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In 2003 PTCL monopoly comes to an end when government decided to completely liberalize the telecommunication industry. Due falling revenues government pursued a progressive policy in 1991 and announced its plans to privatize PTCL. PTCL has been privatise twice, once in 1994 when 12% shares were sold to general public n secondly in 2006, 26% shares were sold to foreign investor.
Privatization Of PTCL
The Privatization Commission, Government of Pakistan had planned to privatize 51 % shares of entity through bidding. In response, the government faced stirred opposition from the employees of PTCL lead of employees parties and strike of about 20 days lead the knees of government down, which rescheduled the mechanism and presented plan of privatizing 26 % of shares along with the managerial power to Etisalat (Choudhary, et al., 2008).
Corporate Vision
To be the leading ICT service provider in the region by achieving customers satisfaction and maximizing shareholders value.
MISSION STATEMENT
To achieve our 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. Sustained growth in earnings and profitability.
Impact on Competition
With the privatization and Reregulation of PTCL many Competitors have entered in Pakistani market. Paktel and Instaphone 1990 Mobilink-1994 Ufone-2001 Warid and Telenor- 2005 Ptcl also faces competition from NTC and worldcall for providing fixed line services.
Positive Argument
Improvement in technology:
Like DSL, Broadband, IPTV, optic fiber cables and voice messaging
Budget effective
The losses of ptcl was now not to be covered from government budget .
New projects
Launch of Vfone
expanded the network to provide coverage in all large and small cities including over 10,000 villages in rural areas of Pakistan.
New projects
EVO:
It runs on a 3G network and can offer an average of 300-500 Kbps download speeds.
New projects
Telephone to Television
PTCL initiated the multi channel Inter Protocol Television (IPTV) project during 2006-07
Negative impact
one of the leading telecom players in Asia before privatization Unemployment after Privatization Corruption Bad customer care service Fall of market shares
Negative impact
Reduction in Profits Loss of subscribers due to competition If the government have showed a little concern for it and managed it in a proper manner it have been today at a better place then now. As the PTCL has been the highest profit earning state-owned company with real-estate assets worth billions of rupees across the country including commercial plazas, residential colonies and exchanges.
Bibliography: www.google.com http://www.economicshelp.org/blog/501/economics/advantage s-of-privatisation/ Reference: introduction to business ( joseph T. straub) ( Raymond f. Attner ) http://en.wikipedia.org/wiki/Privatization http://www.studentpulse.com/articles/566/privatizationanalyzing-the-process-of-privatization-in-theory-and-practice http://www.wec.com.sa/ItemDetail.aspx?itemId=23 http://www.slideshare.net/aveyond/privatisationvani-prasunapresentation http://www.economicshelp.org/blog/501/economics/advantage s-of-privatisation/