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INTERNSHIP REPORT ON PTCL

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Preface

• Give an introduction of Your internship Report.

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,

NO WORDS CAN ADEQUATELLY EXPRESS my overriding debt of gratitude to my


parents whose support helps me in all the way. Above all I shall thank my friends who
constantly encouraged and blessed me so enable me to do this work successfully.

Acknowledgements

In the name of Allah, who gave me ability and strength to complete my


internship. I owe considerable debt to large number of persons who either
directly or indirectly helped me during various phases of internship. It was a
new experience, exciting but challenging and indeed guidance rather
frequently, which was afford very generously.

My special thanks to Miss Imrana Asad for her guidance and support during
my internship report prepration.

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In PTCL I am gratefull to all the staff members for providing me an opportunity


to work in the organization at the style and speed of my convenience. I also
wish to record my gratitude for the following staff members for transforming
my theoretical knowledge in practical understanding, despite their heavy
commitments they always found time to answers my questions, resolve
queries and never ran out of patience.

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Executive Summary

By the grace of almighty God, I have successfully completed my 8 weeks internship as


per requirement of M.com course. I was appointed at PTCL Headquarter Islamabad. I feel
my self-lucky to have worked with such a cooperative, dedicated, result-oriented team.
They all helped me in every possible way they can. I was happened to work in
INTERCONNECT REVENUE DEPARTMENT.
With employee strength of 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 Fiber Access Network in the
major metropolitan centers of Pakistan and local loop services have started to be
modernized and upgraded from copper to an optical network.

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.

• Starting and ending Dates of your Internship

• 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

-- Introduction of all Departments 06

-- Comments on organizational Structure 06

4. Work done by Internee 07

5. Financial Analysis of Organization 07

-- Financial data of last year 05

a. Horizontal analysis 06

b. Vertical analysis 06

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-- Significance of ratio 06

-- Components of ratios (formulae used ) 05

-- Horizontal analysis of ratios 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

The telecommunications industry is at the forefront of the information age²delivering


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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.

The largest sector of the telecommunications industry continues to be made up of


wired telecommunications carriers. Establishments in this sector mainly provide telephone
service via wires and cables that connect customers premises to central offices
maintained by telecomm urinations companies. The central offices contain switching
equipment that routes 1content to its final destination or to another switching center that
determines the most efficient route for the content to take. While voice used to be the main
type of data transmitted over the wires, wired telecommunications service now includes the
transmission of all types of graphic, video, and electronic data mainly over the Inter net.

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.

Wireless telecommunications carriers are deploying several new technologies to allow


faster data transmission and better Internet access that should make them competitive
with wire line carriers. One technology is called third generation (3G) wireless access.
With this technology, wireless carriers plan to sell music, videos, and other exclusive
content that can be downloaded and played on phones designed for 3G technologies.
Wireless carriers are developing the next generation of technologies that will surpass
3G with even faster data transmission. Another technology is called ³fixed wireless
service,´ which involves connecting the telephone and/or Internet wiring system in a
home or business to an antenna, instead of a telephone line. The replacement of
landlines with cellular service has become increasingly common because advances in
wireless systems have provided data transmission speeds comparable to broadband
landline systems.

COMPANY BACKGROUND

Pakistan has made steady pr ogress in expanding telecommunication networks and


services in recent years. In Pakistan this industry had few big giants in the past with
PTCL being the sole provider of landline telephone service in the country. At
present the organizations principal activity is to provide telecommunication services all
over the country. It offers both domestic and international services throughout Pakistan.
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PTCL also manufactures telecommunication related equipment.

Pakistan Telecommunication Company Limited had exclusive rights to provide basic


telecom services in Pakistan till the end of year 2002. With the announcement of
Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses for
basic telephony to the private sector in Pakistan who will be competing PTCL, the
incumbent. From the humble beginnings of Posts & Telegraph Department in 1947 and
establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day,
ours is a story of commitment and vision.

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.

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 for med 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
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technologies continuously 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 provider s 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.

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

 An organizational environment that fosters professionalism, motivation and quality

 An environment that is cost effective and quality conscious

 Services that are based on the most optimum technology

 Quality and Time conscious customer service

 Sustained growth in earnings and profitability

CORE VALUES

 Professional Integrity

 Customer Satisfaction

 Teamwork

 Company Loyalty

1. Features

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Pakistan Telecommunication Company Limited (PTCL) is the primary provider of


Telecommunication services in Pakistan. The range of
services include basic telephony, telegraph, fax, telex, Public data, Internet, E-
mail, ISDN(Integrated Services Digital Network),Universal Access Numbers(UAN),
another value-added services.
Pakistan Telecommunication Company Limited is a professionally managed
company and has initiated measures, with active support of the Federal
Government, to inculcate a corporate culture that benefits company. Pakistan
Telecommunication Company Limited believes that it has an inherent potential
that it can exploit to emerge as an important and active business entity. Pakistan
Telecommunication Company Limited has some basic strength and the potential
that needs to be exploited into real business opportunities. The Directors of the
Company feel that a
firm and unwavering commitment towards provision of a complete range of
market driven telecommunication services to its customers using state of the art
technology proven products and a customer care approach is essential in a
rapidly expanding telecom market. The radical change from a monolith state
controlled culture to a open market competitive environment. The customer is
becoming and more conscious of the value of telecom services in an improving
business environment.
The advent of digital systems, increasing application of computer technologies
and development of wide-band systems has generated new customer needs.
Innovative products and services such as cellular mobile, high-speed data,
Internet etc are much in demand. The current decade has proved to be the period
of sector restructuring and growth globally. To keep pace with the changes and to
meet the emerging new demands, Pakistan Telecommunication Company Limited
has adjusted its programs to meet the requirements of the market. Traditional
telecom monopolies like Pakistan Telecommunication Company Limited need to
explore new avenues of technology and financing to accomplish a quantum leap
in growth and bridge the gap between demand and supply, still remaining
financially viable. The Company has taken initiatives and a
change is gradually becoming visible through expanded capacity and increasing
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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.

Pakistan Telecommunication Company Limited is following a business-oriented


policy to
associate private entrepreneurs in telecom sector development. The options are
based on
interconnect and revenue sharing arrangements with license operators and
through out-sourcing revenue sharing with 0 & M contractors as business
partners. PTCL has successfully entered into arrangements with foreign and local
telecom companies and has signed three contracts prepaid calling card service to
promote international traffic.
The Government of Pakistan has encouraged the growth of the telecom sector to
enable Pakistan to keep pace with the rapid technological advancement in the
field of telecommunication. The tariff structure remains under constant review of
the government to rationalize from the point of providing adequate returns to the

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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.

PTCL S CORE OBJECTIVES


The primary objective of Pakistan Telecommunication Company Limited is to
provide
telecommunication services to the people in the country or in short to satisfy the
telecommunication needs of its customers. Responding to the rapid economic and
technological growth, the company is determined to meet the challenge of
expanding needs of telephone and data communication such as public data
network, integrated services digital network and Internet services.

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

The following are the long-term objectives of the


organization.
 Provision of Telecom services all over the country.
 Plan, establish and maintain telecommunication
 Acquire, promote and manage research and development, transfer of
technology and software development including manufacturing of
telecommunication equipment and plant
 Enhance efficiency, improve quality and expand the system to meet
customer satisfaction and provide service on demand.
 Create congenial climate for binding of human skill and horizon of
employees through training and education.
 Convert its cash basis single entry accounting system to accrual basis
double entry system meeting the commercial international accounting
standards.
 To introduce computerized directory assistance and complaint services
reform billing
o and a revenue collection system.
 Strengthen relation with foreign international administration, entities,
services

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o providers, international and regional telecom organizations for


better international
o communication and technical cooperation in telecommunication
business.
 Expand customer awareness of all value-added services of PTCL.
 To improve the efficiency of Customer Service Centers by deputing
qualified persons
o who are well aware of public relation techniques.

Projects and Activities

1. Urgent Training Needs Programme:

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.

2. Customer Care Initiative:

To achieve the pinnacle of Excellence in Customer Service envisioned by the


President/CEO the Training and Development department has assumed the responsibility
for effectively imparting training under the Customer Care Initiative to all PTCL
employees.

3. HRD Plan for 2009-10:

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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.

4. Training Incentive offered to VSS Optees:

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.

5. Revamping Project of PTCL Training & Development by Etisalat Academy:

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:

• Evaluation of existing training infrastructure

• Identification of potential and non-potential training institutes

• Development plan for proposed training set-up

• Comprehensive workforce analysis of existing Human Resources in T&D


department

• Proposals regarding computerized learning management system

• Preparation of Quality Assurance (QA) systems & procedures

• Determination of Key Performance Indicators (KPIs)

6. Implementation of ERP system in T&D:


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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.

7. PTCL Academy activities:

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

8. Lineman Training Programme:

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.

9. Quality Awareness Programme:

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:

• Installation Quality Standards


• Quality Auditor Course
• Companywide Quality Awareness
• ‘Train the Trainer Programme’ offered to the faculty of PTCL training centers

10. Senior Management Development Program:

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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enhancement of professional competence throughout a person's working life. PTCL


Training & Development wing is committed to the pursuit of professional excellence with
its Senior Management Team. PTCL’s SMT, though possesses matchless functional
competencies, will benefit from these workshops.

11. Internship Programme:

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.

12. Nominations for Open House Training Programmes:

Besides aforementioned activities the Training and Development Department is


organizing a complete database of the training firms/institutes and the freelance training
consultants. Staff is being nominated for open house training programs offered by
reputable firms to assess the efficacy and the relevancy of the program

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Products and Services

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

It is a product which is wireless. We can use anywhere in Pakistan.

Internet and web browsing is also its feature. It is under CDMA

Ufone

Ufone (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.

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).

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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commonly known as Etisalat, has assumed management control of Pakistan


Telecommunication Corporation Ltd – part of the $2.6bn deal to buy a 26% stake
in PTCL. The successful privatization of PTCL, and consequently Ufone, is hailed
as ushering in a new era for telecommunications in Pakistan.

Now, under the management of Etisalat, Ufone will concentrate on customer


needs and benefits and is more determined than ever to be the leading cellular
player in the market. Ufone has been known for providing superb propositions
and quality service to its customers. With the new expected investment, Ufone
can now aggressively expand its network coverage.

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.

Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured


product. Ufone is a leading GSM service provider in Pakistan now a days.

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

MORAL VALUES OF EMPLOYEES

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.

EMPLOYEE RESPECT & DIGNITY

We treat each of our employees with fairness, which includes giving


constructive feedback for their development. We celebrate diversity

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and seek suggestions from all employees for improvement. We ensure


that responsibility & fairness in all our decision-making.

TEAM BASED APPROACH

We work towards achievement of our vision & mission as a combines


group. We encourage inter & intra-departmental communications.
We treat our colleagues as our internal customers & ensure that the
requirements of internal customer focus are always met.

Organizational Structure

Board of Directors

Mr. Naguibullah Mali


Chairman PTCL Board
Secretary IT & Telecom Division, Ministry of
InformationTechnologyGovernmentof Pakistan,
Islamabad

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Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani


Chairman & Chief Executive Officer,
Etisalat International Pakistan L.L.C
Executive Vice President Contracts & Administration
Etisalat, UAE.

Mr. Salman Siddique


Secretary (Finance), Ministry of Finance
Government of Pakistan,
Islamabad

Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh


Chief Human Resources Officer
Etisalat, UAE

Mr. Mushtaq Ahmad Bhatti


Member Telecom
Government of Pakistan,
Islamabad

Mr. Fadhil Mohamed Erhama Al Ansari


Executive Vice President Engineering
Etisalat, UAE

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Mr. Khursheed Ahmed Junejo


Ambassador, Embassy of Pakistan
Abu Dhabi, UAE

Mr. Abdulaziz Hamad Omran Taryam


General Manager, Northern Emirates
Etisalat, UAE

Dr. Ahmed Al Jarwan


General Manager
Real Estate
Etisalat, UAE

Ms. Farah Qamar


Company Secretary PTCL
PTCL Headquarters,
Islamabad

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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)

Syed Mazhar Hussain


S.E.V.P (HR / Admin & Procurement)
Sikandar Naqi
S.E.V.P (Corporate Development)
Naveed Saeed
S.E.V.P (Commercial)
Mr Tariq Salman
S.E.V.P (Business Zone North)
Mr Abdullah Yousef
S.E.V.P Business Zone South
Mr Hamid Farooq
S.E.V.P Special Project
Farah Qamar
Company Secretary
Legal Affairs
Dr. Syed Mohammad Anwar Shah

Bankers

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Askari Bank Limited


Citibank N.A.
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
National Bank of PakistanRBS (formerly ABN AMRO)
Standard Chartered Bank Limited
United Bank Limited

Registered Office
PTCL Headquarters,

Block-E, Sector G-8/4,

Islamabad-44000, Pakistan.

Tel: +92-51-2263732 & 34

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,

State Life Building 1-A


I . I Chundrigar Road
Karachi 74000

Tel: +92-21-2422344, 2467406

Fax: +92-21-2428310

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Organization Hierarchy Chart

 Senior Exective Vice President

 Exective Vice President

 Regional G Manager

• Director (Senior Manager)

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 Managers Senior Engineer

Assistant manager S.D.O/Asst. Engineer

Revenue Officer

Number of Employees

Number of employees in PTCL is over 30000

Introduction of all department

o Engineering

o Minuteness department

o Operation department

o Research and development

o Marketing

o It is concered with the creation of value for the customers

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o Finance

o Accounting department

o Revenue department

o Taxation department

o Human Recourse department

o Training and Development

Comments on the Organizational Structure

The structure of the organization is very good in my opinion.

Department worked during internship and specific/leading


contribution made.

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

PTCL is a well organized company and operates efficiently in this competitive


environment so it was difficult for me to identify the problem. But nothing is perfect in
this world there is always a room for improvement. According to my limited knowledge
following were the problems and challenges that can directly affect the efficiency and
performance of the bank or in other words improvement need be made in the following
areas:

 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.

 Lack of proper computer skills in old employees is another problem.

 System problems do arise at times and customers have to wait for the system
to work properly.

 Some employees misuse the resources of the company.

 Employees were not very effective in communication among themselves.


They didn’t share the experience with each other and didn’t care about the
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other employees. Some employees lacked the trust in management.

 Ineffective public dealing was another major problem which I experienced


during my internship. y Regularity and punctuality shows the character of big
and good executives. But this problem is also faced by the overconfident
employees.

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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• Time interest earned ratio

• Debt ratio

o 2009

o 2008= 14.86

o 2007=14.86

o 2006=14.86

o 2005=13.87

• Working capital ratio

o 2009=

o 2008=

o 2007=

o 2006=

o 2005=

• Return on equity ratio

o 2009=

o 2008=(2.71)

o 2007=14.45
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o 2006=20.21

o 2005=25.45

• Return on assets ratio

o 2009=

o 2008=(3.46)

o 2007=20.56

o 2006=27.98

o 2005=36.47

• Earning per share

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=

• Cash/ deposit ratio


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• Total Assets /net worth ratio

o 2009=

o 2008=

o 2007=

o 2006=

o 2005=

• Interest expenses /Total

• Interest income/total income

• Net profit margin

o 2009=

o 2008=(4.62)

o 2007=23.96

o 2006=30.07

o 2005=35.02

Interpretation of the ratios calculated by the different years.

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SWOT Analysis
STRENGTHS

 Largest operational network and infrastructure within ICT


(Information & Communication Technologies) segment.

 An integrated monopoly.

 Market leadership in Local loop, Wireless local loop (WLL)


and Fixed telephony.

 PTCL (Ufone) is market challenger in GSM segment.

 Ufone is performing well though Warid, Telennor, Mobilink


and Zong are tough competitor. PTCL , Ufons profitability
increased by 49.2 percent to Rs 977 million in 1H/FY07 as
compared to rsRs655 million in the corresponding period
last.

 Competitors still dpend on PTCL network either directly or


indirectly.

 Experienced Telecom Recourses.

Weaknesses

 Not been able to nurture its growth around customer


services oriented strategy.

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 Internal organizational and business issues.

 Monopolistic culture has further added to complexities.

 Paknet, the internet service provider arm of PTCL


customers to incur losses due to poor management and lack
of network optimization.

 Ptcl-v, the fixed wireless phone service is poor.

 Over employment & low productivity.

 Slow decision making including external interferences.

 Corporate culture akin to Government department.

OPPORTUNITIES

 Low teledensity of Pakistan.

 Have vast infrastructure and real estate which can be


leveraged further.

 Global connectivity reliability has been improved.

 PTCL expanding the long distance and infrastructure side


through spreading out two sea-me-we submarine cables.

 Partnership with new entrants in deregulated environment.

 Scope for efficient cost effective operations.

Threats
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 increased competition in long distance counties to exert


pressure.

 VOIP use is increasing despite ambiguous and


discriminatory policies.

 Exposure to market competition.

 Migration to cellular network.

 Ability to attract &retain quality professional.

 Reduction in international settlement rates.

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)

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 t

its customer s is essential if PTCL wants to show that it is transforming itself to a competit

company which cares for its customers.

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 directors
report from PTCL the organization is being revamped´. Only
time can tell the impact.

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Suggestions and Recommendations

 No doubt P.T.C.L having the monopoly in pr oviding


the Land-Line Telephone Connection in Pakistan and its
playing its role magnificently. In current scenar io
P.T.C.L has increases its Revenue quite dramatically, and
probably that as soon as this organization has become
privatized it will flour ish its revenue in better manner.

 PTCL should immediately change its Finance upper


level of hierarchy and should stream line in the good
manner.

 PTCL should also encourage the Billing On line system that


each and ever y customer should have to pay his/her bill on
line basis.

 The system of E-PAYMENT which although exist in PTCL


finance system but there is need of improvement this facility.

 The image of PTCL being leading Telecom Providing


is not good in the eyes of common customer especially
there e are lot of complaints about the including the bogus
local calls in the monthly bills of various customers. PTCL
should also provide the detail of local calls made from any
Land Line Number which would be provided in Micro
level to the customer .

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 Faulty Telephone connection should be Fault Free


within 24 hours in order to maximize the Revenue, as
Revenue of PTCL should sacrifice at the cost of Faulty
Telephone.

 PTCL should make Customer Care Centers in r emote areas.

 The punching system of Billing through automation at


CITI Bank Karachi takes so much time to adjust so it should
be revived.

 The Financial D.D.O powers should be entrusted to the


Director Finance rather GM.

 PTCL is not utilizing its surplus profit in long-term


investment projects which be done.

 PTCL management should give concentration towards the


Securities of deposit and it should be on maximum level.

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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2. Annual reports of PTCL.

3. Staff of the department.

4. Recent business record.

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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