Farhan

1. Executive summery......2 2. President message3 3. Vision mission statement.....4 4. History......5 5. Introduction to PTCL.10 6. Goals and objectives.13 7. Business operations..
14 8. Organizational structure.....15 9. Board of directors....19 10. Product and services..............................................21 11. Financial position..32 12. Swot analysis....36 13. Marketing operation..42 14. New knowledge acquired.................................48 15. Ptcl performance...50 16. Conclusion..55 17. References........56
Pakistan Telecommunication Company Limited Internship Report

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Executive Summary
Pakistan Telecommunications Company had been the sole service provider of telecommunication services in Pakistan until the early nineties and wholly owned by the Government of Pakistan. The Company owns and operates telecommunication facilities, and provides domestic and international telephone services and other communication facilities throughout Pakistan. It also manufactures telecommunication related equipment. PTCL's major subsidiaries were carrier Telephone Industries (Private) Limited (CTI), Telephone Industries of Pakistan (Private) Limited (TIP), Pak Telecom Mobile Limited (PTML) and Paknet Limited. But now the only subsidiary is Pak Telecom Mobile Limited(PTML). In the early nineties the Government of Pakistan embarked on a liberalization and privatization program with the aim of eventually not being involved in any goods and services business and strengthening its role as a regulator only. With the advent of new telecom services such as mobile phones and the internet/corporate data networks, private companies emerged in the market offering these services to the consumers. PTCL was content with providing the backbone/interconnect services to these emerging private companies, and did not establish its own range of end user services until a very late stage. The result of this development has been that market power and share of PTCL has been eroding over the last many years, although the revenue and profits of the company has been increasing, evidently due to higher income from providing interconnect and backbone services. The Government of Pakistan has made a sensible move in offloading the management shares of PTCL, allowing growth focused management to take over and expand on the large base of Pakistans premier telecom company. This post examines the challenges faced by PTCL and its future prospects. As we know the Etisalat owned PTCL has been engaged in battles with new competitors and regulatory body (PTA) on one hand and faces internal organizational issues on the other. Its profits have been sliding.

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

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Walid-Irshaid
President & CEO
Vision
To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'. The future is unfolding around us. In times to come, we will be the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom services that bring us clos
Mission Statement.
To achieve the Vision by having 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
Core Values
Customer satisfaction Professional integrity Teamwork Company loyalty Corporate culture

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History Telecommunication in pakistan

The telecommunication sector in Pakistan has come a long way since the inception of the country. It has done a number of developments including significant structural changes, comprehensive reforms and elaborate revamping programmers.
1947 1962 1990-91
Posts & Telegraph Dept. established Pakistan Telegraph & Telephone Dept. Pakistan Telecom Corporation ALIS: 850,000 Waiting list: 900,000 Expansion Program of 900,000 lines initiated (500,000 lines by Private Sector Participation 400,000 lines PTC/GOP own resources).
1995 1996 1997 1998 1999 2000 2002 2003 2004
About 5 % of PTC assets transferred to PTA, FAB & NTC. PTCL came into being and listed in Stock Exchange WTO Agreement Signature Signed and divided into 5 entities PTCL gets Cellular Mobile License PTA issues 100 of lines on internet value added Services Issues Licenses in the Area of Azad Kashmir PTCL Monopoly expired/End Telecom Deregulation Policy Announced PTCL is laying down Fiber Optic cables between the local exchange and the end users WLL V Wireless Phone started to provide services.

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2006
Etisalat Takes over PTCL With 26% of PTCL management shifted to Etisalat
2007
Performance better and develop NGN(Next Generation Network) Restructuring and VSS(Voluntary Separation Scheme) (Source: PTCL)
PTCL, which is established in 1947, is the largest integrated operator in Pakistan and also the only full-service Telecom operator in the country PTCL provides the mobile network, fixed network and cable TV (CATV) network covering the whole country. Problems to PTCL Pakistan are one of the largest countries in South Asia, with a population of 160 million including a rural population of 100 million. 70% of this country is mountainous areas. As the largest integrated operator in Pakistan, 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. Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory in December 1990, taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, cardoperated payphones, paging and, lately, data communication services. Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996.

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In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan, The telecommunication sector was the exclusive monopoly of PTCL until late 1980s. The only other telecommunication entity that was operating in Pakistan was Special Communication Organisation (SCO) but its area of operation was restricted to the AJ&K
and NAs. The SCO was run by the Pakistan Army and hence had a special status. In any case, its area of operation was very small. The primary focus of this section is, therefore, the PTCL and other private companies that emerged later in the areas like Cellular Services and Pay Card Services. The privatisation process in the telecommunication sector began in 1987, when certain measures were taken to deregulate the telecom sector, involve private sector interests, and divest the then T&T (now PTCL). These steps included deregulation of terminal equipment and electronic branch exchanges. The local and foreign companies were allowed to manufacture market and install EPABXs and Key Telephone Sets up to 5+25 lines. Within a year, the sector was further liberalised and more companies were allowed to manufacture and install telecommunication equipment (Ahmad, August 31, 1994). The sector was further liberalised in early 1990s and the telecommunication market was opened up for foreign investment. Foreign companies were invited to participate in the expansion of telecom services to major cities. One such project involved supply and installation of 500,000 telephone connections, and fetched

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US$300 million investment (Ahmad, August 31, 1994). It happened because the government had allowed the PTC in early 1990s to make sub-contracting arrangements with foreign companies like Siemens, Alcatel and Ericson. PTC did sign agreements with some of these companies on a build, operate and transfer (BOT) basis in order to meet increasing demand of telephone connections. This partial privatisation contributed to increase in telephone lines to 1.8 million by December 1993 and 2.2 million by December 1994. In the meanwhile, the revenues of PTC had increased from Rs. 9.95 billion in 1989-90 to Rs. 25 billion in 1992-93; while its net profit had increased from Rs. 5.7 billion to Rs. 15 billion (Aziz, 1996: 42). In 1996, another major set of reforms was introduced in the telecommunication sector. The PTC Act was repealed and, instead, the Pakistan Telecommunications Company Limited (PTCL) was established under the Pakistan Telecommunications Ordinance, 1994. Under this Ordinance, the PTCL was awarded in March 1996 a 25 years renewable licence for operating in the sector; while it was to retain monopoly on basic telephone services for initial 7 years. The PTCL was also allowed to undertake card payphone services, voice mail services, Centrex and digital services, data, e-mail, Internet, LAN, Wireless in Local Loop System, and Intelligent Network Based services. The Ordinance also provided for a regulatory authority i.e. Pakistan Telecommunication Authority (PTA). It, however, took two years until PTA could become functional in 1998. Another important aspect of this restructuring was that these included establishment of a National Telecommunication Corporation (NTC) with the aim of providing services to the defence establishment, and the Federal and provincial governments. It is because serious concerns had been earlier raised about the PTCL privatisation, while it was responsible for provision of service to armed forces and government departments. Following PTCs transformation into the PTCL, which is a publicly listed corporate entity, PTCL has aggressively implemented a restructuring program and has achieved substantial progress in term of its network, tariff re-balancing, quality of

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service, value added services and profitability (e.g. PTA, 2001; PTA, 2002; PTCL, 2001). The restructuring was carried out with the primary aim of improving profitability by improving quality of customer services and achieving efficiency so that PTCL could be prepared for the competitive environment after December 2002 when the PTCLs exclusivity on fixed line voice services would have expired. By June 2001, the PTCL network comprised of 1,833 digital exchanges, 250 analogue exchanges and 618 manual exchanges. PTCL also owned around 5,000 kms. Of optic fiber that spanned both banks of the river Indus. The key components of its international network included three earth stations, three operating international gateways, and access to various submarine cables. By then, the penetration rate was 2.4%, which almost doubled by 2003 i.e. 4.5% .The PTCLs is now well-placed to register good growth and compete in a privatized context. The privatisation of PTCL would constitute perhaps the single largest transaction in Pakistan in the context of privatisation process. Larger transactions are often difficult to proceed with, in view of the requirements, for instance, of hiring financial advisors, need of regulatory reforms, and settlement of issues such as unbundling or restructuring. The privatisation of PTCL, however, is now at a very advanced stage. The Government of Pakistan has decided to offer up to 26% of the issued share capital of the company to the strategic investors. The PC has so far received about 11 Expressions of Interest (EOI) for PTCL. It was supposed to go for bidding by the first half of 2002 but it got delayed partly because the events that followed 11th of September. July21, 2003, PTCL has assured PTCL customers will be the ultimate beneficiaries of the deregulation of the telecom sector in the country. He said, the recently announced telecom policy envisaged a healthy competition among the various telecom operators, which would benefit the customers.
Introduction PTCL.

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Pakistan Telecommunication Company Limited (PTCL) is a provider of telecommunication services in Pakistan. The Company owns and operates telecommunication facilities, and provides domestic and international telephone services and other communication facilities throughout Pakistan. It also manufactures telecommunication related equipment. PTCL's subsidiaries are Carrier Telephone Industries (Private) Limited (CTI), Telephone Industries of Pakistan (Private) Limited (TIP), Pak Telecom Mobile Limited (PTML) and Paknet Limited. PTML operates cellular telephony under the brand name of Ufone. CTI, a joint venture with Siemens AG Germany, is in the business of manufacturing and supplying telecom equipment and services. During the fiscal year ended June 30, 2005, TIP imported and supplied special telephone sets. Paknet Limited owns an Internet service provider (ISP) network spread over 2,900 cities/locations with 43 points of presence (PoPs). This post examines the challenges faced by PTCL and its future prospects. As we know the Etisalat owned PTCL has been engaged in battles with new competitors and regulatory body (PTA) on one hand and faces internal organizational issues on the other. Its profits have been sliding.
Background:
In the last couple of years the impact of deregulation and increase in competition in telecommunication industry in Pakistan has been increasingly felt by PTCL. This phenomenon is not unique to PTCL - incumbent providers all over the world have gone through this difficult transition from being a monopoly to a free market competitor. Lets take a look at 2009 financial results of PTCL (As of Sep 30, 2009). The following is based on the information posted on PTCL web site and as reported on Business Recorder. During the period under review, PTCL added net 108,000 new working connections to its network. Overall, PTCLs sales revenue for the first quarter

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was Rs.16.9 billion as compared to Rs.17.7 billion during the corresponding period of last year. The company announced net profit of Rs 8.4 billion translating into an EPS of Rs 1.64 for the first half of 2007, a decline of 23 percent over the corresponding periods net earnings and EPS of Rs 10.8 billion and Rs 2.12 respectively. The major factor for the decline in the top line was six percent downfall in the Revenues from Rs 34.9 billion in first half of 2006 to Rs 32.7 billion in IH/FY07 owing to rapidly declining market tariffs Slide in profit is a continuing trend question is when
Overview:
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 as the incumbent. Fixed line Services in Pakistan have shown magnificent growth patterns. This has been evident from the increased teledensity over the years. Currently the fixed line teledensity has reached 2.9% which was just 2.2% in year 2000. With the issuance of new licenses for LL and LDI, it is expected that teledensity will increase further as soon as new operators start their operations. Pakistan Telecommunication Company Limited (PTCL). The Group's principal activity is to provide telecommunication services. The Group provides domestic and international services throughout Pakistan and also manufactures telecommunication related equipment. Company Pakistan Telecommunication

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Company Limited Ticker Exchanges: 2009 Sales: Major Industry: Sub Industry: Country: Employees: Market Capitalization Fiscal Year Ends Currency Total Shares Outstanding Closely Held Shares Share Type PTC KAR 82,983,000,000 Utilities Telecommunications PAKISTAN 62918 289,935,000,000 June Pakistan Rupees 5,100,000,000 4,498,959,098 A Ordinary
Objectives and Goals:

In a static sense, profits are not the appropriate indicator but it is the sustained capacity of the enterprise to generate maximum profits, make productive and efficient investments to grow over time and provide quality goods or customer satisfactory services that are relevant. There are many cogent reasons that question the assumption of sustained profitability of PTCL under the changed environment of telecom sector deregulation that is sweeping Pakistan since 2003. PTCL enjoys high profits because it earns monopoly rents as a single provider of fixed telephony in the country. Comparison with other telecoms in

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developing countries shows that it is not due to the efficiency of PTCL that it is showing good financial results and paying dividends. Tele density under PTCL monopoly is quite low - only three percent compared to seven per cent in India. Another more efficient operator in the private sector would have generated twice the current level of PTCL profits through better cost controls and higher penetration rates. Had it not been for the private cellular companies with their seven million customers calling to and from its network, the revenues and profits of PTCL would have been much lower. Since the market structure has been deregulated, the PTCL monopoly broken and new private sector operators given licenses to compete, it would be extremely difficult for PTCL.
Business operatin
Nature of the organization:
It is service oriented communication company. It has two subsidries (Paknet & UFone) It has centralized management system. Its main offices are situated at PTCL H/Qs Islamabad and few in Lahore. Its main decisions are taken by the Board of Directors and CEO/President. PTCL has its own research and development department.

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Main Offices
Mostly main offices are situated at PTCL H/Qs Islamabad and other main offices are scattered geographically in other cities. These are as under. PTCL Telecom Regions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. North Telecom Region (NTR-I) Pashwer North Telecom Region (NTR-II) Pashwer Hazara Telecom Region, Abbottabad (HTR) Rawalpindi Telecom Region (RTR) Faisalabad Telecom Region (FTR) Gujranwala Telecom Region (GTR) Lahore Telecom Region (LTR)(N) Lahore Telecom Region (LTR)(S) Central Telecom Region (CTR) Lahore Southern Telecom Region, Hyderabad (STR-
ORGANIZATIONAL STRUCTURE

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PRESIDENT:President is the Chief controller. He is responsible for the overall management of an organization.
SEVP (I/AUDIT)

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He is chief officer of internal audit. He is responsible of rectification of errors. He submits his report to the president periodically showing any irregularities found in the procedure.
G.M (INTERNAL AUDIT)

He carries out instructions given by the SEVP.
COMPANY SECRETARY
He maintains Minutes Register and arranges meetings of Directors or Share Holders. General Manager Network Switching System is master controller of all Exchanges nationwide. He controls them through Centralized Network System. He can remove faults through remote help system. These are directors of the board. They make planning and decisions, establish operating policies and guide the organizations interaction with its environment. These are top managers. Their policies are implemented through front line managers. They are called S.Es (Senior Engineer)
Senior Executive Vice President makes strategies to achieve overall organizational goals.
CE (RRR)
Chief Executive Recruitment hires and fires the employees according to organizational policy.

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CE (HRM)
Chief Executive Human Resource Management deals employees matters i.e. salary, leave, and disciplinary cases.
EVP (Accounts)
He deals PTCL Billing, new connections, facility charges and shifting charges of connections etc.
EVP (Finance)
He controls transactions for payment i.e. Salaries, Advances, purchase/repair of assets etc.
EVP (Revenue)
He deals overall revenue collected from exchanges and maintains its accounts.
SEVP (Technical)
He deals in installation of new exchanges, their maintenance and operation.
EVP (Development)
He arranges for the installation of new Exchanges.
MD Ufone
Managing Director is head of PTCL subsidiary Ufone.

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MD Paknet
He is head of Internet section of PTCL. It is also a subsidiary of PTCL.
MD CTI
This is training institute of PTCL personnel. They offer training and refresher courses to staff periodically.
SEVP ( Admn)
He deals with the postings and transfer of staff.
SEVP (IT)
Manager information technology deals with data base management and computer related problems.
EVP Sales and commercial

This office deals with the sales of different products i.e. Calling Cards, V Wireless Connections etc.
EVP Marketing

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This officer deals with the Advertising products on all Medias (Print media, electronic media etc.).
EVP (CC)
Customer Care office deals with the removal of customer complaints and gets customer feedback.
Board of Directors
Mr. Hifz-Ur-Rehman Chairman PTCL Board Secretary IT&T, Ministry of Information Technology Government of Pakistan, Islamabad
Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani Chairman & Chief Executive Officer, Etisalat International Pakistan L.L.C Executive Vice President Contracts & Administration Etisalat, UAE.

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Mr. Ahmad Waqar Secretary, Ministry of Finance Government of Pakistan, Islamabad
Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh Chief Human Resource Officer Etisalat, UAE
Mr. Noor-ud-Din Baqai Member (Telecom), Ministry of Information Technology Government of Pakistan, Islamabad
Mr. Fadhil Mohamed Erhama Al Ansari Executive Vice President Engineering Etisalat, UAE
Mr. Ahsanullah Khan Ambassador, Embassy of Pakistan Abu Dhabi, UAE

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Mr. Abdulaziz Hamad Omran Taryam General Manager, Northern Emirates Etisalat, UAE
Mr. Saood Hamad Al Junaibi Executive Vice President Portfolio Management Etisalat, UAE
Ms. Farah Qamar Company Secretary PTCL Headquarters, Islamabad
Product and services

The telecommunication services sector has grown at a very rapid pace during the past four years and offers significant potential for future growth. The private sector is now actively involved in the expansion and development of telecommunication services. It now provides cellular telephone services, card payphone, and Internet services; with the privatization of Pakistan Telecommunication Company Limited (PTCL), it also provides fixed line telephone services. The Government of Pakistan accords the telecommunication industry a very high priority. It plans to expand the telephone network, increase the number of public call offices and provide its customers with new and improved services in the next

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2-3 years. The government welcomes foreign private investment in this sector; especially joint ventures that bring in new technology and help improve the level of efficiency and expertise of the local partner. In February 2006, the GSM Association (a global trade association representing more than 680 mobile operators) awarded Pakistan the prestigious Government Leadership Award. Competition for U.S. equipment manufacturers during the next several years will remain strong, particularly with the European telecommunication firms because Siemens and Alcatel have established most of the software protocols in Pakistan (which are now fully integrated with the PTCL network). However, in the cellular sector, Mobilink, the largest operator, has installed a Motorola network. The two new cellular operators, Warid Telecom of UAE and Telenor of Norway, have chosen Nokia and Ericsson networks. Also, Warid has contracted with Motorola to plan, design and deploy a nationwide wireless broadband voice and data network using WIMAX technology. Although the demand for telecommunication services has increased considerably over the years, these are still seen as a privilege in most situations and not a basic necessity. It is a relatively small percentage of people whose business depends on access to telecom services. Most people need telecom services to communicate with distant friends or relatives once in a while, but unlike electricity, their lives are not directly dependent on telecom services.
Teledensity fixed Line Sector

The current teledensity for the fixed line sector is 4.5 percent, compared with 2.7 percent in 2000. The growth pattern in this sector has been as follows:
YEAR
TELEDENSITY (%)
2002
2.7

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2003 2004 2005 2006 2007 2008
2.9 3.7 4.0 4.3 4.4 4.5
Best Products/Services
Broadband Pakistan: PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. In less than two years of it launch, PTCL has acquired over 150,000 Broadband customers in over 150 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan. With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user across Pakistan and by continuous improvements in customer care for the service. Unique offers that makes PTCLs Broadband unmatchable are special packages for the student segment, FREE modem and installation, FREE dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas, cricket matches, gaming, educational and religious content on PTCLs entertainment portal BUZZ, (made exclusive only to PTCL Broadband subscribers). PTCL also offers multiple FREE personalized e-mail accounts exclusively to its broadband users. In addition, PTCL recently doubled its broadband speed for all its existing and new

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customers at the same price, making 1 MB as its minimum offered speed. For a connection you simply dial 0800 8 0800 or visit www.ptcl.com.pk
IPTV Service (Smart TV): Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few countries across the globe that offer this state of the art interactive TV service to its subscribers. Branded under PTCL Smart Line, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCLs telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to rewind and pause live TV channels, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content. Currently PTCL Smart TV offers its viewers over hundred live channels and over 350 local and international Movie titles on Demand. The service for now is available in four cities Karachi, Lahore and Rawalpindi Islamabad however is planned to be expanded to all the major cities and towns across Pakistan during the year 2009.
Pak Internet Exchange:
It is the only IP enabled network with 40 (number increase) point-of-presences (POP) in 26 cities. The existing 16G active bandwidth is used for internet, data, video and videoconferencing services and for voice of LDI. All PTCL Broadband users, narrow band users, corporates, mobile operators, and ISP are connected to this network.

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V-fone:
PTCL also continues to be the largest CDMA operator in the country with approximately 1.25millionV-fone customers. It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology, ours is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO Broadband. V-fone can be bought from our franchises or by dialing 1236 and it will be delivered within 48-72 hours.
Prepaid calling card Immediately after commissioning an additional in platform in November 2003, PTCL launching prepaid calling cards with advance features. By the end of June 2004, record the sale of RS 2,685 millions has been recoded on account of prepaid calling cards. Easy paid telephony Aasanphone is landline prepaid telephony service, launched in MAY 2004. this service worked just like the other prepaid services, where accounts are recharged with prepaid phone cards. The main objective this service is to facilitate the customer in getting a new connection with minimal documentation. Aasan cards are available in RS 500, RS 1000, and RS 2000. By September 2004the number of PTT operatives was 32877. TOLL FREE SERVICE (0800) This service is available to corporate customers and call centers of their convenience. The number of subscribers stood at 220 at the end of financial year showing significant growth in subscribers from the past year. Better-then-ever packages are now on offer to customers to choose from to suit their needs. UNIVERSAL ACCESS NUMBERS

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PTCL providing the Universal access numbers (UAN) service in different cities. There has been a steady increase in the UAN subscribers due to batter quality of service and positive effects on the customers business as well as user convenience. The trend continued during the past year and total number of subscribers of this service reached 1932. UNIVERSAL INTERNET NUMBER (UIN) Due to the boom in telecom sector ISP,S continue to providing the services all around the country. UIN is a number starting with 131 used for accessing the inherent. The call dialed charged as a local call irrespective of its duration. Internet services in Pakistan due to technological advancement and customer satisfaction has grown. 1898 cities and towns have inherent connection facility on single unit call basis to the nearest POPS. PREMIUM RATE SERVICE 0900 are used thought the world to provide the informative via telephone at the premium rate higher then regular call charges. Five more operators have agreement with PTCL in the year 2003-2004 bringing the total thirteen. VIRTUAL PRIVATE NUMBER (VPN) VPN is another service that provides the convenience to corporations and businesses with multiple location offices and branches. Users of VPN, S can establish the private network on PTCL lines without having to install their own dedicated network resources. PTCLS install capacity for VPN is 1000 lines and by the end of the financial year 978 lines had been provided to 65 customers. ISDN BRI/PRI Broad band services to households and small, medium sized organizations are also provided through integration service digital network (isdn) and basic rate interface (BRI). These services now have been available for sometime and its users are benefiting from the features like faster data communication. High

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speed internet and clearer voice through international gateway switches installed as Islamabad and Karachi. LOCAL CALL OFFERS PTCL for more customer facility has double the duration of local calls from five minutes to ten minutes for specific time period in a day. Besides that local calls made from midnight till 0600 hours have also been free. BILL PAYEMENT FACILITIES PTCL is in the process of offering convenient bill payment solution to its customers. Steps taken in this direction so for include: Phone bill cards For the convenience of customers PTCL launched the bill payment cards in 2004. it facilitate the customers in making payments of their fone bills through these cards from their own telephones. These are available in this range of Rs 300, 500, 700, 1000 and 2000. ELECTRONIC BILL PAYMENTS FACILTY PTCL signed the agreement with Askari commercial bank and Muslim commercial bank for collection of bills through ATM,S. Discussion for similar agreement with other banks are underway. PTCL-PAKISTAN POST OFFICE (PPO) Agreement of Bill Collection PTCL signed the agreement with pop that PTCL customers can pay their phone bills at more then 3000 braches of PPO and GPOS thought the country. This faculty is the service now and is providing convenience to a large number of people. CORPORATE CUSTOMER CENTERS

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Corporate customers centers in Karachi, LAHORE and ISLAMABAD have been providing services to corporate customers with multipoint presence, by speeding up the communication process. These caters are completely integrated and stay online through dedicated links. Due to positive response in these cities, PTCL intends to open a number of such centers in other cities. OTHER SERVICES: Infrastructure and operational base for services like free fone, home country direct (HCD) and televising is complete and these services will be operational very soon.
Service IMPROVEMENTS:
PTCL has further improved its quality of service by 100% digitalization of its network. These have been a minimum of complaints regarding drop calls, cross talk and wrong dialing.
NETWORK GROWTH:
During the year 2003-2004 there has been a 7% increase in installed capacity and a 12% increase in working concerns. Also during the year 106 new NWD stations were added and the optical fiber network increased from 6,879km to 7,959km. The overall teledensity increased 2.8% to 3.0%.
INTERNATIONAL TELECOMMUNICATION: PTCL added more then 4000 international circuits in the international gateways exchanges after the agreements were signed with the existing and new international carriers. Two new carriers, primes and IDT, from USA signed international service agreements during the year 2004. DATA SERVICES AND INTERNATIONAL BANDWIDTH: After the deregulation of PTCL many steps taken to further promotion of IT.

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PTCL upgraded the PIE networks from cisco7513 to Cisco GSR routers. Bandwidth capacity has sold through 285Mbps.For the promotion of IT infrastructure PTCL has point of presence (pop) in three cities RAWALPINDI, LAHORE and KARACHI all interlinked with 155Mbps links. IP based WAN connectivity is being provided to ISP,S software exporters and other corporate customers. PTCL has also been started offering managed bandwidth service (MBS) and IT transit services in collaboration with FLAG Telecom. It provides ISP, S with high quality and high speed connections with global internet. The services are based on cutting-edge IP network which delivers the connectivity with links into two locations USA and EUORPE. The international data capacity for MBS and IP transit through FLAG increased to 465 MB full duplex. The capacity of FLAG VPOP has also been upgraded to 3x STM-1 in March 2004 to meet the present needs of the customers. The service is supported bye service level agreement. Presently 164Mbps has been sold through flag VPOP. PRIVATE SECTOR PARTNERSHIP PARTNERSHIP AND COLLABORATIONS During last 4 years, the total value of PTCL-private sector partnerships has gone up by more then 200% from just under RS 6billions to over RS 18billions. This indicates the rapid expansion in the telecom sector in country post-regulation, business collaborations with private sector include: VOIP PROJECT PTCL commencement this project since November 2002, the incoming voip project has expanded to six sites. Over 280 million minutes of international voice traffic from USA and EUORPE are handled annually. ADSL services

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PTCL launched ADSL services in July 2003. ADSL services are now available at LAHORE, KARACHI, ISLAMABD and RAWALPINDI. In addition to the existing four operators, agreements are in place for adding more DSL service providers. WIRELESS PAY FONE SERVICES The number of wireless pay phones using WLL technology has gone above 30,000. CALL CENTERS There are now around 70 companies for call centers operation in Pakistan. To encourage the call center business in Pakistan, special incentives packages are being given for toll-free services and the provision of the bandwidth. CUSTOMERS SERVICE CENTERS OUTSOURCING To facilitate services the general public, over 88 customer service cementers and telegraph offices have been outsourced to private partners, generating business of over RS 200 million a year. PTCL CONTRIBUTION TO PAKISTAN EDUCATION RESEARCH NETWORK (PERN): `PTCL provides national international connectivity to PERN to extremely low tariff (significantly below cost). PERN is serving 60 universities and degree awarding institutions. CO-LOCATION: Co-location facilities in PTCL exchanges/premises are offered to licensed services providers and operations & management contractors. Three co-location centers have been established at ISLAMABAD, LAHORE AND KARACHI in first phase. These purpose-built facilities offer telecom grade space UPS, air conditioning, fire protection at these locations.

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FINANCIAL
PERFORMANCE
OPERATIONAL HIGHLIGHTS Key Indicators 2008 2007 2006 2005 2004 2003 2002 %

31
OPERATING Gross Margin (oprating Profit) EBT Margin EBITDA Net Margin 45.32 52.32 63.00 68.84 30.07 35.02 59.41 76.43 39.35 55.93 75.05 34.35 50.17 69.79 29.83 51.79 70.96 29.26 45.44 22.73 % % % 39.66 47.86 56.58 52.24 48.07 49.29 43.21 %
PERFORMANCE Return on Operating Assets Debtors Turn Over Return on Equity 4.30 20.21 4.90 25.43 4.32 28.20 4.60 24.75 3.73 23.33 3.34 33.5 3.24 17.65 Times % 27.98 36.47 38.51 28.69 24.04 23.22 18.67 %
LEVERAGE
Debt Equity Leverage
14:86 31.27
13:87 25.53
13:87 23.91
16:87 26.14
25:75 32.81
28:72 43.34
37:48 50.83
Ratio %
LIQUIDTY
Current
1.66
1.90
2.78
2.02
1.72
1.21
2.14
Times

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Quick
1.54
1.74
2.67
1.91
1.61
1.15
2.01
Times
VALUATION
Earning Per share Break Up Value Pay Out Ratio Mkt price to breakup Value Divided Per Share Divided Yield Mkt value per Share
4.07
5.22
5.72
4.53
3.88
3.56
2.61
RS.
20.68
19.63
21.39
19.17
17.39
15.91
14.37
RS.
122.73 1.96
38.34 3.58
87.42 1.97
77.34 1.48
70.79 0.99
67.42 1.13
1.88
% Times
5.00
2.00
5.00
3.50
2.75
2.40
2.25
RS.
12.32 40.60
2.85 70.25
11.86 42.15
12.30 28.45
16.03 17.15
13.37 17.95
8.33 27.00
% Rs.

33
HISTORICAL TRENDS (Trend in Results) Revenue Profit before Tax Profit 20,777 26,606 29,170 23,081 19,812 18,155 13,331 Rs(m) 17,850 14,025 12,240 11,475 Rs(m) 69,085 75,972 74,124 31,310 39,751 44,034 67,202 66,427 62,041 58,643 Rs(m) 37,588 33,329 32,132 26,646 Rs(m)
After Tax Dividends 25,500 10,200 25,500
FINANCIAL POSITION
Share Capital Reserve Share holders Equity Property, Plant & Equipmen t Net current Assts Long term Liabilities Net Working capital
51,000
51,000
51,000
51,000 51,000 51,000 51,000 Rs(m)
32,250 32,000 32,000 28,500 23,600 17,809 10,542 Rs(m) 105,475 100,114 109,100 97,774 88,709 81,131 73,297 Rs(m)
89,042
83,195
82,616
86,578 88,047 90,808 94,046 Rs(m)
50,168
39,269
48,294
33,277 33,122 42,048 40,072 Rs(m)
16,489 19,892
15,258 18,657
15,126 30,925
16,544 22,245 24,205 36,379 Rs(m) 16,816 13,891 7192 21,320 Rs(m)

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OPERATIONAL
ALIS(000)* ALIS per employee
5,542 91
5,120 84
4,429 77
3,983 69
3,655 62
3,253 56
3,053 53
Nos Rs
SWOT ANALYSIS:
What is a SWOT Analysis?

A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or detailed snapshot of a company's health. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. By identifying the organization's strengths, weaknesses, opportunities and threats, managers can formulate strategies in such a way so that the strengths and opportunities can be utilized and internal weaknesses and environmental threats can be minimized. To fulfill its mission, PTCL should capitalize on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of the most promising opportunities.
Why use a SWOT Analysis?

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a company's position and the marketplace. Simultaneously, an effective SWOT analysis will help determine in

35
which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have.
Strengths:
An integrated monopoly. Experienced telecomm resources. Skilled Human Resource. Liberal policies for IT investments. The network service is distributed across the whole country. With over 2 million lines PTCL is the largest WLL provider. 1134 base stations cover 720 cities and capacity is being added. Vast infrastructure and real estate assets which can be leveraged further. No Financial Problem. Leading to corporate culture after privatization.
Low production cost. Availability of infrastructure. Effective product innovation abilities.
Weaknesses:
Over employment and low productivity. Slow decision-making including external interferences. Corporate culture akin to government department. Branding. Regional & Domestic Political Instability. Weak economy & corporate profiles. Customer Confidence.

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Workforce issues - quality control and delivery. The product line is too narrow. Absence of ERP system. Poor service. Network capacity and quality. Employees double standard policy.
Opportunities:
Low teledensity of Pakistan. Growth potential due to improved macro economic situation of the country. Partnership with new entrants in a de-regulated environment. Scope for efficient/ cost effective operations. Key areas for growth a. Cellular. b. Domestic long distance. c. International long distance. d. Wireless Local Loop. Market Size. Innovation. Made large capital expenses on network improvement to stay competitive. IPTV rollout(TV+Phone+Internet) with say a single bill for convenience. After privatization, PTCL would become the 'Pakistan arm' of an international telecom operator. Launching of Wimax.
Privatization & liberalization of Govt IT operations & projects.

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Triple Play service. Replacement of Copper wire with OFAN and ONU Project. IT culture mainly depends on Telecom sector.
Threats:
Exposure to market competition. Migration to cellular networks. Ability to attract and retain quality professionals. Reduction in international settlement rates. Ad Hoc Decisions from Authorities. Political Instability. Change in Government policies can act as a threat for PTCL. Rising sales of substitute products like Mobile operators may also act as a threat. High turnover and low retention of IT staff. Increased competition in long distance continues to exert pressure. VOIP use is increasing despite ambiguous and discriminatory policies this will eat into its profits (example: international outgoing calls). Paknet, the Internet service provider arm of PTCL continues to incur losses due to poor management and lack of network optimization. Increased Competition from new investors (Mobile firms such as Telenor, WLL operators,Wateen Telecom.). Management Style and approach. Effects of VSS.
Concluding Remarks on Swot Analysis:

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To maintain its monopoly in Land Line services PTCL has to improve its services including customer care and low fault duration. As it has experienced telecomm resources to have them is not a big deal but to retain them should be its mission. there is no care of network from the last two years the reason behind that is the issue of privatization every one is not clear about the policies and future of the company and there is no concentration on network improvement no material is available in the store for maintenance purpose. In order to compensate the line fault ratio a proper system of WLL V wireless promotion can be adopted which can nullifies the issues of line faults. There is burden of staff in offices in the context of supporting staff and those staff which has become obsolete after technological changes from manual to digital exchanges which has reduced the need of staff at that level as in manual system. Employees Union Involvement is still high which the main cause of slow decision-making is. However it has been take over by a private company but still there attitude and behavior is like government officials. Company is not focusing on proper advertising of the products and services even some time company owns employee dont now about the new feature and services offered by the company then how customer will come to know about it. Company should try to gain its customer confidence back by offering timely response to complaints secondly company should enhance its product line. After the take over of Etisalat, management is trying to implement an ERP system which will be very helpful in coming future for decision-making and analysis. Not only the capacity but also the quality of network should be enhanced for proper market share. After the deregulation policy there are huge chances of partnership with other private companies and it also leads to true market competition. The countrys economy at macro level is expanding and future of services providing companies is very bright. Today is the era of IT and IT with out telecom is impossible. There is enough potential in cellular services, LDI ,LL and WLL, company can invest in such kind of activities for revenue growth. IPTV rollout can change the game, if done right it will tilt the odds in PTCLs favor. It will make sticky bundles possible (tv+pohne+internet) with say a single bill for

39
convenience. After privatization it has become a global company the major benefit to the employees are that they can move to any subsidiary of that holding company in other countries. Three main projects of Triple play, Ofan and wimax are in pipe line which will be launched very soon and it will be very helpful for the company to get a competitive edge.now that time has been passed when company connections were selling with out any advertisement due to his monopoly now the time is going to change very quickly there are a lot of emerging telecom companies with a big mission to get a big market share lie Mobilink and Wateen Telecom is spreading its own optical fiber cable through out the country that will reduce there dependency on PTCL .people are quickly switching to cellular companies due to their low call rates its a big threat for PTCL in addition there quality professionals are also searching place in that companies due to high salary package and benefits. Rising sale of mobile operators due to low call rates is very big shock for its revenue. Due to increased competition in long distance and local loop company is unable to sustain its current market share, companies using Voip technology can provide low call rates then PTCL. Paknet is suffering from loss from many years it should be merged with PTCL to improve its management that is the main reason of loss. The centralized structure and management style should be modified with new company culture environment to improve overall company position; double standard policy for employees should be eliminated. Currently company launched VSS for its current employees which effects will be cleared in near future at present employees are not cleared that what management will do with them in case they dont accept this VSS what will be their future in company.

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Marketing Operation:
The operation performed by the marketing department is to give the assistance in the promotional campaigns of the services provided by the Pakistan Telecommunication Company limited. Allocation of marketing efforts in relation to the long run profit potential of the targeted segment. They develop winning offering for each target segment They measure company and customer satisfaction on continuous basis.
PTCL sells airtime as its product. Goals set by the Head office in the function of marketing department. Marketing operation are as under o Schedule planning (Better schedule greater demand and greater revenue in return) o Target Monitoring. o Marketing Intelligence o Commutative Analysis.

41
HIERARCHY OF SALES & MARKETING

President
SEVP Consumer Business Services
EVP Sales & Commercial
EVP Marketing
GM Sales & Distribution
GM Marketing
Regional Sales Manager
Senior Manager
Area Sales Manager
Marketing Manager
Assistant Sales Manager
Deputy Marketing Manager

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Executive Sales Support
Assistant Marketing Manager
FUNCTIONS OF MARKETING DEPARTMENT

Marketing Strategy In addition, to 4Ps (product, Price, place, Promotion) of marketing, 3 additional Ps involved in service marketing. PEOPLE; As most services are provided by people, the selection, training, and motivation of employees can make a huge difference in customer satisfaction. PHYSCICAL EVIDENCE: Companies try to demonstrate their service quality through physical evidence and presentation. PROCESS: service companies can choose among different processes to deliver their services. A. EXTERNAL MARKETING
It describes the normal work done by the company to prepare, price, distribute, and promote the service to customers. B INTERNAL MARKETING
It describes the work done by the company to train and motivates its employees to serve customers well. C INTERACTIVE MARKETING It describes the employees skill in serving the client. Marketing Managers develop the marketing programs. Marketing department of PTCL first identifies and analyzes the target markets then design and implement marketing mix strategies to reach markets and achieve the organizations marketing objectives. During each step, they use marketing research to help in

43
decision-making. They analyze their customers raveling behaviors their buying motives and patterns.
Product Planning, Development, And Management

A company can obtain new product in two ways. 1. One is through acquisition from some other body. 2. Second is New Product Development in the Companys own research and development department. PTCL V wireless obtained through acquisition form Huawei Technologies. PTCL does not follow complete product development process. V Wireless idea was generated in response of weekly and quarterly feedback report from the bottom line managers and through marketing intelligence. That the land line numbers were rapidly closing and a very small number of connections were issued. This ratio was 7:3. The reason was high fault ratio, sub-standard cabling, line staff behavior, high line rent and competition. Subscribers were shifting to sell phones. This feedback was alarming. How to cope with this problem? Management planned to improve land line and also introduce a parallel new product for their customers. PTCL tried to convert this problem into opportunity. For this purpose a new technology (radio transmission 2000) V Wireless acquires from Huawei Telecom obtained and launched in Karachi and Islamabad. Excellent advertisement at print and electronic media was made. A good response received from the test market. V Wireless was launched step by step all over the country. For V Wireless development, PTCL is offering new features day by day like, SMS, Call Transfer, Call Waiting, Rs1000/- free balance on new

44
connection. Changing color and style of sets. Offer SIM and pocket sets. Four more facilities are also added w.e.f 05-09-2009 i.e : . For land line development old exchanges replaces with the latest exchanges. Traditional cable replaced with the Optical Fiber Cable. Held Customer Care trainings for line staff to change their behaviors and become friendly and customer oriented. Recruited fresh blood in DSL installer department for better services. PTCL recently offers more features to improve their land line phones. These features are:Low Call Rates DSL facility on the same land line. Fax facility without charges on the same land line. Coming soon cable net on the same land line.
BROADBAND PAKISTAN
Ptcl provided internet facility to his customers.this service is provided on the existing coppor and OFAN infrastructure through ADSL2 technology,DSL. DSL is a servicethat allows high speed internet access.your phone is never engaged when you are using the internet. Ptcl provided 2 packages on the Broadband. 1-Regular package 2-Student package To subscribe regular package you will bring Last paid bill And NIC. If you have not NTC then you will first subscribe your NTC and then applied for the Broadband. After the application received withen 3 days connection will be given to you.

45
To subscribe Student package you will bringe 1-verification letter from your university or college. 2-student card. You can,t place both the request of NTC and Broad band because then their software of BNCC will show it pending. You should place request of NTC first and then Broadband.
IPTV
Ptcl smart is a new generic product of PTCL that allows its customers to access services of television.smart Tv provides you the services t5hat are not possible with traditional tv. For this Broadband is necessary.IPTV installation is free.They provided this service with a device,the cost of wich is 10000 if you want to pay in lumsum. They provided the facility of instalment for this you can pay the 500 each month with the bill. 126 are monthly charges for smart tv. .
V.FONE
Wireless local loop it means you can,t take it to other cities.for example if you purchase V.fone from Lahore then you can not use it to other cities. They provide internet facility also on this connection. Soeed of 230KB provided on these sets. Sets of 2 frequency are available. 1900 mega hurds and 450megahurds..1900 is for cities and 450 for villages. Price of set is 3600 with 1200 balance.Thay were provided 5 different packages but from today they change it to 3 packages. Simple package,Family package,and unlimited package.
EVO

46
Device.it is a USB device. Evolution data optimized.It is a wireless internet device and guve speed of 3.1GB. included in your monthly bill and you have to pay 6000 at the time of purchase. If you want to pay separate charges then at the time of purchase you will pay 8000RS. EVO is non refundable device but if you want to close it you have to contact with OSS,CCC or call centers of Ptcl. price of it is 60000Rs.and 2000 monthly charges.you can buy the EVO on your existing Telephone connection then your EVO charges will be
New knowledge acquired

General Office Ethics.-During the course of my internship, I not only raised myself academically and professionally, but also gained numerous insights into the required behavior in an office environment. 1. Here is a list of points which defined my behavior in the office and which I believe should be followed by an employee; Be easy to approach Be positive and wear a smile (it has a positive aura on the overall environment) Interact with people other than your department Share your experiences and let others do the same Be a good listener Dress properly Do small favors here and there
Professional Ethics

47
I made best of all the chances I had to learn more about the professional behavior of an employee Professionally, here is a list of points that defined my behavior at Wateen; o Come to office on time o Do not give an impression that you are there to fool around o Take a leave from office very rarely o Inform your boss on time when you are not coming o Be passionate about your assignments o Complete your assignments before the deadline o Do not be hesitant to stay overtime to complete your work o Keep your eyes open and grasp any opportunity that comes your way

48
PTCL Performance
In a static sense, profits are not the appropriate indicator but it is the sustained capacity of the enterprise to generate maximum profits, make productive and efficient investments to grow over time and provide quality goods or customer satisfactory services that are relevant. There are many cogent reasons that question the assumption of sustained profitability of PTCL under the changed environment of telecom sector deregulation that is sweeping Pakistan since 2003. PTCL enjoys high profits because it earns monopoly rents as a single provider of fixed telephony in the country. Comparison with other telecoms in developing countries shows that it is not due to the efficiency of PTCL that it is showing good financial results and paying dividends. Tele density under PTCL monopoly is quite low - only three percent compared to seven per cent in India. Another more efficient operator in the private sector would have generated twice the current level of PTCL profits through better cost controls and higher penetration rates. Had it not been for the private cellular companies with their seven million customers calling to and from its network, the revenues and profits of PTCL would have been much lower. Since the market structure has been deregulated, the PTCL monopoly broken and new private sector operators given licenses to compete, it would be extremely difficult for PTCL to show such performance in the future despite its dominant market power. The corporate income tax, sales tax and other taxes collected from the new licensees would exceed the total taxes paid by the PTCL at present as the aggregate profits of the industry would rise due to higher teledensity and higher penetration rates. With the induction of new licensees, the teledensity of Pakistan is estimated to double in the next two years to eight million subscribers. Public Sector monopoly could reach only four million in 60 years. Cellular phones have already jumped almost threefold to seven million subscribers during the last one year due to

49
competition among the four players and have contributed to increased tax collection. Government would still receive all the taxes from PTCL and 65 percent of all the dividends that hopefully will be higher under private management. State enterprises have an inherent disadvantage that their procedures, clearances, and lengthy approval processes do not permit the managers to make timely decisions to respond to the business opportunities. U-Fone last 18 months' valuable time has been facing various inquiries into its procurement while its competitors were successful in enhancing their market share at its cost. Such a scenario is most likely to recur once a government owned PTCL is pitted against several private competitors. The skill mix of the staff employed by the PTCL and its numbers are inappropriate to meet the new challenges of providing high standards of customer service, introduction of value added services and new product development. This legacy of PTCL inherited from the culture of the Post and Telegraph Department cannot be washed away and this culture will always keep it at a competitive disadvantage. It will always be difficult to get rid of the redundant labor in a public sector company due to the political repercussions while the private sector firms face no such constraint. The PTCL Board has been recently reconstituted and private sector individuals of eminence have been inducted. This has improved the quality of the oversight and monitoring. However, as they have no direct personal stakes it can not be expected that these part-time members engaged in their own professional pursuits will be able to devote as much time or energies to the Board's affairs as the private strategic investors will. Voice and data transmission are two separate domains. Both domains served their own functions, where voice was supposed to provide timely and reliable delivery, while data transmission was known for its reliability element.

50
The intrinsic difference between the Internet and voice telephony services worldwide is that the Internet was born out of a completely unregulated network, while the telecoms are heavy with regulation. Internet expansion and evolution is exponential in its timing, while the telecoms have been cautious and slow moving. However, when in the early 90s data traffic exceeded voice traffic; the telecoms realized a new opportunity of voice and data convergence. Pakistan Telecommunication Company Limited (PTCL), which has shown a lack of vision, implemented ad hoc policies and have used their monopolistic advantage. We can judge the PTCLs performance on the basis of telephone and Internet connectivity. According to PTCL, 3.12 million people have telephone lines (not all digitized) out of the 741 million worldwide. Pakistan's teledensity rate (telephone lines per 100 inhabitants) is at 2.34 % lagging far behind other Asian countries with an average of 7. PTCL however aims to raise it to 5.6% by 2003; the predicted figure for countries with rates between 1 and 5 is estimated to reach 15 by year 2010. It is quite possible that Pakistan may meet this target because PTCL's performance in the voice domain, relatively speaking has been satisfactory, it is in the domain of information technology where it falls victim to a conflict of interests and tries to regulate it, deterring its natural growth. The largest earnings of PTCL are through international calls, no, not from calls made from Pakistan but from those that are made from abroad with Pakistan as their destination. In accordance to the International Telecommunication Union treaty that Pakistan is signatory to, there is an accounting rate system of halfcircuit charging that translates into splitting the cost and revenue from a leased line or international call between the two or more Public Telecommunication Operators providing network service. Thus, PTCL generated a steady flow of foreign revenue into the country and earned more than a fair share of it, a scenario PTCL can see changing and will do utmost to resist. However, PTCL

51
did make very solid infrastructural investments and while not all of these can be called rational, all of them are proof of PTCL's financial prosperity. The problem with PTCL's investments is not in their soundness but in their incongruity with the country's telecommunication needs. Take for instance fiber optic cables being laid down throughout the country. Each cable has 3 to 4 strands in it. Pakistan's entire telecom needs are met with one that leaves three strands unused and wasted referred to as dark strands. The problem therefore is not the unavailability of resources but in the underutilization of them or/and inappropriate prioritization of necessary improvements. The government has taken various initiatives to spread Internet connectivity across the country as effectively and efficiently as possible. Apparently PTCL is decreasing the cost of leased lines for ISPs and the charges for international leased lines have been reduced 5 times over the last couple of years. Digital Subscriber Lines (DSL), which increases bandwidth and enhances data-carrying capacity of lines, is not yet operational but PTCL is looking for private sector investment in this sector. PTCL has issued 122 licenses to Internet Service Providers and 357 licenses to cable television operators. DSL technology without upgrading the country's backbone infrastructure will not yield the desired results. Currently all of Pakistan data traffic transits through the United States so while I may just be sending my neighbor an email, it will first go and touch base at a peering point in the US and then come all the way back to his computer, which can be avoided by installing specialized routers, networking and related software. Similarly when it comes to supporting ISPs, out of the 122 licensed ISPs only 43 of them are operational because the leased line rates, bandwidth, license fee, renewal charges and royalty is still too high. Also with PTCL not allowing ISPs to use their own networks for providing internet, these ISPs do not invest enough in

52
their telecom infrastructure to achieve high speed networks; as a result the enduser suffers from sub-standard and unreliable service.
Conclusion
PTCL Privatization provide for a public welfare model driven by market forces. These rules change the role of Governments from public service provider to a regulator. On the basis of this study the following conclusions can be drawn: In Pakistan the PTCL Privatization has proven beneficial to the economy and positive effect on customers. PTCL performance is also improved after privatization, investment increased, quality of service also improved but customer are not satisfied about network accessibility and growth of PTCL services in rural areas. Employment also increased but working condition and skill level of employees is not satisfactory. Share Holders satisfied from the privatization of PTCL and receiving the dividend timely. The value of PTCL share also increased and number of share holders after privatization. New and better technology is being transferred in the country. The emergence of new players in telecom sectors has facilitated the economy. It has positive impact on business transactions as well as the daily life of a common man. The increased competition among service providers has benefited the consumer as they have a wide array of telecom service choices available at affordable prices. For residents of the remote areas these facilities largely remain inaccessible for various reasons. There is a need to develop a mechanism

53
for incentive and motivation to be offered to the private sector to be able to address the issues of digital divide. Liberalization of telecom has boosted the economic activity and has generated numerous employment opportunities. The result of PTCL Privatization is very encouraging for policy makers of Pakistan. It is expected that this experience will be replicated in other sectors of the economy but before that a strong institution framework has to be formulated to manage market dynamics and trade challenges for long term sustainability of economic growth resulting from liberalization, privatization and deregulation. Privatization is beneficial for the government. The management control is transferred to the private investor for the proper utilization of resources and earns huge revenue.

54
References
Pakistan Telecom Authority website: www.pta.gov.pk. De-Regulation Policy for the Telecommunication Sector, Ministry of Information Technology, IT & Telecommunication Division, Government of Pakistan. Miss Amna Tariq(Broad band)Assistant manager Mr.adil Marketing Manager Miss.Maryum (assistant manager )HR and admin. Qasim Ali(OSS)Magazine Telecom Asia.com Articles: Dawn Newspaper Daily Times Newspaper Brecorder Newspaper Annual Reports PTA Annual report PTCL Annual Reports from 2001 to 2006 Case Studies Privatisation of Public Utilities: How is it Generating and Impacting Conflicts in Pakistan? (By Mukhtar Ahmad Ali) Telecom survey Websites www.dailytimes.com.pk www.privatisation.gov.pk www.finance.google.com

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www.researchandmarkets.com www.ptcl.com.pk www.telecomstats.com www.pta.gov.pk

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1. Executive summery......2 2. President message3 3. Vision mission statement.....4 4. History......5 5. Introduction to PTCL.10 6. Goals and objectives.13 7. Business operations..

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

President & CEO

Pakistan Telecommunication Company Limited Internship Report

History Telecommunication in pakistan

1947 1962 1990-91

1995 1996 1997 1998 1999 2000 2002 2003 2004

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Objectives and Goals:

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

G.M (INTERNAL AUDIT)

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

EVP Sales and commercial

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Mr. Ahmad Waqar Secretary, Ministry of Finance Government of Pakistan, Islamabad

Mr. Ahsanullah Khan Ambassador, Embassy of Pakistan Abu Dhabi, UAE

Pakistan Telecommunication Company Limited Internship Report

Ms. Farah Qamar Company Secretary PTCL Headquarters, Islamabad

Product and services

Pakistan Telecommunication Company Limited Internship Report

Teledensity fixed Line Sector

Pakistan Telecommunication Company Limited Internship Report

2003 2004 2005 2006 2007 2008

2.9 3.7 4.0 4.3 4.4 4.5

Pakistan Telecommunication Company Limited Internship Report

Pak Internet Exchange:

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

Debt Equity Leverage

Pakistan Telecommunication Company Limited Internship Report

Pakistan Telecommunication Company Limited Internship Report

After Tax Dividends 25,500 10,200 25,500

51,000 51,000 51,000 51,000 Rs(m)

86,578 88,047 90,808 94,046 Rs(m)

33,277 33,122 42,048 40,072 Rs(m)

Pakistan Telecommunication Company Limited Internship Report

ALIS(000)* ALIS per employee

What is a SWOT Analysis?

Why use a SWOT Analysis?

Pakistan Telecommunication Company Limited Internship Report

Low production cost. Availability of infrastructure. Effective product innovation abilities.

Pakistan Telecommunication Company Limited Internship Report

Privatization & liberalization of Govt IT operations & projects.