4 ''in t he name of ALLAH, most Gracious, most Compassionat e'' Pakistan Telecommunication Company Limited, INTERNSHIP REPORT ON PTCL

PREPARED BY Asfand yar Khan BBA-Finance SESSION 2009-2010 i 9 04 0 DEPARTMENT OF MANAGEMENT SCIENCES 0 (*:)Ptcl Table of Content Preface Acknowledgmen Overview of organization 1 -21 Introduction Brief history Current situation Main offices Technical & operationa l network Current PTCL network Technical and operational mile stones Services of PTCL 21-22 Services for customers Value added services Services for corporate customers Activity ratio Financial analysis 23 Competitors & subsidiaries 24 S ub sid ia rie s 2 5 -2 7 Ufone Multi Media Broad Band Competitors 28-29 Mobilink Telenor Warid Brief on my internship work 30-41 Marketing department Customer care & customer services department Revenue depart ment SW OT Analysis 42-44 My project 45-67 Current HR I s Of PTCL 68-69 (0:)Ptcl fee l M e differe pce Weakne s7O-71 Recommendations 72 Conclusions 73 Appendi DFD's Organization Chart Financial Sta tements

PREFACE This report is the practical part of the most vital practice of our MBA-HR progr am. The sole objective is to familiarize the student with the practical manipula tion of business organization. This report has been written to know how big orga nizations like PTCL manage their teams to achieve their common goals. In the fir st phase of the report there is the general introduction about the company and t hen different terms have been explained, then the mission, values, different ser vices and different strategies of the organization have been explained. In the n ext part, SWOT analysis of the firm have been done by the help of which it is id entified that what are the strong areas of the company and where it lacks so tha t it can improve, and then in the end most important my experience while working in the PTCL as internee is explained. Author Internship Report PTCL feel the difference Acknowledgement In the name of Almighty Allah who is most merciful, and who give me strength to write this internship report in a different way. I extend my heartiest thanks to my seniors, colleagues, and subordinates who ass ist me on every occasion to enable me to write this report. My parents, classmates, friends come next in the list of those whom I have to th ank. I pay special homage to the following persons. Mr. Bashir Ahmed Malghani (Manager HR MTR). Mr. Irshad Ahmed Engineer Operations Vehari. Internship Report (0:)Ptcl feel the difference TRANSMITTAL MEMORANDUM ASFAND YAR KHAN : SUBJECT: INTERNSHIP REPORT ON PAKISTAN TELECOMMUNICATION COMPANY LIMITED Internship report on any organization is a necessary element to get the MBA degr ee from any university. I have written an internship report on PTCL and review i ts Human Resource system / procedures adopted for such purpose. My major recomme ndation is this: PTCL should improve their contact with middle & lower level emp loyees especially supervisory level and establish internal performance appraisal system to avoid the future complications & to evaluate the employee performance & encouraging them. That conclusion was arrived at after eight weeks extensive p ractical training/study in the HR department of the company. Besides this, I als

o studied the role of C.B.A during the latest proposal of Volunteer Separation S cheme (VSS) for employees. Because of my analysis, companys officials felt these flaws in the system & are agree on my suggestions and wanted to implement them i n near future. I am grateful to my seniors, colleges, and subordinates who assis t me to complete this comprehensive report in an excellent way. If the members o f the review committee of this report have any additional questions, I Inshallah will try my best to do it more well way. At last I thankful to the University w ho give me an opportunity to review/study the HR system/process of company. Internship Report (0:)Ptei feel the difference EXECUTIVE SUMMARY TITLE: AN INTERNSHIP REPORT ON PAKISTAN TELECOMMUNICATION COMPANYLIMITED AUTHORI ZATION This report is a necessary part of MBA degree program. advised every stud ent to submit. It was done after the completion of all subjects. The main purpos e of this report is, review of the human resources techniques & systems adopted by the organization. Find out their weaknesses and give suggestions for improvem ents. I strongly recommend that company should improve their contact with middle & lower level employees especially supervisory level and establish internal perf ormance appraisal system to avoid the future com plications & to evaluate the em ployee performance & encourage them. PROCESS OF REVIEW Data from June, 2005-2007 were taken for analysis, and METHODOLOGY: Human Resource Management practices f ollowed by the company seen practically whether the company adopted them accordi ng to the international labor law standards or not. I had been working in this o rganization since five years. Therefore, I was in a better position to review th e system in an efficient way. PROBLEMS: A central problem in the HRM systems of the company is lack of contact & feedback from & to employees there is a lack of co-ordination between different departments of the organization as well as into a specific branch. Another problem is lack of trained staff & political pressur e for REOCMMENDATION: Department of management sciences of the university Internship Report (0:)Ptcl feel the difference transfers/postings etc on middle management. Like wise lake of automation and st ate-of-the-art latest IT technology for correspondence between the contents of t he company causing the delay in work and negatively affecting the over all perfo rmance of the company. I point out those weak areas, and hope that company if, a dopted my suggestion and recommendation can overcome the problems. This will als o benefit for the other systems of the company. TIME FRAME: Finally, if the reco mmendations are accepted, the program could be, put into effect within six month s. Internship Report (*:)Ptcl feel the difference O V E R V IE W O F T

-IInternship Report (*:)Ptcl feel the difference PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCU Established on January 1, 1996 Head Office: Pakistan Telecommunication Company Limited G-8/4, Islamabad even years into a new century, the telecom sector of world finds itself at cross roads after changing itself almost beyond recognition over the last 25 countries having adopted thesecompetitionadvanceorder telecom sector. The results of year s. Privatization and policies to are the their of the day, with a majority have been impressive; the industry has grown at unprecedented pace. Although there ha s been a phenomenal growth in Pakistan, especially in the cellular mobile commun ication and in the internet, yet the late density remains almost stagnant. S INTRODUCTION So far PTCL is the sole land line service provider of Pakistan. PTCL is the gian t of Pakistan telecommunication industry and enjoying the monopoly. This part of the report contains a brief introduction of PTCL. This introduction is divided into two parts, history and current situation. BRIEF HISTORY Over the years, technology has changed the concept of communication and what was thought to be a fictional only a decade ago, has actually made its way through to our hands today. This is the future we dreamt of so fondly. Welcome to the mo dern age, of telecommunication, which have become complementary to our lives. Bu t there must also be an anchor to introduce, allow, improve and channelize all t hese services and -2 Internship Report (*:)Ptcl feel the difference innovations sweeping through the globe. In Pakistan same anchor is Pakistan Tele communication Company Limited from the humble beginnings of posts & Telegraph De partment in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day, PTCL is a story of commitment and vision. Pakistan Te lecommunication Corporation (PTC) set sails for its voyage of glory In December 1990, taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincide d with the Governments competitive Policy, encouraging Private Sector participati on and resulting in award of licenses for Cellular, card-operated Payphones, pag ing and, lately, data communication Services. Pursuing a progressive policy, the Government in 1991, announced its Plans to privatize PTC, and in 1994 issued si

x 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 teleph ony in the country. It also paved the way for the establishment of an independen t regulatory regime. The Provisions of the Ordinance were lent permanence in Oct ober 1996 through Pakistan Telecommunication (Reorganization) Act. The same year , Pakistan Telecommunication Company Limited was formed and listed on all stock Exchanges in 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 wher e in convergence of technologies continuously changes the shape of the Sector. A measure of this understanding is progressive measures such as Establishment of the companys mobile and Internet subsidiaries (U-fone & Paknet) in 1998. As telec ommunication monopolies head towards and imminent end, services and infrastructu re providers are set to face even bigger challenges. Pakistan also entered -3 Internship Report (*:)Ptcl feel the difference post-monopoly era with deregulation of the sector in January 2003. On the Govern ment level, a comprehensive liberalization policy for Telecom sector has already been announced now. Now PTA have issued License to two new telecom companies in Pakistan TELENOR international and WARID TEL this act will put some challenges for PTCL to cope with. PTCL is in process of enhancing organizational and busine ss Proficiency through vertical integration and horizontal diversification. At t he same time, cross-national ownerships, operations and partnerships are being e valuated with a view to developing and diversifying the business. -4 Internship Report (*:)Ptcl feel the difference These are few historical developments of PTCL through the years. Historical Backwound 1947 1962 Posts &Telegraph Dept. established Pakistan Telegraph &Telephone Deptt. Pakistan Telecom Corporation ALIS: 850,000 1990-91 Waiting list: 900,000 Expansi on Program of 900,000 lines initiated (500,000 lines by Private Sector Participa tion 400,000 lines PTC/GOP own resources). 1995 1996 1998 2000 2003 2005 About 5 % of PTC assets transferred to PTA, FAB & NTC. PTCL Formed listed on all Stock Exchanges of Pakistan Mobile & Internet subsidiaries established Telecom Policy Finalized Telecom Deregulation Policy Announced 26 % Shares by Etisalat UAE thro ugh open bidding -5 Internship Report CURRENT SITUATION OF ORGANIZATION

(*:)Ptcl feel the difference After having brief introduction from past end of PTCL now we move towards the cu rrent situation of the company. In this part focus will be on the: Structure of organization -6 Internship Report (*:)Ptcl feel the difference Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central), EVP (Accounts), EVP (Operation), EVP (Information Technology, Training & Resear ch), and EVP (Revenue). All these are appointed at Pakistan Telecommunication Co mpany, Headquarters at G-8/4, Islamabad. Apart from these EVP, there are also EV P (Operation), EVP (HR) etc who are heading the other regions of PTCL in major c ities country wide. Then there are Chief Engineers and General Managers at H/Qs who report to their relevant EVP. Then there are Senior Managers, Deputy Directo rs, Assistant Directors, Account Officers, Assistant Account Officers, Financial Analysts, Marketing Managers, Computer Programmers, and IT Specialists etc. The re are also Regional Heads (General Managers) to head PTCL Regions then come the Senior Managers (Operations), Senior Engineers (Operations), Engineers to look after the telecom system of Regions. There are also Senior Managers Finance, Acc ount Officers and Accountants to Handle Regional account and billing matters. Ma nager HR & his staff are responsible to take care of Personnel affairs at Region al Level. In non-gazetted staff there are Engineering Supervisors Operations /Sw itching /Power plant /Optical Fiber system/M.W Media, Account Assistants, Stenog raphers, Assistants, Key Punch Operators, Telecom Technicians, Upper Division Cl erks, Lower Division Clerks, Line Men, Wire Men, Drivers, Exchange Cleaners, Nai b Qasids and Peons etc. All the staff is recruited by the HR Department headed b y SEVP HR. The HR experts are responsible for hiring & to further streamline its recruitment process. -7 Internship Report MAIN OFFICES (*:)Ptcl feel the difference The Head Office of Pakistan Telecommunication Company Limited is situated in Sec tor G-8/4, Islamabad, which is headed by the "President". Besides, it has Region al Headquarters like: > Islamabad Telecom Region, -8 Internship Report (*:)Ptcl feel the difference Technical & Operational Net Work

Pakistan telecommunication Corporation under the Act 1996, Pakistan Telecommunic ation Authority (PTA) issued a license to Pakistan Telecommunication Company Lim ited for the provision of telecom services within Pakistan to private sector and the general public as the Federal Government may determine and during the exclu sivity period of the Pakistan Telecommunication Company Limited (PTCL) specified in above-mentioned Act. PTCL has 25 years license to provide telecom services i n Pakistan with Stake in the Company with about 62% equity. PTCL has largest net work and huge infrastructure for its more than 4,405,161users as on (Mar, 2008). Switching Technology There are 7 different kinds of switching technologies currently operational in P TCL network. > Alcatel -9 Internship Report Current PTCL Network Installed capacity Working connections To tal exchanges Telephone density per 1 00 population Countries on ISD/(ISD STATIO N) Customer service centers Card pay phone NWD stations UIA stations Total lengt h of main optical fiber link Optical fiber short haul links Optical fiber spur l inks (*:)Ptcl feel the difference Mar, 2008 5273091 4,405,161 2962 2.9 242 154 387,490 2092 1898 4591km 127.2km 32 41km These are few basic facts about PTCL network. So taking over from posts & Telegr aph Department in 1947 to now providing sate of art technology it is really big achievement. -10Internship Report (*:)PtC1 feel the difference TECHNICAL AND OPERATIONAL MILE STONES PTCL is continuously improving its network. During the year 2007 PTCL installed capacity was 4940154 but now in current year the installed capacity is improved. PTCL achieved 1 00% digitalization in this year. Computerized Fault Management System This feature of PTCL improved network & is being used to register & rectify Land Line Faults in a computerized way. This system was working in few cities but no w it is available all over the Pakistan. (1 8) Launch Of IN Platform To augment the capacity and introduce additional value added services a new Inte lligent Network (IN) Platform was launched in October 2003. This platform has hi gher capacity for prepaid calling cards and provision for introduction of new se rvices. Optical Fiber Junction Access Network To further support the launch of new services the optical fiber junction access network has been in implementation phase. This system further supports the upcom ing project of PTCL WLL (wire less local loop), Broad Band Services & IPTV. This

was the brief introduction of PTCL network now we move further and develop our understanding about PTCL services and offerings. -11Internship Report (*:)Ptcl feel the difference SERVICES OF PTCL Pakistan Telecommunication Company Limited not only Provides Conventional teleph one facilities, it also offers optical fiber services to the private sector. We will briefly discuss below the product lines being offered by the PTCL. Basicall y PTCL divide their services into two parts. 1. services for consumers 2. servic es for corporate customers Services for Consumers These services are basically for the common users (Individual/home users) those use telephone in their home/work place and they are basically non business users . a) New Telephone Connections: As mentioned earlier, PTCL is presently the only telecom company, who provided f ixed-line telephony in the country. So whenever, any Private business concern or any individual needs a new telephone connection for provision of telephone serv ice. b) Value Added Services: CLI (Callers Line Identification) Caller Line Identification (CLI): Calling line Identification (CLI) allow customers to identify the caller before picking up th e phone receiver. To subscribe to CLI services, a customer needs a telephone set with display capability or a CLI device attached to the phone. Advantages: Chec k on obnoxious calls. -12Internship Report PREPAID CALLING CARDS: (*:)Ptcl feel the difference PTCL calling card is the most popular choice of millions of customers all over t he country. It is now available with balance transfer facility and follow on cal l facility. Comes in easily affordable denominations of Rs. 100, 250, 500, 1000 and 2000. -13Internship Report How to use it: (*:)Ptcl feel the difference The basic concept of the service is to provide billing solution to PTCL customer . The same PTCL Calling cards are used for this purpose. Through these cards cus tomer can pay his bill on phone. No additional charges for bill payment transact

ion. Advantages Customer can save his time by paying his bill on phone -14Internship Report (*:)Ptcl feel the difference Prepavment Telephonv Services (PPT j With the changing trends most telecoms are diversifying their services towards P repaid solutions .one of such modern era telecommunication service is Prepayment Tele Phone (PPT).It provides the facility to subscriber to load a prepayment Te lephony card against their telephone number thereby generating an account on I/N platform and any call made from that telephone will be charged to this account. the service will provide state of art technological facilities to the subscribe rs. Target market Target market for the service can be segmented as follow: Budg et conscious subscriber - 15Internship Report SERVICES FOR CORPORATE CUSTOMERS (*:)Ptcl feel the difference PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suite the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the following services, PTCL Corporate CustomerCent ers can be contacted. IN BASED VALUE ADDED SERVICES 0800-Toll Free VALUE ADDED SERVICES -1 6 Internship Report (*:)Ptcl feel the difference I / Universal Access Number (UAN): UAN (Universal Access Number) service is ideal for organizations Engaged in mark eting of products or services. Here is a list of business who can avail UAN Serv ice. Banks -17Internship Report Features Call answer (*:)Ptcl

feel the difference -18Internship Report (*:)Ptcl feel the difference v

Co- Location Centers Pakistan Telecommunication Company has taken land mark decision to establish co location centers throughout the country. Service concept This service is basical ly for telecom data and I.T companies. These companies will install their equipm ent directly in PTCL premises in ready fitted environment. The primary purpose i s to provide a number of resilient and centralized connection and control facili ties in which co-location centers communication can be located. Benefits Easy acc ess to local & international connectivity -19Internship Report (*:)Ptcl feel the difference -/ Universal Internet Number (UIN) 131 UIN 131 numbering scheme for internet services providers, represent exclusive co de to each ISP. Service concept The concept of the service just like toll free 0 800 but charges a local call for each connectivity attempt, UIN involves allocat ion of numbers to individual ISPs who are licensed by PTA. Functionality The serv ice functions under single meeting billing system, with promise of rich dividend s in terms of customer care. Benefits The benefit goes to the end users who happ en to be any ISP customers. -20Internship Report (*:)Ptcl feel the difference -/ Virtual Private Network (VPN) Communication is the secret of success in todays highly competitive market. When it comes to enabling your enterprise, your communication got to be instant, fast and hassle free. The answer to this corporate need is virtual private net work. Service concept It is an innovative and intelligent private network to integrat e business/enterprises having sub-offices with in a city or nation wide. Without necessity installation of dedicated resources, VPN enables organization to crea te a private network. -21Internship Report Target market Corporate customer

(*:)Ptcl feel the difference -22Internship Report (*:)Ptcl feel the difference FINANCIAL ANALYSIS Financial analysis of any organization is very necessary for the evaluation and assessment of a firm. The information derived from these types of analysis shoul d be blended to determine the overall financial position. This analysis includes ratio analysis, common size analysis and the study of differences in components of financial statement. One of the primary objectives is identification of majo r changes in trends, amounts and relationship and investigation of the reasons u nderlying those changes. In the financial analysis of P.T.C.L we will analyze so me important information about the company. As I did my internship in human reso urce management, but it has not an independent organization so I have to analyze the P.T.C.L for the analysis purpose. Current ratio Current Ratio is an indicator to determine the short term debt paying ability or the liquidity of a company. It tells us that how many current assets are availa ble to pay for the current liabilities of the company. Current ratio of the comp any in 31 Mar 2008 is 1.67& is favorable for a company. The ideal condition is 1 .1 but ratio is quite reasonable. Quick ratio: Quick ratio or the acid test ratio also performs the same task as is performed b y current ratio but with more sophistication. Quick ratio of the company is 1.5 up to Mar 31, 2008 its quick ratio is decreasing. As P.T.C.L is a service organi zation there fore the quick ratio is very good because there is not need of inve ntory as any manufacturing organization needs. . -23Internship Report (*:)PtC1 feel the difference SUBSIDIARIES AND COMPETITORS As already mentioned, presently PTCL has to face war with major competitors in m obile phone & WLL telephony operators, however, there are also competitors of it s following subsidiaries/products: SUBSIDIRAY/PRODUCT COMPETITOR There Multimedia & Broad Band (ISP Product) is about 100 competitors of product throughout the country to provide Internet service to the customers. However, so me of the major competitor ISPs of product are Cyber net, World online, Apollo, W

orld Call, and Comsats WOL etc. U-fone (Cellular service provider) There are five competitors of Ufone in cellular phone industry i.e. Mobilink, In staphone and C.M Pak, Telenor, Waridtel. PTCL Calling Cards (Product) Hello Cards, Call Point Cards, Call Mate Cards, Global Telecom Cards. Wireless Local Loop (V-Fone) Go CDMA, Wateen Telecom & World Call are the Fixed Wireless Telephone competitor s of V-PTCL. -24Internship Report (*:)Ptcl feel the difference BRIEF INTRODUCTION OF SUBSIDIARIES UFONE E its all aDOU11 3U Launched on January 29, 2001, Ufone is growing cellular operator in Pakistan. Uf one services are offered to you by Pak Telecom mobile Ltd., which is a 100% owne d independent subsidiary of Pakistan Telecommunications Corporation Ltd. U-fone has been a highly successful venture both in terms of subscriber uptake and cove rage. With fastest expanding coverage, unmatched product leadership, and consist ent focus on customers, Ufone has emerged to be the most prominent player & has 2nd largest customer base in the market in the short span of its operations. Current Situation of Ufone Ufone has started Sales in all the major cities of Pa kistan which include Karachi, Lahore, Islamabad, Peshawar, Rawalpindi, Kohat, Je hlum, Quetta, Sialkot, Faisalabad, Multan, Sukkur, Gujrat, & Gujranwala includin g 1500 other small towns across the country. New Connections are available at al l ufone centers and authorized dealers for just Rs. 50/ which includes Rs. 150/ of airtime. U-fone is in process of starting the sales of connections in a large number of other destinations across Pakistan. This expansion will also result i n increase of Ufone coverage in many additional cities and highways. Total User Base of U-fone U-fone is currently enjoying 20.53% user of Pakistan mobile indus try. It means U-fone has 17,800,424 subscribers. -25Internship Report Main Features

(*:)Ptcl feel the difference Both postpaid and prepaid Ufone subscribers can enjoy any/ all Ufone services in cluding MMS, Ufone Internet, Global SMS, and Pocket Stocks etc. In order to use any of the GPRS based services just call 333 and activate your GPRS subscription . -26Internship Report (*:)Ptcl feel the difference Multi Media & Broad Band (Phone n Net l Formerly Paknet Limited a fully owned Subsidiary of Pakistan Telecommunication C ompany Limited (PTCL) is now merged in PTCL as Multimedia & Broad Band Region. I t was formed in March 1999 and started commercial operation in January 2000. It is now the biggest Internet Service Provider of the Country. Besides Internet th is region also provides data communication services like Clear Channel data link s, Frame Relay and Digital Circuits on Optical fiber cross connect systems etc. PTCL was running its Internet Division through its region by the name of Public Data Network (PDN). On December 1999 the PDN region was dissolved and all the as sets and Liabilities were transferred to Paknet Limited. Paknet made a fresh sta rt with an Internet customer base of 6000 as of January 2000 and successfully ac hieved the target of its first year business plan of 50,000 Internet customers. Now it became Multi Media & Broad Band Region which currently has a customer bas e of more than 31,2008). 130,218 (Mar The Company commenced its business in January 2000 with a balance sheet size of over US $ 7.0 million. Currently it has a revenue base of approximately US $ 5.0 million per annum and is most likely to double in the next fiscal year keeping in view the market demand of Data products and expansion plans of the PTCL. In n ear future PTCL is introducing a new IPTV service for its valued customers. -27Internship Report (*:)Ptcl feel the difference COMPETITOR OF PTCL There is no meager competitor of PTCL in landline but with th e growth of telecommunication industry of Pakistan competition increasing specia lly in mobile phone sector. In total there are more then 800 million subscribers of mobile phone. There are 03 big players in mobile phone industry but 3 of the m are the competitor of PTCL:> MobiIink -28Internship Report (*:)PtC1 feel the difference

Warid Tel Waridtel is also providing cell phone facilities in Pakistan. Waridtel having mo re then 15,114,678 subscribers which is 17% of Pakistan mobile industry. NEW COMPETITORS Other than mobile & land line PTCL is facing competition in F.W.T (Fixed Wireles s Telephone) product market. Below are the major competitors. > Telecard 501,680 -29Internship Report (*:)Ptcl feel the difference BRIEF ON MY INTERNSHIP WORK During my internship at PTCL I worked in fallowing department of PTCL > Marketin g department -30Internship Report (*:)Ptcl feel the difference Marketing Department Marketing Department is called a revenue-generating department of an organizatio n. Marketing Department undertakes market research and gives feedback to managem ent about customers needs and wants on the basis of which, products and services are developed and positioned to give value to the customers. Thus Marketing dep artment of an organization plays a pivotal role in its business development, gro wth & expansion. During my internship I worked with PTCL marketing department. T hrough working there I gain so much practical knowledge that will help me during my practical life. For understanding the work flow and the operation of the dep artment we have to move in certain manner. We have to look the key operation the structure of the department and in the end the focus will be on the critical an alysis. So we will move in the pattern describe below: > Marketing strategy of PTCL -31Internship Report (*:)PtC1 feel the difference department so we have to move traditionally .Classically, Marketing has been all about the "four Ps": Product, Place, Price and Promotion. The marketer identifie s a target market, defines the product and Pricing to appeal to this market and a strategy to deliver the product to the market. Thus the marketer is the stewar d of the value proposition, ensuring that the firm is delivering maximum value t

o its customers. We will briefly discuss below the marketing strategy, product p lanning, development & management, Pricing strategy, distribution strategy and p romotional strategy: Marketing Strateam Normally, a marketing strategy identifie s the target markets, the desired position in each market and the marketing mix that will persuade those target markets to part with their money. Market is targ eted through market segmentation. Segmentation can be done on four types i.e. De mographic Segmentation (age, gender, race/ethnicity, household type, home owners hip, education, employment, income etc.), Geographic segmentation. Positioning o neself by product can do positioning differentiation, positioning by product usa ge, positioning against a particular competitor, positioning against an entire p roduct category, positioning by association and positioning by problem, Marketin g Mix includes Ps i.e. Product, Price, Promotion and place. TARGETAL4RKET PTCLs 80% revenue comes from just 20% customers, who are corporate customers and other big and small business organizations. The main focus of PTCL marketing efforts is on retaining and satisfying that 20% chunk of key customers at any co st. For this purpose, PTCL is now established Corporate Customer Services Center s in major cities to take care of these vital customers. Apart from these import ant customers, PTCL targets general public and other small business companies fo r sale of its landline telecom services like telephone, fax, Internet, as well a s other services like CLI, VMS, and Digital Facilities etc. -32Internship Report (*:)Ptcl feel the difference 2. Market Segmentation Basically PTCL segmented its market on two bases To better implement customer se rvices features, segment the market on a customer basis: - Corporate - Resident ional on the basis of services as: - Telephony - Data - Video PTCL has segmented its market for its services and products to effectively deal with its customers. Some of its services like Universal Access Number, Co-Locati on centers and virtual private network are specially targeted at corporate custo mers and business concerns. The other services like new telephone connections, d igital services etc. are meant for mass market. The services like Internet, fax facility etc. are targeted at both the corporate and general customers. POSITIONING STRATEGY As PTCL is the sole provider of the landline telecom services in the country; it is the market leader in providing these services because there are no competito rs to challenge its market leader status. Thus presently PTCL is facing no probl ems in positioning its services in the market as a market leader because it enjo ys monopoly in the industry. However, with the deregulation of telecom sector PT CL is gearing up itself to maintain this market leader position, on the other ha nd competitors are doing to challenge it. -33Internship Report

(*:)Ptcl feel the difference Service vs. Customer Matrix S.# Type of PSTN UAN Tele. 0800 0900 VPN PPCC VOIP M Customers BASIC TELEPHONY & VAL U ADDED SERVICES A. CORPORATE 1 Companies Y Y Y Y Y Y 2 ISPs Y Y Y Y 3 Financial Institutes X 4 Data Operators Y Y 5 Special License Y Y 6 Govt. Y Y 7 Foreign Mi ssions B. RESIDENTIAL Y Y DATA DXX PRA BRA UIN VOIP CATV Co.Loc DSL A. CORPORATE 1 Companies Y ISPs 2 Y Y Y Y Y Y 3 Financial Institutes 4 Data Operators Y Y 5 S pecial License Y Y 6 Govt. Y Y Y Y 7 Foreign Missions B. RESIDENTIAL Y Y Y -34Internship Report 3. M ARKETING M IX (*:)Ptcl feel the difference Product Planning: In PTCL, so far products had been planned and developed by the engineering depar tment and marketing professionals had no role in product planning as there was n o marketing department in the Company. But now marketing professionals have been inducted in the Company and they will definitely have a close coordination with engineering department in planning and development of products to satisfy custo mers desires. It should also be kept in mind that PTCL is a technical organizatio n enjoying state-of-the-art telecom technology. The services offered by PTCL are built in the technology and with the passage of time; PTCL rolls out these prod ucts in the market. even many products, which have become obsolete in developed countries, are launched as new products by PTCL. But we cannot deny the fact tha t being monopolist, PTCL is depriving customers of many digital services that ar e available free in many other countries. However, as the Marketing department h as been established now, it is expected that in future there will be close coord ination and liaison between marketing professionals and engineers for planning a nd developing customers oriented products. PTCL is also in the process of hiring brand Managers to manage its different products in a thorough professional way. Pricing Strategy: Being a government organization, PTCL is not authorized to determine the prices of its products itself, the Telecom Regulator Authority viz. Pakistan Telecommun ication Authority (PTA) fixes the prices of telecom services. The process is suc h that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls consumers representativ es, journalists and other interested groups for discussion on the proposal. Afte r listening to the viewpoints of all the interested parties, PTA gives its decis ion. If PTA approves PTCLs proposal, the new rates are enforced. It may be mentio ned here that telecom technology is only -35Internship Report (*:)Ptcl feel the difference technology whose rates are on the decline with the passage of time. PTCL also ra

tionalizes its tariff with the passage of time. Tariff rationalization process s tarted in 1997 as part of GoP Telecom Sector policy for privatization of this se ctor. It was mainly focused on rebalancing the domestic process like NWD, intern ational, local call, line rent etc. Rebalancing is completed by the end of 2003 (as per Tariff rates) with the objective to position PTCL for competition. 4. PROMOTIONAL STRATEGY PTCL is using following components of promotional mix for the promotion and Publ icity of its product/services. Advertising: In promotional mix, PTCLs main stress is on advertising in print and electronic media. PTCL periodically places its a dvertisements in print media on services like "H/Qs hotline 0800-44544", "Caller line identification (CLI)", "Voice Messaging Service", "Digital Facilities "P TCL Prepaid Calling Cards", "Inquiry 17", "Complaint 18", , phone bill cards pre paid telephone etc. to remind the customers of these services. Sometimes, corpor ate ads are also released to print media to mark special occasions. PTCLs Commerc ials on "Prepaid Calling Card", "CLI", "Voice Messaging", "Digital Facilities" e tc. are also broadcast immediately on electronic media as reminders to Customers . Sales Promotion: PTCL charges 1/3rd rates on national calls from 06:00 pm 07:00 am and local calls are free from 1 1:00 pm to 06:00 am to promote the usage of i ts telecom network. Moreover, PTCL offers special rate packages on special occas ions like Ramadan Package and EID package, which offer customer reduced rates fo r specific timings. For Example, In EID Package PTCL charges half rates from 6:0 0am - 6:00pm and quarter -36Internship Report (*:)Ptcl feel the difference from 6:00pm- to attract customers to use its telephone service. These rates 6:00 am result in increased revenue for PTCL and also facilitate the customers to ta lk to their near and dear ones on these special occasions on affordable rates. Personal Selling: As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales force because the company has not felt any strong need to use the Services of a sales force for increasing the sale of its products. At the m oment,PTCLs Customer Services Centers are playing the role of sales outlets. Cust omers can make telephone calls; send fax messages from these Customer Services C enters. They can also get connected their telephone bills and get duplicate bill s from these outlets. However, with the establishment of Marketing Department in PTCL, The marketing professionals are now in the process of inducting professio nal sales force for the company. -37Internship Report (*:)Ptcl feel the difference CUSTOMER CARE & CUSTOMER SERVICES DEPARTMENT PTCL has established its Customer Services Department at different levels the ov

erview of the said department is as follows. Corporate Customer Care Center Cust omer Services Centers Toll Free Help Lines Operation Region Level Tehsil Level F or Complaint & Enquiry Now we briefly introduce the functions of these: * Corijorate Custom Care Center er To facilitate Corporate Customers PTCL has established Corporate Customer Ca re Centers at all Operation Regional Head Quarter Level, in all the meager citie s country wide. The Corporate Customers can get their problems resolved under on e roof in a one window environment by dialing UAN 111-20 20 2. The Customer Rela tion Officers register the complaints & forward these to the related office. -38Internship Report a) 1236 (Service A ctivation) (*:)Ptcl feel the difference This toll free No is used to change the tariff packages of land line, WLL (V-fon e), PTCL phone n net service activation, & for Broad Band customers. The service activation is electronically ordered & activated within 24 hours through concer ned department. b) 17 (Telephone Directory) This facility is also Tol Free & is used to obtain the telephone numbers of some specific subscribers (College, Govt . offices, Private offices etc.). This is centralized & is being used as Telepho ne Directory. c) 18 (Land Line Complaints) To register the faulty Telephone comp laints PTCL has established a Toll Free No 18 where a computerized central node is used to register & rectify the consumer complaints for land line numbers. -39Internship Report (*:)Ptcl feel the difference REVENUE DEPARTMENT The revenue generated by the marketing department through selling the company se rvices/products is collected by the Revenue Department. The roles played by the Revenue Department are following. 1. Bill Printing & Distribution. ii. Issuance of Duplicate Bills. iii. Error correction of Bills. iv.Collection o f defaulter amounts. BiR Printing & Distribution The printing is basically carri ed out by regional billing computer center at every regional headquarter. These printed bills are handed over to Post Office after sorting & stapling by the Ass istant Revenue Officers staff at Distt level. Issuance of Duplicate Bills In case of missing or damaged bills received to customers the correction is also Revenu e departments responsibility. For this purpose the revenue office deputes its sta ff for each Tehsil level PTCL office during the bill payment dates normally from 18th to 30th of each month. Error Correction of Bills In case of late payment o r any other discrepancy due to missed collection by banks the previous amount is also included in the new bill. The revenue office is responsible for such kind of correction. Collection of Defaulter Am ounts The amounts defaulted by the cus tomers or the bad debts are also collected through revenue department. Each Tele com Recovery Inspector (TRI) is assigned a target of bad

-40Internship Report (*:)Ptcl feel the difference debts collection on monthly bases. Now a days as incentive is also offered on mo re than 1 00% recovery each month. -41Internship Report (*:)Ptcl feel the difference SWOT ANALYSIS OF PTCL Now we move towards the most important part of the internship report the SWOT an alysis after working 2 month in the company I find some critical issues about PT CL. After carefully analyzing these true issues of an organization now I am able to understand the organization in right way so at the end of my report I will g o for SWOT analysis of PTCL. =>STRENGTH >PTCL enjoy monopoly -42Internship Report (*:)Ptcl feel the difference State Of The Art International Gateway Exchanges & Satellite Earth Stations PTCL have largest net work with its state of art technology and new digital exchange s. These are the few important characteristics of PTCL network. International Su bmarine Cables High Capacity National Fiber Optic Backbone Ring 36 Transit Excha nges with easy Facility of Expansion About 99% Digitization of Country Network S trong Platforms & Exchanges for Value added Services Large Earnings As described earlier that PTCL with more then 4 million users having greet revenues this is another strength of the company Government support As you know PTCL is governmen t organization so it has great support and it is strength for PTCL. => WFAKNESS > Image Government organization -43Internship Report => OPPORTUNITY > Growth m telecommunication industry (*:)Ptcl feel the difference -44Internship Report

(*:)Ptcl feel the difference 0 M Pro v ect STAFF ROLE OF THE HUMAN RESOURCE DEPARTMENT The Human Resource department of the company operates in an auxiliary, advisory, or facilitative relationship to other departments in the organization. Any staf f unit, whether it be personnel or otherwise, exists to help the line effectivel y. It has been created in the first place to take advantage of specialized talen t and knowledge. The H.R department of the company generally performs the follow ing roles: Policy Initiation and formulation -45Internship Report (*:)Ptcl feel the difference POLICY INITIATION AND FORMULATION The SEVP of the H.R. Department is the individual most actively involved in poli cy revision to cover recurring problem or to prevent anticipated problems. Ordin arily these are proposed to the president of the company, and it is up on the la tters authority that the policy is actually issued. When proposing a new or revis ed policy the personnel director must analyze problem that have occurred in the past, survey other companies to determine how they handle similar situations, di scuss the matter with colleagues and subordinates and give due consideration to the prevailing philosophy in the organization. -46Internship Report (*:)Ptcl feel the difference ADVICE A major portion of the activities of those engaged in staff personnel work is in the nature of counsel and advice to line manager. Countless examples can be giv en. A shop foreman may be confronted with a grievance over distribution of overt ime. Another foreman may have the problem employee who he feels should be discip lined or even suspended. At the time of the annual review of all salaried person nel for possible pay increases, the operating manager plays a key role in advisi ng operating manager on the administration of the program. An apparent concerted slow down may occur in the assembly department. It may have been instituted by the union in retaliation for the cutting of piece rates the week before. How sho uld production supervision handle this situation. The H.R. Managers and their st affs are expected to be fully familiar with H.R. policy, the labor agreement, pa st experience and the needs and welfare of both the company and the employees in order to develop a sound solution. Successful personnel specialist must be peop le centered. They must be feeling sensitive, wants, and motives of other people. At the same time they must continually be cognizant of their obligation to pres erve the structure and functioning of the organization. In fact, this really is the essence of H.R. management. Management must seek to so direct and coordinate

the efforts of the people that the goals of the organization are achieved while at the same time providing need satisfactions for the members of that organizat ion. -47Internship Report (*:)Ptcl feel the difference SERVICE The service responsibilities of the H.R. department are apparent when one examin es such things are as the employment, training, and benefits functions. The task s of recruiting, interviewing and testing job applicants are performed in the H. R. Dept. Training programs are planned, Organized and often staffed through the H.R. Dept. H.R. Dept must see that adequate instructional materials and faciliti es are available. Once pension and insurance programs have been setup, all claim s must be through the H.R. Dept. The maintenance of adequate employee records is a service function that permeates all functional specialties within the personn el field. -48Internship Report (*:)Ptcl feel the difference Control The H.R. Dept carries out important control functions. It monitors the performan ce of line department and other staff departments to ensure that they conform to established personnel policy, procedures, and practices. The control function o f the personnel department is quite comparable to the activities of a quality co ntrol group that measures product variables to ensure conformance to engineering specifications or to the activities of the auditing staff that inspects account ing records to ascertain conformance with prescribed standards. -49Internship Report (*:)Ptcl feel the difference HUMAN RESO UR CE DEPARTMENT FUNCTIONS H.R. Management activities are carried on both by the staff H.R. Dept and by ope rating management in the course of directing the activities of the work force. V ariation from the pattern described may occur in particular companies because of special circumstances. This function includes recruitment, selection, and induc tion into the organization. The initial decision to add someone to the payroll i s made by line management. It is also its responsibility to determine the conten t of the job to be performed and the employee qualifications necessary to perfor m the job satisfactorily. Very commonly, statements of job content and employee qualification have been previously worked out jointly between line management an d the H.R. Dept. These are recorded in the form of job descriptions and job spec ification. The H.R. Dept must develop and maintain adequate sources of labor. It

must set up and operate the employee selection system, which may include interv iews, selection tests, a medical examination, and reference checks. Quite common ly the role of the H.R. Dept is one of screening with the final decision to hire or reject being made by the supervisor who requested the new employee. However, in the case of large-scale hiring program of unskilled or skilled workers, the H.R. Dept is commonly granted full and final authority to make the hiring decisi on. The new employees supervisor bears important responsibilities for introducing his/her to the new work environment. This is often called orientation. -50Internship Report (*:)Ptcl feel the difference President of PTCL IF SEVP HR IF IF IF GM HR H.Q IF GM HR SOUTH KCH GM HR NORTH RWP I F IF IF * GM HR CENTERAL RELATIONS IF GM LABOR GM TRAINING IF S.M TRAINING HRP IF S.M TRAINING LHR REGIONAL MANAGER HR

I F OFFICE STAFF TO R.M HR S.E TRAINING R.T.T.S LHR S.E TRAINING RTTS MULTAN S.E TRAINING RTTS KARACHI S.E TRAINING RTTS ISLAMABAD H.R MANAGEMENT HIERARCHY AT PTCL * The staff tree for other GMs HR (South, North) is also same as per GM HR Centra l. -51 Internship Report (*:)Ptcl feel the difference TRANSFER, PROMOTION, LAYOFF For these tasks the H.R. Dept serves primarily in a coordinative capacity. When employees are moved from one department to another either because of the needs o f the business or because of individual requests, the personnel records may be s tudied to ascertain that they posses the requisite skills. Layoffs typically are processed by the H.R. Dept to ensure that the proper order of preference is fol lowed. This can become complicated of combinations of jobs, departmental, and pl ant wide seniority rights must be observed. When a vacancy occurs in a position, it may be filled by promotion from within or by direct hiring from outside the company. This decision is often made jointly between the H.R. Manager and the ex ecutive in change of the department where the vacancy has occurred. Many compani es may establish policies to cover matters of this type. The actual final decisi on as to which candidate is chosen for the promotion is largely made by the exec utive in whose unit the vacancy has occurred. -52Internship Report (*:)Ptcl feel the difference TRAINING AND DEVELOPMENT On-the-job training and coaching are performed by the line supervisor or by a sp ecially designated employee who acts in the role of an instructor. It is the res

ponsibility of the personnel industrial relations group to determine training ne eds in cooperation with the line management. Once the needs are established, the personnel training specialists must design a program to accomplish the desired results. If the program takes the form of in service class room courses, it usua lly is administrated by H.R. Department. Coaching, performance appraisal, and po st appraisal counseling, job rotation, understudies, and special broadening assi gnments are largely executed by operating managers but coordinated by a central H.R. Dept. PTCL has established its own training facilities as detailed below: T elecom staff College Hari Pur -53Internship Report o Promotion training courses. 0 Special emergent technology trainings. (*:)Ptcl feel the difference Some times PTCL also sings contracts with its suppliers/vendors for foreign 0 tr ainings. -54Internship Report (*:)Ptcl feel the difference COMPENSATION ADMINISTRATION The work of designing and installing a job evaluation program is handled, for th e part, by the H.R. department with some consultation with line managers. The de cision to adopt a particular pay structure with pay grades and fixed minimums an d maximums for the grades is a top management responsibility. The day-to-day wor k of analyzing jobs, evaluating their worth according to a formal job evaluation plan, and maintaining suitable records is are H.R. dept. functions Periodic wag e are conducted by the H.R. dept, but any firm decision to rise or change the en tire schedule is particularly always reserved for the chief executive officer of the organization. Following three types of compensation packages are being serv ed to PTCL staff. **.* N.B.P.S (National Basic Pay Scale) -55Internship Report (*:)Ptcl feel the difference HEALTH AND SAFETY A significant part on occupational health programs is the identification and con trol of agents within the working environment that can cause occupational diseas es. Some agents may be gases, dusts, fumes, toxic chemicals and metals, noise, h eat, radiation, biological substances and stress. Industrial hygienists are empl oyed to identify and control such hazards to health. Other important elements of an employee health programs are pre-employment medical examinations, periodic e xaminations for those working on jobs having exposure to occupational disease-ca using agents, rendering of first aid, treatment of minor ailments such as colds and headache, and providing health education information. Small companies typica

lly hire physicians, nurses and industrial hygienists only on the consulting and part time basis. Large firms tend to be staffed with full time personnels in the se areas. The safety program is directed toward the prevention of work injuries. The main elements are engineering, education and enforcement. PTCL is offering both its own medical facility setup & the private hospitals on its panel. The mi ner health problems are dealt by PTCL own medical facility/staff & other in whic h patient is to be admitted or operated are forwarded to the panel hospitals. PT CL also offers reimbursement of expenses to the remote areas staff as they can n ot reach to PTCL hospital in any emergency. -56Internship Report (*:)Ptcl feel the difference DISCIPLINE AND DISCHARGE Discipline has two principal meanings. In the first sense it means "training tha t molds or corrects." This means the achieving and maintaining of orderly employ ee behavior because the people understand and believe in the established codes o f conduct. The second meaning of the term discipline refers to punishment of wro ngdoers. The H.R. department commonly assumes the responsibility for formulating the list of necessary rules together with the range of penalties for each offen se. Frequently this list of rules and penalties is discussed and cleared with hi gh-level line management before it is issued and communicated throughout the org anization. These rules are called terms and conditions formerly known as Employm ent & Discipline (E&D) rules. Most commonly, actual approval by the H.R. departm ent has to be obtained before and employee may be discharged. The reason is that discharge is a very serve penalty and should be used only when a very clear cas e can be shown. In addition, it is especially vital to achieve companywide unifo rmity in the handling of such cases. -57Internship Report (*:)Ptcl feel the difference LABOR RELATIONS When a union has been certified by the National Industrial Relations Commission N.I.R.C, as the result of an election, as the sole and exclusive bargaining agen cy (C.B.A) for the employees, then management must bargain with it in regard to wages, rate of pay, hours of work, and other conditions of employment. The princ ipal tasks involved in handling labor relations are contract negotiation, contra ct interpretation and administration, and grievance handling. The H.R. departmen t plays very significant role in labor-management relations. The director of ind ustrial relation usually serves as a key member of the bargaining team often act ing a chief management spokesman. In operating on a day-to-day basis under the t erms of the labor agreement, line supervision often finds frequently occasion to consult the H.R. department regarding such matters like allocation of over time , handling of transfers and layoffs, and the application of contract work rules. -58Internship Report

(*:)Ptcl feel the difference BENEFITS AND SERVICES Included under this category are pensions, group life insurance, hospital and me dical insurance, sickness leave pay plans, supplemental unemployment compensatio n, loan funds, credit unions, social programs, recreational programs and college tuition refunds plans. The actual decision to establish or to expand these prog rams is nearly always made by top line management upon the advice and consultati on of the H.R. department. The actual design of pension and insurance programs r equires a great deal of technical knowledge. These programs are generally worked out in conjunction with insurance companies or insurance consultants. After the se plans are installed, the day-to-day processing of claims is handled by the H. R. department -59Internship Report (*:)Ptcl feel the difference ORGANIZATION DEVELOPMENT Organization development is a general approach for improving the effectiveness o f an organization that utilizes a variety of applied behavioral science methodol ogies. Among the objective of the OD are to increase the level of trust and supp ortiveness among people in the organization, enhance interpersonal skills, make communication more open and direct, directly confront problems and to tap the kn owledge of all who can contribute to problem solutions wherever they may be in t he organization. Consultants are often involved in OD work they work jointly wit h management to collect data, diagnose problems and work of solutions. Typical k inds of OD activities are interventions or confrontation meetings, team building s, survey field, back conflict resolution, laboratory training and managerial gr id exercises and projects. -60Internship Report (*:)Ptcl feel the difference HUMAN RESOURCE PLANNING Another new function that has emerged in recent years in human resource planning (also called manpower planning). Sometimes a specific person or office has this as its primary responsibility; more commonly the responsibilities are shared by several people within the corporate personnel unit. Human resource planning is the process by which is a firm insures that it has the right number of qualified persons available at the proper times, programming jobs that are useful to the organization, and which provide satisfaction for the individuals involved. The p rincipal elements involved in human resources planning are as follows: 1) Goals and plans of organization. 2) Current human resource situation including skills inventory. 3) Human resource forecast including comparison of projected future d emand for employees with projected supply. 4) Designing programs to implement th e plans. 5) Audit and adjustment. -61-

Internship Report (*:)Ptcl feel the difference EQUAL EMPLOYMENT OPPORTUNITY Very commonly the Senior Executive Vice President (SEVP HR) in the company bears the major responsibility for insuring that the organization complies with the v arious equal employment opportunity laws and regulations. She or he often delega tes the dayto-day detailed administration to someone within the H.R. department who either specializes in this field of work or who performs these duties along with others department such as the employment function. Usually the Chief Execut ive Officer (CEO) of the company, whether she or he is called the chairman/chair person of the board or the president, plays a key role in the formulation and im plementation of equal employment policy. -62Internship Report (*:)Ptcl feel the difference PERSONNEL INFORMATION SYSTEM Today, many organizations have staffs of people trained in mathematical analysis , computers, and management information systems. Some companies have applied the se capabilities to personnel work. Among the applications have been human resour ces planning, skills inventories, employee benefits analysis, and productivity s tudies. -63Internship Report (*:)Ptcl feel the difference HUMAN RESOURCE DEPARTMENT OF THE PTCL: The PTCL has won repute in the field of land line & WLL services for the domesti c & commercial customers .It has been achieved only due to the proper and exact functionality of the Human Resource Department .The Head of the Human Resources Department is the SEVP and his team comprises of EVPs & General Managers of diffe rent zones The Human Resource Department may advice the administration and the b oard of directors on special issues of the company and then it offers services i n order to accomplish the task. The human resources are the ultimate deciders pr ovided by the Human Resource Department. It not only gives advice, offers servic es but also control the policies of the administration. RECRUITMENT: The department first determines the need of employees to be hired .The post agai nst each vacancy is advertised and then the applications are invited from the ap plicants .If there is a post of manager cadre; the SEVP personally is the interv iewer of the interviewees along with his team. TRAINING: Then the qualified candidates undergo a training period under the banner of Huma

n Resource Department .There are Telecom Staff colleges at Lahore & Hari Pur. Th en the specified persons are appointed against each specified post so the best r esults are expected and hence the performance and good will of the PTCL is incre ased. -64Internship Report TRANSFER: (*:)Ptcl feel the difference Human Resource Department of the company also deals with the transfer of the emp loyees because the Human Resource Department knows the demands of the job and th e right person is employed over the right place by transferring him to that post . Health and safety matters are also handled by the Human Resource Department in the organization. As there are no apparent dangers to the employees and custome rs hence it is the responsibility of the Human Resource Department to see throug h the matter. EVALUATION: The employees are then properly evaluated by different evaluation criteria and p rocedures in order to motivate them and to enhance the performance .The job appr aisal system comprises of different questionnaire depending upon which the whole system is forwarded. UNION: The union plays an essential part for the labor management relation.It bargains with the management in the light of the demands of the employees .It is the resp onsibility of the Human Resource Department which holds the formal talks and the negotiations between the parties. Human Resources Department is also responsibl e for the dealing with other organizations running the same business. Discipline and discharge is the necessity of each organization and it is maintained by the Human Resource Department of the company. If an employee is creating problems f or the administration for nothing, he may be warned and depending upon the sever ity of the matter and allegation he may be suspended and even terminated. -65Internship Report WORK PLACE TRAINING: (*:)Ptcl feel the difference The work place training or on job training (O.J.T) is the key factor of the poli cies of the Human Resources Department .As the company is public dealing entity so the work place training is the integral factor for the good will and the stat us of the policies and services of the company. REFRESHING COURSES: The refreshing courses enhance the potential capabilities of the staff and the p erformance as well. The refreshing courses are conducted by Regional Telecom Tra ining Schools (RTTS) and some times by Telecom Staff Colleges & are attended by the staff members on the recommendations and behalf of the H.R. Department. Refr eshing courses are for the managerial and Technical staff. So they are equally a nd firmly evaluated and enhancement of their capabilities is achieved. PAY PACKAGES:

The packages are also determined by the Human Resources Department. These are de termined on the basis of performance, ACR, qualification and seniority. It has c omparatively low pay packages yet good ones. The managerial posts are filled dir ectly by the Human Resource Department. On the other hand the Technical Lower an d mid level supervisory staff is hired by the means of: 1) Direct Hiring. 2) Pro motion on seniority bases. The promotions are on the seniority cum fitness basis .So the qualified and the efficient workers are supposed to come up to the top. Human Resource Department also deals with the retention and firing of the emplo yees. In case of deceased employee, one of his children gets the job in the comp any according to his qualification. According to qualification and skills it ens ures the employee benefits. -66Internship Report (*:)Ptcl feel the difference More over the Human Resource Department also cares for the old age benefits of t he employees .It is obvious that the Human resources Department is of key import ance and is playing a complementary role in the development and promotion of the company. INFORMATION TECHNOLOGY: The information system is the core of the operating of the each and every organi zation. It helps in the policy formulation and the running of the business affai rs properly by providing the 1st hand and accurate information. The whole Human Resource Department functionality depends upon the information system. Better th e information system, better the Human Resource Department. The company is now i n a process to develop its own HRIS system so that it may have good information system and be able to serve the employees as well customers through Human Resour ce Department efficiently and effectively. -67Internship Report (*:)Ptcl feel the difference CURRENT HR ISSUES OF PTCL PTCL offered VSS (Voluntary Separation Scheme) to its regular sta Under this program, all regular status employees under the age of 58 as of 15 No vember, 2007 are eligible to participate in this PTCL VSS. Employees interested in opting for VSS will have 60 days from the announcement date of 15 Nov, 2007 t o complete and submit the enclosed Option/Wavier Form to the VSS Support center using the enclosed pre- addressed & pre-paid envelop. If an employee choose not to opt for the VSS & remain at PTCL under the current terms of employment. The V SS is completely voluntary. Employee decision either to participate or not to pa rticipate is voluntary at his will. Additionally PTCL established a VSS support center to assist employees in the decision making process. The support center st affed with Support Officers that can help employees understand his individual VS S package & answer any questions he may have. The support center remained availa ble through out the VSS program rollout, Monday to Thursday 08:30 AM to 05:00 PM Friday 08:30 Am to 12:30 PM (Break 12:30 PM to 02:00 PM) 0800-13531. Saturday 0 8:30 AM to 03:30 PM by calling toll free number ^ E-mail: vss@ptcl.net.pk

CH IE VEM EN TS TH R O UG H VSS PR 0 CES a) Decrease in Surplus/Not needed staff by 29979 staff members of all categories . b) Decrease in future staff pays payments by almost 40% each year. c) Opportun ities open for new highly qualified/trained staff. d) VSS will help PTCL make co rporate image better. e) Ratio of staff with respect to the working capacity wil l improve up to 1570 Lines/employee. -68Internship Report (*:)Ptcl feel the difference VSS Process & TimeLine Employees Acknowledge Receipt of VSS notification ~ * No later than 26 Nov, 2007 Employees calls VSS Support center to report Errors in Personal information No later than 1st Dec, 2007 M * 15 Nov, 2007 ----~ Employees Submit option/Waiver Form to Accept or Decline VSS Post Marked N o later than 14 Jan, 2008 ---~ Employees Call VSS Support center to confirm Receipt of Option Form After 15 days of submitting Form PTCL Ma i agement Reviews & Accept or reject Applications Within 30 calendar day s of Receipt of Option Form I ----~ Employees Receive Letter of Acceptance or Rejection Postmarked No later than 24 Feb, 2008 4~ 0 No Later than 4 April, 2008 ----~ Employees Submit Completed off Boarding & or Pension paperwork No Later th an 15 days After VSS Acceptance -69Internship Report (*:)Ptcl feel the difference

WEAKNESSES The Human Resource Department is not up to the mark for the proper appraisal sys tem of the staff. The policies of the company are determined by the board of dir ectors in accordance with the H.R. Department. However there are certain policie s in which the Human Resource Department is dependent on the Ministry of IT & T Govt. of Pakistan Employees have developed a psychology that promotion criteria & procedures of the Human Resource Department of the company are not justified. The quality of service in areas is much poor hence creating the problems for cus tomer. 11Human Resource Department is lacking employee training centers. There are only two Staff colleges. On the other hand the training opportunity is not provi ded to all the staff equally. If an employee wants to study during the job, he h as to take approval from the Human Resource Department of the company; there are certain bottle necks for taking such approval. The management also never encour ages employees for enhancing there qualifications/technical skills. The staff di d not get any benefit for their higher qualifications in the shape of promotions or pay increments. Proper evaluation of the employees is not in the normal func tioning of the company. Refreshing courses are on & off, not timely and frequent ly. -70Internship Report (*:)Ptcl feel the difference g The proper information system is not in progress for the Human Resource o. Department. The automation process by the Human Resource Department is slow henc e delaying the functioning of the company. 1 Human 1Resource department lacks trained & related qualified staff and it is very difficult for the SEVP Human Resource to do the right things for the organi zation and it takes much time for normal working of the organization. -71Internship Report (*:)Ptcl feel the difference RECOMMENDATIONS The Human Resources should take less time in recruitment and training the staff. Highly qualified & trained staff may be deputed in HR department. Refreshing co urses should be adequate and more frequent during the year. The promotional crit eria by the Human Resource Department should be defined and be as per rules. Mor e training centers should be established. If there is lack of resources, it is d ifficult, the training centers of the other organizations in the same capacity c an be utilized by determining the terms and conditions. 1 During 1 .

the training by Human Resource Department the ethical values should be more emphasized. The proper and competitive evaluation of the methods and procedures adopted by other competitors will enhance the performance of Huma n Resource Department. This is the era of Information Technology. The functions and procedures of the company should be converted from manual to the automatic. It will enhance the performance & accuracy of the Human Resource Department and ultimately of the company. Human Resource Department should allocate resources f or this purpose. Human Resource Department may advice and train employees for on e window operation in order to reduce the time and conserve the resources. 1 1 1 . Agents for the promotion of the company policies and to facilitate the customers by the Human Resource Department may be appointed with proper check and balance system. Pay packages m be revised in the light of profit earned by the ay organization. -72Internship Report (*:)Ptcl feel the difference CONCLUSIONS 0 No doubt PTCL is enjoying monopoly but the time is came when competition will fo rce company to change its policies to become favorite telecom service provider i n the market & keep its current place & customer base. The actual working substa nces are the human beings .It goes with out saying that Human resources are the most important in the organization and so does the Human Resource Department .It integrate all the activities and functions of the company like job analysis, re cruitment, staffing, training, designing compensation package, employees appraisa l system. Human Resource Department plays the key role in the hiring, retention, motivation and promotion of the employees .Actually it assign the specified dut ies to the specified persons in this age of specialization. Human Resource manag er should be well versed and confident in his field. He should be humane, well n atured and have go face reading capabilities .All this ensures his success. He s hould be of the notion "victory is not everything, but the way of fighting is -73Chan2e of Address Customer Request Not Verified IF stom Verification Verified IF

CRS save the balance and Change the Address in Both System (CARES & Single View) NIC Name of Owner Fathers Name Address Ph No. References IF CRC Send Document With Log in which he writes Address or May be Reason Bills Late Receive / Not Received/Return Customer Request Not Verified IF stom Verification 1. Address is right, 2. Post is received if yes then who is received give the na me of this person. 3. Address is right But Not Located by Post man Verified IF CRC Check the Reason of Problem NIC Name of Owner Fathers Name Address Ph No. References IF CRC provide Bill @ that time and take corrective action 1. Change the address 2. Intimate the Post office as customer request Bill Amount Problem Customer Request Not Verified IF om Verification Verified IF CRC Check the Billing No Problem NIC Name of Owner Fathers Name Address Ph No. Re ferences Problem IF Show the Bills or Records of calls

IF CRC Will Make the Adjustment Activation/Deactivation of Value added Services Customer Request Not Verified IF orne Verification Verified If Value 1. Added service is being offered by the PTCL. Is the 2. servi ce already activated? IF CRC check the option of Request Reject - package and product. I F Request accept IF NIC Name of Owner Fathers Name Address Ph No. References CRC open the value added service Chan2e of Package Customer Request Not Verified IF om Verification Verified 1. Verify users previous payments clearance 2. What package user request ed? IF CRC Check the Old Package Amount is clear NIC Name of Owner Mothers Name Address Ph No. References IF

CRC Change the Package and send the Log Complaint Re2istration for Faultv Phone (Land Line) Customer request (Dialed 18) Complaint registered got Complaint Number IF mpla arded med E CFM Fault not rectified Carried over Fault Verify Customer Address. Verify 2. Customer Name. 1. IF I & cu ddre verification along Natur fault , ~ ~ IF M a n By Line Verify 1 . Cabinet /DP/Pair. Verify from 2. Switch room. Locate the 3. concerned E.S,L/M Handover 4. the fault to E.S,L/M Updated Data base on CFMS Online software (The fault is rectified) IF Verification by CFMS by dialing customer T/No IF IF CFMS by pressing 1 on his T/phone set Customer replied the Customer replied the CFMS by pressing any other digit on his T/phone set Fault Rectified T/phone is working properly Staff Request Approval Process Request rejected I F I Em F ployee Request for Leave IF I Parent SE Operation F Verify Record Leave - Balance - Record in Master HRIS Data

Sufficient Leave Balance in Hand IF IF Leave Balance Z ro e Forwarded to (Regional) Manager HR Leave Approved I r Leave Approved by (Regional) Manager HR IF Copy of Approval forwarded to G.M HR for master record (Leave) update. ORGANIZATION CHART OF PTCL SEVP (I/ AUDIT) (I/AUDIT) G.M COMPANY SECRETARY G .M N. S. S (STATE MGMT) SEVP (FINANCE) SEVP (TECHNICAL) SEVP (OPERATIONS) SEVP (HR & ADMN) Detail is on page 51* SEVP SEVP (IT) (CORPORATE AFFAIRS) SEVP EV P

(Accounts) EV P (Finance) (R ) EVP EVP m ev) cf.h & SL Pl) EVP (0) H/QTRS EVP EVP CENTRAL (0) EVP (0) SOUTH EVP ITT&R EVP I/C EVP (M M & ~ fim EVP (Bus. Dev.) C/C) (R R R ) (S&E) C .E C .E (HRM&P) G.M (Finance) D ev (LN W ) C.E C.E C.E C.E

(St.Plg) (M&O-I) C .E C.E (M&O) Central (M&O) South C.E C.E C.E (Co-ord) G.M (T&T) G.M (PR) (CTS&S) G.M C.E Dev(S&T) (T&S) (ITT&R) (M&O-II) C.E C.E (I/C ) C.E (Marketing) G.M C.E (T&NE) GTR/LTR-I&II/ FTR/ CTR/ MTR G. Ms STR-I, II, III&V/ WTR G. Ms (Admn) G.M G.M (Accts) (Proc-I) C.E

G.M (Tech Audit) ITR/NTR-I&II/ RTR/OFS/HTR G. Ms (ITI) KR G.M (IBD) G.M (C/Carc) G.M (SNCR) Lahore G.M(sm-iv) (S&T) KR G .M (Software Audit&Sup) G .M OTR IBA Expert Telecom B.D G.M ** (I&I) C.E (Proc-II) MD* (PTML) G.M (R&D Fund) G .M Legal ** Advisor C.M.O Expert HR Telecom. (T&D G.M (OFS) Mntce. G .M (Trg & Res) G .M Computer (TRANS DEV) G.M

G .M OTR KR G .M (MM) Expert Data Network G .M (Revenue) (ITDEV) G.M G .M (FAN)IBA Chief Inspector (Telecom) G M . (ITI) IBA Principal Expert I/Technology (NPGIT&I) C.E (SBD) G.M (VAS) G.M (Stores) Legend: * Not included in PTCL working strength. ** Posts do not exist. Officers are working on Contract C.E (QA) G.M (DSR&D) Expert B&C. Care (TH & VOIP) G.M C.E (Development) G. Ms G.M

Kr/Lh/Pe/Iba (OFC) Expert B&C. Care (PSP) C.E (Po & Reg.) Financial Statements IF Company 71 - , 1 ~ f t ----4 ~~ } 4 I PAKISTAN TELECOMMUNICATION COMPANY LIMITED CONDENSED INTERIM BALANCE SHEET AS AT MARCH 31, 2008 (LIN-ALIDITED) March 31, 2008 June 30, 2007 (R p e in th u n ) ue s o sa d EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized Share Capital 11,100,000,000 A Class Ordinary Shares ofRs 10 each 3,900,000,000 B Class Ordinary Shares ofRs. 10 each 111,000,000 39,000,000 150,000,000 Issued, subscribed and paid-up capital 5,100,000,000 (June 2007: 5,1 00,000,000) ordinary shares ofRs 10 each 51,000,000 Insurance reserve General re serves Unappropriated profit 1,749,047 30,500,000 10,899,930 94,148,977 51,000,0 00 1,749,047 30,500,000 27,664,217 110,913,264 111,000,000 39,000,000 150,000,00 0 NON CURRENT LIABILITIES Payable to PTA against WLL license fee Deffered taxation Ernployees retirement benefits Long term security deposits from customers non i nterest bearing 1,725,357 16,018,903 1,213,161 18,957,421 1,601,222 2,373,223 12 ,289,626 1,195,784 17,459,855 CURRENT LIABILITIES Trade and other payable Short term borrowings Current portio n of Suppliers credit Taxation 22,230,925 2,804,994 708,097 25,744,016 CONTINGE NCIES AND COMMITMENTS 138,850,414 152,820,860 19,259,958 2,145,948 171,581 2,870 ,254 24,447,741 V -

ptl ~t 0 March 31, 2008 June 30, 2007 .1 9 -0 PAKISTAN TELECOMMUNICATION COMPANY LIMITED CONDENSED INTERIM BALANCE SHEET AS AT MARCH 31, 2008 (UN-AUDITED) (R p e in th u a d ues o s n) NON CURRENT ASSETS Property, plant and equipment C apital Work-in-Progress Intangible assets Long term investment Long term loans D eferred taxation 73,929,729 9,159,750 3,087,531 7,358,572 441,069 1,109,881 95,0 86,532 76,191,881 10,609,483 3,230,742 7,411,776 1,174,140 98,618,022 CURRENT ASSETS Stores and spares Trade debts Current portion ofloan to subsidiar ies Receivable from Government ofPakistan for VSS Loans advances, deposits, prepayments and other receivables Cash and bank balances 5,124,355 12,137,542 150,0 00 2,164,072 5,870,399 18,317,514 43,763,882 3,879,206 11,411,412 400,000 5,228, 560 33,283,660 54,202,838 138,850,414 152,820,860 PAKISTAN TELECOMMUNICATION COMPANY LIMITED CONDENSED INTERIM PROFIT AND LOSS ACC OUNT FOR THE QUARTER AND NINE MONTHS ENDED MARCH 31,2008 (UN-AUDITED) Quarter ended Nine months ended March 31, March 31, March 31, March 31, 2008 200 7 2008 2007 (R p e in th u n ) ues o sa d Revenue Operating costs Operating 0oss)/profit Non-operating income Finance cost (Loss)/profit before taxation Taxation (Loss)/profit after taxation 14,940,105 (11,407,143) 3,532,962 1,001,054 (135,816) 4,398,200 (1,420,865) 2,97 7,335 15,715,580 (11,127,000) 4,588,580 982,128 (180,772) 5,389,936 (1,886,296) 3,503, 640 43,963,060 (56,940,963) (12,977,903) 3,439,540 (453,716) (9,992,079) 3,427,792 ( 6,564,287) 48,451,819 (33,724,102) 14,727,717 3,859,457 (326,033) 18,261,141 (6,391,217) 11 ,869,924 Earnings per share - basic and diluted (Rupees) 0.58 0.69 (1.29) 2.33 r 0 ~0 ~W, 0 401 * F 0 1 1 *1 s, Aaw

S A 10, A 0 PAKISTAN TELECOMMUNICATION COMPANY LIMITED CONDENSED INTERIM CASH FLOW STATEMENT FOR NINE MONTHS ENDED MARCH 31,2008 (UN-AUDITED) March 31, 2008 March 31, 2007 (R p e in th u n ) ue s o sa d Cash flows from operating activities Cash generat ed from operations Long term security deposits Employee retirement benefits Fina nce cost paid Income tax paid Net cash inflow from operating activities Cash flo ws from investing activities Fixed capital expenditure Intangible assets Long te rm investments Long term loans Loan to subsidiaries Return on deposits Dividend income Sale proceeds from disposal ofproperty, plant and equipment Net cash infl ow/(outflow) from investing activities Cash flows from financing activities (4,9 60,188) (250,497) 973,636 249,996 2,655,943 350,000 (1,034) (982,144) (5,370,575 ) (9,900) (516,518) 96,473 250,001 1,842,481 402,073 39,098 (3,266,867) 17,756,6 52 17,377 (20,063,838) (455,096) (2,217,469) (4,962,374) 32,825,424 (123,571) (2 08,445) (330,911) (5,147,344) 27,015,153 Repayment of long term borrowings Dividend paid Net cash used in financing activ ities Net increase in cash and cash equivalents Cash and cash equivalents at beg inning ofthe period Cash and cash equivalents at end of the period 512,464 (10,193,138) (9,680,674) (15,625,192) 31,137,712 15,512,520 (404,923) (13,301,924) (13,706,847) 10,041,439 18,835,484 28,876,923