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Pakistan Telecommunication Company Limited
Faculty of Business AdministrationDepartment of Management Sciences
Internship Report
Pakistan Telecommunication Company Limited (PTCL)
Deadline for submission
30 November, 2010
Semester..........................MBA 4.............................
Student Name..................Shahid Jahangir..............
Student Number...............SP09-MBA-153................
Total Marks Obtained (Report + viva)..................................
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Pakistan Telecommunication Company Limited
Executive Summary
The company where I did my internship is called Pakistan Telecommunication Company
Limited (PTCL). My internship started on 1/July/2010 and lasted for 8 weeks until 31/Aug/2010,
with the official working hours starting from 9am to 3pm. During this internship I work in office
of the senior revenue officer Rawalpindi Cantt under the supervision of senior revenue officer.
In the first phase of the report there is the general introduction about the company and then
different terms have been explained, then the objectives, different products and different services
of the organization have been explained.
In the next part, SWOT analysis of the firm have been done by the help of which it is identified
that what are the strong areas of the company and where it lacks so that it can improve, and then
the most important my experience while working in the PTCL as internee is explained. During
this period, I deal with different kind of Revenue Functions i.e Correction of Bills, Revenue,
Record Keeping and Office Administration and also cash matters.
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Pakistan Telecommunication Company Limited
1. Introduction
1.1BRIEF HISTORY OF THE COMPANY
From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of
Pakistan Telephone & Telegraph Department in 1962, to this very day, it is a story of
commitment and vision.
Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory in December
1990, taking over operations and functions from Pakistan Telephone and Telegraph Department
under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's
competitive policy, encouraging private sector participation and resulting in award of licenses for
cellular, card-operated payphones, paging, and lately, data communication services.
1.1.1 Distribution of PTC
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC,
and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be
PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers
were converted into PTCL shares in mid-1996. In 1995, Pakistan Telecommunication
(Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the
country. It also paved the way for the establishment of an independent regulatory regime. The
provisions of the Ordinance were lent permanence in October 1996 through Pakistan
Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication
Company Limited was formed and listed on all stock exchanges of Pakistan.
Since then, PTCL has been working vigorously to meet the dual challenge of telecom
development and socio-economic uplift of the country. This is characterized by a clearer
appreciation of ongoing telecom scenario wherein convergence of technologies continuously
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Pakistan Telecommunication Company Limited
changes the shape of the sector. A measure of this understanding is progressive measures such as
establishment of the company's mobile and Internet subsidiaries in 1998.
As telecommunication monopolies head towards an imminent end, services and infrastructure
providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with
deregulation of the sector in January 2003. On the Government level, a comprehensive
liberalization policy for telecom sector is in the offing. PTCL is in full awareness of the same,
and future policies feature a strong conviction of healthy competition. The company is in process
of enhancing organizational and business proficiency through vertical integration and horizontal
diversification. At the same time, cross-national ownerships, operations and partnerships are
being evaluated with a view to developing and diversifying the business.
1.2 REGION WISE SEGMENTATION OF PTCL
To provide efficient and smooth services to the subscribers, PTCL has been divided into almost
thirty-two Regions (Nine Development and twenty-three Maintenance Region ).
The Development Regions are normally responsible to accomplish the development and
expansion program of the company and after completing the lying of cable, installation, testing,
commissioning of equipment, they are liable to hand over the exchange, building, or other
installations to the concerned Maintenance Regions.
These maintenance regions are further responsible for the look after, up keep and maintenance of
these assets. They are also required to initiate expansion proposals to meet the ever-increasing
demand of telephone connections.
The overall operations department has been divided into four wings; North, South, International
Communications and Information Technology Training & Research. Each of these wings is
headed by EVP. As PTCL is providing its services to its customers all over the country, its entire
network has been divided into fifteen regions.
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Pakistan Telecommunication Company Limited
Each region is further divided into zones and headed by director. Each director controls a number
of divisional engineers.
1.3 COMPANY PROFILE
With employee strength of approximately 30,000 and 5.7 million customers, PTCL is the largest
telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator
in the country with 0.8 million V-fone customers.
The company maintains a leading position in Pakistan as an infrastructure provider to other
telecom operators and corporate customers of the country. It has the potential to be an
instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fibre Access
Network in the major metropolitan centers of Pakistan and local loop services have started to be
modernized and upgraded from copper to an optical network.
On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE
submarine cables is being expanded to meet the increasing demand of International traffic.
1.4 BUSINESS VOLUME
Fixed line connections in the country are more than 5.4 million and the cellular connections are 12.7 millions
Currently there are 315 Payphone and over 51,000 Wireless Payphones
There are over 140 Data and Internet service providers (ISP's) to whom PTCL has provided network infrastructure.
PTCL generated annual Revenue of over Rs. 11 billion from its private sector operating partners.
The PTCL's performance against a key set of parameters is summarized as:
Parameters ValueRevenue Rs. Billion 75.97Profit after tax Rs. Billion 26061Earning per share In Rupees 05.22Capital expenditure Rs. Billion 12.95
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Pakistan Telecommunication Company Limited
Return on equity % 24.43
NO OF EMPLOYEES
President & Company Secretary 02
Senior Executive Vice President 07
Executive Vice President 22
Chief Engineers 26
General Managers 94AGM, DY. GM, Director, System Analysts, Dy. Managers, RTO, CS, SE, DE, SAO, DM, SRO etc 2500
ADE, AE, SDO, AO, SL, Lect etc 20,000
ES, Assistant. PA, Tech, LM. UDC, KPO, Khakroob, Mali, HC, etc47,000 (almost)
Total Employees
Note: This figure includes all permanents, contract bases and also appointed under new terms and conditions during the year 2005.
70,000 (almost)
1.5 ACCOUNTING SYSTEM OF THE ORGANIZATION
The accounting system of PTCL is to comply with requirements of companies' ordinance, 1984
and approved Accounting standards comprise of such IASs as notified under the provision of the
companies ordinance 1984. International Accounting Standards (IAS), as applicable
in Pakistan in all respects. Wherever, the requirements of the company's ordinance 1984 of
directives issued by the securities and exchange commission of Pakistan differ with the
requirements of these standards. Generally accounts are prepared and maintained on government
pattern as well as commercial pattern on accrual basis of bills receivable and bills payable and
also are exhibited the profit and loss account and balance sheet showing the assets and liabilities.
The revised cash account current (ACE-40) Performa is based on double entry system which
indicates the debit and credit under each head of account viz cash/bank shows the balance in
hand ceiling cash and direct payment and the closing balance. All Drawing and Disbursing
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Pakistan Telecommunication Company Limited
Officers furnish commercial accounts at Lahore, where all items are separated analyzed and
noted in necessary books for preparation of financial statements.
In the Accounting system of organization, proper books of Accounts have been kept by the
company as required by the companies' ordinance, 1984.
The balance sheet and the profit and loss account together with the notes thereon have been
drawn up in conformity with the companies' ordinance, 1984.
The balance sheet, profit and loss account, cash flow statement and statement of changes in
equity together matches with approved accounting standards as applicable in Pakistan, and give
the information required by the companies ordinance 1984 in the manner so required and
respectively give a true and fair view of the state of the company's affairs as at June 30 of every
year and of the profit, its cash flows and changes in equity for the year then ended.
1.6 FINANCE SYSTEM OF THE ORGANIZATION
The office of the Director General (Finance) controls all financial activities and system of PTCL.
All financing decisions, capital budgeting decisions and processing on real and financial assets
are major responsibilities of finance department of PTCL. Necessary future plans and projects
are analyzed and selected as per their positive results i.e.; (Investment decision) installation of
new telephone exchanges and lines.
Lending and borrowing decisions are also made as per loans, interest rates, time period and
lending agencies and banks etc.
Necessary sanctions of write off and depreciation rate are also issued by the finance department.
Finance department also plays a vital role in coordination, with dividend policy matters, internal
and external auditors and share registrars. Pensions, insurance, preparation of budget and
taxation dealings are also important factors of PTCL finance department.
1.7 USE OF ELECTRONIC DATA IN DECISION MAKING
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Pakistan Telecommunication Company Limited
Mostly offices of PTCL are well equipped with computers and EDP facilities.
Data is recorded on CDs and these CDs are sent to Finance department and Director Commercial
Accounts Lahore as cash accounts by regional heads. This data is fed in a main "SERVER" for
use of different sections in decision making. For example balances of General Provident Fund,
House Building Advance and Motor Cycle/Car Advances, Pay roll, etc are needed in pension
section to prepare final emoluments of a retiring employee. This requisite information's are taken
from this "SERVER" (Book & Budget Record Section) for necessary decision.
PTCL has a sound MIS System which helps all other departments in decision making and also to
preserve it for future needs. Recently, the organization provides a separate internet connection to
all its officers, so that they may connect to higher management regularly, keep their knowledge
fresh about organization strategies/affairs and also for correspondence to other officers and
higher management.
1.1.2 HISTORICAL BACKGROUND
1947 Posts & Telegraph Dept established
1961 Pakistan Telegraph & Telephone Deptt.
1990-91 Pakistan Telecom Corporation
1995 About 5% of PTC assets transferred to PTA, FAB & NTC.
1996 PTCL Formed listed on all Stock Exchanges of Pakistan.
1998 Mobile (Ufone) & Internet (PakNet) subsidiaries established.
2000 Telecom Policy Finalized
2003 Telecom Deregulation Policy Announced
2006 Etisalat Takes Over PTCL
1.2 OBJECTIVES OF THE COMPANY
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Pakistan Telecommunication Company Limited
Convert its cash basis single entry accounting system to accrual basis and double entry
system meeting the Commercial & International accounting system.
Launch consumer satisfaction survey.
To introduce computerized directory assistance & complaint service, reform billing and a
revenue collection system.
Strengthen relation with Foreign International Administration, entities, service providers,
International & Regional telecom Organization for better international communication
and technical co-operation in telecommunication business.
1.3 Organizational Structure
1.2 Products or Services Offered
1.2.1 PTCL LandlineSince the deregulation of the telecom sector, a large number of foreign investors opted for
licenses in LL, LDI and cellular operations, identifying Pakistan as an emerging market.
Investors entered the market forcefully in the cellular segment, introducing heated competition
for PTCL. In this situation PTCL's counter strategy for landline service, during the year 2007-08
was aimed to increase ARPU, acquire new subscribers and contain churn.
To increase operations, PTCL shifted from its conventional duration based charging system to
value based options, like 'Pakistan Package' that offered 5,000 minutes for on-net nationwide
calls at Rs. 199/month. PTCL also launched 'International Plus' package to facilitate cost
effective international calls at unmatchable rates alongside offering Voice messaging and Phone
n Net services, adding more value to the landline service. To increase customers' base, 'order on
phone' was introduced, allowing customer to apply for a new connection by simply calling 0800-
80800. To tackle the churn PTCL established an outbound call center to reach out to potential
customers with an objective to attain higher level of brand loyalty.
1.4.2 PTCL V-Fone
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Pakistan Telecommunication Company Limited
PTCL V-Fone (WLL Service) was another major area of focus for PTCL during the year. A few
prominent measures taken in this area during the year were launching of free home delivery
service. No line rent package was launched in September 2007. In June 2008, 30 seconds billing
was introduced contributing as an effective customer retention tool. PTCL has expanded the
network to provide coverage in all large and small cities including over 10,000 villages in rural
areas of Pakistan.
As Vfone becomes the Wireless substitute to landline in un-served areas, it will be a robust line
for voice, data and fax services for use at home and in the office. In business markets it will be
positioned as the CDMA tellular extension to add trunk lines to the ever expanding business
PABXs. Vfone will be spearheading the launch of the new postpay and pre-pay tariffs with no
line-rent to meet the market demand. The tariff will include new post-pay unlimited local and
nationwide calling packages to bring traffic back to PTCL’s networks to stabilize the revenues.
After the initial launch, the Company aims to retain the momentum by offering different bundled
packages for voice to increase the subscriber base, including specifically targeting the rural areas
where copper infrastructure does not exist. On Wireless broadband front, a major upgrade of
PTCL WLL CDMA network is underway to provide Wireless broadband services in 17 major
cities by end 2007. Currently technical trial is in progress which will be followed by a pilot
project on WiMax technology. This will enable PTCL to maintain its competitive edge.
1.4.3Ufone
(Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operations
on 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its
coverage and customer base at a rapid pace and established itself as one of the leading cellular
service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive
and innovative players in the mobile sector of Pakistan.
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Pakistan Telecommunication Company Limited
The growth of the cellular industry is a direct result of the successful implementation of the
telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications
(MOIT&T) and the support, guidance and timely enforcement of regulatory process by the
Pakistan Telecommunication Authority (PTA).
Ufone's operational performance has been very encouraging despite stiff competition in Pakistan
telecom market which has led to reduction of prices to bare minimum level. Ufone managed to
improve its revenue and operating profit by 35% and 47% respectively, as compared to the last
year through aggressive policies and exercising strict control over expenses.
1.4.4 Paknet Limited
Paknet was incorporated in year 2000 for providing internet related services in the country is
being wound up. However, PTCL has developed its own voice, data and video infrastructure and
services. Paknet's operations have been closed and liquidator appointed for completing the
formalities involving the company closure. All customers, assets, liabilities and capital stand
transferred to PTCL in accordance with the special resolution passed in General Meetings.
1.4.5 PTCL Broadband
The first major product initiative taken towards a changing PTCL during the year 2006-07, was
the launch of PTCL’s Broadband service under the theme of ‘Broadband Pakistan’ by the Prime
Minister of Pakistan. The service was launched on PTCL’s new state of the art Broadband
infrastructure that was added to our network during the last three quarters of 2007 with the initial
capacity of over 100,000 subscribers.
PTCL achieved unprecedented success as it added over 10,000 customers within the first 120
days of its launch while historically it had taken four years collectively for all the other operators
to achieve 30,000 customers in Pakistan! The hallmark of PTCL service was the removal of the
traditional barriers such as the upfront costs of installation and customer premises equipment and
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Pakistan Telecommunication Company Limited
added bandwidth download. This high customer take up also reflected on the Company’s trusted
image in the eyes of the nation. The service is already available in the five largest cities of
Pakistan and will be expanded into another dozen cities during the coming year.
1.4.6Smart Services
In March 2008, PTCL introduced a trial service that put PTCL on the path of a paradigm shift.
Branded under 'PTCL Smart Line', the service included Interactive Television, Broadband and
voice Telephony all at the same time on PTCL's telephone line. The 'Smart TV', for the first time
offered TV viewers the power to control the TV channels interactively. This included the ability
to rewind and pause live TV channels, block / unblock any TV channel for parental lock and
search through video on demand content. The Commercial launch of the PTCL Smart Line
services across the three largest cities in Pakistan was arranged on the 14th of August 2008
which will be expanded to the other cities during the course of the year.
2. Learning & Experience
2.2 Tasks performed
2.2.1 ISSUE NOC
In the first week of my internship I issue NOC to the people who want to get new PTCL
connection and also for the disconnect the PTCL connection.
2.2.2 MAINTAINING OF FILE AND RECORDS
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Pakistan Telecommunication Company Limited
Every day there has been preliminary file work from initial nothing till the final presentation of
the whole scenario. Each task has to be filed.
2.2.3 WRITING MEMOS, E-MAILS, PRINTING
I wrote many applications, memos, emails for various purpose defined by my supervisors. I
forwarded mails, received and managed emails and also made important print outs for official
use.
2.3 SWOT ANALYSIS
SWOT Analysis is the most important part of the report, because it depends on my personal
observation. Only a good, keen and comprehensive analysis leads to good recommendations for
the improvement of the existing conditions. SWOT analysis is to highlight all aspects of the
Company. We can say that it is a. It forecasts the future status and points out the problems likely
to come in achieving the specified objectives.
PTCL is a big organization regarding all the departments including Finance, Operations, Human
resource etc. there are several strengths & weakness of these departments, which will be
discussed as follow:
2.3.1. STRENGTHS
5.1.1. TELECOM SERVICES ALL OVER THE COUNTRY
PTCL has spread its network of services nationwide and also facilitate international calling
facilities.
5.1.2. THE BIGGEST FOREIGN EXCHANGE EARNER
PTCL is the biggest source of foreign exchange for Pakistan. It earns a lot foreign exchange form
its international traffic.
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Pakistan Telecommunication Company Limited
5.1.3. ADEQUATE FINANCIAL RESOURCES
PTCL earns billions of Rupees as a major source of capital. These adequate financial resources
not only enable the company to copy with any unexpected event but to deploy its resources to
increase product line and services without feeling any financial difficulty.
5.1.4. MONOPOLY IN FIXED LINE CONNECTION
PTCL has no competitor in fixed line the market and other companies were legally not allowed
enter in competition with PTCL before 2003. So PTCL is performing its activities freely without
any pressure.
5.1.5. LEADERSHIP IN THE MARKET
PTCL is leading Company to provide telecom facilities at domestic and business levels in the
Pakistan. PTCL aims at using the latest technology in the field of engineering and IT for its
services. It is also getting constancy from international Companies in order to remain leader in
telecom sector.
5.1.6. MODERN TECHNOLOGY
PTCL is running modern technology to develop its products and services and improve the quality
of services. In this connection it has replaced the old exchanges with new digital exchanges. It
has computerized billing system. Due to this technology thousand of complaints have been
reduced. PTCL has also entered in the business of Mobile phone and Internet services.
5.2. WEAKNESSES
Weaknesses are the shortcomings in the structure or functioning of the organization and need to
be taken care of immediately. It is usually because of these weaknesses that the competitors
leave the firms behind in the race.
5.2.1. LACK OF HUMAN RESOURCES MANAGEMENT
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Pakistan Telecommunication Company Limited
PTCL has no active human resources management. It doesn’t have clear policy regarding hiring
& training of work force. In PTCL, for most of the jobs there is no job work & evaluation of
performance of employees.
5.2.2. LACK OF TRAINING PROGRAM
There is no proper training program to improve the skill of PTCL employees to cope with ever-
changing telecommunication sector. Less skilled & inefficient workers are creating hurdles in its
growth.
5.2.3. NO EFFECTIVE MARKETING DEPARTMENT
There is no effective marketing department in the Organization. There is only marketing officer
working as a manager, further more marketing staff in the field region is also not available.
5.2.4. CUSTOMER DISSATISFACTION AND DELAYED RESPONSES
Many customer of PTCL are not satisfied with its services because of wrong billing, late delivery
of bills and delayed responses for any fault in the telephone. Some customer complains that they
received their bills in full amount although they have stayed out of the home and had not use the
telephone at all.
5.3. OPPORTUNITIES
Opportunities are always present in the external market whoever grabs it first, is the market
leader.
5.3.1. INCREASING AWARENESS RATE
PTCL can show its interest in educating people & increasing literality rate. In this way, PTCL
will not only fulfill its social responsibility but will also be able to increase awareness rate and it
will be help full in the expansion of PTCL business.
5.3.2. SKILLFUL HUMAN RESOURCES
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Pakistan Telecommunication Company Limited
PTCL can improve the skill of its manpower by providing them the opportunities of advanced
courses that will make them to cope with the ever-changing condition in field of
telecommunication.
5.3.3. ENTERING THE NEW MARKET
PTCL recently has started its mobile services hence; it will enter in the market. PTCL can
expand its business by exploring and entering in new markets in similar way.
5.3.4. TELECOM FACILITIES IN RURAL AREAS
All the value added services and digital facilities are available only in the main cities of Pakistan.
PTCL can expand its business by providing telecom facilities in rural areas, which is only
possible when adequate planning is done.
5.4. THREATS
Threats are also part of a firm’s external environment and pose a constant danger to an
organization’s operations. However, a proficient is the one that converts these threats into
opportunities for it.
5.4.1. EXCHANGE RATE RISK
Exchange Rate Risk will cause PTCL net exchange loss on foreign loans. Devaluation of rupees
will increase the cost of production, machinery, and almost all the equipment, imported from
foreign countries. So exchange rate risk will affect the Profitability of PTCL and also increase
the risk of getting foreign loans in future.
5.4.2. GOVERNMENT LEGISLATION
Government policies can affect the performance of PTCL. Hence government policies will be a
real threat for PTCL if they are not in favor of PTCL business activities. This can affect the
recruiting policies of PTCL.
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Pakistan Telecommunication Company Limited
5.4.3. TURNOVER
At the end of the monopoly, competitors will enter the industry and the competition will increase
as a result of which they will offer high pays and facilities to skill-person of the industry. This
can increase the turnover of PTCL, which can create a serious threat for the organization
5.4.4. DECREASE IN MARKET SHARE DUE TO COMPETITION
After the end of monopoly, dissatisfied customers may shift to those telecom service providers
who they think would offer better services than PTCL, and will increase customers’ satisfaction.
Decrease in market share would decrease the profitability of PTCL, which will be a real threat in
near future.
2.4 RECOMMENDATIONS
i. There exist a huge amount of outstanding bills to be collected
by the defaulters. The company should frame tight and
effective policies to ensure the collection of its outstanding
bills. The revenue officers should be provided incentives and
bonuses on achieving the determined targets of revenue
collection.
ii. Hundred percent computerization in PTCL would be helpful to
save the time and money and provision of quick services to its
valued customers.
iii. Human resource development is a key component in every
organization; In PTCL this is not going well. So there is an
immense need to improve this department.
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Pakistan Telecommunication Company Limited
iv. Over employment is main and major problem in PTCL.
Reduction / Right Sizing in over employment can give better
results.
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