PTCL Internship Report Part 3 of Yasir
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Transcript of PTCL Internship Report Part 3 of Yasir
1
Part—1Introduction to the Report
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
After studying this part, we must be able to know about the following:
Background of study
Purpose of study
Scope of Work
Methodology of Research
Scheme of Report
After studying this part, we must be able to know about the following:
Background of study
Purpose of study
Scope of Work
Methodology of Research
Scheme of Report
Par
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1.1—BACKGROUND OF STUDYThis report is intended as a tool in order to better focus the function of
marketing in Sales and Supply Chain Management within Pakistan Telecommunication
Company Limited. Before learning more about marketing, however, it is essential to get
a basic impression of what marketing is. The field of marketing is undefined and
extremely vast, therefore it is not an easy task to summarize in a manual the key
concepts and activities of marketing.
“Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging value with
others. More than any other business function, it deals with customers”.
Marketing is the business function that identifies unfulfilled needs and
wants, defines and measure their magnitude, determine which target markets, the
organization can best serve and appropriate products, services and program to serve
these markets and call upon every any in the organization to “think and serve the
customer” from a special point of view, marketing is a link between a society’s material
requirements and its economic pattern of response.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
3
1.2—PURPOSE OF STUDYThe main purpose of studying organization is to get practical knowledge of
marketing and to understand the functions of marketing. Also, knowing about the future
prospects of our selective organization i.e. PTCL, structure and functions of the
departments, product lines, marketing operations of PTCL, critical analysis, short-falls
and recommendations.
1.3—SCOPE OF WORKIt encompasses market planning, sales and distribution, implementing
designed market strategies, control the market operations, analysis of competitor’s
products & services, shortfalls and weaknesses of the organization as well as products &
services and finally recommendations to the organization.
1.4—METHODOLOGY OF RESEARCHResearch methods definitely help to get superlative results analyzing the
products of an organization. I adopt various methods of research to study the PTCL’s
environment, products, marketing operations etc.
These were included:
Studying reports of sales & distribution department in PTCL
Studying reports of finance department
Launching Customer Facilitation Camps (CFCs) in different cities of
Gujranwala Division
Reading online survey at PTCL’s website
Interviewing people and knowing about PTCL’s service and products through
questionnaires
Collection of date and analyzing it
Presenting findings and recommendations
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
4 Conclusions
1.5—SCHEME OF REPORT
Part-I includes introduction to the report
Part-II includes reviewing the PTCL in terms of business volume,
organizational structure, marketing department’s operations, function of
sales and distribution department etc.
Part-III includes different types of analysis of PTCL business and its
competitors etc.
Part-IV includes finding and recommendations for Pakistan Telecommunication
Company Limited
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
5
Part—2Review of PTCL
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
After studying this part, we must be able to know about the following:
Objectives of studying the
organization
Overview of the Organization
Business Volume
Organizational Structure
Product and Services
Structure of overall organization in
terms of reporting lines
Functions of the Department
Department’s Operations
Role of PTCL Managers
Use of Electronic Data in decision-
making
After studying this part, we must be able to know about the following:
Objectives of studying the
organization
Overview of the Organization
Business Volume
Organizational Structure
Product and Services
Structure of overall organization in
terms of reporting lines
Functions of the Department
Department’s Operations
Role of PTCL Managers
Use of Electronic Data in decision-
making
Par
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O
bj
ecti
ves
6
2.1—OBJECTIVES OF STUDYING “PTCL”
Marketing-oriented thinking is necessity in today’s competitive world. Some
companies are trying to expand the size of the market. But most are competing to
enlarge their shares of the existing market. As a result there are winners and losers. The
losers are those that being nothing special to the market. The winners are those who,
fully analyze needs, identify opportunities and create value- rich offers target customer
groups that competitors cannot do much. PTCL is the leading company in telecom
sector in Pakistan which is also considering these issues.
Marketing at present is not a function; it is a way of doing business.
Marketing is not a new and campaign on this month’s promotion. Marketing has to be
all pervasive part of every one’s job description, from the receptionists to the board of
directors. Its job is neither to fool the customer nor to falsify the company’s image. It is
to integrate the customer into the design of the product and to design a systematic
process for interaction that will create substance in the relationship. So, I have to focus
on those areas which need improvement and benefit PTCL too. I hope subsequent
mentioned objectives will not only benefit PTCL but also add a lot into my book of
knowledge.
Objectives may vary by changing time and achieving targets but real
objectives are those which benefit the organizations and create true professionalism
among the professionals. These are the learning mile stones and understanding the
theoretical situation in practical mode.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
7
Following main objectives are base of my study in the
organization “Pakistan Telecommunication Company Limited”:
To get training in genuine understanding
To apply management knowledge to practice
To improve skills i.e. organizational analysis, financial analysis, marketing
analysis etc.
To improve report writing skills
To develop concrete plans, including long and short-term action plans
To understand the supply chain in PTCL and suggest valuable proposals for
improvement
To learn new trends in marketing and role of PTCL in Telecom sector
To get hand on experience of marketing, sales & distribution
To get the knowledge of unique and new products in Telecom sector in
Pakistan.
To analyze new products and services of PTCL
To get the exposure of working in excellent environment of Pakistan’s leading
Telecom Company.
To inquire about employees augmentation, incessant development and
improve performance goals.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
8
2.2—OVERVIEW OF THE ORGANIZATION
With the birth of a new soul comes a new voice and with it a series of
innocent new stories that we treasure all our lives. The circle of the family grows and is
strengthened with every addition of a voice, and who understands it better than PTCL.
For sixty years it has been the one and only connection between families
and the voice of the little ones who share thousand stories with the world. From the first
faltering “hello” to the most eloquent speech, PTCL has given voice to many little
angels of Pakistan and today it has become one strong voice of the country.
PTCL is the largest telecommunication provider in Pakistan with
employee strength of 30,089. It also continues to be the largest CDMA (Core Division
Multiple Access) operator in the country with 0.8 million Vfone customers. Moreover,
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 optical fiber
Access network in the major metropolitan centers of Pakistan and it has modernized and
upgraded the local loop services from copper to optical network.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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2.2.1 Historical Background
1947- Establishment of Posts & Telegraph Dept
1961- Establishment of Pakistan Telegraph & Telephone Dept (T&T)
1990-91-Establishment of Pakistan Telecom Corporation (PTC)
1995- About 5% of PTC assets transferred to PTA, FAB (Frequency Allocation
Board) & NTC (National Telecommunication Corporation).
1996- PTCL Formulation and listing on all Stock Exchanges of Pakistan.
1998- Establishment of Mobile (Ufone) & Internet (PakNet) subsidiaries.
2006- Etisalat Takes Over
In April 2006, Emirates Telecommunication Corporation, which is
commonly known as Etisalat, acquired 26% shares of PTCL. Etisalat has been the
telecommunications service provider in the UAE since 1976 and stands 140th among
the Financial Times Top 500 Corporations in the world in terms of market
capitalization, and is ranked as the 6th largest company in the Middle East in terms of
capitalization and revenues.
Etisalat is currently operating in 14 countries namely UAE, Saudi
Arabia, Egypt, Pakistan, Afghanistan, Sudan, Niger, Ivory Coast, Benin, Togo,
Tanzania, Bukina Paso, Gabon, and Central African Republic and is continuing to
pursue new mobile and fixed line opportunities in many growth markets.
Management has started another mega project from August, 2008 with
“MCKINZIE”, a management consulting firm, which aims at revamping the HR
policies, Processes and Organizational structures in order to convert PTCL from public
entity to corporate entity. Now a days PTCL management is adopting new market
oriented strategies to become the telecom icon in Pakistan.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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2.2.2—Nature of the OrganizationPakistan Telecommunication Company Limited (PTCL) is proud to be
Pakistan’s most reliable and largest converged 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, PTCL is present in every corner of Pakistan to serve customers.
PTCL Stock Price
Symbol PTC Open Rate 21.21
Bid Volume 3505587 Bid Price 22.27
High Rate 22.27 Low Rate 21.90
Current Rate 22.27 Turnover 2124273
Price Change 1.06 Percent Change 5%
Outstanding Shares 3774000000 Market Capitalization 84046980000
Table-1-PTCL Stock Price
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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2.2.3—Vision of PTCL
“To be the leading Information and Communication Technology Service
Provider in the region by achieving customer satisfaction and maximizing shareholders'
value”
A notion about Vision (Where there is no vision, the people perish—Proverbs 29:18)
2.2.4—Mission of PTCL
To achieve our vision by having:
An organizational environment that fosters professionalism, motivation &
quality.
An environment that is cost effective & quality conscious.
Services that are based on the most optimum technology.
“Quality” & “Time Conscious” Customer service.
Sustained growth in earnings & profitability
2.2.5—Core Values Professional Integrity
Customer Satisfaction
Teamwork
Company Loyalty
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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BUSINESS VOLUME in terms of revenue, deposits, advances, investments. Etc. Quote figures for five years and analyze trend. Use latest years data
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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2.4—ORGANIZATIONAL STRUCTURE
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
CI O
President
SE
VP
Tech
nic
al
SE
VP
Ope
rati
ons
SE
VP
HR
SE
VP
Fin
ance
SE
VP
Cor
pora
te
Dev
elop
me
nt
SE
VP
Com
mer
cial
SE
VP
Pro
cure
men
t &
Adm
in
SE
VP
Spe
cial
P
roje
cts
SE
VP
BZ
N
orth
SE
VP
BZ
S
outh
EVPLegal Affairs
EVPInternal Audit EVP
GM
SM
Manager
Specialist
MT
Non Management
Non TechnicalTechnical
14
2.5—PRODUCTS AND SERVICESPTCL achieves its customers’ satisfaction by providing them with features and
services like network coverage, performance, reliability & security at their specific
locations.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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PTCL’s services are available for two types of Customers:
1. Consumers Services
2. Corporate Services
3. Value Added Services for Consumers
2.5.1—Consumer Services:
1. PSTN (Public Switch Telephone Network)
2. V fone
3. V fone Postpaid
4. Broadband
5. IPTV (PTCL Smart TV)
6. VMS (Voice Mail Service)
7. Free Internet Facility
8. Kehdo SMS
9. PTCL Direct
10.EVO Wireless Broadband
11.PTCL Calling Cards
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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1-PSTN (Public Switch Telephone Network):
This service is available on conventional fixed line phone. This service includes
convenient features and options like Caller-ID, Call Forwarding, Call Waiting,
Conference Calling, Call Barring and Do not Disturb.
PTCL also offers flat calling rates for local, nationwide and international calling
services to its customers. For further details on PSTN, help line 1236 can be contacted.
2-VFONE FIXED WIRELESS ACCESS NETWORK:
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
17
Vfone is a replacement of fixed line phone mainly in the areas where there is not
network availability. Wireless phones are based on CDMA2000 1X technology. PTCL
has built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages.
The network is enabled for Voice, Dialup-Internet access (115kbps) and EVDO
Broadband.
3-V FONE POSTPAID
PTCL now has introduced V Fone postpaid in exciting packages for its
customers bringing new enhancement in its products.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
18
4-BROADBAND:
PTCL is offering high speed broadband to its consumers for high speed internet
connectivity with easy downloads & uploads. Free DSL modems are offered to the
customers while special discounted student package is offered to the students as well.
5-PTCL SMART TV:
It’s a fixed line service that allows the customers to experience telephony,
Broadband and multi-channel TV service all at the same time, on the same line. No
additional cable would be required to receive cable TV / Multi channel TV. An IP
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
19(Internet Protocol)-based platform allows the TV service to be ‘smarter’ than the
traditional broadcast and cable TV services, by making the TV viewing experience
more interactive and personalized.
6-VOICE MESSAGING SERVICE (VMS):
PTCL is offering phone to phone Voice Mail Service that works all of the time -
even when there is a power outage. After 6 or 7 rings the voice mail service activates
and the caller can leave the message in his voice.
Voice mailbox can be accessed 24 hour a day, 7 days a week and the customer
would never miss an important call. PTCL has extended its Voice Messaging Service to
38 cities and it’s all free.
7- PTCL INTERNET FACILITY:
PTCL’s limited time offer of free internet has ended w.e.f from May 16, 2009.
PTCL has introduced refined Phone-n-Net services with new charging mechanism
which is equivalent to old hourly usage charges. PTCL subscriber can still enjoy this
innovative service with nominal charges.
Key Highlights of new offer:
Unlimited Download
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
20 No balance Expiry
Best Connectivity
Strong geographic presence
No GST applicable on Internet calls
Login name: “PTCL”
Password “PTCL
8-KEHDO SMS (VOICE SMS):
Adding voice to the SMS takes SMS to the next generation of value. In this
service, the caller can leave a text message from his digital phone to any cell phone
number. That text message is received with voice on the cell phone as an incoming call.
9-PTCL DIRECT:
PTCL direct is a pre-paid international calling service for making calls from the
UK to Pakistan. The service aims to extend PTCL’s reach to UK based callers wishing
to stay in touch with their family & friends in Pakistan. Customers can purchase credit
online (using a credit card) and make calls to any number in Pakistan direct through
PTCL. The calls will be charged according to prescribed PTCL tariffs.
www.ptcldirect.com is the website for further information on PTCL Direct.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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10- EVO WIRELESS BROADBAND
EVO Wireless Broadband is the latest service from PTCL that offers High
Speed Wireless Internet Access and is the latest evolution in Internet. It has been
introduced in big strata’s. We 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, photos, spreadsheets, etc.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
22
11-CALLING CARDS DENOMINATIONS:
PTCL Calling cards are available at Sales & Service Centers, PTCL Customer
Service Centers and retail shops, in following denominations:
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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2.5.2—Corporate Services
1. UAN (Universal Access Number-111)
2. UIN (Universal Internet Number-131)
3. Business DSL
4. DPLC (Domestic Private Leased Circuit)
5. IP Connect
6. ISDN BRI (Integrated Services Digital Network Basic Rate Interface
7. ISDN PRI Integrated Services Digital Network Primary Rate
Interface
8. Co -locations
9. DXX Connectivity
10. Call Centers
11. Audio Conference
12. VPN (Virtual Private Network)
13. Premium Rate Service (0900)
14. V-Connect
15. International IP services
16. PTCL Webhosting
17. Payphones
1-UAN (Universal Access Number):
UAN (Universal Access Number) consists of 6 digits, preceded by 3 digit code
of 111, common to all UANs. UAN operates on existing telephone connection without
disturbing normal phone number. UAN never changes, if you move your office or your
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
24normal telephone number is changed, your UAN will remain unchanged. UAN can be
accessed from other cities by dialing the area code first.
2-UIN (Universal Internet Number):
131 numbering scheme for Internet Service Providers, represents exclusive code
assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves
allocation of numbers to individual ISPs who are licensed by PTA. This service
functions under a single-metering billing system with the promise of rich dividends in
terms of customer care.
3-Business DSL:
PTCL’s business DSL solution provides a reliable, business-class broadband
connectivity, which will help the customers to download software and large files,
research the web and communicate with their business associate’s and business partners.
4-Domestic Private Leased Circuit (DPLC):
This service is also called even stream/channel stream. In this service, PTCL
provides leased line services to other service providers & corporate customers for data
or voice communication by establishing a connection between two exchanges.
5-IP Connect:
The “IP Connect” service is based on Internet Protocol Virtual Private Networks
(IP-VPN), which allows companies with locations spread out in PAKISTAN to connect
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
25and transfer data on a private and secure way over reliable robust network
infrastructure.
6-ISDN BRI (Integrated Services Digital Network – Basic Rate
Interface):
This service allows the customer to have two connections on a single line. In
addition, it allows clearer voice communication plus a faster way to send and receive
fax, video images, graphics and computer data on a phone line. You can have a single
Tele Plus connection, just like a conventional phone line. Moreover, Customer can go
utilize phone line as well as internet at one and the same time. Total bandwidth of the
BRI is 128 kbps.
7-ISDN PRI (Integrated Services Digital Network – Primary Rate
Interface):
This service allows the customer to have thirty connections on a single line.
Small as well as medium sized clients usually go for this facility to facilitate their
internal & external Customers. Business customers can operate their PABX more
efficiently while using PRI’s. Total bandwidth of the PRI is 2 MB. Call centers operate
on PRI.
8-Co-location centers:
Pakistan Telecommunication Company Limited (PTCL) has taken the landmark
decision to establish Co-Location centers throughout the country. In the first phase,
these centers are established at Islamabad, Lahore and Karachi. PTCL has rented out its
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
26free premises with ready fitted environment (with AC and DC power) to other Telecom
and IT Companies where they have installed their equipment directly.
9-Digital Cross Connect (DXX):
PTCL offers flexible and reliable services through a high quality platform of
Digital Leased Line Network to organizations, normally to financial institutions
(banks).It is meant for data communication only and provides connectivity between two
offices. PTCL digital cross connect (DXX) network provides the most dependable
media for WAN connectivity with more than 200 Nodes countrywide.
10-CALL CENTERS:
International Call Centers:
Call centers operate through a 0800 Toll-Free Service, wherein overseas
customers' calls are routed to Pakistan or overseas destinations through VoIP (Voice
over internet protocol) technology where trained agents are ready to respond to the
queries of the customers. This service however involves certain human resource
requisites like communication skills and customer handling to be arranged by the
subscribers.
Domestic Call Centers:
Domestic Call Centers also operate through 0800 Toll-Free Service, wherein
customer’s calls are routed to a call center where trained agents respond to the inquiries
of the customers. This service however involves certain human resource requisites like
communication skills and customer handling to be arranged by the subscribers.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
27
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
28
11-Audio Conference:
PTCL offers audio conferencing services for SME/Corporate Customers with up
to 120 participants per conference. Audio conferencing services are easy to use with
interesting billing packages, designed for maximum user comfort and convenience with
web integrated interface. Audio Conferencing allows organizations to conduct virtual
meetings between clients/customers/staff both locally and internationally.
12-VPN Service:
This service allows a private enterprise to have a virtual private network using
public network resources, without requiring the installation of dedicated network
resources. With the VPN service one can flexibly control the outgoing call authority of
phones by setting the closed group. Moreover, VPN allows to make calls on reduced
rates on all the numbers on the virtual private network.
13-Premium Services (0900):
These services are based on the system called IVR (Interactive Voice
Response) .PTCL offers Standard Service and Advanced Service for accessing the
service providers with features that are helpful to the customers in customizing their
service according to their needs.
14-V-Connect:
This service is offered to big organizations in remote areas where V-Connect
provides data connectivity in client server mode through dial up process, where the
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
29client can be mobile or stationary and the client requires low bandwidth to access the
server.
15-International IP Services:
PTCL is the largest IP services carrier in Pakistan with extensive international
peering capacity. It provides secure and reliable VoIP solutions catering to the
requirements of LDIs and other operators in the marketplace.
PTCL provides dedicated IPs to other organizations that would help them to transfer
data with increased security and connectivity.
16-PTCL Web Hosting Services:
PTCL offers world class hosting on windows platform. It provides the control,
flexibility and reliability required to create and manage a successful web presence by
other organizations. Moreover the self healing backbone of PTCL makes sure the high
availability of the customer’s website.
17-PTCL Payphone:
This service operates like a PCO. It is compatible with a call centre solution and
generates printed receipts at the end of call at call centre.
PTCL payphone provide Wide Area Network coverage, quality service, best speech
quality, and reliability.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
30
2.5.3—Value Added Services for ConsumersCLI (Caller’s Line Identification)
Calling line Identification (CLI) allow customers to identify the caller before
picking up the phone receiver. To subscribe to CLI services, a customer needs a
telephone set with display capability or a CLI device attached to the phone.
E-Bill Payment
Billing system is a part of customer services so providing connivance to its
valuable customers PTCL launched a new billing service which is available through “
PTCL Calling Card” This is another service from PTCL. This service is basically
providing billing solutions for the users.
Digital Facilities
PTCL offers a variety of features to digital exchange customers like:-
Hotline
Abbreviated Dialing.
Call Waiting
Don’t Disturb
Call Transfer on (a) Busy (b) No Reply (c) Immediate
Wake up call
Absent Subscriber
Code Barring
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
31Prepayment Telephony Services (PPT)
With the changing trends most telecoms are diversifying their services towards
Prepaid solutions. One of such modern era telecommunication service is Prepayment
Tele Phone (PPT). It provides the facility to subscriber to load a prepayment Telephony
card against their telephone number thereby generating an account on I/N platform and
any call made from that telephone will be charged to this account. The service will
provide state of art technological facilities to the subscribers.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
32
2.5.4—SUBSIDIARIES
While keeping its tradition of being the trend setter in the industry, Ufone
changed the image of mobile phones from a luxury only affordable by the elite, to a
necessity affordable by the common man. Since its inception, Ufone has positioned its
brand for masses. In keeping with the upcoming competition and market dynamics,
Ufone increased its focus on the youth segment (which comprises 50% of the
population), with the Prepay brand.
By designing market focused products, Ufone’s brand team launched aggressive
campaigns, which further increased the brand equity. The new brand image gained huge
popularity amongst the targeted market. A recent marketing survey conducted by a
prominent marketing research company showed that Ufone has considerably increased
its brand visibility and image. Ufone’s Prepay brand is now considered to be one of the
most favored brands by the youth market and is followed by other mobile operators
launching their respective brands for the youth market.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
33International Coverage
Ufone provides International Roaming facility with more than 150 international
operators across 79 countries. Ufone has GPRS roaming agreements with several
international operators and also provides prepaid roaming facility to selective
destinations.
Customer Service
Ufone is proud to have an efficient and friendly customer service through 21
company-owned Sales & Customer Service Centers and nearly 250 franchisees across
the country. The outlets are able to service the customers with innovative solutions, and
are empowered with Web based franchise management systems. Ufone is poised to face
the ever increasing challenges of the market and is confident it will attract new
customers. It has the ability to retain its existing customer base with a high level of
customer satisfaction via optimum network service and a 24 hour call center facility.
Chart-1-Number of Subscribers of Ufone
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
34
Network Coverage
Ufone has always believed in a solid commitment to growth, security and
reliability. Therefore, Ufone has always balanced its expansion efforts and quality of
service. With a total current investment of $400 Million, Ufone has network coverage in
more than 260 cities and towns and across all major highways of the country.
Ufone has been instrumental in the growth of the cellular market in Pakistan. It
is a company committed to excellence. Under the new vision of Etisalat and with the
support and collaboration of its employees and vendors, Ufone aspires to be the best in
the market by offering customer focused products and a quality service and sales
network.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
Mr. Abdulaziz Ahmed Saleh Ahmed Al SawalehChief Human Resources Officer
Etisalat, UAE
Mr. Walid Irshaid President & CEO of PTCL
Mr. Naguibullah MalikChairman PTCL Board
Secretary IT & Telecom Division, Ministry of Information Technology
Government of Pakistan, Islamabad
35
2.6—ORGANIZATIONAL STRUCTURE IN TERMS OF REPORTING LINES ALSO SHOWING THE RESPECTIVE AUTHORITIES AND RESPONSIBILITIES
Mr. Salman SiddiqueSecretary (Finance), Ministry of Finance
Government of Pakistan, Islamabad
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
Mr. Abdulrahim Abdulla Abdulrahim Al NooryaniChairman & Chief Executive Officer, Etisalat International Pakistan L.L.C
Executive Vice President Contracts & Administration Etisalat, UAE
Mr. Mushtaq Ahmad BhattiMember Telecom
Government of Pakistan,Islamabad
Mr. Fadhil Mohamed Erhama Al AnsariExecutive Vice President Engineering
Etisalat, UAE
Mr. Khursheed Ahmed JunejoAmbassador, Embassy of Pakistan
Abu Dhabi, UAE
Mr. Abdulaziz Hamad Omran TaryamGeneral Manager, Northern Emirates
Etisalat, UAE
Dr. Ahmed Al JarwanGeneral Manager
Real EstateEtisalat, UAE
Ms. Farah QamarCompany Secretary
PTCLPTCL Headquarters,
Islamabad
36
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
37
STAFF AND THEIR RESPONSIBILITIES
Designation Responsibilities
PRESIDENTPresident is the Chief controller. He is responsible for the
overall management of an organization
SEVP (I/AUDIT)
He is chief officer of internal audit. He is responsible of
rectification of errors. He submits his report to the president
periodically showing any irregularities found in the
procedure.
G.M (INTERNAL
AUDIT)
He carries out instructions given by the SEVP
COMPANY
SECRETARY
He maintains Minutes Register and arranges meetings of
Directors or Share Holders
GM N.S.S.
General Manager Network Switching System is master
controller of all Exchanges nationwide. He controls them
through Centralized Network System. He can remove faults
through remote help system
SEVP’s
These are directors of the board. They make planning and
decisions, establish operating policies and guide the
organizations’ interaction with its environment. These are
top managers. Their policies are implemented through front
line managers. They are called S.E’s (Senior Engineer)
SEVP (STRATEGIC
MANAGEMENT)
Senior Executive Vice President makes strategies to achieve
overall organizational goals
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
38
CE (RRR)Chief Executive Recruitment hires and fires the employees
according to organizational policy
CE (HRM)Chief Executive Human Resource Management deals
employees matters i.e. salary, leave, and disciplinary cases
EVP (Accounts)He deals PTCL Billing, new connections, facility charges
and shifting charges of connections etc.
EVP (Finance)He controls transactions for payment i.e. Salaries, Advances,
purchase/repair of assets etc.
EVP (Revenue)He deals overall revenue collected from exchanges and
maintains its accounts
SEVP (Technical)He deals in installation of new exchanges, their maintenance
and operation
EVP (Development) He arranges for the installation of new Exchanges
MD Ufone Managing Director is head of PTCL subsidiary Ufone
SEVP ( Admn) He deals with the postings and transfer of staff
SEVP (IT)Manager information technology deals with data base
management and computer related problems
EVP Sales and
Commercial
This office deals with the sales of different products i.e.
Calling Cards, V Wireless Connections etc.
EVP MarketingThis officer deals with the Advertising products on all
Medias (Print media, electronic media etc.
EVP (CC)Customer Care office deals with the removal of customer
complaints and gets customer feedback
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
39
2.7
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
Auditors
A. F. Ferguson & Co.,Chartered Accountants
KPMG Taseer Hadi & Co.,Chartered Accountants
Bankers
ABN Amro Bank
Askari Bank Limited
Citibank N.A.
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
National Bank of Pakistan
Standard Chartered Bank Limited
United Bank Limited
Share Registrar
THK Associates (Pvt.) Limited
Ground Floor, State Life Building No.3,
Dr. Zia-ud-Din Ahmad Road, Karachi
Tel: +92-21-111-000-322
Fax: +92-21-5655595
Registered Office
PTCL Headquarters,
Block-E, Sector G-8/4,
Islamabad-44000, Pakistan.
Tel: +92 51 2263732 & 34
Fax: +92 51 2263733
E-mail: [email protected]
Web: www.ptcl.com.pk
SM (S&D)
Manager (S&D)
SM (MM&BB)
Manager (F.M)
SM (D&M) SM (SW) SM Transmission
S.E (D&M)-II
SE (D&M) HFZ
S.E (WLL)
S.E (APL)
S.E Transmission
Manager (Prov)
Manager (F.S)
S.E (D&M)-I
S.E (EWSD)
40
2.8—ORGANIZATIONAL STRUCTURE OF THE BRANCH IN WHICH I AM CARRYING MY INTERNSHIP
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
Regional General ManagerGujranwala
SM (HR&A) SM (Finance) SM (R&C)SM (Operations)
Manager (HR)
Manager (Admn)
SMO
Manager (B&P)
Manager (F&MA)
SE (Ops) M/T
SE (Ops) P/C
SE (Ops) CTX
Manager (Rev)
Manager (Coord)
Manager (R&C)
41
2.8.1—PROFILE OF EMPLOYEES WORKING IN MARKETING, SALES & DISTRIBUTION DEPARTMENT
Name Designation Qualification Experience Location
Zafar Usmani SEVP MBA (Marketing) + BSc Engg.
22Years Islamabad
A.D. Raza EVP Sales & Commercial
MBA (Marketing)
16 years Islamabad
Ali Kamran GM Sales & Distribution
MBA (Marketing)
12 Years Lahore
Nadeem Ahmed Sheikh
Senior Sales Manager
MBA (Marketing)
10 Years Gujranwala
Mirza Nouman Baig
Assistant Sales Manager
MBA (Marketing)
2 Years Gujranwala
Kashif Chudhary
Assistant Sales Manager
MBA (Marketing)
4 years Gujranwala
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
42
2.8.2—REVIEW OF THE VARIOUS DEPARTMENTS
HR & Administration:
The functional responsibilities of this department include core human resource
areas like recruitment & manpower planning, training and development, performance
management, organizational restructuring, building competitive market pay structures,
developing the HR policies, Procurement etc. This department also indulges in
administrative responsibilities including overall maintenance of the company,
management of the Training Colleges and Institutes, providing medical services to the
employees, employee relations etc.
Technical:
Technical Department deals with the preparation of annual and five year
technical plan. It ensures that engineering standards and practices are executed properly;
the technical specifications are met for telecom equipment used in PTCL and cost
effective technologies are introduced This department is responsible for the final
technical evaluation.
Corporate Development:
This department formulates Master plan with short, medium and long term
objectives, strategies and KPIs based on Available market data, Competitive /strategic
landscape, Input from internal stakeholders. Choosing strategic projects and closely
monitoring domestic and international market for new investment opportunities is also
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
43part of the responsibilities. Effective Corporate communications, formulation of
corporate strategy,
Management of Intl Business Relations, Carrier Services and wholesale and dealing
with Regulatory Affairs are the prime areas of corporate development.
Operations
The core functions of operations are to focus on activities relating to IP Services,
Switching and Transmission.
This key area indulges in the day to day operational, engineering activities and
makes sure that the processes are streamlined so as to provide best services to the
valued customers.
Commercial
The Commercial Department develops strategic business plans, sales strategy,
budget, policies and procedures, relations with major accounts and marketing plan for
PTCL. It plans for maintaining and increasing the market share, penetrating and
developing existing and new market segments by developing products and sales
programs to reach market segment objectives
Business Zone
This department is divided in two areas Business Zones- North, Business Zones
–South This department is responsible for developing business plans, sales strategies
and manages all the operations performed in the three zones of PTCL. This department
is taking care of overall management of all the matters relating to the EVP’s Business in
the Zone areas. Formulate strategies to enhance utilization of PTCL available
businesses, also implement business and marketing plans for sustained growth of PTCL
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
44revenues. Plan and approve business areas for implementation of IT, E-commerce,
Web-hosting and host of new services.
Finance
This department drives financial visions and direction of the company in line
with the overall business strategies. It delivers increasing shareholders’ value, directs
and monitors financial system and strategies.
The principal functions include financial policies and procedures, costing and regulatory
affairs, Budget control, Treasury, Revenue accounts.
Procurement & Administration
Procurement department is responsible for every kind of purchase. Procurement
is done by issuing tenders or by price negotiations. Tender is issued only in the funded
institutions or Govt organization and price negotiation is done in private organizations.
In PTCL, procurement is done by issuing tenders as well through price negotiation.
Information Technology
This department is responsible for all IT related issues and network issues with
in the company. Furthermore, it is responsible for overall PTCL IT Operations and Data
centers.
IT department builds, manages and maintains PTCL’s IT Infrastructure and
ensures the availability and the stability of the IT systems and solution. Responsible for
the implementation of SLA with other departments
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
45
2.8.3—OTHER IMPORTANT AREAS
Legal Affairs
The department handles Commercial and Corporate, Regulatory, Employment
Laws and HR, Litigation, and Subsidiaries Affairs.
Internal Audit
This department carries out the General Internal Audit and IT Audit. It performs
a wide range of services including financial audits, compliance audits, operational
audits and information technology audits.
Revenue Assurance
The main function of this department is to effectively manage the high risk areas
of PTCL and reduce the possibility of revenue leakage and bad debts, identify revenue
generation streams, ensure revenue generation & billing and identify cases of lost
opportunities. Other responsibilities include formulation and implementation of RA
plans and strategies, network surveillance and surveillance etc.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
46
2.9—STRUCTURE OF THE DEPARTMENT
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
President
SEVP Consumer Business Services
EVPSales & Commercial
EVPMarketing
GMSales & Distribution
Area Sales Manager
Sales Manager
EVPSales & Commercial
Assistant Sales Manager
Executive Sales Support
GMMarketing
Senior Manager
Marketing Manager
EVPSales & Commercial
Deputy Marketing Manager
Assistant Marketing Manager
47
2.10—FUNCTIONS OF THE DEPARTMENT Key activities of Marketing and Sales Department:
1. Formulates an integrated commercial strategy covering marketing, sales, CS
policies, new product evaluation market research advertising and promotion
as well as strategic client relations.
2. Develops an integrated and comprehensive planning and research program
that identify product/ service opportunities in order to achieve PTCLs goals
and business objectives.
3. Formulates, recommends and manages pricing, tariffs and strategies to
ensure competitiveness and effectiveness of product/ services in chosen
markets as well as generating revenues and maximizing profits for all
product lines.
4. Design, agrees and implements the development of a cost effective
promotional strategy using a range of promotional methods in order to
stimulate and increase the demand for products/ services.
5. Develops and expand business opportunities for specific market segments,
produces market development plan that determines market size and identifies
new opportunities for PTCL product/ services in order to maximize
profitability and satisfy the needs of all categories.
6. Plans and organizes the marketing communication strategies, systems and
programs with end view of maintaining and strengthening PTCL’s image.
Evolves plans for the continuous upgrading of customer care and advertising
programs as well as for the effectiveness of services provided to all
customers.
7. Devises and directs sales and Customer Services plans/ programs for the
entire range of products and services in order to achieve growth in sales
volume and market penetration inline with the company business plan and
international standards.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
48
2.11—DEPARTMENT’S OPERATIONS
In internship, I was told that there is one office of marketing department
in Islamabad which is functional and guides Sales & Distribution departments at
different cities for marketing operations. In Sales & Distribution departments, people
are doing dual job. They not only promote products and services of PTCL but contribute
in sales function. Following operations are being conducted in corporate services and
product development.
Corporate Services & Product Development
Key activities of Corporate Services & Product development:
Defines a strategic commercial plan under the direction of the SEVP-
Commercial.
Ensures efficient and effective deployment of people, means and systems within
agreed budgets and in line with corporate strategy, brand and people values.
Sub areas of Corporate Services & Product Development:
a. Market Segments & Strategy
b. Product Development
c. Business Development
a. Market Segments & Strategy:
Devise telecommunication solutions for a particular industry segment.
Recommends telecom solutions that are technically and economically viable.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
49 Creates and implements an effective sales strategy at an industry and customer
level.
Analysis of economic data and dissemination of the data in order to devise
solutions and sales strategies
Derives information with trends, annual reports and relevant new sources so that
effective sales strategies can be devised.
b. Product Development:
Facilitates the offering of PTCL’s products to the market.
Devise product offerings that are viable from a technical and costing perspective
and have outstanding market potential
Product development of key Telecom products and services.
Applies new technologies used for the evolving of the Telecommunications
market.
Applies processes and systems required in order to bring product to market.
c. Business Development:
Positions multiple corporate products as a bundled solution to new and existing
customers
Leads PTCL participations in mega bids and tenders issued by government and
private corporations
Provides total end-to-end solutions by using PTCL and alliance partners’
products.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
50
COMMERCIAL PLANNING & SUPPORT
Key activities of Commercial Planning & Support:
Directs the Company’s overall marketing and strategic planning programs
geared toward maximizing the company’s share of the market and its profits
while ensuring that the company’s customers are satisfied.
Facilitates customer development through marketing and customer service
programs. Work in conjunction with advertising and promotion companies to
promote Company Image, Brand Awareness Products and Services and to attract
potential users.
Reports and analyses company’s performance against key metrics (measures key
performance indicators such as overall market and product penetration, market
share, brand awareness, ROI of campaigns, profitability of market segments and
products), regularly track key developments in the market to identify trends and
spot business opportunities.
Sub areas of Commercial Planning & Support:
a. Market Research & Intelligence
b. Market Communication
c. Commercial performance control
a. Market Research & Intelligence
Responsible for improving sales and marketing effectiveness by tracking and
analyzing marketing, sales, advertising, and sales promotion data.
Leads custom research efforts to collect data and information on market
environment (customers, competitors, companies, industries, historical data,
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
51benchmarks, market segments, etc.) to understand consumer insights in support
of business plans.
b. Market Communication
Translates the corporate values into a visible brand experience, to increase
awareness of the company and its services, to create a favorable image of the
company.
Manages the creation, development, and execution of advertising and promotion
plans and sales information that support the marketing and sales objectives of
the company. Develops and manages the base of inside and outside resources to
support implementation of advertising and promotion plans that maximize
company’s revenue.
c. Commercial Performance Control
Ensures that services are achieving their targets, and if not, the needed
corrective action is planned and executed to improve service
performance.
Manages and develops Archiving & Customer Profiling staff in order to
improve customer service and to achieve departmental objectives.
Controls the processing of all documents requiring data entry to the
Customer Management and Billing system and ensure that quality targets
are met.
Controls all accounts related activity and to ensure that quality targets are
met.
Ensures all office administration including post, filing, and faxing and
distributions carried out for Customer Management to the agreed level of
service.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
52 Conducts planning, scheduling, and preliminary analysis for assigned
KPIs projects.
Develops value added recommendations to deal with issues identified
during assigned KPIs assessments and draft action reports to formally
communicate the results of the assessments and related
recommendations.
Develops and monitors the Management Information Systems (MIS) and
ensure the full utilization of the MIS and Data warehouse.
Conducts a comparison analysis between the actual performance and
targeted performance and highlights corrective action plans.
Consumer Services
Consumer service is the main job of the department where internship is
being accomplished. So some highlights of consumer service’s operations and working
is as under:
Key activities of Consumer Services:
This department is primarily responsible for Consumer sales, establishing sales
targets, implementing systems to ensure the timely attainment of these targets, as
well as to achieve increased sales and customer satisfaction in B-to-C in both
direct and in-direct sales by supporting the sales teams with respect to quality,
quantity, budget/cost, timeliness and Company’s brand values.
To define a strategic commercial plan along with the EVP P&S and EVP
Corporate Sales under the direction of the SEVP-Commercial .Also, to drive the
department to generate commercial revenue, customer satisfaction and retention.
As well as to ensure efficient and effective deployment of people, means and
systems within agreed budgets and in line with corporate strategy, brand and
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
53people values. That should lead to contribute to the profitability and expansion
of the company.
Development and implementation of corporate mission, strategy, objectives and
action plans, with specific regard to the commercial angle.
Manages the Sales department
Coach and develop Sales Management Team in order to boost sales and
customer satisfaction
Implements certain aspects of commercial policy by;
Visiting key accounts; negotiating and concluding major contracts; prospecting
the market.
Handling complaints by In-direct Sales partners.
Sub areas of Consumer Services:
a. Direct sales
b. Channel sales
c. Business development
d. Sales & distributions
a. Direct Sales
Direct sales deals with:
Ensuring the appropriate establishment and organization of Regional sales
teams.
Fostering co-operation and team spirit; assessing teams, advising on selection
and training needs.
Evaluating performance and appraisals on performance, productivity and quality
of work.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
54
b. Channel Sales
Channel Sales deals with:
Increasing indirect revenues by working closely with all channel partners;
Providing strategic direction for the development and growth of the indirect
channel including recruiting new strategic (and/or major) partners;
Increasing direct sales revenue opportunities through business development with
complementary strategic partners such as other Value Added Resellers (V.A.R.)
vendors and consulting companies.
Coaching and developing In-direct sales teams in order to improve Channel
Partner’s sales, to achieve individual sales targets and customer satisfaction
c. Business Development
This department deals with:
Developing business models and strategies based on in-depth knowledge of
technological evolution and market demands in the region.
Understands customers’ business, buying behavior and decision criteria;
anticipates their needs and communicates them to Product Marketing and Pre-
Sales/ Bid Management.
Monitors data entry procedures and quality standards by all parties to ensure
optimum corporate customer information is captured.
Conducts analyses from databases as required for planning & controlling.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
55
d. Sales & Distribution:
This department deals with:
To achieve increased sales and customer satisfaction in B-to-C in-direct sales by
supporting a sales team with respect to quality, quantity, budget/cost, timeliness
and brand values.
To increase indirect revenues by working closely with all channel partners;
Provides strategic direction for the development and growth of the indirect
channel including recruiting new strategic (and/or major) partners;
Approves the design and the implementation of channel-specific marketing
programs.
Approving the design and the production of necessary channel sales and training
tools and materials;
Increases direct sales revenue opportunities through business development with
complementary strategic partners such as other Value Added Resellers (V.A.R.)
vendors and consulting companies.
Responsible for resource allocation including budget and personnel.
Analyzing and reporting accurate information on the Channel Partners sales
results and market feedback.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
56
2.12—ROLE OF PTCL MANAGERS
A notion about leadership “Weak leadership can wreck the soundest strategy—Sun Zi”
The role of manager in PTCL to establish / maintain relations with other
industrial institutions in terms of accounts, management and production management is
a key job. PTCL make able and train its key personnel to be active and become a market
leader. To meet the many demands of performing their functions, managers assume
multiple roles. A role is an organized set of behaviors. Henry Mintz berg has identified
ten roles common to the work of all managers. The ten roles are divided into three
groups:
1. Interpersonal
The interpersonal roles ensure that information is provided. The three
interpersonal roles are primarily concerned with interpersonal relationships.
In the figurehead role, the manager represents the organization in all matters of
formality. The top level manager represents the company legally and socially to those
outside of the organization. The supervisor represents the work group to higher
management and higher management to the work group.
In the liaison role, the manger interacts with peers and people outside the
organization. The top level manager uses the liaison role to gain favors and information,
while the supervisor uses it to maintain the routine flow of work.
The leader role defines the relationships between the manger and employees.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
57
2. Informational
The informational roles link all managerial work together. The direct relationships
with people in the interpersonal roles place the manager in a unique position to get
information.
Thus, the three informational roles are primarily concerned with the information
aspects of managerial work.
In the monitor role, the manager receives and collects information.
In the role of disseminator, the manager transmits special information into the
organization. The top level manager receives and transmits more information from
people outside the organization than the supervisor.
In the role of spokesperson, the manager disseminates the organization's
information into its environment. Thus, the top level manager is seen as an industry
expert, while the supervisor is seen as a unit or departmental expert.
3. Decisional
The decisional roles make significant use of the information. The unique access to
information places the manager at the center of organizational decision making. There
are four decisional roles.
In the entrepreneur role, the manager initiates change.
In the disturbance handler role, the manger deals with threats to the organization.
In the resource allocator role, the manager chooses where the organization will
expend its efforts.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
58In the negotiator role, the manager negotiates on behalf of the organization. The
top level manager makes the decisions about the organization as a whole, while the
supervisor makes decisions about his or her particular work unit.
Observations at PTCL
During the internship I observed that Senior Manager (S&D) is the head of
Sales & Distribution department in big cities where marketing department is not
functional but has been helped by this department. Senior Manager plays a key role in
establishing and maintaining sound relationship with other public, industrial and
business institutions like Government offices, Limited companies, banks etc. Senior
Manager deals with other companies who make phone hand set like Hawaii. It makes
smart set for Vfone which is a PTCL’s growing product.
Similarly, PTCL’s subsidiary Ufone also deals with other companies which
make mobile sets and then Ufone offers different packages with the combination of
these sets and its valued services for its customers.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
59
2.13—USE OF ELECTRONIC DATA IN DECISION MAKING
Data-Driven Decision-Making focus uses marketing available data and
relevant background information, to inform decisions related to planning and
implementing instructional strategies at the branch, towns, strata’s and individual
managerial levels. PTCL has itself a big network of broadband nationwide. Broadband
Internet is the big source of getting and collecting of information for PTCL as well as
for other institutions. PTCL has made a website for its personnel and they have given a
user name and login ID for communication.
Personnel communicate by this information system and share information
they required. Almost, every type of communication is being done by Internet in all its
branches through specific information systems. Personnel in all branches are provided a
personal ID and password. This facility has been provided to all departments. They take
decisions and disseminate information within seconds in the whole country. When new
packages are introduced and incentives are announced for the employees, personnel
know everything within seconds all about. Customers can complain online through
website or their PSTN numbers.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
60
2.13.1—DIFFERENT TYPES OF SOFTWARE BEING USED BY PTCL
PTCL uses following information systems in its all departments:
(a) Data Warehouses: Data warehouses are large integrated databases that connect
relevant information from other sources into a single accessible format. They
allow users to look at data from multiple operational systems across multiple
dimensions, including time. These systems have the advantage that they can
import and analyze data from a variety of other systems that cannot otherwise
communicate with each other.
(b) Data Analysis & Reporting Systems: These systems provide the ability to
measure organization’s performance across a wide array of variables and
oriented to any scale: big cities, small cities, towns or departments. These
systems are designed primarily as analytical and reporting tools for
management, and can also provide useful summary data for managers.
(c) Complaint Management System (CMS): This is an online information system
for customer’s complaints and other related issues.
(d) Billing & Customer Care System (BNCC): This is also an online information
system for new connections, shifting of telephones, bill correction and all other
matters regarding PTCL billing.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
61(e) Customer Service System: This is also an online information system for
communication within the department.
(f) Microsoft Word: This is used for paper communication in the organization.
(g) Microsoft Excel: This is use for compiling data for Sales & Distribution
department and other all departments.
(h) Microsoft PowerPoint: This is used for organizational reports and
presentations.
(i) Microsoft Outlook: This is used as mailing program.
(j) Microsoft Access Database: This is also used for compiling complex data and
view reports as they required.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
62
Part—3Analysis
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
After studying this part, we must be able to know about the following:
Critical Analysis
Financial Analysis
Future Prospects of PTCL
After studying this part, we must be able to know about the following:
Critical Analysis
Financial Analysis
Future Prospects of PTCLPar
t-3
O
bj
ecti
ves
63
3.1—CRITICAL ANALYSIS
3.1.1—ANALYSIS OF EXTERNAL ENVIRONMENT
Pakistan followed a gradual approach to liberalize its telecom market. During
1990s, as a first step, market was opened for value added services and competition was
introduced in cellular mobile sector as four licenses were issued (Mobilink, PTML,
Paktel and Instaphone). The government monopoly was retained in fixed line services,
however, PTCL legal monopoly ended with effective from 31st December 2002. The
government announced Telecom Deregulation Policy and Cellular Mobile Policy in
2003 and 2004 respectively. The telecom regulatory, issued new licenses for Long
distance International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL)
and Cellular Mobile. With the issuance of new licenses the market is now open for full
competition in all segments of the sector.
Industrial Structure
Pakistan’s telecom sector has finally begun moving and looked set for an era of
phenomenal growth. The sector has witnessed tremendous growth in recent years with
Teledensity depicting major expansion after deregulation. The primary purpose of
deregulation of the sector was to encourage healthy competition while providing better
quality products and services to customers on lower prices as well providing best
technology available worldwide.
Current Teledensity in Pakistan has expanded exponentially from 4.3 percent in
2002-03 to stand at 49.2 percent in 2007-08 with currently standing at over 51 percent,
with better services and competitive rates. Also, increasing inflow of foreign investment
in the telecomm sector has resulted in the introduction of new cut throat technologies
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
64for provision of various telecom services including cellular, wireless and internet
services. In recent times, the focus has increasingly shifted from Fixed Lines to Cellular
and Wireless Fixed Lines (WLL), with better portability and convenience. In the urban
markets introduction of Broadband internet services by various Telecomm giants such
as PTCL, WorldCall and Wateen has further benefited the consumers to access timely
information over the internet with competitive rates. The broadband penetration
however has not depicted as much growth as expected growing with 4.3mn subscribers
in 2008 against 3.5mn subscribers in 2007. PTA estimates broadband subscribers to
grow to over 5mn by 2010. WorldCall has initiated cable television services with PTCL
expected to follow suite by providing IPTV services through its Triple Play services,
ensuring diversification of products and services. Recent conducive environment
provide by PTA has resulted in increased FDIs in the sector with investments of
USD2.7 bn during the last five years making it the largest recipient of highest FDI
during the past few years. The future for telephony lies amongst unexplored rural
regions of Pakistan with all major telecom operators looking forward to tap these
markets with a major contribution by WLL and Cellular segments due to cheaper
installation costs. With healthy competition instigating lower local and international
tariffs and availability of alternative services has progressively benefited the consumers
overall.
Graph-1-Fixed Line Subscribers
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
5,400,000
5,200,000
5,000,000
4,800,000
4,600,000
4,400,000
4,200,000
4,000,000
2003-04 2004-05 2005-06 2006-07 2007-08
4,50
1,17
1
5,22
7,53
1
5,24
0,01
2
4,82
6,20
6
4,41
6,41
7
Fixed Line Subscribers
65Market Operation
Pakistan Telecommunication Company Limited, or PTCL, keeps callers
connected from Karachi to Islamabad. The communications services provider offers
consumers and businesses with basic landline, DSL broadband, interactive television,
and IP telephony services. The company also provides wholesale services such as traffic
routing and call termination to other carriers. PTCL's subsidiaries include wireless
phone services provider Pakistan Telecom Mobile, which operates as Ufone. In 2006
Emirates Telecommunications (Etisalat) acquired a 26% stake in PTCL and assumed
management control of the company.
Demand is driven by technological innovation and by growth in business
activity. The profitability of individual companies depends on efficient operations and
good marketing. Large companies have big economies of scale in providing a highly
automated service to large numbers of customers, and have the financial resources
required building and maintaining a large network. Smaller companies can compete
effectively only in small markets or by providing specialty services.
3.1.2—TOP PTCL COMPETITORS Worldcall
China Mobile
Wateen
Telenor
3.1.3—COMPETITORS ANALYSIS FOR EVO
PTCL has introduced EVO Wireless Broadband in the market initially for big
cities. It is a new product of PTCL and expected to be got a big market share among
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
66other players. All the team members in marketing as well as in sales department are
focusing it in all big strata’s rather than focusing other products except another more
Vfon Wireless. Following are the major players in Wireless Broadband. I was asked to
analyze about the EVO Wireless Broad band when it was introducing in Gujranwala
first time. I analyze the following key areas for EVO Wireless Broadband.
Features of EVO Wireless Broadband
Mobility/ Portability: Internet on the go- whenever and wherever
High speed (Better) internet experience: Supports entertainment services such as
music, video streaming, images/ videos/ Files sharing etc.
Simplicity: Faster deployment, easy to move
Provides superior Value through Reliable, Secure, High-availability network
Option to switch between EVDO and CDMA 1X mode
Supported OS: Windows 2000 / XP / Vista
All Pakistan Roaming - Automatic switch over to 1 X in non EVDO Coverage
areas.
USB Interface - Compatible with Desktops & Laptops.
Access rich media applications like live video, streaming, web casts, online
games and a host of other applications.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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Major Players of EVO Wireless Broadband Wateen (WiMAX)
WorldCall (EVDO)
Mobilink Infinity (WiMAX)
Ufone Edge
Telenor Edge
Zong Edge
Warid Edge
Wi-tribe (WiMAX)
EVO Packages
Packages
Advance Monthly
Line Rent (Non PSTN)
Upfront Charges (USB)
Up front Charges
(PCMICA)
Monthly Line Rent
(PSTN Billing)
Monthly Device Rental
(PCMCIA)
Monthly Device Rental (USB)
Package 1 0 0 0 Rs.2,000Rs.500 for 12 months
Rs.500 for 18 months
Package 2 0 Rs.6,000 Rs.4,000 Rs.2,000 - -
Package 3 Rs.2,000 Rs.6,000 Rs.4,000 - - -Table-2-EVO Packages
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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Functionality Comparison of EVO
Service Provider Wireless Mobility Bandwidth
Wateen Y N 256Kbps-1Mbps
Worldcall Y Y 256Kbps-1Mbps
Evo Broadband Wireless Y Y 3.1Mbps
Ufone Y Y 60-150Kbps
Telenor Y Y 256Kbps
Zong Y Y 256Kbps
Mobilink Infinity Y Y 256Kbps-1Mbps
Witribe Y N 1-2Mbps
Vfone Y Y 153Kbps
Table-3-Functionality Comparison of EVO
Competitor Tariffs for Wireless Broadband
Service Provider Volume Rates
Wateen 5-15GB Rs 499-1599
World call Unlimited Rs 1200-2500
Ufone 5mb-Unlimited Rs 50-500
Telenor Edge 10mb-Unlimited Rs 75-500
Zong Unlimited Rs. 400+ tax /month
Mobilink Infinity 5-15GB Rs 450- 1500
Warid Unlimited One month Free trial Rs.500
Table-4- Competitor Tariffs for Wireless Broadband
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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Coverage Area Currently PTCL is offering evo wireless broadband internet in:
• Lahore
• Karachi
• Islamabad/Rawalpindi
• Mirpur
• Gujranwala
In these cities subscribers will get Broadband Speed 3.1MB and download avg.
300 Kbps ~ 500Kbps.
Max Speed can go up to 2MB/sec (as tested on www.speedtest.net)
Actual internet speed will depend on multiple factors like location, time of the
day, number of simultaneous users, web page accessed, etc.
Other than these cities subscriber will get 153KBps where we have coverage on
1900MHz
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
EVOCoverage Area
70
Speed Comparison of EVOComparison
FactorDial-up DSL GSM Edge
CDMA 1X EVO
Mobility No No Yes Yes Yes
Max Downlink
Speed (kbps)56 2000 384 153 3100
Max Uplink Speed
(kbps)
Uplink+
Downlink
Uplink+
Downlink384 153 1800
Average Downlink
Speed (kbps)25 400 30 30 500
Average Uplink
Speed (kbps)
Uplink+
Downlink
Uplink+
Downlink30 30 300
Time to Download
5 Mb file27 Min 1.7 Min 22 Min 22 Min 1.3 Min
Time to Upload 5
Mb file27 Min 1.7 Min 22 Min 22 Min 1.7 Min
Table-5- Speed Comparison of EVO
Feature Comparison of EVO
Applications Dial-up DSLGSM Edge
CDMA 1X EVO
E-mail Average Very Good Average Good Excellent
Internet Average Very Good Average Good Excellent
Video Streaming Poor Good Average Poor Excellent
Video conference Very poor Good Very poor Poor Excellent
VoIP Very poor Good Very poor Poor Excellent
Upload Photo Poor Good Average Average Excellent
Send Large Email
AttachmentsVery poor Good Poor Average Excellent
Table-6- Feature Comparison of EVO
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
71
3.1.4—CELEBRATING YEAR OF CUSTOMER CARE 2008-09
In view of PTCL’s customer-centric philosophy, the coming year 2008-09 has
been dubbed as the Year of Customer Care. As a result, critical measures will be taken-
up to further improve the standard of services-as PTCL believe that winning over the
customer can guarantee success.
What is Customer for PTCL?
The customer is a vital link in the business world. Realizing the customer’s
importance spells the success for us.
Courteous and charismatic dealing with the customers.
Take care of customers well—treating their success or failure as our success or
failure.
Furnish the customers with products of exceptional standards. So that they form
a positive view of the company and its human resource. Empathize with the
customer and prioritize timely solution with utmost sincerity.
Value the customer’s time and facilitate them in everyway.
A satisfied customer helps not only the manager but the organization.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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3.1.5—MARKETING MIX
CUSTOMERS VIEWS ABOUT PTCL PRODUCT AND SERVICES
How are the firms product or services perceived?
Usually PTCL is the largest and monopolistic firm in nature, according to customer
point of view there is no competitor who is providing the facilities and services like
PTCL because of these reasons:
Majority of customers are using services of PTCL in Pakistan
Wide Network
High Speed Internet Provider
Wide Range of Facilities and Value added services
3.1.6—SWOT ANALYSIS OF PTCL
STRENGTH
PTCL enjoy monopoly
State of the Art International Gateway Exchanges & Satellite Earth Stations
large earnings
good quality international connectivity
Customer Base of over 4 million
Government support
WEAKNESS
Image – Government organization
Image – Lack of customer focus
Image – Outdated people and technology (perception)
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
73 Lack of aggressive marketing
Lack of customer services
Ambiguous management style
Lack of corporate culture
Social responsibility
OPPORTUNITY
Growth in telecommunication industry.
More aware and technology understanding consumer – a base that is growing at
a fast rate.
Market open for more number of products – less dependence on single category
or product.
Opportunity to introduce High Value Added Products / High margin products
for the new, more aware consumer.
Time to establish brand loyalty, anticipate competitors, invite partners, invest in
technology and networks.
THREATS
Increased competition in long distance continues to exert pressure.
VOIP use is increasing despite ambiguous and discriminatory policies
Exposure to market competition
Migration to Cellular Networks
Reduction in International Settlement Rates
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
74
This pictorial diagram shows cellular penetration in the whole country
Graph-2-Province-Wise Cellular Penetration
3.1.7—PROMOTION
PTCL is using following components of promotional mix 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.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
75PTCL’s Commercials on “Prepaid Calling Card”, “CLI”, “Voice Messaging”, “Digital
Facilities” etc. are also broadcast immediately on electronic media as reminders to
Customers.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
76
Its advertisement is usually ethically sound and representative of Pakistan.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
77Sales 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.
Broadband service is offered for free in Ramadan. 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.
In broadband service, PTCL offers numerous benefits to the students as well as
corporations and its valued customers.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
78Personal 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 i.e. One Stop
Shop (OSS). They can also get connected their telephone bills and get duplicate bills
from these outlets. Fifteen (15) sales outlets are working for V-fone in Gujranwala
region.
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. For this purpose, Sales and Distribution department was established but
marketing professionals are in few numbers in this department.
Majority of the customers learn about the firm’s product and services from the
newspapers ads, franchises and friends etc.
Competitors in Subsidiary/Products of PTCLSubsidiary / Product Competitor
Multimedia & Broadband(ISP) Product
There are almost 100 competitors of PTCL
throughout the nation to provide Internet Service to
the customers. However, some of the major players
in ISP’s product are Cybernet, World online, World
Call and Comsats WOL etc.
U-fone(Cellular service provider)
Four competitors exist against U-fone in cellular
phone industry i.e. Mobilink, Zong, Warid, Telenor.
PTCL Calling Cards Hello Cards, Call Point Cards, Call Mate Cards etc.
Wireless Local Loop(V-fone)
Wateen Telecom and World Call are the Fixed
Wireless Telephone competitors or V-PTCL
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
79
3.1.8—PLACEMENTThe 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),
Gujranwala Telecom Region
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.
These Regions provide Telecommunications services to the customers in their
respective areas. Apart from these, PTCL has an Optical Fiber Construction Region
Lahore and Optic Fiber System Islamabad, each headed by a General Manager to
install, operate and look after optic fiber systems/cables. In each District and Tehsil
level, an Exchange, Franchisor, Call Centers, One Stop Shop are available to facilitate
the customer needs.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
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Need for Channels for the Product and Services
Firm point of view
1- Easy availability of product and services to the customers
2- Easy availability for providing basic services and value added services
3- Easy complaint handling
4- To cover target market
Customers Point of view
1- Easy availability of Product and Services
2- Time and Money saving
3- Fast Service System and Resolve Conflict
For improvement of channels, PTCL try to convert traditional channel into remote
channel, and should install connection on customer’s single call.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
81
3.1.9—PRICE
Being a semi government organization, PTCL is not fully authorized to
determine the prices of its products itself. Pakistan Telecommunication Authority (PTA)
and its partner fixes the prices of telecom services. The process is such that whenever
PTCL intends to increase or reduce the rates of its services, it submits its Proposal to
PTA for approval. PTA then calls consumers’ representatives, journalists and other
interested groups for discussion on the proposal. After listening to the viewpoints of all
the interested parties, PTA gives its decision. If PTA approves PTCL’s proposal, the
new rates are enforced. It may be mentioned here that telecom technology is only
technology whose rates are on the decline with the passage of time.
PTCL also rationalizes its tariff with the passage of time. Tariff rationalization
process started in 1997. It was mainly focused on rebalancing the domestic process like
NWD, international, local call, line rent etc. Rebalancing is completed by the end of
2008 (as per Tariff rates) with the objective to position PTCL for competition.
Customers react positively due to monopoly of PTCL so they give purely positive
response to the prices of PTCL.
Effective Pricing
The best price is always the one that provides a customer with the most long-
term profits. Price in terms of value rather than cost. Cost-plus pricing is worst choice.
When we start pricing more intelligently, we will have a real advantage over most of
our competitors and due to this PTCL has an edge over its competitors.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
82
3.1.10—PTCL STRATEGIES
Strategic Notions
The difference between now and five years ago is that information systems had
limited function. You weren’t betting your company on it. Now you are.
(William Gruber)
The formulation of strategy can develop competitive advantage only to the
extent that the process can give meaning to workers in the trenches
(David Hurst).
Without a strategy, an organization is like a ship without a rudder, going around
in circles. It’s like a tramp; it has not place to go (Joel Ross and Michael Kami)
A strategist’s job is to see the company not as it is…but as it can become
(John W.Teets, Chairman of Grehound, Inc.)
Edward De Bono’s strategic management philosophy correctly maintains that
business centers have evolved to a phase where concentrating on “Sur-petition” has
become essential than focusing on “Competition”. “Sur-petition” refers to creating a
synergy through corporate level, business level and functional level strategies and
eminent implementation thereafter in order to go beyond competition. In layman
language, it is a phenomenon which can be described as “Survival” of the fittest.
Therefore, instead of focusing on individual growth objectives, enterprises must adopt a
holistic approach towards achieving organizational goals.
As the past incumbent and current Significant Market Player (SMP), PTCL, no
doubt, has got the largest operational network and infrastructure within ICT
(Information & Communication Technologies) segment. They don’t lack numbers and
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
83potential 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 Local loop, Wireless local loop (WLL) and
Fixed telephony. PTCL (Ufone) is market challenger in GSM segment. Overall they
have the largest consumer clout on average in the whole Pakistan telecom industry.
Even their competitors still depend on PTCL 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 and 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.
PTCL can turnaround very well by reaping the benefits of “Sur-petition” in the
shape of “Sur-petitive Advantages” in comparison to competitive advantages. 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. Following
“Strategy Map” depicts a guideline for holistic growth around Financial, Customer,
Internal Business Process and Organizational learning & Growth perspectives.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
84
Strategy Initiative
Value & Profit
Leadership
Revenue growth
Cost Management
Asset optimization
Launched broadband across all the major
cities in Pakistan, helped spreading strong
awareness of broadband. Focus on selling
media capacity to commercial enterprises
Monitoring & managing divisional OPEX
Ensure accurate demand forecast &
budgeting
Market leadership
Product leadership
Customer satisfaction
New Product Development
Network Enhancement
Buzz Marketing
Re-engineering product delivery [process,
reducing mean time to the market,
aggressively introduced customer
facilitation centers with new and rather
strong brand image
Broadband Pakistan, brand revitalization
of WLL, phone n net, carrier service,
IPTV
Operational support plans, improving
network redundancy, converted to ONUs
Buzz marketing is a word-of-mouth
about our brand. Buzz travels in
invisible networks. It's the aggregate of
all informal communication about our
particular product, service, or company
at any point of time. To benefit from
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
85buzz marketing, PTCL design its
product and marketing activities in such
a way that it will give people an
opportunity to talk about its product or
service.
Corporate leadership Employee Productivity & competency
Business process enhancement
KPIs introduced with smart objectives,
VSS to retain effective HR, Supportive
feedbacks, surveys, training etc
Development and assurance of SOPs for
departments, service delivery, support,
procurement, network etc.
Regulatory Environment
The local telecom market has altered significantly since the creation of PTA as
an independent regulatory agency and had enjoyed sizeable success to open up the local
market to competing operators. With the governments deregulation policies, Etisalat,
the UAE based telecom player being the highest bidder emerged as the buyer of the 26
percent share in PTCL in April 2006. PTCL, despite being a giant, had to face many
bottlenecks in its operations with such large network.
PTCL has recently taken an initiative to right size itself by introduction of VSS
for its employees where about 28000 employees are accepted under the scheme.
Introduction of various diversified products and services to sustain its market share,
Implementation of ERP solutions to provide integration of various departments through
acquisition of SAP software and state of the art billing and customer service software,
translates PTCL’s long term goals of operational effectiveness into practice. The
telecom giant PTCL has observed cutthroat competition from various service providers
after the implementation of the deregulation policies by the PTA. However, through the
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
86vast infrastructure and being the carriers’ carrier, PTCL with diversification of its
various services has enjoyed well-built position and posses immense potential for
growth, while need for telecom services is on rise as economy continues to grow on the
right track.
The telecom De-regulation and Cellular Mobile Policies announced by the
Federal Government place certain obligations on Pakistan Telecommunication
Company Limited (PTCL) to facilitate market liberalization. PTCL is bound to comply
with these obligations within a stipulated time frame. These obligations are of
paramount importance for successful implementation of the policy and failure or any
deviation thereof may result in substantial damage to the deregulation
process/liberalization program.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
87
3.2—FINANCIAL ANALYSIS3.2.1—Financial Highlights and Ratio Analysis
Key Indicators 2009 2008 2007 2006 2005 2004OperatingGross Margin (Operating Profit Margin)
% 18.15 24.67 26.33 34.50 41.63 51.37
Pre Tax Margin (EBIT Margin) % 25.20 (5.45) 34.13 39.43 45.50 53.94Net Margin % 15.45 (4.26) 22.01 26.16 30.46 35.73PerformanceReturn on Operating Assets % 10.96 (3.34) 18.76 25.53 34.83 38.46Debtor's Turnover Times 4.90 5.35 4.86 4.76 5.35 5.14Return on Equity % 9.28 (2.71) 14.45 20.22 25.45 28.20LeverageDebt: Equity Ratio 16:86 15:85 14:86 14:86 13:87 13:87Leverage % 36.66 27.48 27.92 31.27 25.65 23.91Time Interest Earned Times 15.43 (5.26) 46.54 92.07 86.35 64.34LiquidityCurrent Times 1.50 1.81 2.19 1.66 1.89 2.78Quick Times 1.36 1.58 2.03 1.54 1.73 2.67ValuationEarning per share (pre tax) Rs. 2.75 (0.88) 4.66 6.07 7.71 8.5Earning per share Rs. 1.79 (0.55) 3.07 4.07 5.22 5.72Breakup Value per share Rs. 19.49 19.19 21.75 20.68 19.61 21.39Payout Ratio (after tax) % 83.60 - 65.22 122.73 38.34 87.42Market Price to Breakup Value Times 0.88 2.01 2.62 1.96 3.58 1.97Dividend per share Rs. 1.50 - 2.00 5.00 2.00 5.00Market Value per share (as on June 30)
Rs. 17.24 38.64 57 40.6 70.25 42.15
Market Capitalization Rs.(m) 87,924 197,064 290,700 207,060 358,275 241,965Historical TrendsOperating ResultsRevenue Rs.(m) 59,239 66,336 71,068 69,085 87,356 81,633Profit/ (loss) Before Tax Rs.(m) 14,021 (4463) 23,744 30,974 39,296 43,360Profit / (loss) After Tax Rs.(m) 9,151 (2825) 15,639 20,777 26,606 29,170Dividend declared Rs.(m) 7,650 - 10,200 25,500 10,200 25,500Financial PositionPaid up Share Capital Rs.(m) 51,000 51,000 51,000 51,000 51,000 51,000Reserves Rs.(m) 32,183 32,183 32,249 31,992 32,008 32,000Shareholders' Equity Rs.(m) 99,390 97,888 110,913 105,475 100,114 109,100Current Assets Rs.(m) 54,220 39,603 53,561 50,168 39,269 48,294Non Current Liabilities Rs.(m) 18,572 17,646 17,460 16,489 15,258 15,126OperationalsALIS (000)* Nos. 4,681 5,181 5,455 5,586 5,235 4,837ALIS per Employee Nos. 168 118 91 89 82 71
(*Exclusive of primary and basic rate interface) Table-7-Finacial Highlights
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
88
3.2.2—ANALYSIS OF INTERNAL ENVIRONMENT
Being a public limited company whose majority shares are controlled by the
Government of Pakistan, PTCL is responsible to provide telecommunication services in
the country on affordable prices while ensuring that the telecom services become
accessible throughout the country. Since exclusivity of PTCL has ended on 1st Jan
2003, the telecom sector of Pakistan has entered into a new era and PTCL is slowly
moving towards competition in the basic telecom services. The company’s policy
objectives are as follows:
Increase service choice for all consumers of telecom services at competitive and
affordable prices
Increase private investment in the telecom sector and encourage local telecom
manufacturing/service industry
Enhance long run benefits to the Government’s financial position by expanding
the taxable revenue base.
Accelerate expansion of telecom infrastructure to extend telecom services to
unserved and undeserved areas.
Encourage fair competition among service providers, while maintaining
leadership in the telecom sector.
Maintain consistency with the Pakistan IT and internet promotion policy of low
prices for Bandwidth and Internet access.
3.2.2.1—Financial Aspects
The structural adjustments undertaken by the company in response to the
increased competition and substitution impact of mobile expansion has adversely hit the
profitability of PTCL in the short run. But the first quarter of FY'09 recorded an
increase in profitability of PTCL, as the company's profit after taxation increased as
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
89compared to the same period of last year. Sales revenue dwindled during the year 2009
but profit was increased compared to last year, depicting a decline of 11%. Operating
profit increased 100%. However the effect on net profit was somewhat diluted by an
increase in non-operating income of the company so that the company posted profit
after tax of Rs 9.15 billion, compared to Rs -2.83 billion in FY2008.
At the end of the year in 30th June, 2009, the company stock was trading at a
D/E ratio of 16.86. The stock has performed remarkably well relative to the market. The
stock has shown consistent performance over the year. As a consequence of the fading
sales revenue for the period, the profit after tax of the company in FY09 increased over
the year 2008. The net profit margin has also been declining since the FY'04 and the
trend persist in FY09. The decline in profit margin may be attributed to a 5.25%
increase in operating expenses for the year.
3.2.2.2—Profitability Position
PTCL posted a net profit of Rs 9.15 billion in FY09 against last year's figure of
Rs.-2.83 billion. The declining trend in profitability continued during the financial year
ended June 30, 2008 due to structural adjustments brought about in the telecom sector
by competition. Deficit came upto Rs.2.825 billion. Although PTCL maintained its
leading market share in the fixed line, there was a decrease in revenues by 5.5% mainly
due to substitution impact of mobile expansion. There was also an increase in operating
expenses by 11.7% mainly due to prudent provisions for doubtful debts and long term
systematic improvements in operations and customer services.
Considering the cash requirements for restructuring and development plan, the
company declared a final dividend of Rs 1.50 per share for the financial year ended June
30, 2009. The total revenue for FY 2008-09 stood at Rs 59.239 billion against Rs
66.336 billion of FY 2007-08. The decrease in revenue was mainly in the domestic
segment due to competition and reduction in tariffs. However, PTCL is making all
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
90efforts to boost revenue by improving customer service and launching new services to
turn around the situation.
3.2.2.3—Liquidity Position
The liquidity position of the company suffered a setback in FY08. This trend has
been witnessed despite increasing current assets, as current liabilities grew more
sharply. The short term borrowings of the company have been mounting for the last few
years and this has contributed to the current trend of the current ratio. It may be noted
that the company holds large amounts of cash and bank balances compared to the other
companies in the business. This may provide an edge to the company over its
competitors. Although the liquidity stance of the company is fairly satisfactory at the
moment, but a continuation of the current negative trend may spell trouble for the
company.
3.2.2.4—Leverage Position
The debt ratios showed a decreasing trend in the FY09. The debt to asset ratio of
the company had declined considerably in FY05 but the trend reversed in FY06, staying
at same position in FY09. It is important to note that the company maintains a largely
unleveraged capital structure, with the current trend in debt ratios bought about largely
by changes in current liabilities of the company.
This was brought about mostly due to a decline in current liabilities of the
company in FY05 and an increase in the same in FY06. The absence of the dividends
payable portion of current liabilities in FY05 and its coming back online in FY06 was
an important contributor to the trend.
Further, the FY06 also saw an increase in short term borrowings of the
company, complemented by increases in other components of current liabilities.
Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)
91Increases in assets, mainly arising from higher cash and bank balances, could not
prevent the trend of the debt ratios.
3.2.2.5—Activity Position
Financial highlights of PTCL witnessed an upward trend throughout the period
under analysis, except in FY08 when an improvement was marked. The ratio jumped up
considerably in FY09, completely nullifying the effect of the decline in FY08, and
exacerbating the already long collection period of the company. The decline in FY08
illustrates that management of PTCL is constantly striving for improvement and
enhancement despite stiff competition. As a result, the operating cycle has also
decreased in FY08 but then began to increase in 2009. The total assets turnover and
sales to equity ratio of the company also declined in the FY'08 as revenues shrunk
during the period but increased in 2009 due to better financial management.
Sales/equity declined with the increase in equity of the company.
3.2.2.6—Dividends
PTCL has had a history of paying out significant portion of its earnings to its
shareholders. However, with huge cash requirement for Voluntary Separation Scheme,
PTCL is unlikely to announce any cash payout during FY08. Therefore, once the
ongoing process of VSS is through, which requires a cash outflow of Rs.23.2bn,
dividend payout is likely to resume to its initial levels. In 2009, PTCL announces
7.65bn dividend to its shareholders which was a proof that PTCL is again mounting up
with the time being.
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3.3—FUTURE PROSPECTS OF “PTCL”PTCL seems destined to continue to grow and be profitable. Some of this
growth will be accomplished through future mergers and acquisitions with other
telecom institutions. Future of PTCL falls on its better products and superior services.
Some people may think that PTCL is loosing its position and can not compete with
other companies due to rapid growth of cellular phones and foreign companies. But due
to cheaper call rates, quality sound, improved services, quick response to customers,
launching new packages competing with other networks; it can get its position in the
telecom sector.
Measures to achieve Set Targets
The management of PTCL has been adequately preparing itself to face the
forthcoming challenges of deregulated environment. Appropriate structural changes
have either been initiated or these are underway.
To face the challenge, a new Marketing and Business Developing wing headed
by a Member with appropriate organizational structure has been made functional with a
view to expanding business and taking good care of the customers. It was introduced as
One Stop Shop (OSS). Customer service is a series of activities designed to enhance the
level of customer satisfaction – that is, the feeling that a product or service has met the
customer expectation. High standard customer service is an integral part of PTCL’s
customer value proposition. As part of strategy PTCL has invested huge some of money
to improve the environment & efficiency of its service centers. With all together
complete change in outlook, services to customers & facilities available, these centers
are called “One Stop Shop”. They are aimed to provide better services to our valued
customers for sales of products and after sales services.
These “OSS” are nine in number and are in Major cities of Pakistan. By the end
of this year there will be 19 OSS operational in 11 cities of Pakistan. Customer
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provide better service to PTCL customers.
Some other initiatives are as follows:
PTCL Coming Back Strong
PTCL has consistently been facing market criticism with respect to its strategic
management, policy, procedures, quality assurance, product flavors and orientation
towards customer services. If PTCL continues on the same path with focus on product,
market & corporate leadership, they have all the means to differentiate for clear
competitive advantage.
The Balanced Scorecard is a management tool that helps an enterprise to focus
on holistic development across the organization rather than just focusing on a single
area or on a specific objective, for instance, revenues & finance. Today, many large
corporate entities across the world have adopted the BSC technique to exceed the
overall growth objectives.
The initiatives taken by the PTCL may not be enough for an abrupt change,
however, if the strategic focus and strategy remains correct and effective as stated
above, the list of initiatives will keep on increasing and shall lead PTCL towards
Leadership in all the segments it serves.
Maintain its Previous Position
PTCL will definitely get a sound market share when it maintains its previous
position as it was doing as the sole and the whole.
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New Technology
Prior to the start of the competition, PTCL should be well equipped with new
technologies, billing, marketing & customer care infrastructure, skilled trained
professionals with focus to win business and earn customer loyalty.
Cross Subsidization
PTCL is providing range of services i.e. Fixed Line, Cellular Mobile and
Internet etc. As the world experience shows, incumbent can engage in cross
subsidization which means that price of one market may be increased above the cost and
use the surplus revenue obtained from this market to subsidize the lower prices in other
markets where more competition is faced.
Analyzing PTCL position against this experience and seeing the prevailing
competition environments of Pakistan, it can be safely concluded and seeing the
prevailing competition environments of Pakistan, it can be safely concluded that cross
subsidization is not possible in Cellular Mobile and ISP markets. However, in Fixed
Line segment, there is a real possibility of cross subsidization. PTCL can lower rates of
line rent, installation charges and local calls and correspondingly increase rates of NWD
and International out bound traffic / maintain present level/ lower the prices but still
remain on the higher profit margin side. Alternatively as part of overall business
strategy, it can offer different packages i.e. residential and corporate customers, rural
and urban and economy groups etc. within each package the prices can be cross
subsidized. This practice can have adverse effects on the growth of other licenses
particularly those not having vertical integration. This abuse can be controlled through
license conditions and accounting separation which will determine the existence of
cross subsidization.
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Price Discrimination
In order to retain and even expand the market share, PTCL can resort to price
discrimination. This can be between users of own network and other operators
networks. For example PTCL may fix different rates for intra-network calls and inter-
network calls. Lower rates of intra-network calls will be strong temptation for
customers to remain stuck with PTCL instead of switching over to other choice
operators. This practice will be a restraint for other operators, hence will be considered
anticompetitive.
Vertical Price Squeeze
PTCL can increase the price of upstream input (local access). It monopolizes,
and keep the downstream services (ISPs, DSL and Payphones etc.) price same. The
effect would be reduction or elimination of the profit of downstream service providers
because their margins would be squeezed. To increase the squeezing effects, PTCL can
also reduce downstream price of its own services. To control price discrimination, the
regulator can impose wholesale cost imputation requirements.
Brands that can take it up
IPTV (PTCL Smart TV), Broadband Internet, Vfon can take PTCL up
because these are called future brands of PTCL. IPTV can replace local TV cable and
dish antennas if it is provided on cheaper rates and to everywhere in the country.
Similarly, Broadband internet has key importance in our daily lives not only for
teachers and students but also in public and private offices, in homes, in mobile shops
etc. Vfon GSM can become a new product of PTCL if it converts Vfon wireless to Vfon
GSM and can take lead over its rivals.
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Part—4Finding and Recommendations
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After studying this part, we must be able to know about the following:
Short-falls / weaknesses of PTCL
Conclusion
Recommendations
After studying this part, we must be able to know about the following:
Short-falls / weaknesses of PTCL
Conclusion
RecommendationsPar
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4.1—SHORT-FALLS / WEAKNESSES OF
PTCL PTCL has not been able to nurture its growth around customer services oriented
strategy.
Pathetic management who always makes trying to sell its assets on cheaper
rates.
Customer is not focused but designations of personnel are changed day by day to
get results.
Internal organizational and business processes issues.
Conflict between management and PTCL workers.
Corporate culture similar to government departments and this ex-culture of
Government owned PTCL is not being abolished.
Unknown charges like following news cutting
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Monopolistic culture has further added to its complexities.
Paknet, the internet service provider arm of PTCL has lost its position and incur
losses due to poor management and lack of network optimization.
PTCL-V, the fixed wireless phone service is poor.
Over employment & low productivity.
PTCL helpline services are very poor. Customer has to wait for its complain and
has to listen its commercial advertisement tape on helpline service. He is also
charged for double call when company representative receives call after almost 7
minutes.
Dealer’s margin for Vfon brand is too little where its franchisers are working.
Corporate support for Customer Facilitation Camps (CFC) is very poor.
Slow decision making including external interferences.
Increased competition in long distance continues to exert pressure.
VOIP use is increasing despite ambiguous and discriminatory policies.
Exposure to market competition.
Migration to Cellular Networks.
Less ability to attract & retain quality professionals.
Reduction in international settlement rates.
Bogus calls and new packages are imposed to users without their will.
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4.2—CONCLUSIONS“No business can do everything. Even if it has the money, it will never have
enough good people. It has to set priorities. The worst thing to do is a little bit of
everything. This makes sure that nothing is being accomplished. It is better to
pick the wrong priority than none at all”. (Peter Drucker)
PTCL is enjoying monopoly but the time is come when competition will force
the organization to change its policies to become favorite telecom service provider in
telecom sector & to keep its current place as customer oriented.
Going forward, PTCL is poised to align itself in to a more customer friendly and
commercially oriented organization. This will be achieved through improved customer
experience, offering better quality of service, and introducing new products and
emerging services to satisfy specific market segment needs besides consolidating its
leadership position in fixed line business. The customer interfaces will be fully
empowered to achieve corporate objectives. Automation and simplification of internal
process, optimization of operational expenditure, migration of services to Next
Generation Networks, enhancement of national backbone infrastructure, expansion of
robust and resilient IP infrastructure and proliferation of broadband services are few of
the milestones for the way forward.
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4.3—RECOMMENDATIONS PTCL must adopt customer oriented strategy to bring back its valued products.
Highly qualified professionals must be hired at management level and ex-Govt.
culture must be abolished.
Internal organizational and business processes issues must be resolved and must
not kept pending.
PTCL needs innovative service offerings — currently it doesn’t even offer
bundles or a single bill
Network of IPTV must be spread in big cities as well as in small towns where
other cable operators are working.
Conflict between PTCL management and workers must be come to an end.
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.
Fixed telephone line services must be provided on-time.
PTCL helpline services must need improvement and give quick response to the
customers.
Franchiser’s margin for its key products must enhance so that they feel attraction
for getting PTCL business.
EVO Wireless Broadband must available in even small towns where PSTN
connections are not available.
Vfon Internet connectivity rate must be enhanced.
Corporate support for CFC camps must be included and staff should equipped
with knowledge of well designed market strategy.
PTCL must introduce GSM technology in Vfon.
Lowest price calling cards must be introduced.
Card validity must be increased to maximum period.
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etc.).
After sale service quality should be improved.
Accessories for all the products must be available at OSS and also provide to
franchisers.
Customer must get involved in the whole campaign by giving them value and
satisfaction.
Strategic Business Units (SBUs) must be fully involved in marketing activities.
Integration Market Communication (IMC) Process should be adopted.
Availability and visibility of all the products during the CFC campaign.
Media vehicle must run before the CFC campaign.
Facilitate SBUs.
Demo must be shown to the viewers at CFC campaign
Line rent must not be deducted as it is burden to PTCL users.
PTCL must reduce the worries of their workers.
8000 workers employed in “New Contract Group” are worried about their jobs
so PTCL must facilitate them.
PTCL must give more and more facilities in this competition era so that people
get new PTCL connections rather than disconnecting them.
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 a performance and service
based organization? According to the latest director’s report from PTCL the
“organization is being revamped”. Only time can tell the impact
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Part—5Completion of Training Report
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After studying this part, we shall know about the following:
References
Annexes
Persons Consulted
Documents Consulted
After studying this part, we shall know about the following:
References
Annexes
Persons Consulted
Documents Consulted
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5.1—REFERENCES
(a) PTCL annual reports 2004, 2005, 2006, 2007, 2008, 2009
(b) PTCL broachers and magazines
(c) www.ptcl.com.pk
(d) Reports of Sales & Distribution Department of PTCL
(e) Principles of Marketing—11th Edition by Philip Kotler and Gary Armstrong
(f) Marketing Management—12th Edition by Philip Kotler and Kevin Lan Keller
(g) Business Communication (International Edition)—7th Edition by Herta
A.Murphy, Herbert W. Hildebrandt and Jan P. Thomas
(h) Fundamentals of Financial Management—12th Edition by James C.Van Horne &
John M. Wachowicz, JR
(i) Management—8th Edition by Stephen P.Robbins and Mary Coulter
(j) Strategic Management—11th Edition by Fred R.David
(k) Electronic Learning Assessment Resources (ELAR) www.elar.com
(l) www.google.com
(m)www.1000ventures.com/business_guide/marketing
(n) Daily Nawa-I-Waqt
(o) Daily “The News” for financial highlights and business trends
(p) Pakistan Telecommunication Authority reports
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Annexes-I
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Annexes-II
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Annexes-III
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Annexes-IV
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Annexes-V
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Annexure-IV
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Annexes-IIV
Abbreviations Used in Internship ReportSM (HR&A) Senior Manager (Human Resource & Admin)
SM(S&D) Senior Manager (Sales & Distribution)
(F&MA) (Finance & Maintenance)
CFC Customer Facilitation Camp
T&T Telegraph & Telephone
PTC Pakistan Telecom Corporation
FAB Frequency Allocation Board
NTC National Telecommunication Corporation
SEVP Senior Executive Vice President
EVP Executive Vice President
GM General Manager
SM Senior Manager
PSTN Public Switch Telephone Network
VMS Voice Mail Service
IPTV Internet Protocol Television
UAN Universal Access Number
UIN Universal Internet Number
DPLC Domestic Private Leased Circuit
ISDN BRI Integrated Services Digital Network Basic Rate Interface
ISDN PRI Integrated Services Digital Network Primary Rate Interface
VPN Virtual Private Network
DXX Digital Cross Connect
CLI Caller’s Line Identification
PPT Prepayment Telephony Services
NSS Network Switching System
CMS Complaint Management System
BNCC Billing & Customer Care System
LDI Long Distance International
WLL Wire Local Loop
VSS Voluntary Separation Scheme
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