructure to services a variety of satellite communication applications.

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FEATURES

• Leased line services for domestic and international connectivity

• Enterprise applications including remote site connectivity

• Other satellite connectivity solutions tailored for Corporate Customers

3G Technology

PTCL provides a modern and reliable connectivity solution based on state of the art CDMA

EvDO Rev-A network. Its industry-leading architecture provides greater system capacities and

data rates (Peak U/L: 3.1Mbps and P3QK D/L:1.8 Mbps), critical QoS (Quality of Service)

mechanisms and lower cost.

Ptcl offers his customers wireless connectivity in these areas where customers do not have any

option of wired or terrestrial network and back up connectivity which keeps its customer’s office

connected in case of any breakdown in the fixed wire medium. Whether customers want to

connect his branch office or vehicles delivering his services door to door to his central location/

data base, EvDO is the right choice.

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HISTORY

Since the independence of Pakistan, basic telecom services were being

provided by a monopolist, previously called as Telephone and Telegraph

department (T&T). The department was being run by the Government and

played multiple roles as regulator, policy maker, operator and service

provider in the country. The T & T department was later converted into a

corporation. Although the corporation was earning huge profits from theservices, it was re-investing the same profits into the sector for the provision

of more telecom service but the investment was not enough. Further, with

the technological advancement, more and more telecom services were

becoming available but there was not enough money available with the

corporation to install new telecom systems for the provision of modern

services. Resultantly, a digital divide succeeded in Pakistan keeping it behind

its neighbors and other comparable countries in terms of telecom access.

Cellular mobile services in Pakistan commenced in 90s when two cellular

mobile telephone licenses were awarded to Paktel and PakCom (Instaphone)

for provision of cellular mobile telephony in Pakistan. Currently there are six

cellular players in the market. The Telecom Sector has contributed 2 percent

towards the overall GDP growth with revenues of over PKR 235bn. Pakistan

Telecommunication Company Limited (PTCL) is proud to be Pakistan’s most

reliable and largest unite services carrier providing all telecommunications

services from basic voice telephony to data, internet, video-conferencing and

carrier services to consumers and businesses all over the country. Whether it

is an office in the largest city of Pakistan or a home in a small village, they

are present in every corner of Pakistan to serve their customers. Pakistan

Telecommunication Company Limited (PTCL) was incorporated as a public

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limited company, with the objective of providing domestic and international

telecommunication and related services. About 95% of the assets and

liabilities of PTC, at net book value, were transferred to PTCL whereas theremaining 5% assets were vested in PTA, FAB, NTC and PTET. The vesting of

assets to new entities took place with effect from 1st January 1996. With

employee strength of 65,000 and 5.7 million customers, PTCL is the largest

telecommunications provider in Pakistan. PTCL also continues to be the

largest CDMA operator in the country with 0.8 million V-fone customers. PTCL

is listed at all three Stock Exchanges of the country. Besides Government of

Pakistan which own 88% of Shares, remaining shares are distributed among

Central Depository Company, Financial Institutions and Individuals. PTCL

played a major role in the field of telecommunication. It was started in 1962

with the name of Pakistan Telegraph and Telephone department. Later on it

was changed with the name of PTCL. Pakistan Telecommunication

Corporation (PTC) took over operations and functions from Pakistan

Telephone and Telegraph Department under Pakistan Telecommunication

Corporation Act 1991. In 1995, Pakistan Telecommunication (Reorganization)

Ordinance formed the basis for PTCL control 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. It brought the entire nation

close together and finished the distance among nation. That’s why they

thought to launch something new which doesn’t require any wire and soon after

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

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reflect this by the introduction of a new brand name and operation of the

service being directly supervised by PTCL.

1947 Posts & Telegraph Dept. established

1962 Pakistan Telegraph & Telephone Deptt.

1995 About 5 % of PTC assets transferred to PTA, FAB & NTC.

1996 PTCL Formed listed on all Stock Exchanges of Pakistan

1998 Mobile & Internet subsidiaries established

2000 Telecom Policy Finalized

2003 Telecom Deregulation Policy Announced

2006 Etisalat Took Over PTCL's management

2007 PTCL smart TV

2008 Introduced wireless broadband onthego

2009 PTCL launched EVDO

2010 PTCL Launched 9.3 Mbps EVO Nitro Device

2011 introduced 3G Broadband technology

Vision

“To be the leading Information and Communication Technology Service

Provider in the region by achieving customer satisfaction and maximizing

shareholders' value”.

Mission Statement of PTCL

To achieve Mission by heaving

http://pakbee.com/2010/08/ptcl-9-3-mbps-evo-nitro-usb-internet-device/

http://pakbee.com/2010/08/ptcl-9-3-mbps-evo-nitro-usb-internet-device/

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An organizational environment that fosters professionalism, motivation

and quality.

An environment that is cost effective and quality conscious.

Services that are based on the finest technology.

Quality" and "Time" conscious customer service.

Sustained growth in earnings and profitability.

Analysis of Mission Statement:

Core Values

Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty

Corporate Information

Human Resources are at the top

Cost and Quality efficiencies:

PTCL is at the maturity stage. They are following the cost leadership and

differentiation strategies. They are providing the services to their customer

by lowering the prices and they are the only ones who are providing the

services to such a big extent.

Let’s go to the future:

Hello to the future is the new slogan of PTCL. Pakistan Telecommunication

Company LTD has these days technically announced the original slogan or else what

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they are calling: organizations innovative Position Statement as Hello on the way to

the Future. In a declaration issued by PTCL, says so as to company new placement

statement illustrates the company’s intend to remodel the globe of

telecommunication as well as the way its consumers communicate.

EXTERNAL ENVIRONMENT ANALYSIS OF PTCL

Opportunities

• Joint ventures with other telecommunication companies for introducingnew services.

• Cash flow

• FTTH

• Improve customers support

• Lack of proper MIS

• New product

• SME

• Improvement in customer services.

• Hire technical staff to reduce the level of DSL issues in order toincrease 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 givehard time to competitors.

• Increase market share of Internet services.

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• Adopt latest technology.

Threats:

• Strong competition with other telecommunication companies. Likezong, wi-tribe, Mobilink

• Inflation in the country may increase the cost of services which willfinally transfer 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 day by day

• Conflicting and unplanned decisions by Company management.

• PTCL attitude to work

• Competitors

• Corruption

• Dying copper network

• Customers support

• Project management

PEST Analysis:

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DSL consumer from Pakistan and you want your connection instantly the

best option is perhaps new Wi-tribe connection. The process is very simple

and quick. All you have to do is to visit their customer services franchiseand select the suitable package for yourself. Unfortunately they can’t

provide unlimited DSL package for now but they provide many easy and

affordable packages. They offer you different kinds of DSL services they

provide for Pakistan. USB dongle are one of the latest packages of wi-tribe.

USB Dongle

This is USB dongle which is based on new compression technology withfreedom and no power required. You can buy wi-tribe USB Dongle as low as

Rs.3500.

With the comparison of wi-tribe PTCL had launched a new 3G broadband internetservice in Pakistan with the name Wireless Broadband onthego, this service was

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Based on world’s proven CDMA 2000 technology. Now, you can enjoy up to 3000 kbps

high speed internet at home, office or on the road, wherever you want. PTCL EvDO

(Evolution Data Optimized) offers this 3G Wireless broadband internet throughPCMCIA adapters directly to your laptop.

FEATURES

User will enjoy following benefits from this broad-band service like:

1- Speed unto 3000 Kbps (3.1 Mbps)

2- Free 20 Mb email account

3- Real time applications

4- Video conferencing

5- Unlimited data downloads

6- Download heavy files and email attachments

7- Get connected with offices and work places anytime

8- Secure connection for all wireless networks in Pakistan

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C O M P E T I T O R S

PRODUCT / SUBSIDIARY COMPETITOR

Multimedia and Broadband (ISP product) There are about 100

competitors of these products

through out the country providing

internet services. However, some

of the major competitor ISP’s of

product are Cyber net, World

online, Apollo, World Call, Comsats

WOL, etc.

Ufone (Cellular Subsidiary) There are five competitors of Ufone

in cellular phone industry i.e.

Mobilink, Warid, Telenor and Zong,

Wi-tribe

PTCL Calling Cards) Hello cards, Callpoint cards,

Callmate Cards, Global telecom

cards.

Wireless Local Loop (Vfone) Go CDMA, Wateen telecom & Warid

Call are the fixed wireless

telephone competitors of Vfone

INTERNAL ENVIRONMENT ANALYSIS

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VALUE CHAIN ANALYSIS:

It is based on two categories.

PRIMARY

SECONDARY

PRIMARY

Inbound logistics:

They are spreading fiber optics wire which they are importing from outsideof the country. They are totally diminishing the copper wire

Operations:

When the equipment and other materials reach to the Airport, or on the

port their clearing agent is to be informed and he reached on the time to

the airport or on the port. Fix amount of money is to be paid to him and he

makes clearance of their equipment and other material. Their agent is

responsible for the clearance of their equipment and other materials.

Outbound logistics:

Their agent is also responsible for the clearance as well as to send to the

warehouse.

Market and sales:

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They see according to the market different costumers want to have

different thing and packages on the normal rates. They also provide

package especially for the students on the low rates.

Services:

They provide telecommunication services to their customers of the land

line, DSL, v-fone and smart TV,. They focus on the customer’s

satisfacection. And According to their demand they provide different

packages.

SECONDARY

Procurement:

They do procurements through two ways.

Tender

PTCL tender offer is a public, open offer or invitation usually announced in

news papers advertisement, to all stockholder of a public traded

corporation.

Vendor’s registration form

Vendors interested in becoming registered with PTCL must pre-register with

the Procurement Department/Vendor relation section. This registration

process is mandatory and supersedes all previous registration, such

registration is valid for “3“ years, thereafter, it is the vendor’s responsibilityto renew their registration in a timely manner at least 3 months ahead of

expiry. (Exhibit 1)

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Technology

They are introducing 3G nitro technology for their customers which make

provide them fastest internet wireless speed that will open any document

with in a second.

HR department

The work of HR department of PTCL is to hire and fire of the people. HR

controls all the work of employers like entry and exit time of the employers.

It deals with every type of the customers.

Finance Department:

PTCL financial department provide them finance whatever they require form

outside the organization for higher technology. Dr. Waqar Masood khan the

Sectary of finance who provide them capital and who have all the control of

their finance.

SW analysis:

Pakistan Telecommunication Company Ltd (PTCL) is the largest

telecommunication company of Pakistan offering number of telephony and

Internet services to customers. This topic is covering the Strengths,

weaknesses, in the internal environment.

Strengths

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• 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 notthe case with other private

• Authorized from PTA having all the licenses

• Largest infrastructure

•

End to end connectivity

• Complete ICT service provider

• Brand name

• Landing station

• Owned property

• Corporate social responsibility

• Human resources

• Profitable

• Largest range of products

• 99.9% availability uptime

• Telecommunication companies in which the numbers are allocatedwithout proper verification.

• PTCL can be used as a backup network if the mobile networks aredown due to any reasons.

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• It has been offering speedy Internet DSL connection to the customersand also offers concession to the students

• PTCL is offering multiple services which include TV, Internet and Telephone using local loop.

• The largest landline network of Pakistan.

• It offers low rates for the national calls as compared to mobilenetworks.

Weaknesses

• Flat organizational structure

• After sale support

• Communication Gap

• Change management

• HR policies

• Billing

• Information leakage

• Bureaucratic environment.

• Political intervention in decision making.

• Extra employee overhead due to extra hiring.

• Customer service is very poor especially in Internet services

• V-Wireless coverage and service is very poor.

• Functional units are not well organized.

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• 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.

P L A N N I N G P R O C E S S

1. Strategic and Operational Plans

Their active plane is to capture the maximum market rather than its

competitors that’s why they are bringing new technologies and giving

them different packages to motivate its new as well as old customers

2. Policies

They are adopting different policies to enhance its communication

area through V.fone which they are covering and the cost is also

reducing instead of land-line around the Pakistan. Through V-fone

their customer can talk anywhere in Pakistan.

3. Procedures / Rules (Standard Operating Procedures; Sop’s)

To motivate the customer according their policies they introduced V-

fone sim just insert the sim in your mobile and then customer can

enjoy long time talk anywhere in Pakistan.

4. Planning Tools and Techniques

5. Scenario planning

6. Their worker are in the market who tells them each and everything regarding its

competitors and also its customers that what they require new from them and according to

that situation they make plan to fulfill their customers need.

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C O N T R O L L I N G

Types of Control:

7. INTERNAL AND EXTERNAL CONTROLS

PTCL control his employers both internally as well as externally.

They check every employee individually and also see their work.

EXTERNAL CONTROL

Feed forward controls Concurrent controls Feed back controls

8. Feed forward control

Each and every employer has exact time to come to the office. If

anyone comes late he/she is to be asked by HR department.

9. Concurrent control

They have some types of security cameras which they keep glance on

them and also see their work whether they are doing or not. They

control to avoided fraude and see which employees can run with the

company.

10. Feedback control

They also want some feedback from their customers. They just see

their satisfaction. Customer’s feedback is very important

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ORGANIZATIONAL CONTROL

MBO Employee Operational Financial

Control Chart Control

Inventory Statistical Purchasing

Control Control Control

11. Management By Objective (MBO

They work through their employer’s decision who is working in the

market. They ask from their employees about sales, and about

customers demand.

12. Employee control

They provide different types of incentives like bonuses, promotions,

etc. in order to keep the employers for long term.

13. Operational chart

a). inventory control

b). statistical control

c). purchasing control

4. Financial control

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O R G A N I Z I N G

Organizational Chart (formal structure)

Span of control

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PTCL has narrow span of control in the PTCL every employee is

responsible to report his boss. Two to three employers are working

under one supervision and the boss is responsible to report his boss.In PTCL the GM of Finance is responsible to report Executive voice

President of finance and Executive voice president is responsible to

report Senior Executive voice president of finance and Senior

Executive Voice President of finance is responsible to report President

and CEO.

Type of structure (Horizontal / vertical structure)

They have vertical structure.

Delegation of empowerment

They are bureaucratic

Human resources planning process

L E A D I N G

Leadership style

Their leadership style is demographic in order to increase the sale

PTCL’s GM also require their employee’s decisions. They ask what

they have to do and what they don’t regarding to the market aspect.

My Project 112

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