Professional Documents
Culture Documents
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Preface
The main purpose of internship is to make bridge between theoretical approach and
practical approach. Theory with practical in business is like body with soul one can have
an insight into the theories only by using these each and every business institutes in all
over the Pakistan, books are taught written by foreign authors. So, it is very necessary to
familiarize the students with the actual business situation faced by Pakistan firms and,
moreover there exist a hell of difference in the theory taught in classrooms and what is
happening in the practical field.
M.COM program consists of not only study of bookish material but it is
also combination of bookish as well as practical and extra curricular
activities which helps in
Dedications,
Acknowledgements
My special thanks to Miss Imrana Asad for her guidance and support during
my internship report prepration.
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Executive Summary
This report is being started with the brief and complete introduction of organization, its
historical background, its ser vices and its products offerings. In this report
organization structure is discussed as pr the requirement of internship. What is the
hierarchy in the organization as well as working of various departments are concisely
discussed.
The most important thing the BUSINESS STRAGTEGIES is discussed in such a way that
its not difficult to understand it. Internal and External analysis has the vital importance,
which in this report is also done. More over the Financial Analysis is also done which
is depicting the financial position of the org in the market place. Whereas SWOT analysis
is done which clearly
sows what ar e the strengths, weaknesses, opportunities and threats in the organization.
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Finally some suggestions and recommendations are given to org in this report. Limitation
although very few but cant be negligible are discussed. Thus this report completely depicts
the true picture of PTCL in a meaningful way.
• Summarized your Work in a various department .(give detail descriptions under the
head work done by internee
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TABLE OF CONTENTS
1. Industry Introduction 06
2. An overview of organization 04
-- History of Organization 05
-- Nature Of Organization 06
a. Vision Statement 06
b. Mission Statement 06
-- Main Features 05
-- Competitors 06
3. Organizational Structure 07
-- Hierarchy Chart 05
-- Number of Employees 06
-- Main offices 05
a. Horizontal analysis 06
b. Vertical analysis 06
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-- Significance of ratio 06
-- interpretation of ratios 06
6. SWOT Analysis 07
7. Conclusion 07
8. Recommendations 07
9. Limitations 07
10. Bibliography 07
11. Annexes 07
12. Glossary
INTRODUCTION
CENT RAL BACKGROUND
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voice, data, graphics and video at ever increasing speeds and in an increasing number of
ways. Whereas wire line telephone communication was once the primary service of
the industry, wireless communication services and cable and satellite program distribution
make up an increasing share of the industry.
These new services have been made possible through the use of digital technologies that
provide much more efficient use of the telecommunications networks. One major
technology breaks digital signals into packets during transmission. Networks of
computerized switching equipment, called packet switched networks, route the packets.
Packets may take separate paths to their destination and may share the paths with
packets from other users. At the destination, the packets are reassembled, and the
transmission is complete. Because packet switching considers alternate routes, and allows
multiple transmissions to share the same route, it results in a more efficient use of
telecommunications capacity as packets are routed along less congested routes. Wireless
telecommunications carriers, many of which are subsidiaries of the wired carriers,
transmit voice, graphics, data, and Internet access through the transmission of
signals over networks of radio towers. The signal is transmitted through an antenna
into the wire line network. Other wireless ser vices include beeper and paging services.
Because wireless devices require no wire line connection, they are popular with
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customers who need to communicate as they travel, residents of areas with inadequate wire
line service, and those who simply desire the convenience of portable communications.
Increasing numbers of consumers are choosing to replace their home landlines with
wireless phones.
COMPANY BACKGROUND
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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
ser vices.
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize
PTC, and in 1994 issued six million voucher s 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.
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
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PTCL is in full awareness of the same, and future policies feature a strong conviction of
healthy competition.
RESTRUCTURING OF PTCL
The governments efforts to restructure and privatize PTCL have been on-again
off-again since1991. It had an offer in the late 1990s for 26 percent equity,
reputedly totaling $3 billion, butheld out in negotiations and ultimately missed the
unique global market window at that time. Since then, it has had difficulty
attracting potential buyers.
Investors have been concerned about political risk, and appropriate support from
the government to transform the utility into a commercially-oriented corporation.
With fortunes rising in the local telecom sector, the government hoped to make
privatization of the company a landmark deal for broader reform of the economy.
A successful deal would demonstrate the governments increasing support for
market capitalism and, it was hoped to, boost anemic levels of direct foreign
investment.
PTCL and the government were contemplating different strategic options for
restructuring. Plans were vetted for both a geographic and functional split of
operations. Analysts believed the most likely scenario is a break-up into three
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new companies, tracking with the firms largest business units: local, long distance
and mobile. This approach mirrors the policy environment fashioned for new
competitive entrants. From the government perspective, breaking up PTCL prior
to as ell-off will help curtail the market power of any one single service provider,
thereby stimulating competition.
Unbundling the sale was also likely to increase revenues for the government. The
risk, of course, was that the mobile company, PTML (branded as ³Ufone´), was
disproportionately more attractive than the other businesses. According to AKD
Securities, PTML's contribution to PTCL's total revenues was expected to rise to
12.5% over the next five years í and was assumed to contribute 39% of PTCLs
overall revenue growth. Future growth of mobile, both in terms of subscribers and
net revenues, was considered to almost certainly outstrip demand for fixed line
services. The target was to sell up to a 26 percent stake in PTCL; the government
held 88 percent of $2.6 billion, and then any lowering of bid price in the revised
agreement approved by the cabinet in March. The official documents state that
the accumulated bidding price in the revised bid came down to $2.205 billion
against the original Etisalat bid of $2.599 billion, said a report in the Gulf Today.
The PTCl privatization agreement with Etisalat allegedly inflicted a further loss of
billions of
rupees to the national exchequer besides unprecedented concessions offered in
the long term, indirect conflict with Article 30 of the Public Procurement Rules
2004, it said. By far, the PTCLhas been the highest profit earning state-owned
company with real-estate assets worth billions ofrupees across the country
including commercial plazas, residential colonies and exchanges. According to the
government documents, the Share Purchase Agreement (SPA) of the PTCLwith
Etisalat lapsed in September 2005 after the non-payment of the dues by the
winner bidders. After further negotiations with the Etisalat management, the
government agreed to additional concessions and modifications to the transaction
structure offer
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VISION
³To be the leading ICT ser vices provider in the region by achieving customer’s satisfaction
and maximizing shareholders value´.
MISSION
CORE VALUES
Professional Integrity
Customer Satisfaction
Teamwork
Company Loyalty
1. Features
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revenue.
Pakistan Telecommunication Company Limited has taken decisions to cope with
the competition within the next years. The initiatives taken resulted in the
establishment of 100% Pakistan Telecommunication Company Limited owned
subsidiaries like Pak Telecom Mobile Limited.Paknet and Pak Telecom Pay Phone
services limited. These new entities shall provide cellular mobile information
technology, Internet, payphone, prepaid calling cards and other range of services,
Pakistan Telecommunication Company Limited made a conscious decision to
enter the cellular business as it has tremendous potential and an accelerated
annual growth of about 60%which is likely to continue for many years.
Pakistan Telecommunication Company Limited has been successful in obtaining a
Cellular
Mobile License for its subsidiary and has selected the GSM 900 state -of the²art
technology,
which is growing at a much faster rate internationally. Pak Telecom Mobile
Limited was
incorporated on 18th July 1998 to establish and run this new business
independent of Pakistan Telecommunication Company Limited with full
accounting separation thus creating a level playing field for industry competitors.
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telecom operators and to tap the tremendous potential of the growth in the
demand and market for telecom services. The GOP has reduced the CED on
telecom services, encourages the use of value added services with special
emphasis on
proliferation of Internet. It has also reduced the import duties on telecom
equipment and allows tax exemption.
Private sector data and Internet services providers are operating under license
and revenue share arrangements. Internet & information technology services are
now very popular in the market and numbers of new entrants are competing,
providing Pakistan Telecommunication Company Limited an opportunity lease
capacity. Its available IT & Internet infrastructure both for private sector licensed
operators and Pakistan Telecommunication Company Limited own customers.
Pakistan Telecommunication Company Limited is launching a three-phased
project for IT &
Internet to expand the service to take care of 300,000 customers including the
needs of private license for infrastructure.
The major focus of attention is to improve and expand the services, minimize the
faults and
provide communication facilities to rural areas. It is also one of the major
objectives of
management that the company should not improve its performance but also
encourage the
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private sector to enter the Tele business. The company has entered the domain of
free market economy, which necessitates the liberal management policies and
private sector.
The following basic policy steps have been taken to meet the objectives laid in
PTCL Act to
expand and operate telecommunication services in the country. The main
objective of any
company is to earn the profit and minimize expenses by winning goodwill in the
market
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The Urgent Training Needs which realistically depict the post VSS scenario are being
assessed and catered immediately by conducting customized training programs. The
involvement of all departments, regions and business units for providing their valuable
input in the form of TNA response is essential for accurate identification of their
requirements. Given the transformation stage, the most eminent developmental needs
were highlighted and incorporated in this programme.
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Training is one of the tools used for the development of employees and to consolidate
change on sustainable ground. In order to address the training needs of all stakeholders of
PTCL, EVP (T&D) has directed training region administration to conduct comprehensive
Training Need Assessment of PTCL employees. This exercise of TNA is required for
developing an effective and need satisfying Human Resource Development Plan for
PTCL training centers. The pilot run of this programme is expected to commence by the
end of April 2009.
For the rehabilitation of VSS Optees, PTCL offered a package of post VSS training &
development services, out of which the most beneficial and helpful service offers were
Vocational and Technical trainings.
PTCL has a huge training infrastructure throughout the country that is geographically
wide spread. To revamp this wing of PTCL and transform it into a profit center, Etisalat
Academy has been engaged for this project with the following main objectives:
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The focus of the project is to set up and maintain the qualifications catalogs, create and
evaluate profiles for a range of objects (for example, persons and positions), evaluate
career and succession planning scenarios, set up appraisal systems, as well as plan, hold,
and evaluate appraisals, create development plans, and work through individual
development planning scenarios by customizing the functions of personnel development
to meet customer requirements.
PTCL Academy has been revitalized with a new vision to be recognized locally and
regionally as a center of excellence in the provision of state-of-the-art training and
consultancy services in telecommunications and related fields. It will provide a platform
for the creation, dissemination and exchange of knowledge and expertise in all areas of
telecom and IT to internal and external stakeholders. Some of the programmes on its
agenda are:
• Ph.D. Programme
• MS programme
• Post Graduate Diploma
• Cisco Regional Academy Programme
• Oracle Academy Programme
• Joint venture with CISCO and NUST
• Seminars / Short Courses / Certificate programmes
• Course development for new offerings (technical and management courses)
• Testing / Inspection of telecom equipment
The declaration to celebrate year 2008-09 as year of Customer Care & Satisfaction by the
President/CEO of the company, has entrusted upon Training & Development Department
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a gigantic task to transform our line staff who are the real customer care agents of PTCL.
This initiative is the part of company’s strategic vision to turn PTCL a leading corporate
entity in highly competitive business environment of telecom industry. A mega training
campaign has been launched for all the Linemen of PTCL. The training module prepared
by Training & Development department has tried to address all skill needs most direly
required by our Linemen to cope with emerging technologies in telecommunication. This
training will significantly improve both soft and technical competencies of our linemen
and we believe that this training shall be remembered as a milestone in PTCL’s history.
In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA
plan has been made. The project is scheduled from March 2007 to December 2009.
Following four types of programmes are under the work plan:
Etisalat Academy being the lead consultants of PTCL’s Training and Development
department has proposed a meritorious program for the development of Senior
Management Team (SMT) of PTCL. The workshops, their contents and out comes have
been reviewed and have been found beneficial for the company. Proposed plan of five
workshops is in line with emerging concept of Continuous Professional Development.
CPD is being promoted for conscious updating of professional knowledge and
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As per existing policy approximately 194 internship offers were made during 2008-09.
Currently, we are in the process of invigorating our Internship Policy. During the last
couple of years Internship Programme at PTCL has received special attention and focus.
The overall concept has evolved from its traditional perspective into a strategic
perspective. We look forward to this programme not only as a learning opportunity for the
participants but also a prospect for PTCL in its continuous endeavor for talent hunt. It is
the process by which we not only contribute significantly to the development of the best
talent in professional and leading universities and schools, but it also aims at creating
“PTCL Ambassadors” that spread goodwill of the company all over the country. This
programme is intended to provide students with the opportunity to apply what they are
learning in their academic pursuits to real world situations. Through the successful
implementation of this programme, PTCL looks forward to rightly identify, recruit, train
and develop its most important need of the day i.e. the Human Resource.
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PTCL Landline
For local calls the code used is non-STD. For calls to other cities (e.g. Karachi to Lahore)
the code is called STD. For International calls the code used is ISD.
Dialing System
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When dialing on landlines, calls made within cities are considered local calls. Calls to
other cities (e.g. Karachi to Lahore) are considered long distance calls and are metered
according to distance. (e.g. When dialing to Lahore from Karachi you have to dial the
code for Lahore then followed by the number of the destination, therefore you dial 0423-
XXX-XXXX ). For local calls, you just dial the local number. For international calls, you
dial "00" followed by the country code. (e.g. For calls to the UK from Pakistan you dial
00 - 44 - XXXXXX ).
PTCL V-fone
Ufone
Privatization
The growth of the cellular sector in Pakistan can also be attributable to good
governance policies of the government of Pakistan and the Privatization
Commission. In April 2006, Emirates Telecommunication Corporation, which is
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Key Accomplishments
Ufone has always played a pivotal role in the development of the cellular market
in Pakistan. For the most part, it has been a step ahead in introducing innovative
products to the market. Ufone was a pioneer in launching the GPRS services and
Multi-media Messaging Service (MMS) in Pakistan, and lead the way in
introducing GPRS international roaming and prepaid international roaming for
these services in the Pakistani market.
Performance
As mobile users in the country have reached over 28 million at a very rapid pace,
Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a
subscriber base of around 6.5 million and a market share of nearly 25%. Ufone
has seen a subscriber growth rate of over 200% in the last year, and since the
start of 2005 Ufone added nearly 5 million subscribers onto its network. A
remarkable achievement indeed, especially considering the fact that two new
international players also entered into the market in 2005. Subsequently the
growth in subscriber base caused a healthy trend in revenues which have
doubled.
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Brand
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.
International 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
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customer base with a high level of customer satisfaction via optimum network
service and a 24 hour call center facility.
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.
PTCL Broadband
It is providing high speed internet browsing. DSL is now in top internet speed.
Smart Services
PTCL now a days providing smart TV service in different areas. Over 150 live
channels are available to see with good picture quality.
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Competitors
China Mobiles
Orascom telecom
Telenor
Warid
Mobilink
CUSTOMER FOCUS
We treat each of our customer equality & as the most important person
while we interact with him/her. We must ensure that we do everything
to meet and exceed the customers expectations with perfect to times,
accuracy & quality services.
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Organizational Structure
Board of Directors
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Corporate Information
Management
Walid Irshaid
President & Chief Executive Officer
Muhammad Nehmatullah Toor
S.E.V.P (Finance) / Chief Financial Officer (C.F.O)
Mohammad Nasrullah
Chief Technical Officer (C.T.O)
Mr. Javed Mushtaq
Chief Information Officer (C.I.O)
Bankers
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Registered Office
PTCL Headquarters,
Islamabad-44000, Pakistan.
Fax: +92-51-2263733
E-mail:company.secretary@ptcl.net.pk
Web: www.ptcl.com.pk
Auditors
A.F. Ferguson & Co.
Chartered Accountants
Ernst & Young Ford Rhodes Sidat Hyder,
Chartered Accountants
Share Registrar
M/S FAMCO Associates (Pvt.) Limited
Ground Floor,
Fax: +92-21-2428310
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Regional G Manager
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Revenue Officer
Number of Employees
o Engineering
o Minuteness department
o Operation department
o Marketing
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o Finance
o Accounting department
o Revenue department
o Taxation department
In the beginning they gave me a brief introduction of all the aspects related to their
field of business, their products, changes in products. A general overview of PTCL was
given in other words. Moreover, I learned how things work in a practical environment,
challenges and problems faced as I have mentioned.
More specifically the project assigned to me during the internship was the sales
analysis of PTCL-V Services Packages, a product of PTCL. The major department in
which I did internship was Interconnection Revenue Department. The prices of the PTCL-
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V devices were reduced during the period which had a positive impact on sales. I was
assigned the task of analyzing the impact of change in these prices on the overall income
and other service packages of PTCL-V.
PTCL V- fone (WLL Ser vice) was a 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 June 2010. 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.
Problems Identified
There is a lack of balance in incentives given to old and new employees. New
employees are paid more which de- motivates the old ones.
System problems do arise at times and customers have to wait for the system
to work properly.
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Financial Analysis
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Operating Highlights
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Current ratio
o 2009 =1.5
o 2008 =1.73
o 2007 =2.22
o 2006 =1.66
o 2005 =1.91
• Cash ratio
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• Debt ratio
o 2009
o 2008= 14.86
o 2007=14.86
o 2006=14.86
o 2005=13.87
o 2009=
o 2008=
o 2007=
o 2006=
o 2005=
o 2009=
o 2008=(2.71)
o 2007=14.45
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o 2006=20.21
o 2005=25.45
o 2009=
o 2008=(3.46)
o 2007=20.56
o 2006=27.98
o 2005=36.47
o 2009=
o 2008=(0.55)
o 2007=3.07
o 2006=4.07
o 2005=5.22
• Return on deposits
o 2009=
o 2008=
o 2007=
o 2006=
o 2005=
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o 2009=
o 2008=
o 2007=
o 2006=
o 2005=
o 2009=
o 2008=(4.62)
o 2007=23.96
o 2006=30.07
o 2005=35.02
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SWOT Analysis
STRENGTHS
An integrated monopoly.
Weaknesses
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OPPORTUNITIES
Threats
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Conclusion
PTCL needs innovative service offerings currently it doesn¶t even offer bundles or a single bil
Has been unclear about its IPTV and WiMAX plan and strategy (trials are in progress)
At a minimum, avoiding billing errors and providing competent and courteous service t
its customer s is essential if PTCL wants to show that it is transforming itself to a competit
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Limitations
Mention the difficulties (time, cost, sources etc) that are faced by in
preparing this report.
Bibliography
1. www.ptcl.com.pk
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5. Internship reports
Annexes
At the end of your report attach all of the supportive material you
have used for the preparation of your report , like any brochures
forms , drafts, newsletters, interviews, questionnaires.
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