Unanimous World of Blues

In The Name Of Allah The Most Beneficent And The Most Merciful

ACKNOWLEDGEMENTS:

We are grateful to Almighty Allah; who blessed us with the

determination in completing the following project. We are thankful to our
instructor Mr. Asif Ayub Kiyani, who helped us in conducting the project.
We appreciate the participation of the group’s members who co-operated
a lot in conducting this project. We are thankful to Mr. M.Shafique and
Mr. Ch.M. Asghar (Managers, PTCL); to provide us all relevant
information and helping us in every possible way .we are in great debt to
web organizations, which facilitated us with the required data. Thank you
all.

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DEDICATION:

We dedicate the following project to our Parents, and most

importantly to all group members who worked hard in completion of this
project.

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Preface:

This report is intended for the people who are intended to join the
telecomm industry in future in departments concerning Management and
communication.

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Information:

We visited Islamabad Head quarters (Main office , PTCL) and

customer care services office in Rawalpindi (Bank road,Sadar).

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Abstract:
The project is about the management and communication of
Pakistan TeleCommunication Limited (PTCL) that how PTCL is working
and competing in the industry, our main focus was on SWOT and, PEST
analysis, Management and channels of the communication.

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Executive Summary:

PTCL is restructuring and re-emerging its all departments, it

is forming new departments like Human Resource Department
(RHD), Customer Service Department (CSD), and look forward in
establishing the departments like Research & development
Department (RDD). PTCL is converting the old and urinary file
system network to the digital world of computers and technologies.
It shows their positive attitude towards technological changes and
wishes to lead the telecommunication market.

Although they are facing a lot of threats by the competitors

like Wateen Telecomm, Mobilink, Warid, Telenor, Zong (Paktel),
but still they are fighting the best way they can. PTCL has worked
hard to eliminate its weaknesses and still there are the weak points
,PTCL is trying to overcome those weaknesses.

Mission Statement:

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To be the leading Information and Communication

Technology Service Provider in the region by achieving customer
satisfaction and maximizing shareholders' value'.

Vision Statement:
The future is unfolding around us. In times to come, we will
be the link that allows global communication. We are striving
towards mobilizing the world for the future. By becoming partners
in innovation, we are ready to shape a future that offers telecom

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services that bring us closer.

Chapter number.1
PTCL Historical Background and Company Profile

(1.1) History:
From the humble beginnings of Posts & Telegraph Department in
1947 and establishment of Pakistan Telephone & Telegraph Department
in 1962, PTCL has been a major player in telecommunication in Pakistan.
Despite having established a network of enormous size, PTCL workings

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and policies have attracted regular criticism from other smaller operators
and the civil society of Pakistan.

Pakistan Telecommunication Corporation (PTC) took over

operations and functions from Pakistan Telephone and Telegraph
Department under Pakistan Telecommunication Corporation Act 1991.
This coincided with the Government's competitive policy, encouraging
private sector participation and resulting in award of licenses for cellular,
card-operated pay-phones, paging and, lately, data communication
services.

Pursuing a progressive policy, the Government in 1991, announced

its plans to privatize 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.

PTCL launched its mobile and data services subsidiaries in 2001 by

the name of Ufone and PakNet respectively. None of the brands made it
to the top slots in the respective competitions. Lately, however, Ufone had
increased its market share in the cellular sector. The PakNet brand has
effectively dissolved over the period of time. Recent DSL services
launched by PTCL reflect this by the introduction of a new brand name

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and operations of the service being directly supervised by PTCL instead

of Paknet.

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. Last Year, in
middle of 2005 Government of Pakistan had decided to sell at least 26
percent of this company to some private agency. There were three
participants in the bet for privatization of PTCL. Etisalat, a Dubai based
company was able to get the shares with a large margin in the bet.

Last year when Government was going to privatize the company

there was country wide protest and strike by PTCL workers. They even
disrupted Phone lines of some big Government institutions like Punjab
University Lahore and many lines of public sector were also blocked.
Military had to take over the management of all the Exchanges in the
country. They arrested many workers and put them behind bars. The
contention between Government and employees ended with a 30%
increase in the salaries of workers.

(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.

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• 1998 Mobile(Ufone)& Internet(PakNet)subsidiaries established.

• 2000 Telecom Policy Finalized

• 2003 Telecom Deregulation Policy Announced

• 2006 Etisalat Takes Over PTCL

(1.3) CURRENT STATUS:

Many big change events are taking place at PTCL, after its
privatization. These include the VSS (Voluntary Separation Scheme for
its employees), ERP (SAP based), restructuring, B& CC (Billing and
Customer Care Software) etc, IPTV (Cable television), DSL (Broad Band
Internet services), Another seemingly minor change was change of brand
identity (logo) that will present PTCL's new face after privatization, with
greater focus on customer satisfaction and bringing about of new
advancements in telecom for Pakistani consumers.

(1.4) Company Profile:

With an employee strength of 65,000 (Regular) 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 centres 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

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of two SEA-ME-WE submarine cable is being expanded to meet the

increasing demand of International traffic.

(1.5) Products and Services:

(1.5.1) Home Services:

Broadband Pakistan (DSL), Calling Card Connectivity, Errors

DialUp Setting, Dialup ,Vfone, E-mail & Browsing, Fixed Line,
IPTV, International Calls, New Packages PTCL ,0900
entertainment, Payphone Phone, Net Phone , Internet, Procedure-
Dowtel Sets, Procedure-Huawei Sets , Procedure-ZTE Sets,
Security Questions, Vfone, Vfone FAQs, Vfone new packages,
Vfone Sales Outlets.

(1.5.2) Business Services:

Analogue Channels, Co-Location, DPLC, DXX, LIT Pair Skylink,

TV Transmission, Broadband Pakistan, IP / IPLC, Call Centers,
Calling Cards, Fixed Line, ISDN - BRI, Payphone, Radio
Maritime, Satellite Phone, FAX, Value Added Services, Vfone,
Voice Messaging Service (VMS)

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Chapter number.2
Management styles

(2.1) Introduction:
From the emergence of PTCL till 2006, PTCL was the only
telecommunication company providing the land line telephone services.
PTCL enjoyed the monopoly over the market till 2006; the emergence of
another company Wateen telecom provides land line services. But ptcl
has earned a name, build the trust of the customers, developed the
company from the starch. PTCL introduced a company U-fone as its co
venture and now has provided V-fone (wireless services), and is meeting
all the technolological changes worldwide after its privatization. It has

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become better in provision of services and innovative in introducing new

and new products, every passing day.

(2.2) Management Style at PTCL:

PTCL has got very broad structure in term of span of control. Since
PTCL is the largest telecommunication organization so it has got
wide management levels.
Managers at PTCL are controlling and organization supervising
employees working under it. The procedure of planning in the
company is very traditional and all the planning process takes place
at top level, all the planning related to the company’s future or its
progress is made by the directors of the company, for example if
they want to launch a new product or service then this decision of
launching this product and service will be made at top level Only
Top level. Managers plan and they negotiate their plans with
middle level and then finally middle level managers negotiate the
plans with the first line managers and operatives.

Managers are not much

equipped with management
skills. They are making
relations only with their employees and not with the organization. It is the
task of higher level management to formulate the network with other
organizations in the market. As manager; they are giving presentations for
innovation and creativity and improved management to their employees.
But PTCL is very bad at time management. Employers, managers and

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employees often come late.

It is changing organization and learning
organization. They are rigid in some rules.
They are skill focused. Employees are not
trained in the field of management or business.
They have done some short courses and
working in PTCL. They were individual
oriented but now they are converting to team orientation. Before there
was no proper feed back channel or evaluation process. Just managers
evaluate others and peers were not evaluating the managers and other
peers. Now PTCL employees are evaluating each other because they are
working as peer to peer and are using 360 degree process after the
restructuring of the organization.
When we visited the organization the Managers were patrolling here and
there to observe their employees and they were talking to their
employees, this shows the free and flexible style of management, so we
may say the managers were very friendly. So there is not any single
Management style, which PTCL is following. They are rather using
contingency approaches according to which they are communicating
indirectly “We would see what would happen”, or their decision depends
at the situation.
Decision Making is a complex process at PLTCL According to the
company’s policy they give responsibility first to the internal
management for any internal problems but they have to inform to his Top
management because all the important decision will be taken by Top
management. The main head office is in Islamabad; so all divisional or
regional managers have to communicate through a proper channel to the
top level management.
As defined earlier, decisions are made at top level of management
and negotiation takes place as shown in the diagram:

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(2.3) Mr. Walid as a CEO of PTCL

Mr.Walid Irshaid as a CEO and President of PTCL says:

I have taken immense pride in assuming the duty as President and

CEO of PTCL, which is a great opportunity for me to execute my
responsibilities as a team leader.
To me Pakistan and PTCL are synonymous with an opportunity for
growth. The potential of this growth is visible to me as it is about
the human capital we have in the form of talented and experienced
employees. I can assure you that with the traditional dedication
and determination of PTCL workers we will transform this company
into a world class ICT company.
I am proud of my fellow colleagues who have been leading the
market so far and have been adapting to changing technological
advancements. After the deregulation in the telecom sector of
Pakistan, PTCL is now again ready to face new challenges in a
competitive environment.
We are poised to retain our leadership position by giving PTCL a
new and improved look. The new colors of the Logo are in context
with every Pakistani’s sense of identity and patriotism; green and
white being the colors of purity and honesty, the colors of
trustworthiness and integrity, the colors of Pakistan’s flag and the
colors of every Pakistani’s passion.
Be assured that PTCL will remain the people’s first choice of communication in the future.
Promising you the best of our services, at all times.

Walid Irshaid
President & CEO

• Mr. Walid Irshaid is the CEO and President of PTCL.

• He is also the leading personality of the Tunnel. He is responsible for the each

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and every activity of the Organisation. He not only initiates the every new
activity but also motivates the employees as well.
• He uses his personal resources and provides the benefits to the organization.
• He has a strict policy for the check and measure. He has an open door policy
for the customers, any one who has any problem he can discuss with him at
any time through a proper channel. He goes to the employees personally for
the monitoring purpose.
• He is the disseminator of the company. For example when any customer is
not satisfied with the service or the behavior of the host or other persons He is
the person who faces the media and public while they required him. He has to
handle these persons respectively.
• He is the disturbance handler and resource allocator of the organization,
this is the reason that why PTCL fired out its old employees which it didn’t
need, because company had an over employee rate, they fired out more than
10,000 employees
• He negotiates with the staff and employees.

The company has high efficiency and high effectiveness as well. As they are
providing the best facilities in communication services in Pakistan. In response of the
best facilities the number of customers is increasing.

Chapter no.3

Organizational Culture and Environment

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(3.1) Culture

When PTCL was a governmental organization employees were

required to follow extensive rules and regulations. Managers supervise
employers to ensure that there are no deviations. Management was
concerned by high productivity. Work was designed around individuals
and not in teams. But now management encourages and rewards risk
taking and change. Now they are experimenting new technologies. There
are few rules and regulations and job activities are designed in teams.
New and innovative ideas are encouraged. That’s why every second day
we see a new package and technology in introduced in PTCL.

(3.1.1) SEVEN Dimension of Organizational Culture:

PTCL is following seven dimensions of organizational culture. They are

• OUTCOME ORIENTED: The manager of the company is only
focusing on how to increase the number of customers. They are
outcome oriented they care about their customers. They focus on
results rather how those results are met. They provide their
customer with every possible package. Managers at PTCL told us
that they choose those employees who work in time by any mean
and it doesn’t matter that what way they followed or what was the
procedure of doing it.
• PEOPLE ORIENTED: PTCL is people oriented. They take
into account the effects of their decisions on people because
customer is their basic focus and asset.
• RISK TAKING AND INNOVATIVE: They believe in risk

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taking. Like the way they commercialized their packages is risk

taking and new technology like IPTV is extremely a risk taking
step.
• AGGRESSIVENESS: The aggressive behavior exists among
employees.
• TEAM ORIENTED: Work between teams is appreciated.
• STABILITY: they are stable and maintain the status quo.
• ATTENTION TO DETAIL: The employees are expected to pay
attention to details and they must be precise in their results.

PTCL has developed its culture according to the norms and

traditions laid by the earlier founders of the organization. They are also
following the norms and culture of Pakistan. Their logo, slogans and
language shows their great love and patriotism towards their country, so
they impress their customers in the way, by following the culture of the
country.
Following an innovative culture PTCL in recent few years has
launched so many new services which were never available before, like
IPTV, Broad Band (Internet service), Wireless and Satellite
communication, frequency allocation, customer care services like 0800

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fones and much more.

(3.2) Environment:
(3.2.1) Customers:
Company has customers belonging from all the cultures within the
country and from all the social classes of the society. Therefore almost all
business organizations are taking communication facilities from PTCL,
doesn’t matter that they are also customers of the other organizations but
for the land line services they are only using PTCL.
(3.2.2) Suppliers:
Donatel , ZTE and Huwai are the suppliers of the company
(3.2.3) Competitors: Wateen Telecom, Warid Telecom , Telenor, Zong,
Mobilink, insta phone are the competitors of the company.

(3.2.4) Pressure Group: Pressure groups include a circle of customers

and governmental and as well as non-governmental organizations.

Gov and
NGO’s

People and ZTE ,Hawai

ORGS PTCL ect

Mobilink,
wateen etc

3.3)PE
ST
ANALYSIS

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Pest analysis:
Pest analysis consists of political, economic, social and
technological issues.
Political issues:
The political condition of the country greatly effects the
organizations who are conducting business in that country. If there
is political instability in any country then the foreign countries are
reluctant to conduct business in that country. As far as our country
is concerned, we know that political instability exists here, as we
went there,there was a strike going on. As the governments change
very quickly in Pakistan, so it has negative effect on PTCL.
Foreign countries are not making any investment in PTCL.
Economic issues:
Further economic conditions also effects the business conditions in
the country. If the economical conditions are good, then the
government makes investment in that organization but as far as
PTCL is concerned, there is no such investment by the government
and this organization is now privatized.
Social issues:
Social issues are concerned with the social norms of that country.
As far as PTCL is concerned, their culture is in accordance with the
social values of the country like when we dial their help line, the
operator says ”ASSLAM-O-ALIKUM” while there is no such
regard in any other country.

Technological issues:
PTCL is adapting new and new technology day by day. They are

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satisfying their customers by providing new packages and their

new packages definitely involves new technology for example with
the help of IPTV (which is their new package) they are providing
200 TV channels. Similarly PTCL VMS, VFONE, DSL,
SKYLINK (SATTELITE COMMUNICATION SERVICE FOR
OPERATORS AND CORPORATE CUSTOMERS) they all are
having new technology.

Chapter Number.4
Organizational Structure

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(4.1) PTCL Organizational Structure:

Though PTCL has been changing its structure or we can say it is
redeveloping its structure. Before the structure of the organization
was rigid and now they are innovative and changing their structure of
the organization with new and emerging technologies, like they are
now using computers and so number of employees has been reduced
and they have replaced old ordinary file system with new digital file
system, building structure was very out worn but now they are using
new style of furniture and having latest construction styles.

• WORK SPECIALIZATION: In PTCL work is specialized around

teams and individuals. There is division of labor.
• DEPARTMENTALIZATION: Every department has its own
organizational chart besides there is only one president. They have
different departments like product department and HRM.
• CHAIN OF COMMAND: They somewhat had chain of command.
There is continuous line of authority.
• CENTRALIZATION: Though it is privatized yet there exists
centralization.
• SPAN OF CONTROL: Managers control a lot of employees. This
is a drawback of their miss management but may be this could be
their strength.

They have matrix and project structure that is work is specialized

among teams and when a project starts they assign specialists from other
departments to complete the project. Since two years has passed from its
privatization it organizational structure has changed it is a learning

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organization. Apart from this PTCL is dynamic organization.

Organisational Structure Diagram

Chapter number.5

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SWOT(Strengths,Weaknesses,Opportunities and
Threats)analysis:
SWOT Analysis:

Swot stands for strength, weaknesses, opportunities and threats.

Now here we see all these aspects of PTCL.
Strength:
1. The strength of PTCL is that they are satisfying their customers
by using new technologies, adapting new ways, providing new
packages.
2. They have made large capital expenses on network
improvement to stay competitive.
3. Their local service revenue is ok; paying bills through phone is

a commendable start and they have vast infrastructure and real

estate assets, which can be leveraged further.
4. Their Global connectivity reliability has been improved. PTCL

is expanding the long distance and infrastructure side through

spreading out two SEA-ME-WE submarine cables.
Weaknesses:
1.Similarly, they have weaknesses as well.
2. They do not use their own resources instead depends upon others
as they have sold their 26% share to Etisalat.
3.In addition, there are risk factors in their projects. VOIP use is
increasing despite their ambiguous and discriminatory polices, this
will eat into its profit.
4. Paknet, the Internet service provider arm of PTCL continues to

incur losses due to poor management and lack of network

optimization.

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5. PTCL-V, the fixed wireless phone service is poor. They should

use some their marketing Rupees and use it for better service
delivery, correct billing and competent customer service.
Opportunities:
1. Low teledensity to Pakistan,
2. Growth potential due to improved macro economic situation of
the country,
3. Partnership with new entrants in a deregulated environment.
4. Scope for efficient/cost effective operation.
Threats:
There is great competition among cellular companies and ptcl. One
of their greatest threats is WATEEN, similarly mobilink, warid
telecome, telenore all are their greatest comptetors. Bandwidth rate
dispute with PTA is been dragged in court: if PTCL loses, it will be
a major cost, and even if PTCL wins the case, their artificially high
bandwidth rates cannot be sustained.

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