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PTCL Project on marketing Mix

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"In the name of ALLAH, most Gracious, most Compassionate".

UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE

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P

akistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite arrival of a dozen other telcos including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA and Internet are other resources of PTCL, making it a gigantic organization. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public. Six years into a year century, the telecom sector of the world finds itself at crossroads, after changing itself almost beyond recognition over the last 20 years. Privatization and competition are the order of the day, with a majority of countries having adopted these policies to advance their telecom sector. The results have been impressive: the industry has grown at an unprecedented pace. Although there has been phenomenal growth in Pakistan, especially in cellular mobile communication and in the internet, yet the teledensity remains almost stagnant.

Telecom Sector of PakistanThe telecom sector of Pakistan has also entered into a new era. The monopoly of PTCL is now over and the sector is moving towards liberalization. While liberalization and competition are synonymous, the future scenario also poses some challenges to the market dominance of PTCL. The company is ready to face this challenge and maintain its revenue streams in the face of forthcoming competition.

HISTORICAL BACKGROUND 1947 Posts & Telegraph Dept established 1961 Pakistan Telegraph & Telephone Deptt. 1990-91 Pakistan Telecom Corporation 1995 About 5% of PTC assets transferred to PTA, FAB & NTC. 1996 PTCL Formed listed on all Stock Exchanges of Pakistan. 1998 Mobile(Ufone)& Internet(PakNet)subsidiaries established. 2000 Telecom Policy Finalized 2003 Telecom Deregulation Policy Announced 2006 Etisalat Takes Over PTCL's management 2

UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE

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istory of Telecommunication

From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day here is a story of commitment and vision. The history of telecommunication in the Sub-Continent is as old as the history of our slavery. In the subcontinent, before Independence this sector was under the Indian Post & Telegraph Department and developed as a successful industry. The role of telecommunication in Pakistan can be broadly divided into four phases: 1.3.1 Pakistan

Post & Telegraph (P&T)This department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. All the telephone system at that time was manual. This department continued its business up to 1962. At the time of independence the postal and telecommunication services were performed by a single department known as Pakistan Post & Telegraph (P&T). The Government of Pakistan adopted the Government of India Telegraph act 1885 to control and direct the activities of telecommunication.

Pakistan Telephone & Telegraph (T&T)Pakistan Post and Pakistan Telephone & Telegraph (PT&T) under the presidential ordinance was the first step towards reforms in the telecommunication sector. It was made in 1962, when the Ayub Khans government decided to split up the P&T department into two separate departments. Director General headed this department. The decision making power was concentrated with the post of DG, while the responsibilities were delegated to General Managers and Chief Engineers throughout the organization. The PT&T were in fact a civil service department under the ministerial control. The PT&T organizational structure had 20 Chief Engineers and General Managers reporting directly to the Director General. The centralized structure of PT&T caused inefficiency in operations and long delay in implementing decisions. At the time of inception of PTC the total number of employees working in PT&T was 45686and the total network comprised of 922,000 telephone lines.

Pakistan Telecommunication Corporation (PTC)The government of Pakistan pursued the deregulation and liberalization policy in production and service industry during the decade. The major change in this regard was privatization and deregulation of many of the departments of government of Pakistan. The decade of 1990s brought about many changes in the economic structure of Pakistan. The objective was to reduce the burden of the government, minimize the bureaucratic influence and improve the efficiency of these departments. A major breakthrough in the history of telecommunication in the country occurred with the gradual deregulation and privatization of T&T. At the first stage Pakistan Telephone & Telegraph Department (T&T) was converted into a statutory corporation Pakistan Telecommunication Corporation. On December 15, 1990 the PT&T department was transformed into Pakistan Telecommunication Corporation with a legal identity separate from the Government. This change in the statute, introduced by the Government of Pakistan enabled PTC to move from administrative to contractual relationship with its customers. It provided the opportunity for the development of telecommunication facilities to an unprecedented level and also for an increased customer satisfaction.

UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE

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F

our Bodies of PTCL

Under the PTC Reorganization Act, 1996 the telecommunication sectors was split up into four bodies. Pakistan Telecommunication Company Limited (PTCL) Pakistan Telecommunication Authority (PTA) National Telecommunication Corporation(NTC) Frequency Allocation Board (FAB)

Pakistan Telecommunication Company Limited (PTCL)A company established to undertake the telecommunication business formally carried by Pakistan, is Pakistan Telecommunication Company Limited (PTCL). Pakistan Telecommunication Corporation (PTC) was transformed into Pakistan Telecommunication Company Limited (PTCL) on January 1, 1996 under Pakistan Telecommunication Reorganization Act, 1996 according to which PTCL took over all the properties, assets, rights and obligations of PTC. Pakistan Telecommunication Authority Pakistan Telecommunication Authority is a regulatory body responsible for monitoring the telecommunication business in Pakistan. It frames rules and regulations for private telecom companies such as mobile phone companies, Internet service providers, paging companies and pay card phone companies. It also issues licenses to the new companies entering into this business. National Telecommunication Corporation (NTC) National Telecommunication Corporation (NTC) is responsible to provide the telecommunication services to the various departments of government and armed services. Frequency Allocation Board Pakistan Telecommunication Company Limited is the primary provider of telecom services in Pakistan. The range of its services includes basic telephone, telegraph, fax, telex, E-mail, digital cross connect, Public data network, Internet, ISDN and other digital facilities. The total number of installed telephone lines (ALI) at June 30, 1998 was 35, 19,877 while the total number of actual lines in service (ALIS) was 26, 60,898. The difference between ALI and ALIS is due to pending and potential future demands.

Industrial Analysis of PTCLPTCL is the exclusive provider of basic telephony in Pakistan with over 3.2 million telephone lines in service. Besides providing fixed line, value added and other ancillary services, PTCL owns subsidiaries that provide cellular and Internet services. Since its transformation from a public sector corporation into a publicly listed corporate entity in 1996, PTCL has implemented an aggressive restructuring program, the primary aim of which is to improve profitability through increased customer focus and efficiency and to prepare the company for the highly competitive environment envisaged once PTCL's exclusivity on fixed telephony expires in December 2002. Followings are the main subsidiaries of PTCL; Paknet Ufone TIP CTI

UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE

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Mission StatementTo be the leading telecom operator in Pakistan, ensuring customer satisfaction using stateof-the -art technology, with a view to improve shareholders value. 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.

Vision StatementTo be the leading ICT Service provider in the region by achieving customers satisfaction and maximizing shareholders value.

Core Values Professional Integrity Customer Satisfaction Corporate Culture Team Work Company Loyalty Corporate Culture

O

bjectives of the Company

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