PTCL Internship Report Part 3 of Yasir

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Part—1Introduction to the Report

Pakistan Telecommunication Company Limited (PTCL) (Roll No.W582949)

After studying this part, we must be able to know about the following:

Background of study

Purpose of study

Scope of Work

Methodology of Research

Scheme of Report


Background of study

Purpose of study

Scope of Work

Methodology of Research

Scheme of Report

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1.1—BACKGROUND OF STUDYThis report is intended as a tool in order to better focus the function of

marketing in Sales and Supply Chain Management within Pakistan Telecommunication

Company Limited. Before learning more about marketing, however, it is essential to get

a basic impression of what marketing is. The field of marketing is undefined and

extremely vast, therefore it is not an easy task to summarize in a manual the key

concepts and activities of marketing.

“Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging value with

others. More than any other business function, it deals with customers”.

Marketing is the business function that identifies unfulfilled needs and

wants, defines and measure their magnitude, determine which target markets, the

organization can best serve and appropriate products, services and program to serve

these markets and call upon every any in the organization to “think and serve the

customer” from a special point of view, marketing is a link between a society’s material

requirements and its economic pattern of response.


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1.2—PURPOSE OF STUDYThe main purpose of studying organization is to get practical knowledge of

marketing and to understand the functions of marketing. Also, knowing about the future

prospects of our selective organization i.e. PTCL, structure and functions of the

departments, product lines, marketing operations of PTCL, critical analysis, short-falls

and recommendations.

1.3—SCOPE OF WORKIt encompasses market planning, sales and distribution, implementing

designed market strategies, control the market operations, analysis of competitor’s

products & services, shortfalls and weaknesses of the organization as well as products &

services and finally recommendations to the organization.

1.4—METHODOLOGY OF RESEARCHResearch methods definitely help to get superlative results analyzing the

products of an organization. I adopt various methods of research to study the PTCL’s

environment, products, marketing operations etc.

These were included:

Studying reports of sales & distribution department in PTCL

Studying reports of finance department

Launching Customer Facilitation Camps (CFCs) in different cities of

Gujranwala Division

Reading online survey at PTCL’s website

Interviewing people and knowing about PTCL’s service and products through

questionnaires

Collection of date and analyzing it

Presenting findings and recommendations


4 Conclusions

1.5—SCHEME OF REPORT

Part-I includes introduction to the report

Part-II includes reviewing the PTCL in terms of business volume,

organizational structure, marketing department’s operations, function of

sales and distribution department etc.

Part-III includes different types of analysis of PTCL business and its

competitors etc.

Part-IV includes finding and recommendations for Pakistan Telecommunication

Company Limited


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Part—2Review of PTCL



Objectives of studying the

organization

Overview of the Organization

Business Volume

Organizational Structure

Product and Services

Structure of overall organization in

terms of reporting lines

Functions of the Department

Department’s Operations

Role of PTCL Managers

Use of Electronic Data in decision-

making


Objectives of studying the

organization

Overview of the Organization

Business Volume

Organizational Structure

Product and Services

Structure of overall organization in

terms of reporting lines

Functions of the Department

Department’s Operations

Role of PTCL Managers

Use of Electronic Data in decision-

making

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2.1—OBJECTIVES OF STUDYING “PTCL”

Marketing-oriented thinking is necessity in today’s competitive world. Some

companies are trying to expand the size of the market. But most are competing to

enlarge their shares of the existing market. As a result there are winners and losers. The

losers are those that being nothing special to the market. The winners are those who,

fully analyze needs, identify opportunities and create value- rich offers target customer

groups that competitors cannot do much. PTCL is the leading company in telecom

sector in Pakistan which is also considering these issues.

Marketing at present is not a function; it is a way of doing business.

Marketing is not a new and campaign on this month’s promotion. Marketing has to be

all pervasive part of every one’s job description, from the receptionists to the board of

directors. Its job is neither to fool the customer nor to falsify the company’s image. It is

to integrate the customer into the design of the product and to design a systematic

process for interaction that will create substance in the relationship. So, I have to focus

on those areas which need improvement and benefit PTCL too. I hope subsequent

mentioned objectives will not only benefit PTCL but also add a lot into my book of

knowledge.

Objectives may vary by changing time and achieving targets but real

objectives are those which benefit the organizations and create true professionalism

among the professionals. These are the learning mile stones and understanding the

theoretical situation in practical mode.


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Following main objectives are base of my study in the

organization “Pakistan Telecommunication Company Limited”:

To get training in genuine understanding

To apply management knowledge to practice

To improve skills i.e. organizational analysis, financial analysis, marketing

analysis etc.

To improve report writing skills

To develop concrete plans, including long and short-term action plans

To understand the supply chain in PTCL and suggest valuable proposals for

improvement

To learn new trends in marketing and role of PTCL in Telecom sector

To get hand on experience of marketing, sales & distribution

To get the knowledge of unique and new products in Telecom sector in

Pakistan.

To analyze new products and services of PTCL

To get the exposure of working in excellent environment of Pakistan’s leading

Telecom Company.

To inquire about employees augmentation, incessant development and

improve performance goals.


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2.2—OVERVIEW OF THE ORGANIZATION

With the birth of a new soul comes a new voice and with it a series of

innocent new stories that we treasure all our lives. The circle of the family grows and is

strengthened with every addition of a voice, and who understands it better than PTCL.

For sixty years it has been the one and only connection between families

and the voice of the little ones who share thousand stories with the world. From the first

faltering “hello” to the most eloquent speech, PTCL has given voice to many little

angels of Pakistan and today it has become one strong voice of the country.

PTCL is the largest telecommunication provider in Pakistan with

employee strength of 30,089. It also continues to be the largest CDMA (Core Division

Multiple Access) operator in the country with 0.8 million Vfone customers. Moreover,

the company maintains a leading position in Pakistan as an infrastructure provider to

other telecom operators and corporate customers of the country. It has the potential to

be an instrumental agent in Pakistan’s economic growth. PTCL has laid optical fiber

Access network in the major metropolitan centers of Pakistan and it has modernized and

upgraded the local loop services from copper to optical network.


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2.2.1 Historical Background

1947- Establishment of Posts & Telegraph Dept

1961- Establishment of Pakistan Telegraph & Telephone Dept (T&T)

1990-91-Establishment of Pakistan Telecom Corporation (PTC)

1995- About 5% of PTC assets transferred to PTA, FAB (Frequency Allocation

Board) & NTC (National Telecommunication Corporation).

1996- PTCL Formulation and listing on all Stock Exchanges of Pakistan.

1998- Establishment of Mobile (Ufone) & Internet (PakNet) subsidiaries.

2006- Etisalat Takes Over

In April 2006, Emirates Telecommunication Corporation, which is

commonly known as Etisalat, acquired 26% shares of PTCL. Etisalat has been the

telecommunications service provider in the UAE since 1976 and stands 140th among

the Financial Times Top 500 Corporations in the world in terms of market

capitalization, and is ranked as the 6th largest company in the Middle East in terms of

capitalization and revenues.

Etisalat is currently operating in 14 countries namely UAE, Saudi

Arabia, Egypt, Pakistan, Afghanistan, Sudan, Niger, Ivory Coast, Benin, Togo,

Tanzania, Bukina Paso, Gabon, and Central African Republic and is continuing to

pursue new mobile and fixed line opportunities in many growth markets.

Management has started another mega project from August, 2008 with

“MCKINZIE”, a management consulting firm, which aims at revamping the HR

policies, Processes and Organizational structures in order to convert PTCL from public

entity to corporate entity. Now a days PTCL management is adopting new market

oriented strategies to become the telecom icon in Pakistan.


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2.2.2—Nature of the OrganizationPakistan Telecommunication Company Limited (PTCL) is proud to be

Pakistan’s most reliable and largest converged services carrier providing all

telecommunications services from basic voice telephony to data, internet, video-

conferencing and carrier services to consumers and businesses all over the country.

Whether it is an office in the largest city of Pakistan or a home in a small

village, PTCL is present in every corner of Pakistan to serve customers.

PTCL Stock Price

Symbol PTC Open Rate 21.21

Bid Volume 3505587 Bid Price 22.27

High Rate 22.27 Low Rate 21.90

Current Rate 22.27 Turnover 2124273

Price Change 1.06 Percent Change 5%

Outstanding Shares 3774000000 Market Capitalization 84046980000

Table-1-PTCL Stock Price


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2.2.3—Vision of PTCL

“To be the leading Information and Communication Technology Service

Provider in the region by achieving customer satisfaction and maximizing shareholders'

value”

A notion about Vision (Where there is no vision, the people perish—Proverbs 29:18)

2.2.4—Mission of PTCL

To achieve our vision by having:

An organizational environment that fosters professionalism, motivation &

quality.

An environment that is cost effective & quality conscious.

Services that are based on the most optimum technology.

“Quality” & “Time Conscious” Customer service.

Sustained growth in earnings & profitability

2.2.5—Core Values Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty


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BUSINESS VOLUME in terms of revenue, deposits, advances, investments. Etc. Quote figures for five years and analyze trend. Use latest years data


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2.4—ORGANIZATIONAL STRUCTURE


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EVPLegal Affairs

EVPInternal Audit EVP

GM

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Non Management

Non TechnicalTechnical

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2.5—PRODUCTS AND SERVICESPTCL achieves its customers’ satisfaction by providing them with features and

services like network coverage, performance, reliability & security at their specific

locations.


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PTCL’s services are available for two types of Customers:

1. Consumers Services

2. Corporate Services

3. Value Added Services for Consumers

2.5.1—Consumer Services:

1. PSTN (Public Switch Telephone Network)

2. V fone

3. V fone Postpaid

4. Broadband

5. IPTV (PTCL Smart TV)

6. VMS (Voice Mail Service)

7. Free Internet Facility

8. Kehdo SMS

9. PTCL Direct

10.EVO Wireless Broadband

11.PTCL Calling Cards


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1-PSTN (Public Switch Telephone Network):

This service is available on conventional fixed line phone. This service includes

convenient features and options like Caller-ID, Call Forwarding, Call Waiting,

Conference Calling, Call Barring and Do not Disturb.

PTCL also offers flat calling rates for local, nationwide and international calling

services to its customers. For further details on PSTN, help line 1236 can be contacted.

2-VFONE FIXED WIRELESS ACCESS NETWORK:


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Vfone is a replacement of fixed line phone mainly in the areas where there is not

network availability. Wireless phones are based on CDMA2000 1X technology. PTCL

has built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages.

The network is enabled for Voice, Dialup-Internet access (115kbps) and EVDO

Broadband.

3-V FONE POSTPAID

PTCL now has introduced V Fone postpaid in exciting packages for its

customers bringing new enhancement in its products.


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4-BROADBAND:

PTCL is offering high speed broadband to its consumers for high speed internet

connectivity with easy downloads & uploads. Free DSL modems are offered to the

customers while special discounted student package is offered to the students as well.

5-PTCL SMART TV:

It’s a fixed line service that allows the customers to experience telephony,

Broadband and multi-channel TV service all at the same time, on the same line. No

additional cable would be required to receive cable TV / Multi channel TV. An IP


19(Internet Protocol)-based platform allows the TV service to be ‘smarter’ than the

traditional broadcast and cable TV services, by making the TV viewing experience

more interactive and personalized.

6-VOICE MESSAGING SERVICE (VMS):

PTCL is offering phone to phone Voice Mail Service that works all of the time -

even when there is a power outage. After 6 or 7 rings the voice mail service activates

and the caller can leave the message in his voice.

Voice mailbox can be accessed 24 hour a day, 7 days a week and the customer

would never miss an important call. PTCL has extended its Voice Messaging Service to

38 cities and it’s all free.

7- PTCL INTERNET FACILITY:

PTCL’s limited time offer of free internet has ended w.e.f from May 16, 2009.

PTCL has introduced refined Phone-n-Net services with new charging mechanism

which is equivalent to old hourly usage charges. PTCL subscriber can still enjoy this

innovative service with nominal charges.

Key Highlights of new offer:

Unlimited Download


20 No balance Expiry

Best Connectivity

Strong geographic presence

No GST applicable on Internet calls

Login name: “PTCL”

Password “PTCL

8-KEHDO SMS (VOICE SMS):

Adding voice to the SMS takes SMS to the next generation of value. In this

service, the caller can leave a text message from his digital phone to any cell phone

number. That text message is received with voice on the cell phone as an incoming call.

9-PTCL DIRECT:

PTCL direct is a pre-paid international calling service for making calls from the

UK to Pakistan. The service aims to extend PTCL’s reach to UK based callers wishing

to stay in touch with their family & friends in Pakistan. Customers can purchase credit

online (using a credit card) and make calls to any number in Pakistan direct through

PTCL. The calls will be charged according to prescribed PTCL tariffs.

www.ptcldirect.com is the website for further information on PTCL Direct.


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10- EVO WIRELESS BROADBAND

EVO Wireless Broadband is the latest service from PTCL that offers High

Speed Wireless Internet Access and is the latest evolution in Internet. It has been

introduced in big strata’s. We can get up to 10 times the peak data rate of the next best

public wireless solution up to 3.1 Mbps download and up to 2.4 Mbps upload speed. It

also allows the user to be connected wherever they are not only for email, but also for

downloads, large files, photos, spreadsheets, etc.


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11-CALLING CARDS DENOMINATIONS:

PTCL Calling cards are available at Sales & Service Centers, PTCL Customer

Service Centers and retail shops, in following denominations:


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2.5.2—Corporate Services

1. UAN (Universal Access Number-111)

2. UIN (Universal Internet Number-131)

3. Business DSL

4. DPLC (Domestic Private Leased Circuit)

5. IP Connect

6. ISDN BRI (Integrated Services Digital Network Basic Rate Interface

7. ISDN PRI Integrated Services Digital Network Primary Rate

Interface

8. Co -locations

9. DXX Connectivity

10. Call Centers

11. Audio Conference

12. VPN (Virtual Private Network)

13. Premium Rate Service (0900)

14. V-Connect

15. International IP services

16. PTCL Webhosting

17. Payphones

1-UAN (Universal Access Number):

UAN (Universal Access Number) consists of 6 digits, preceded by 3 digit code

of 111, common to all UANs. UAN operates on existing telephone connection without

disturbing normal phone number. UAN never changes, if you move your office or your


24normal telephone number is changed, your UAN will remain unchanged. UAN can be

accessed from other cities by dialing the area code first.

2-UIN (Universal Internet Number):

131 numbering scheme for Internet Service Providers, represents exclusive code

assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves

allocation of numbers to individual ISPs who are licensed by PTA. This service

functions under a single-metering billing system with the promise of rich dividends in

terms of customer care.

3-Business DSL:

PTCL’s business DSL solution provides a reliable, business-class broadband

connectivity, which will help the customers to download software and large files,

research the web and communicate with their business associate’s and business partners.

4-Domestic Private Leased Circuit (DPLC):

This service is also called even stream/channel stream. In this service, PTCL

provides leased line services to other service providers & corporate customers for data

or voice communication by establishing a connection between two exchanges.

5-IP Connect:

The “IP Connect” service is based on Internet Protocol Virtual Private Networks

(IP-VPN), which allows companies with locations spread out in PAKISTAN to connect


25and transfer data on a private and secure way over reliable robust network

infrastructure.

6-ISDN BRI (Integrated Services Digital Network – Basic Rate

Interface):

This service allows the customer to have two connections on a single line. In

addition, it allows clearer voice communication plus a faster way to send and receive

fax, video images, graphics and computer data on a phone line. You can have a single

Tele Plus connection, just like a conventional phone line. Moreover, Customer can go

utilize phone line as well as internet at one and the same time. Total bandwidth of the

BRI is 128 kbps.

7-ISDN PRI (Integrated Services Digital Network – Primary Rate

Interface):

This service allows the customer to have thirty connections on a single line.

Small as well as medium sized clients usually go for this facility to facilitate their

internal & external Customers. Business customers can operate their PABX more

efficiently while using PRI’s. Total bandwidth of the PRI is 2 MB. Call centers operate

on PRI.

8-Co-location centers:

Pakistan Telecommunication Company Limited (PTCL) has taken the landmark

decision to establish Co-Location centers throughout the country. In the first phase,

these centers are established at Islamabad, Lahore and Karachi. PTCL has rented out its


26free premises with ready fitted environment (with AC and DC power) to other Telecom

and IT Companies where they have installed their equipment directly.

9-Digital Cross Connect (DXX):

PTCL offers flexible and reliable services through a high quality platform of

Digital Leased Line Network to organizations, normally to financial institutions

(banks).It is meant for data communication only and provides connectivity between two

offices. PTCL digital cross connect (DXX) network provides the most dependable

media for WAN connectivity with more than 200 Nodes countrywide.

10-CALL CENTERS:

International Call Centers:

Call centers operate through a 0800 Toll-Free Service, wherein overseas

customers' calls are routed to Pakistan or overseas destinations through VoIP (Voice

over internet protocol) technology where trained agents are ready to respond to the

queries of the customers. This service however involves certain human resource

requisites like communication skills and customer handling to be arranged by the

subscribers.

Domestic Call Centers:

Domestic Call Centers also operate through 0800 Toll-Free Service, wherein

customer’s calls are routed to a call center where trained agents respond to the inquiries

of the customers. This service however involves certain human resource requisites like

communication skills and customer handling to be arranged by the subscribers.


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11-Audio Conference:

PTCL offers audio conferencing services for SME/Corporate Customers with up

to 120 participants per conference. Audio conferencing services are easy to use with

interesting billing packages, designed for maximum user comfort and convenience with

web integrated interface. Audio Conferencing allows organizations to conduct virtual

meetings between clients/customers/staff both locally and internationally.

12-VPN Service:

This service allows a private enterprise to have a virtual private network using

public network resources, without requiring the installation of dedicated network

resources. With the VPN service one can flexibly control the outgoing call authority of

phones by setting the closed group. Moreover, VPN allows to make calls on reduced

rates on all the numbers on the virtual private network.

13-Premium Services (0900):

These services are based on the system called IVR (Interactive Voice

Response) .PTCL offers Standard Service and Advanced Service for accessing the

service providers with features that are helpful to the customers in customizing their

service according to their needs.

14-V-Connect:

This service is offered to big organizations in remote areas where V-Connect

provides data connectivity in client server mode through dial up process, where the


29client can be mobile or stationary and the client requires low bandwidth to access the

server.

15-International IP Services:

PTCL is the largest IP services carrier in Pakistan with extensive international

peering capacity. It provides secure and reliable VoIP solutions catering to the

requirements of LDIs and other operators in the marketplace.

PTCL provides dedicated IPs to other organizations that would help them to transfer

data with increased security and connectivity.

16-PTCL Web Hosting Services:

PTCL offers world class hosting on windows platform. It provides the control,

flexibility and reliability required to create and manage a successful web presence by

other organizations. Moreover the self healing backbone of PTCL makes sure the high

availability of the customer’s website.

17-PTCL Payphone:

This service operates like a PCO. It is compatible with a call centre solution and

generates printed receipts at the end of call at call centre.

PTCL payphone provide Wide Area Network coverage, quality service, best speech

quality, and reliability.


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2.5.3—Value Added Services for ConsumersCLI (Caller’s Line Identification)

Calling line Identification (CLI) allow customers to identify the caller before

picking up the phone receiver. To subscribe to CLI services, a customer needs a

telephone set with display capability or a CLI device attached to the phone.

E-Bill Payment

Billing system is a part of customer services so providing connivance to its

valuable customers PTCL launched a new billing service which is available through “

PTCL Calling Card” This is another service from PTCL. This service is basically

providing billing solutions for the users.

Digital Facilities

PTCL offers a variety of features to digital exchange customers like:-

Hotline

Abbreviated Dialing.

Call Waiting

Don’t Disturb

Call Transfer on (a) Busy (b) No Reply (c) Immediate

Wake up call

Absent Subscriber

Code Barring


31Prepayment Telephony Services (PPT)

With the changing trends most telecoms are diversifying their services towards

Prepaid solutions. One of such modern era telecommunication service is Prepayment

Tele Phone (PPT). It provides the facility to subscriber to load a prepayment Telephony

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 subscribers.


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2.5.4—SUBSIDIARIES

While keeping its tradition of being the trend setter in the industry, Ufone

changed the image of mobile phones from a luxury only affordable by the elite, to a

necessity affordable by the common man. Since its inception, Ufone has positioned its

brand for masses. In keeping with the upcoming competition and market dynamics,

Ufone increased its focus on the youth segment (which comprises 50% of the

population), with the Prepay brand.

By designing market focused products, Ufone’s brand team launched aggressive

campaigns, which further increased the brand equity. The new brand image gained huge

popularity amongst the targeted market. A recent marketing survey conducted by a

prominent marketing research company showed that Ufone has considerably increased

its brand visibility and image. Ufone’s Prepay brand is now considered to be one of the

most favored brands by the youth market and is followed by other mobile operators

launching their respective brands for the youth market.


33International Coverage

Ufone provides International Roaming facility with more than 150 international

operators across 79 countries. Ufone has GPRS roaming agreements with several

international operators and also provides prepaid roaming facility to selective

destinations.

Customer Service

Ufone is proud to have an efficient and friendly customer service through 21

company-owned Sales & Customer Service Centers and nearly 250 franchisees across

the country. The outlets are able to service the customers with innovative solutions, and

are empowered with Web based franchise management systems. Ufone is poised to face

the ever increasing challenges of the market and is confident it will attract new

customers. It has the ability to retain its existing customer base with a high level of

customer satisfaction via optimum network service and a 24 hour call center facility.

Chart-1-Number of Subscribers of Ufone


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Network Coverage

Ufone has always believed in a solid commitment to growth, security and

reliability. Therefore, Ufone has always balanced its expansion efforts and quality of

service. With a total current investment of $400 Million, Ufone has network coverage in

more than 260 cities and towns and across all major highways of the country.

Ufone has been instrumental in the growth of the cellular market in Pakistan. It

is a company committed to excellence. Under the new vision of Etisalat and with the

support and collaboration of its employees and vendors, Ufone aspires to be the best in

the market by offering customer focused products and a quality service and sales

network.


Mr. Abdulaziz Ahmed Saleh Ahmed Al SawalehChief Human Resources Officer

Etisalat, UAE

Mr. Walid Irshaid President & CEO of PTCL

Mr. Naguibullah MalikChairman PTCL Board

Secretary IT & Telecom Division, Ministry of Information Technology

Government of Pakistan, Islamabad

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2.6—ORGANIZATIONAL STRUCTURE IN TERMS OF REPORTING LINES ALSO SHOWING THE RESPECTIVE AUTHORITIES AND RESPONSIBILITIES

Mr. Salman SiddiqueSecretary (Finance), Ministry of Finance

Government of Pakistan, Islamabad


Mr. Abdulrahim Abdulla Abdulrahim Al NooryaniChairman & Chief Executive Officer, Etisalat International Pakistan L.L.C

Executive Vice President Contracts & Administration Etisalat, UAE

Mr. Mushtaq Ahmad BhattiMember Telecom

Government of Pakistan,Islamabad

Mr. Fadhil Mohamed Erhama Al AnsariExecutive Vice President Engineering

Etisalat, UAE

Mr. Khursheed Ahmed JunejoAmbassador, Embassy of Pakistan

Abu Dhabi, UAE

Mr. Abdulaziz Hamad Omran TaryamGeneral Manager, Northern Emirates

Etisalat, UAE

Dr. Ahmed Al JarwanGeneral Manager

Real EstateEtisalat, UAE

Ms. Farah QamarCompany Secretary

PTCLPTCL Headquarters,

Islamabad

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STAFF AND THEIR RESPONSIBILITIES

Designation Responsibilities

PRESIDENTPresident is the Chief controller. He is responsible for the

overall management of an organization

SEVP (I/AUDIT)

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

GM N.S.S.

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

SEVP’s

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.E’s (Senior Engineer)

SEVP (STRATEGIC

MANAGEMENT)

Senior Executive Vice President makes strategies to achieve

overall organizational goals


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CE (RRR)Chief Executive Recruitment hires and fires the employees

according to organizational policy

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

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 MarketingThis 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


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2.7


Auditors

A. F. Ferguson & Co.,Chartered Accountants

KPMG Taseer Hadi & Co.,Chartered Accountants

Bankers

ABN Amro Bank

Askari Bank Limited

Citibank N.A.

Faysal Bank Limited

Habib Bank Limited

MCB Bank Limited

National Bank of Pakistan

Standard Chartered Bank Limited

United Bank Limited

Share Registrar

THK Associates (Pvt.) Limited

Ground Floor, State Life Building No.3,

Dr. Zia-ud-Din Ahmad Road, Karachi

Tel: +92-21-111-000-322

Fax: +92-21-5655595

Registered Office

PTCL Headquarters,

Block-E, Sector G-8/4,

Islamabad-44000, Pakistan.

Tel: +92 51 2263732 & 34

Fax: +92 51 2263733

E-mail: [email protected]

Web: www.ptcl.com.pk

SM (S&D)

Manager (S&D)

SM (MM&BB)

Manager (F.M)

SM (D&M) SM (SW) SM Transmission

S.E (D&M)-II

SE (D&M) HFZ

S.E (WLL)

S.E (APL)

S.E Transmission

Manager (Prov)

Manager (F.S)

S.E (D&M)-I

S.E (EWSD)

40

2.8—ORGANIZATIONAL STRUCTURE OF THE BRANCH IN WHICH I AM CARRYING MY INTERNSHIP


Regional General ManagerGujranwala

SM (HR&A) SM (Finance) SM (R&C)SM (Operations)

Manager (HR)

Manager (Admn)

SMO

Manager (B&P)

Manager (F&MA)

SE (Ops) M/T

SE (Ops) P/C

SE (Ops) CTX

Manager (Rev)

Manager (Coord)

Manager (R&C)

41

2.8.1—PROFILE OF EMPLOYEES WORKING IN MARKETING, SALES & DISTRIBUTION DEPARTMENT

Name Designation Qualification Experience Location

Zafar Usmani SEVP MBA (Marketing) + BSc Engg.

22Years Islamabad

A.D. Raza EVP Sales & Commercial

MBA (Marketing)

16 years Islamabad

Ali Kamran GM Sales & Distribution

MBA (Marketing)

12 Years Lahore

Nadeem Ahmed Sheikh

Senior Sales Manager

MBA (Marketing)

10 Years Gujranwala

Mirza Nouman Baig

Assistant Sales Manager

MBA (Marketing)

2 Years Gujranwala

Kashif Chudhary


MBA (Marketing)

4 years Gujranwala


42

2.8.2—REVIEW OF THE VARIOUS DEPARTMENTS

HR & Administration:

The functional responsibilities of this department include core human resource

areas like recruitment & manpower planning, training and development, performance

management, organizational restructuring, building competitive market pay structures,

developing the HR policies, Procurement etc. This department also indulges in

administrative responsibilities including overall maintenance of the company,

management of the Training Colleges and Institutes, providing medical services to the

employees, employee relations etc.

Technical:

Technical Department deals with the preparation of annual and five year

technical plan. It ensures that engineering standards and practices are executed properly;

the technical specifications are met for telecom equipment used in PTCL and cost

effective technologies are introduced This department is responsible for the final

technical evaluation.

Corporate Development:

This department formulates Master plan with short, medium and long term

objectives, strategies and KPIs based on Available market data, Competitive /strategic

landscape, Input from internal stakeholders. Choosing strategic projects and closely

monitoring domestic and international market for new investment opportunities is also


43part of the responsibilities. Effective Corporate communications, formulation of

corporate strategy,

Management of Intl Business Relations, Carrier Services and wholesale and dealing

with Regulatory Affairs are the prime areas of corporate development.

Operations

The core functions of operations are to focus on activities relating to IP Services,

Switching and Transmission.

This key area indulges in the day to day operational, engineering activities and

makes sure that the processes are streamlined so as to provide best services to the

valued customers.

Commercial

The Commercial Department develops strategic business plans, sales strategy,

budget, policies and procedures, relations with major accounts and marketing plan for

PTCL. It plans for maintaining and increasing the market share, penetrating and

developing existing and new market segments by developing products and sales

programs to reach market segment objectives

Business Zone

This department is divided in two areas Business Zones- North, Business Zones

–South This department is responsible for developing business plans, sales strategies

and manages all the operations performed in the three zones of PTCL. This department

is taking care of overall management of all the matters relating to the EVP’s Business in

the Zone areas. Formulate strategies to enhance utilization of PTCL available

businesses, also implement business and marketing plans for sustained growth of PTCL


44revenues. Plan and approve business areas for implementation of IT, E-commerce,

Web-hosting and host of new services.

Finance

This department drives financial visions and direction of the company in line

with the overall business strategies. It delivers increasing shareholders’ value, directs

and monitors financial system and strategies.

The principal functions include financial policies and procedures, costing and regulatory

affairs, Budget control, Treasury, Revenue accounts.

Procurement & Administration

Procurement department is responsible for every kind of purchase. Procurement

is done by issuing tenders or by price negotiations. Tender is issued only in the funded

institutions or Govt organization and price negotiation is done in private organizations.

In PTCL, procurement is done by issuing tenders as well through price negotiation.

Information Technology

This department is responsible for all IT related issues and network issues with

in the company. Furthermore, it is responsible for overall PTCL IT Operations and Data

centers.

IT department builds, manages and maintains PTCL’s IT Infrastructure and

ensures the availability and the stability of the IT systems and solution. Responsible for

the implementation of SLA with other departments


45

2.8.3—OTHER IMPORTANT AREAS

Legal Affairs

The department handles Commercial and Corporate, Regulatory, Employment

Laws and HR, Litigation, and Subsidiaries Affairs.

Internal Audit

This department carries out the General Internal Audit and IT Audit. It performs

a wide range of services including financial audits, compliance audits, operational

audits and information technology audits.

Revenue Assurance

The main function of this department is to effectively manage the high risk areas

of PTCL and reduce the possibility of revenue leakage and bad debts, identify revenue

generation streams, ensure revenue generation & billing and identify cases of lost

opportunities. Other responsibilities include formulation and implementation of RA

plans and strategies, network surveillance and surveillance etc.


46

2.9—STRUCTURE OF THE DEPARTMENT


President

SEVP Consumer Business Services

EVPSales & Commercial

EVPMarketing

GMSales & Distribution

Area Sales Manager

Sales Manager



Executive Sales Support

GMMarketing

Senior Manager

Marketing Manager


Deputy Marketing Manager

Assistant Marketing Manager

47

2.10—FUNCTIONS OF THE DEPARTMENT Key activities of Marketing and Sales Department:

1. Formulates an integrated commercial strategy covering marketing, sales, CS

policies, new product evaluation market research advertising and promotion

as well as strategic client relations.

2. Develops an integrated and comprehensive planning and research program

that identify product/ service opportunities in order to achieve PTCLs goals

and business objectives.

3. Formulates, recommends and manages pricing, tariffs and strategies to

ensure competitiveness and effectiveness of product/ services in chosen

markets as well as generating revenues and maximizing profits for all

product lines.

4. Design, agrees and implements the development of a cost effective

promotional strategy using a range of promotional methods in order to

stimulate and increase the demand for products/ services.

5. Develops and expand business opportunities for specific market segments,

produces market development plan that determines market size and identifies

new opportunities for PTCL product/ services in order to maximize

profitability and satisfy the needs of all categories.

6. Plans and organizes the marketing communication strategies, systems and

programs with end view of maintaining and strengthening PTCL’s image.

Evolves plans for the continuous upgrading of customer care and advertising

programs as well as for the effectiveness of services provided to all

customers.

7. Devises and directs sales and Customer Services plans/ programs for the

entire range of products and services in order to achieve growth in sales

volume and market penetration inline with the company business plan and

international standards.


48

2.11—DEPARTMENT’S OPERATIONS

In internship, I was told that there is one office of marketing department

in Islamabad which is functional and guides Sales & Distribution departments at

different cities for marketing operations. In Sales & Distribution departments, people

are doing dual job. They not only promote products and services of PTCL but contribute

in sales function. Following operations are being conducted in corporate services and

product development.

Corporate Services & Product Development

Key activities of Corporate Services & Product development:

Defines a strategic commercial plan under the direction of the SEVP-

Commercial.

Ensures efficient and effective deployment of people, means and systems within

agreed budgets and in line with corporate strategy, brand and people values.

Sub areas of Corporate Services & Product Development:

a. Market Segments & Strategy

b. Product Development

c. Business Development

a. Market Segments & Strategy:

Devise telecommunication solutions for a particular industry segment.

Recommends telecom solutions that are technically and economically viable.


49 Creates and implements an effective sales strategy at an industry and customer

level.

Analysis of economic data and dissemination of the data in order to devise

solutions and sales strategies

Derives information with trends, annual reports and relevant new sources so that

effective sales strategies can be devised.

b. Product Development:

Facilitates the offering of PTCL’s products to the market.

Devise product offerings that are viable from a technical and costing perspective

and have outstanding market potential

Product development of key Telecom products and services.

Applies new technologies used for the evolving of the Telecommunications

market.

Applies processes and systems required in order to bring product to market.

c. Business Development:

Positions multiple corporate products as a bundled solution to new and existing

customers

Leads PTCL participations in mega bids and tenders issued by government and

private corporations

Provides total end-to-end solutions by using PTCL and alliance partners’

products.


50

COMMERCIAL PLANNING & SUPPORT

Key activities of Commercial Planning & Support:

Directs the Company’s overall marketing and strategic planning programs

geared toward maximizing the company’s share of the market and its profits

while ensuring that the company’s customers are satisfied.

Facilitates customer development through marketing and customer service

programs. Work in conjunction with advertising and promotion companies to

promote Company Image, Brand Awareness Products and Services and to attract

potential users.

Reports and analyses company’s performance against key metrics (measures key

performance indicators such as overall market and product penetration, market

share, brand awareness, ROI of campaigns, profitability of market segments and

products), regularly track key developments in the market to identify trends and

spot business opportunities.

Sub areas of Commercial Planning & Support:

a. Market Research & Intelligence

b. Market Communication

c. Commercial performance control

a. Market Research & Intelligence

Responsible for improving sales and marketing effectiveness by tracking and

analyzing marketing, sales, advertising, and sales promotion data.

Leads custom research efforts to collect data and information on market

environment (customers, competitors, companies, industries, historical data,


51benchmarks, market segments, etc.) to understand consumer insights in support

of business plans.

b. Market Communication

Translates the corporate values into a visible brand experience, to increase

awareness of the company and its services, to create a favorable image of the

company.

Manages the creation, development, and execution of advertising and promotion

plans and sales information that support the marketing and sales objectives of

the company. Develops and manages the base of inside and outside resources to

support implementation of advertising and promotion plans that maximize

company’s revenue.

c. Commercial Performance Control

Ensures that services are achieving their targets, and if not, the needed

corrective action is planned and executed to improve service

performance.

Manages and develops Archiving & Customer Profiling staff in order to

improve customer service and to achieve departmental objectives.

Controls the processing of all documents requiring data entry to the

Customer Management and Billing system and ensure that quality targets

are met.

Controls all accounts related activity and to ensure that quality targets are

met.

Ensures all office administration including post, filing, and faxing and

distributions carried out for Customer Management to the agreed level of

service.


52 Conducts planning, scheduling, and preliminary analysis for assigned

KPIs projects.

Develops value added recommendations to deal with issues identified

during assigned KPIs assessments and draft action reports to formally

communicate the results of the assessments and related

recommendations.

Develops and monitors the Management Information Systems (MIS) and

ensure the full utilization of the MIS and Data warehouse.

Conducts a comparison analysis between the actual performance and

targeted performance and highlights corrective action plans.

Consumer Services

Consumer service is the main job of the department where internship is

being accomplished. So some highlights of consumer service’s operations and working

is as under:

Key activities of Consumer Services:

This department is primarily responsible for Consumer sales, establishing sales

targets, implementing systems to ensure the timely attainment of these targets, as

well as to achieve increased sales and customer satisfaction in B-to-C in both

direct and in-direct sales by supporting the sales teams with respect to quality,

quantity, budget/cost, timeliness and Company’s brand values.

To define a strategic commercial plan along with the EVP P&S and EVP

Corporate Sales under the direction of the SEVP-Commercial .Also, to drive the

department to generate commercial revenue, customer satisfaction and retention.

As well as to ensure efficient and effective deployment of people, means and

systems within agreed budgets and in line with corporate strategy, brand and


53people values. That should lead to contribute to the profitability and expansion

of the company.

Development and implementation of corporate mission, strategy, objectives and

action plans, with specific regard to the commercial angle.

Manages the Sales department

Coach and develop Sales Management Team in order to boost sales and

customer satisfaction

Implements certain aspects of commercial policy by;

Visiting key accounts; negotiating and concluding major contracts; prospecting

the market.

Handling complaints by In-direct Sales partners.

Sub areas of Consumer Services:

a. Direct sales

b. Channel sales

c. Business development

d. Sales & distributions

a. Direct Sales

Direct sales deals with:

Ensuring the appropriate establishment and organization of Regional sales

teams.

Fostering co-operation and team spirit; assessing teams, advising on selection

and training needs.

Evaluating performance and appraisals on performance, productivity and quality

of work.


54

b. Channel Sales

Channel Sales deals with:

Increasing indirect revenues by working closely with all channel partners;

Providing strategic direction for the development and growth of the indirect

channel including recruiting new strategic (and/or major) partners;

Increasing direct sales revenue opportunities through business development with

complementary strategic partners such as other Value Added Resellers (V.A.R.)

vendors and consulting companies.

Coaching and developing In-direct sales teams in order to improve Channel

Partner’s sales, to achieve individual sales targets and customer satisfaction

c. Business Development

This department deals with:

Developing business models and strategies based on in-depth knowledge of

technological evolution and market demands in the region.

Understands customers’ business, buying behavior and decision criteria;

anticipates their needs and communicates them to Product Marketing and Pre-

Sales/ Bid Management.

Monitors data entry procedures and quality standards by all parties to ensure

optimum corporate customer information is captured.

Conducts analyses from databases as required for planning & controlling.


55

d. Sales & Distribution:

This department deals with:

To achieve increased sales and customer satisfaction in B-to-C in-direct sales by

supporting a sales team with respect to quality, quantity, budget/cost, timeliness

and brand values.

To increase indirect revenues by working closely with all channel partners;

Provides strategic direction for the development and growth of the indirect

channel including recruiting new strategic (and/or major) partners;

Approves the design and the implementation of channel-specific marketing

programs.

Approving the design and the production of necessary channel sales and training

tools and materials;

Increases direct sales revenue opportunities through business development with

complementary strategic partners such as other Value Added Resellers (V.A.R.)

vendors and consulting companies.

Responsible for resource allocation including budget and personnel.

Analyzing and reporting accurate information on the Channel Partners sales

results and market feedback.


56

2.12—ROLE OF PTCL MANAGERS

A notion about leadership “Weak leadership can wreck the soundest strategy—Sun Zi”

The role of manager in PTCL to establish / maintain relations with other

industrial institutions in terms of accounts, management and production management is

a key job. PTCL make able and train its key personnel to be active and become a market

leader. To meet the many demands of performing their functions, managers assume

multiple roles. A role is an organized set of behaviors. Henry Mintz berg has identified

ten roles common to the work of all managers. The ten roles are divided into three

groups:

1. Interpersonal

The interpersonal roles ensure that information is provided. The three

interpersonal roles are primarily concerned with interpersonal relationships.

In the figurehead role, the manager represents the organization in all matters of

formality. The top level manager represents the company legally and socially to those

outside of the organization. The supervisor represents the work group to higher

management and higher management to the work group.

In the liaison role, the manger interacts with peers and people outside the

organization. The top level manager uses the liaison role to gain favors and information,

while the supervisor uses it to maintain the routine flow of work.

The leader role defines the relationships between the manger and employees.


57

2. Informational

The informational roles link all managerial work together. The direct relationships

with people in the interpersonal roles place the manager in a unique position to get

information.

Thus, the three informational roles are primarily concerned with the information

aspects of managerial work.

In the monitor role, the manager receives and collects information.

In the role of disseminator, the manager transmits special information into the

organization. The top level manager receives and transmits more information from

people outside the organization than the supervisor.

In the role of spokesperson, the manager disseminates the organization's

information into its environment. Thus, the top level manager is seen as an industry

expert, while the supervisor is seen as a unit or departmental expert.

3. Decisional

The decisional roles make significant use of the information. The unique access to

information places the manager at the center of organizational decision making. There

are four decisional roles.

In the entrepreneur role, the manager initiates change.

In the disturbance handler role, the manger deals with threats to the organization.

In the resource allocator role, the manager chooses where the organization will

expend its efforts.


58In the negotiator role, the manager negotiates on behalf of the organization. The

top level manager makes the decisions about the organization as a whole, while the

supervisor makes decisions about his or her particular work unit.

Observations at PTCL

During the internship I observed that Senior Manager (S&D) is the head of

Sales & Distribution department in big cities where marketing department is not

functional but has been helped by this department. Senior Manager plays a key role in

establishing and maintaining sound relationship with other public, industrial and

business institutions like Government offices, Limited companies, banks etc. Senior

Manager deals with other companies who make phone hand set like Hawaii. It makes

smart set for Vfone which is a PTCL’s growing product.

Similarly, PTCL’s subsidiary Ufone also deals with other companies which

make mobile sets and then Ufone offers different packages with the combination of

these sets and its valued services for its customers.


59

2.13—USE OF ELECTRONIC DATA IN DECISION MAKING

Data-Driven Decision-Making focus uses marketing available data and

relevant background information, to inform decisions related to planning and

implementing instructional strategies at the branch, towns, strata’s and individual

managerial levels. PTCL has itself a big network of broadband nationwide. Broadband

Internet is the big source of getting and collecting of information for PTCL as well as

for other institutions. PTCL has made a website for its personnel and they have given a

user name and login ID for communication.

Personnel communicate by this information system and share information

they required. Almost, every type of communication is being done by Internet in all its

branches through specific information systems. Personnel in all branches are provided a

personal ID and password. This facility has been provided to all departments. They take

decisions and disseminate information within seconds in the whole country. When new

packages are introduced and incentives are announced for the employees, personnel

know everything within seconds all about. Customers can complain online through

website or their PSTN numbers.


60

2.13.1—DIFFERENT TYPES OF SOFTWARE BEING USED BY PTCL

PTCL uses following information systems in its all departments:

(a) Data Warehouses: Data warehouses are large integrated databases that connect

relevant information from other sources into a single accessible format. They

allow users to look at data from multiple operational systems across multiple

dimensions, including time. These systems have the advantage that they can

import and analyze data from a variety of other systems that cannot otherwise

communicate with each other.

(b) Data Analysis & Reporting Systems: These systems provide the ability to

measure organization’s performance across a wide array of variables and

oriented to any scale: big cities, small cities, towns or departments. These

systems are designed primarily as analytical and reporting tools for

management, and can also provide useful summary data for managers.

(c) Complaint Management System (CMS): This is an online information system

for customer’s complaints and other related issues.

(d) Billing & Customer Care System (BNCC): This is also an online information

system for new connections, shifting of telephones, bill correction and all other

matters regarding PTCL billing.


61(e) Customer Service System: This is also an online information system for

communication within the department.

(f) Microsoft Word: This is used for paper communication in the organization.

(g) Microsoft Excel: This is use for compiling data for Sales & Distribution

department and other all departments.

(h) Microsoft PowerPoint: This is used for organizational reports and

presentations.

(i) Microsoft Outlook: This is used as mailing program.

(j) Microsoft Access Database: This is also used for compiling complex data and

view reports as they required.


62

Part—3Analysis



Critical Analysis

Financial Analysis

Future Prospects of PTCL


Critical Analysis

Financial Analysis

Future Prospects of PTCLPar

t-3

O

bj

ecti

ves

63

3.1—CRITICAL ANALYSIS

3.1.1—ANALYSIS OF EXTERNAL ENVIRONMENT

Pakistan followed a gradual approach to liberalize its telecom market. During

1990s, as a first step, market was opened for value added services and competition was

introduced in cellular mobile sector as four licenses were issued (Mobilink, PTML,

Paktel and Instaphone). The government monopoly was retained in fixed line services,

however, PTCL legal monopoly ended with effective from 31st December 2002. The

government announced Telecom Deregulation Policy and Cellular Mobile Policy in

2003 and 2004 respectively. The telecom regulatory, issued new licenses for Long

distance International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL)

and Cellular Mobile. With the issuance of new licenses the market is now open for full

competition in all segments of the sector.

Industrial Structure

Pakistan’s telecom sector has finally begun moving and looked set for an era of

phenomenal growth. The sector has witnessed tremendous growth in recent years with

Teledensity depicting major expansion after deregulation. The primary purpose of

deregulation of the sector was to encourage healthy competition while providing better

quality products and services to customers on lower prices as well providing best

technology available worldwide.

Current Teledensity in Pakistan has expanded exponentially from 4.3 percent in

2002-03 to stand at 49.2 percent in 2007-08 with currently standing at over 51 percent,

with better services and competitive rates. Also, increasing inflow of foreign investment

in the telecomm sector has resulted in the introduction of new cut throat technologies


64for provision of various telecom services including cellular, wireless and internet

services. In recent times, the focus has increasingly shifted from Fixed Lines to Cellular

and Wireless Fixed Lines (WLL), with better portability and convenience. In the urban

markets introduction of Broadband internet services by various Telecomm giants such

as PTCL, WorldCall and Wateen has further benefited the consumers to access timely

information over the internet with competitive rates. The broadband penetration

however has not depicted as much growth as expected growing with 4.3mn subscribers

in 2008 against 3.5mn subscribers in 2007. PTA estimates broadband subscribers to

grow to over 5mn by 2010. WorldCall has initiated cable television services with PTCL

expected to follow suite by providing IPTV services through its Triple Play services,

ensuring diversification of products and services. Recent conducive environment

provide by PTA has resulted in increased FDIs in the sector with investments of

USD2.7 bn during the last five years making it the largest recipient of highest FDI

during the past few years. The future for telephony lies amongst unexplored rural

regions of Pakistan with all major telecom operators looking forward to tap these

markets with a major contribution by WLL and Cellular segments due to cheaper

installation costs. With healthy competition instigating lower local and international

tariffs and availability of alternative services has progressively benefited the consumers

overall.

Graph-1-Fixed Line Subscribers


5,400,000

5,200,000

5,000,000

4,800,000

4,600,000

4,400,000

4,200,000

4,000,000

2003-04 2004-05 2005-06 2006-07 2007-08

4,50

1,17

1

5,22

7,53

1

5,24

0,01

2

4,82

6,20

6

4,41

6,41

7

Fixed Line Subscribers

65Market Operation

Pakistan Telecommunication Company Limited, or PTCL, keeps callers

connected from Karachi to Islamabad. The communications services provider offers

consumers and businesses with basic landline, DSL broadband, interactive television,

and IP telephony services. The company also provides wholesale services such as traffic

routing and call termination to other carriers. PTCL's subsidiaries include wireless

phone services provider Pakistan Telecom Mobile, which operates as Ufone. In 2006

Emirates Telecommunications (Etisalat) acquired a 26% stake in PTCL and assumed

management control of the company.

Demand is driven by technological innovation and by growth in business

activity. The profitability of individual companies depends on efficient operations and

good marketing. Large companies have big economies of scale in providing a highly

automated service to large numbers of customers, and have the financial resources

required building and maintaining a large network. Smaller companies can compete

effectively only in small markets or by providing specialty services.

3.1.2—TOP PTCL COMPETITORS Worldcall

China Mobile

Wateen

Telenor

3.1.3—COMPETITORS ANALYSIS FOR EVO

PTCL has introduced EVO Wireless Broadband in the market initially for big

cities. It is a new product of PTCL and expected to be got a big market share among


66other players. All the team members in marketing as well as in sales department are

focusing it in all big strata’s rather than focusing other products except another more

Vfon Wireless. Following are the major players in Wireless Broadband. I was asked to

analyze about the EVO Wireless Broad band when it was introducing in Gujranwala

first time. I analyze the following key areas for EVO Wireless Broadband.

Features of EVO Wireless Broadband

Mobility/ Portability: Internet on the go- whenever and wherever

High speed (Better) internet experience: Supports entertainment services such as

music, video streaming, images/ videos/ Files sharing etc.

Simplicity: Faster deployment, easy to move

Provides superior Value through Reliable, Secure, High-availability network

Option to switch between EVDO and CDMA 1X mode

Supported OS: Windows 2000 / XP / Vista

All Pakistan Roaming - Automatic switch over to 1 X in non EVDO Coverage

areas.

USB Interface - Compatible with Desktops & Laptops.

Access rich media applications like live video, streaming, web casts, online

games and a host of other applications.


67

Major Players of EVO Wireless Broadband Wateen (WiMAX)

WorldCall (EVDO)

Mobilink Infinity (WiMAX)

Ufone Edge

Telenor Edge

Zong Edge

Warid Edge

Wi-tribe (WiMAX)

EVO Packages

Packages

Advance Monthly

Line Rent (Non PSTN)

Upfront Charges (USB)

Up front Charges

(PCMICA)

Monthly Line Rent

(PSTN Billing)

Monthly Device Rental

(PCMCIA)

Monthly Device Rental (USB)

Package 1 0 0 0 Rs.2,000Rs.500 for 12 months

Rs.500 for 18 months

Package 2 0 Rs.6,000 Rs.4,000 Rs.2,000 - -

Package 3 Rs.2,000 Rs.6,000 Rs.4,000 - - -Table-2-EVO Packages


68

Functionality Comparison of EVO

Service Provider Wireless Mobility Bandwidth

Wateen Y N 256Kbps-1Mbps

Worldcall Y Y 256Kbps-1Mbps

Evo Broadband Wireless Y Y 3.1Mbps

Ufone Y Y 60-150Kbps

Telenor Y Y 256Kbps

Zong Y Y 256Kbps

Mobilink Infinity Y Y 256Kbps-1Mbps

Witribe Y N 1-2Mbps

Vfone Y Y 153Kbps

Table-3-Functionality Comparison of EVO

Competitor Tariffs for Wireless Broadband

Service Provider Volume Rates

Wateen 5-15GB Rs 499-1599

World call Unlimited Rs 1200-2500

Ufone 5mb-Unlimited Rs 50-500

Telenor Edge 10mb-Unlimited Rs 75-500

Zong Unlimited Rs. 400+ tax /month

Mobilink Infinity 5-15GB Rs 450- 1500

Warid Unlimited One month Free trial Rs.500

Table-4- Competitor Tariffs for Wireless Broadband


69

Coverage Area Currently PTCL is offering evo wireless broadband internet in:

• Lahore

• Karachi

• Islamabad/Rawalpindi

• Mirpur

• Gujranwala

In these cities subscribers will get Broadband Speed 3.1MB and download avg.

300 Kbps ~ 500Kbps.

Max Speed can go up to 2MB/sec (as tested on www.speedtest.net)

Actual internet speed will depend on multiple factors like location, time of the

day, number of simultaneous users, web page accessed, etc.

Other than these cities subscriber will get 153KBps where we have coverage on

1900MHz


EVOCoverage Area

http://www.speedtest.net/

70

Speed Comparison of EVOComparison

FactorDial-up DSL GSM Edge

CDMA 1X EVO

Mobility No No Yes Yes Yes

Max Downlink

Speed (kbps)56 2000 384 153 3100

Max Uplink Speed

(kbps)

Uplink+

Downlink

Uplink+

Downlink384 153 1800

Average Downlink

Speed (kbps)25 400 30 30 500

Average Uplink

Speed (kbps)

Uplink+

Downlink

Uplink+

Downlink30 30 300

Time to Download

5 Mb file27 Min 1.7 Min 22 Min 22 Min 1.3 Min

Time to Upload 5

Mb file27 Min 1.7 Min 22 Min 22 Min 1.7 Min

Table-5- Speed Comparison of EVO

Feature Comparison of EVO

Applications Dial-up DSLGSM Edge

CDMA 1X EVO

E-mail Average Very Good Average Good Excellent

Internet Average Very Good Average Good Excellent

Video Streaming Poor Good Average Poor Excellent

Video conference Very poor Good Very poor Poor Excellent

VoIP Very poor Good Very poor Poor Excellent

Upload Photo Poor Good Average Average Excellent

Send Large Email

AttachmentsVery poor Good Poor Average Excellent

Table-6- Feature Comparison of EVO


71

3.1.4—CELEBRATING YEAR OF CUSTOMER CARE 2008-09

In view of PTCL’s customer-centric philosophy, the coming year 2008-09 has

been dubbed as the Year of Customer Care. As a result, critical measures will be taken-

up to further improve the standard of services-as PTCL believe that winning over the

customer can guarantee success.

What is Customer for PTCL?

The customer is a vital link in the business world. Realizing the customer’s

importance spells the success for us.

Courteous and charismatic dealing with the customers.

Take care of customers well—treating their success or failure as our success or

failure.

Furnish the customers with products of exceptional standards. So that they form

a positive view of the company and its human resource. Empathize with the

customer and prioritize timely solution with utmost sincerity.

Value the customer’s time and facilitate them in everyway.

A satisfied customer helps not only the manager but the organization.


72

3.1.5—MARKETING MIX

CUSTOMERS VIEWS ABOUT PTCL PRODUCT AND SERVICES

How are the firms product or services perceived?

Usually PTCL is the largest and monopolistic firm in nature, according to customer

point of view there is no competitor who is providing the facilities and services like

PTCL because of these reasons:

Majority of customers are using services of PTCL in Pakistan

Wide Network

High Speed Internet Provider

Wide Range of Facilities and Value added services

3.1.6—SWOT ANALYSIS OF PTCL

STRENGTH

PTCL enjoy monopoly

State of the Art International Gateway Exchanges & Satellite Earth Stations

large earnings

good quality international connectivity

Customer Base of over 4 million

Government support

WEAKNESS

Image – Government organization

Image – Lack of customer focus

Image – Outdated people and technology (perception)


73 Lack of aggressive marketing

Lack of customer services

Ambiguous management style

Lack of corporate culture

Social responsibility

OPPORTUNITY

Growth in telecommunication industry.

More aware and technology understanding consumer – a base that is growing at

a fast rate.

Market open for more number of products – less dependence on single category

or product.

Opportunity to introduce High Value Added Products / High margin products

for the new, more aware consumer.

Time to establish brand loyalty, anticipate competitors, invite partners, invest in

technology and networks.

THREATS

Increased competition in long distance continues to exert pressure.

VOIP use is increasing despite ambiguous and discriminatory policies

Exposure to market competition

Migration to Cellular Networks

Reduction in International Settlement Rates


74

This pictorial diagram shows cellular penetration in the whole country

Graph-2-Province-Wise Cellular Penetration

3.1.7—PROMOTION

PTCL is using following components of promotional mix and Publicity of its

product/services.

Advertising

In promotional mix, PTCL’s main stress is on advertising in print and electronic

media. PTCL periodically places its advertisements in print media on services like

“H/Qs hotline 0800-44544”, “Caller line identification (CLI)”, “Voice Messaging

Service”, “Digital Facilities”, “PTCL Prepaid Calling Cards”, “Inquiry 17”, “Complaint

18”, phone bill cards prepaid telephone etc. to remind the customers of these services.

Sometimes, corporate ads are also released to print media to mark special occasions.


75PTCL’s Commercials on “Prepaid Calling Card”, “CLI”, “Voice Messaging”, “Digital

Facilities” etc. are also broadcast immediately on electronic media as reminders to

Customers.


76

Its advertisement is usually ethically sound and representative of Pakistan.


77Sales Promotion

PTCL charges 1/3rd rates on national calls from 06:00 pm – 07:00 am and local

calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom network.

Moreover, PTCL offers special rate packages on special occasions like Ramadan

Package and EID package, which offer customer reduced rates for specific timings.

For Example, in EID Package, PTCL charges half rates from 6:00am - 6:00pm

and quarter from 6:00pm – 6:00 am to attract customers to use its telephone service.

Broadband service is offered for free in Ramadan. These rates result in increased

revenue for PTCL and also facilitate the customers to talk to their near and dear ones on

these special occasions on affordable rates.

In broadband service, PTCL offers numerous benefits to the students as well as

corporations and its valued customers.


78Personal 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 moment, PTCL’s

Customer Services Centers are playing the role of sales outlets. Customers can make

telephone calls; send fax messages from these Customer Services Centers i.e. One Stop

Shop (OSS). They can also get connected their telephone bills and get duplicate bills

from these outlets. Fifteen (15) sales outlets are working for V-fone in Gujranwala

region.

However, with the establishment of Marketing Department in PTCL, The

marketing professionals are now in the process of inducting professional sales force for

the company. For this purpose, Sales and Distribution department was established but

marketing professionals are in few numbers in this department.

Majority of the customers learn about the firm’s product and services from the

newspapers ads, franchises and friends etc.

Competitors in Subsidiary/Products of PTCLSubsidiary / Product Competitor

Multimedia & Broadband(ISP) Product

There are almost 100 competitors of PTCL

throughout the nation to provide Internet Service to

the customers. However, some of the major players

in ISP’s product are Cybernet, World online, World

Call and Comsats WOL etc.

U-fone(Cellular service provider)

Four competitors exist against U-fone in cellular

phone industry i.e. Mobilink, Zong, Warid, Telenor.

PTCL Calling Cards Hello Cards, Call Point Cards, Call Mate Cards etc.

Wireless Local Loop(V-fone)

Wateen Telecom and World Call are the Fixed

Wireless Telephone competitors or V-PTCL


79

3.1.8—PLACEMENTThe Head Office of Pakistan Telecommunication Company Limited is situated

in Sector G-8/4, Islamabad, which is headed by the “President”. Besides, it has Regional

Headquarters like:

Islamabad Telecom Region,

Rawalpindi Telecom Region,

Hazara Telecom Region Abottabad,

Northern Telecom Region-I Peshawar,

Lahore Telecom Region (South),

Lahore Telecom Region (North),

Gujranwala Telecom Region

Multan Telecom Region

Faisalabad Telecom Region

Southern Telecom Region-I Hyderabad

Southern Telecom Region-II Karachi

Southern Telecom Region-V Sukkur

Western Telecom Region Quetta.

Switching network Central region Lahore.

These Regions provide Telecommunications services to the customers in their

respective areas. Apart from these, PTCL has an Optical Fiber Construction Region

Lahore and Optic Fiber System Islamabad, each headed by a General Manager to

install, operate and look after optic fiber systems/cables. In each District and Tehsil

level, an Exchange, Franchisor, Call Centers, One Stop Shop are available to facilitate

the customer needs.


80

Need for Channels for the Product and Services

Firm point of view

1- Easy availability of product and services to the customers

2- Easy availability for providing basic services and value added services

3- Easy complaint handling

4- To cover target market

Customers Point of view

1- Easy availability of Product and Services

2- Time and Money saving

3- Fast Service System and Resolve Conflict

For improvement of channels, PTCL try to convert traditional channel into remote

channel, and should install connection on customer’s single call.


81

3.1.9—PRICE

Being a semi government organization, PTCL is not fully authorized to

determine the prices of its products itself. Pakistan Telecommunication Authority (PTA)

and its partner fixes the prices of telecom services. The process is such 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’ representatives, journalists and other

interested groups for discussion on the proposal. After listening to the viewpoints of all

the interested parties, PTA gives its decision. If PTA approves PTCL’s proposal, the

new rates are enforced. It may be mentioned here that telecom technology is only

technology whose rates are on the decline with the passage of time.

PTCL also rationalizes its tariff with the passage of time. Tariff rationalization

process started in 1997. It was mainly focused on rebalancing the domestic process like

NWD, international, local call, line rent etc. Rebalancing is completed by the end of

2008 (as per Tariff rates) with the objective to position PTCL for competition.

Customers react positively due to monopoly of PTCL so they give purely positive

response to the prices of PTCL.

Effective Pricing

The best price is always the one that provides a customer with the most long-

term profits. Price in terms of value rather than cost. Cost-plus pricing is worst choice.

When we start pricing more intelligently, we will have a real advantage over most of

our competitors and due to this PTCL has an edge over its competitors.


82

3.1.10—PTCL STRATEGIES

Strategic Notions

The difference between now and five years ago is that information systems had

limited function. You weren’t betting your company on it. Now you are.

(William Gruber)

The formulation of strategy can develop competitive advantage only to the

extent that the process can give meaning to workers in the trenches

(David Hurst).

Without a strategy, an organization is like a ship without a rudder, going around

in circles. It’s like a tramp; it has not place to go (Joel Ross and Michael Kami)

A strategist’s job is to see the company not as it is…but as it can become

(John W.Teets, Chairman of Grehound, Inc.)

Edward De Bono’s strategic management philosophy correctly maintains that

business centers have evolved to a phase where concentrating on “Sur-petition” has

become essential than focusing on “Competition”. “Sur-petition” refers to creating a

synergy through corporate level, business level and functional level strategies and

eminent implementation thereafter in order to go beyond competition. In layman

language, it is a phenomenon which can be described as “Survival” of the fittest.

Therefore, instead of focusing on individual growth objectives, enterprises must adopt a

holistic approach towards achieving organizational goals.

As the past incumbent and current Significant Market Player (SMP), PTCL, no

doubt, has got the largest operational network and infrastructure within ICT

(Information & Communication Technologies) segment. They don’t lack numbers and


83potential if we mention human resources. Their financial strength has further become

their strategic strength after Etisalat has joined them as investment arm.

PTCL enjoys market leadership in Local loop, Wireless local loop (WLL) and

Fixed telephony. PTCL (Ufone) is market challenger in GSM segment. Overall they

have the largest consumer clout on average in the whole Pakistan telecom industry.

Even their competitors still depend on PTCL network either directly or indirectly. All

this adds to their strategic strengths and after having all that in their basket they lack at

area where they are supposed to have developed core competence. PTCL, so far has not

been able to nurture its growth around customer services oriented strategy, this has

translated into inadequate brand loyalty for them. Internal organizational and business

processes issues, monopolistic culture has further added to its complexities. For many

individual prospects like me, using PTCL offerings was a purchase decision made as no

other option was available.

PTCL can turnaround very well by reaping the benefits of “Sur-petition” in the

shape of “Sur-petitive Advantages” in comparison to competitive advantages. All they

have to do is to follow a holistic approach towards growth, besides focusing on

Customer Support & Services, reverting back to competitive and service centered

operational culture, spending upon marketing communications to revamp Brand Image,

improving existing network and existing products for market penetration and

developing innovative new products and services for long term growth. Following

“Strategy Map” depicts a guideline for holistic growth around Financial, Customer,

Internal Business Process and Organizational learning & Growth perspectives.


84

Strategy Initiative

Value & Profit

Leadership

Revenue growth

Cost Management

Asset optimization

Launched broadband across all the major

cities in Pakistan, helped spreading strong

awareness of broadband. Focus on selling

media capacity to commercial enterprises

Monitoring & managing divisional OPEX

Ensure accurate demand forecast &

budgeting

Market leadership

Product leadership

Customer satisfaction

New Product Development

Network Enhancement

Buzz Marketing

Re-engineering product delivery [process,

reducing mean time to the market,

aggressively introduced customer

facilitation centers with new and rather

strong brand image

Broadband Pakistan, brand revitalization

of WLL, phone n net, carrier service,

IPTV

Operational support plans, improving

network redundancy, converted to ONUs

Buzz marketing is a word-of-mouth

about our brand. Buzz travels in

invisible networks. It's the aggregate of

all informal communication about our

particular product, service, or company

at any point of time. To benefit from


85buzz marketing, PTCL design its

product and marketing activities in such

a way that it will give people an

opportunity to talk about its product or

service.

Corporate leadership Employee Productivity & competency

Business process enhancement

KPIs introduced with smart objectives,

VSS to retain effective HR, Supportive

feedbacks, surveys, training etc

Development and assurance of SOPs for

departments, service delivery, support,

procurement, network etc.

Regulatory Environment

The local telecom market has altered significantly since the creation of PTA as

an independent regulatory agency and had enjoyed sizeable success to open up the local

market to competing operators. With the governments deregulation policies, Etisalat,

the UAE based telecom player being the highest bidder emerged as the buyer of the 26

percent share in PTCL in April 2006. PTCL, despite being a giant, had to face many

bottlenecks in its operations with such large network.

PTCL has recently taken an initiative to right size itself by introduction of VSS

for its employees where about 28000 employees are accepted under the scheme.

Introduction of various diversified products and services to sustain its market share,

Implementation of ERP solutions to provide integration of various departments through

acquisition of SAP software and state of the art billing and customer service software,

translates PTCL’s long term goals of operational effectiveness into practice. The

telecom giant PTCL has observed cutthroat competition from various service providers

after the implementation of the deregulation policies by the PTA. However, through the


86vast infrastructure and being the carriers’ carrier, PTCL with diversification of its

various services has enjoyed well-built position and posses immense potential for

growth, while need for telecom services is on rise as economy continues to grow on the

right track.

The telecom De-regulation and Cellular Mobile Policies announced by the

Federal Government place certain obligations on Pakistan Telecommunication

Company Limited (PTCL) to facilitate market liberalization. PTCL is bound to comply

with these obligations within a stipulated time frame. These obligations are of

paramount importance for successful implementation of the policy and failure or any

deviation thereof may result in substantial damage to the deregulation

process/liberalization program.


87

3.2—FINANCIAL ANALYSIS3.2.1—Financial Highlights and Ratio Analysis

Key Indicators 2009 2008 2007 2006 2005 2004OperatingGross Margin (Operating Profit Margin)

% 18.15 24.67 26.33 34.50 41.63 51.37

Pre Tax Margin (EBIT Margin) % 25.20 (5.45) 34.13 39.43 45.50 53.94Net Margin % 15.45 (4.26) 22.01 26.16 30.46 35.73PerformanceReturn on Operating Assets % 10.96 (3.34) 18.76 25.53 34.83 38.46Debtor's Turnover Times 4.90 5.35 4.86 4.76 5.35 5.14Return on Equity % 9.28 (2.71) 14.45 20.22 25.45 28.20LeverageDebt: Equity Ratio 16:86 15:85 14:86 14:86 13:87 13:87Leverage % 36.66 27.48 27.92 31.27 25.65 23.91Time Interest Earned Times 15.43 (5.26) 46.54 92.07 86.35 64.34LiquidityCurrent Times 1.50 1.81 2.19 1.66 1.89 2.78Quick Times 1.36 1.58 2.03 1.54 1.73 2.67ValuationEarning per share (pre tax) Rs. 2.75 (0.88) 4.66 6.07 7.71 8.5Earning per share Rs. 1.79 (0.55) 3.07 4.07 5.22 5.72Breakup Value per share Rs. 19.49 19.19 21.75 20.68 19.61 21.39Payout Ratio (after tax) % 83.60 - 65.22 122.73 38.34 87.42Market Price to Breakup Value Times 0.88 2.01 2.62 1.96 3.58 1.97Dividend per share Rs. 1.50 - 2.00 5.00 2.00 5.00Market Value per share (as on June 30)

Rs. 17.24 38.64 57 40.6 70.25 42.15

Market Capitalization Rs.(m) 87,924 197,064 290,700 207,060 358,275 241,965Historical TrendsOperating ResultsRevenue Rs.(m) 59,239 66,336 71,068 69,085 87,356 81,633Profit/ (loss) Before Tax Rs.(m) 14,021 (4463) 23,744 30,974 39,296 43,360Profit / (loss) After Tax Rs.(m) 9,151 (2825) 15,639 20,777 26,606 29,170Dividend declared Rs.(m) 7,650 - 10,200 25,500 10,200 25,500Financial PositionPaid up Share Capital Rs.(m) 51,000 51,000 51,000 51,000 51,000 51,000Reserves Rs.(m) 32,183 32,183 32,249 31,992 32,008 32,000Shareholders' Equity Rs.(m) 99,390 97,888 110,913 105,475 100,114 109,100Current Assets Rs.(m) 54,220 39,603 53,561 50,168 39,269 48,294Non Current Liabilities Rs.(m) 18,572 17,646 17,460 16,489 15,258 15,126OperationalsALIS (000)* Nos. 4,681 5,181 5,455 5,586 5,235 4,837ALIS per Employee Nos. 168 118 91 89 82 71

(*Exclusive of primary and basic rate interface) Table-7-Finacial Highlights


88

3.2.2—ANALYSIS OF INTERNAL ENVIRONMENT

Being a public limited company whose majority shares are controlled by the

Government of Pakistan, PTCL is responsible to provide telecommunication services in

the country on affordable prices while ensuring that the telecom services become

accessible throughout the country. Since exclusivity of PTCL has ended on 1st Jan

2003, the telecom sector of Pakistan has entered into a new era and PTCL is slowly

moving towards competition in the basic telecom services. The company’s policy

objectives are as follows:

Increase service choice for all consumers of telecom services at competitive and

affordable prices

Increase private investment in the telecom sector and encourage local telecom

manufacturing/service industry

Enhance long run benefits to the Government’s financial position by expanding

the taxable revenue base.

Accelerate expansion of telecom infrastructure to extend telecom services to

unserved and undeserved areas.

Encourage fair competition among service providers, while maintaining

leadership in the telecom sector.

Maintain consistency with the Pakistan IT and internet promotion policy of low

prices for Bandwidth and Internet access.

3.2.2.1—Financial Aspects

The structural adjustments undertaken by the company in response to the

increased competition and substitution impact of mobile expansion has adversely hit the

profitability of PTCL in the short run. But the first quarter of FY'09 recorded an

increase in profitability of PTCL, as the company's profit after taxation increased as


89compared to the same period of last year. Sales revenue dwindled during the year 2009

but profit was increased compared to last year, depicting a decline of 11%. Operating

profit increased 100%. However the effect on net profit was somewhat diluted by an

increase in non-operating income of the company so that the company posted profit

after tax of Rs 9.15 billion, compared to Rs -2.83 billion in FY2008.

At the end of the year in 30th June, 2009, the company stock was trading at a

D/E ratio of 16.86. The stock has performed remarkably well relative to the market. The

stock has shown consistent performance over the year. As a consequence of the fading

sales revenue for the period, the profit after tax of the company in FY09 increased over

the year 2008. The net profit margin has also been declining since the FY'04 and the

trend persist in FY09. The decline in profit margin may be attributed to a 5.25%

increase in operating expenses for the year.

3.2.2.2—Profitability Position

PTCL posted a net profit of Rs 9.15 billion in FY09 against last year's figure of

Rs.-2.83 billion. The declining trend in profitability continued during the financial year

ended June 30, 2008 due to structural adjustments brought about in the telecom sector

by competition. Deficit came upto Rs.2.825 billion. Although PTCL maintained its

leading market share in the fixed line, there was a decrease in revenues by 5.5% mainly

due to substitution impact of mobile expansion. There was also an increase in operating

expenses by 11.7% mainly due to prudent provisions for doubtful debts and long term

systematic improvements in operations and customer services.

Considering the cash requirements for restructuring and development plan, the

company declared a final dividend of Rs 1.50 per share for the financial year ended June

30, 2009. The total revenue for FY 2008-09 stood at Rs 59.239 billion against Rs

66.336 billion of FY 2007-08. The decrease in revenue was mainly in the domestic

segment due to competition and reduction in tariffs. However, PTCL is making all


90efforts to boost revenue by improving customer service and launching new services to

turn around the situation.

3.2.2.3—Liquidity Position

The liquidity position of the company suffered a setback in FY08. This trend has

been witnessed despite increasing current assets, as current liabilities grew more

sharply. The short term borrowings of the company have been mounting for the last few

years and this has contributed to the current trend of the current ratio. It may be noted

that the company holds large amounts of cash and bank balances compared to the other

companies in the business. This may provide an edge to the company over its

competitors. Although the liquidity stance of the company is fairly satisfactory at the

moment, but a continuation of the current negative trend may spell trouble for the

company.

3.2.2.4—Leverage Position

The debt ratios showed a decreasing trend in the FY09. The debt to asset ratio of

the company had declined considerably in FY05 but the trend reversed in FY06, staying

at same position in FY09. It is important to note that the company maintains a largely

unleveraged capital structure, with the current trend in debt ratios bought about largely

by changes in current liabilities of the company.

This was brought about mostly due to a decline in current liabilities of the

company in FY05 and an increase in the same in FY06. The absence of the dividends

payable portion of current liabilities in FY05 and its coming back online in FY06 was

an important contributor to the trend.

Further, the FY06 also saw an increase in short term borrowings of the

company, complemented by increases in other components of current liabilities.


91Increases in assets, mainly arising from higher cash and bank balances, could not

prevent the trend of the debt ratios.

3.2.2.5—Activity Position

Financial highlights of PTCL witnessed an upward trend throughout the period

under analysis, except in FY08 when an improvement was marked. The ratio jumped up

considerably in FY09, completely nullifying the effect of the decline in FY08, and

exacerbating the already long collection period of the company. The decline in FY08

illustrates that management of PTCL is constantly striving for improvement and

enhancement despite stiff competition. As a result, the operating cycle has also

decreased in FY08 but then began to increase in 2009. The total assets turnover and

sales to equity ratio of the company also declined in the FY'08 as revenues shrunk

during the period but increased in 2009 due to better financial management.

Sales/equity declined with the increase in equity of the company.

3.2.2.6—Dividends

PTCL has had a history of paying out significant portion of its earnings to its

shareholders. However, with huge cash requirement for Voluntary Separation Scheme,

PTCL is unlikely to announce any cash payout during FY08. Therefore, once the

ongoing process of VSS is through, which requires a cash outflow of Rs.23.2bn,

dividend payout is likely to resume to its initial levels. In 2009, PTCL announces

7.65bn dividend to its shareholders which was a proof that PTCL is again mounting up

with the time being.


92

3.3—FUTURE PROSPECTS OF “PTCL”PTCL seems destined to continue to grow and be profitable. Some of this

growth will be accomplished through future mergers and acquisitions with other

telecom institutions. Future of PTCL falls on its better products and superior services.

Some people may think that PTCL is loosing its position and can not compete with

other companies due to rapid growth of cellular phones and foreign companies. But due

to cheaper call rates, quality sound, improved services, quick response to customers,

launching new packages competing with other networks; it can get its position in the

telecom sector.

Measures to achieve Set Targets

The management of PTCL has been adequately preparing itself to face the

forthcoming challenges of deregulated environment. Appropriate structural changes

have either been initiated or these are underway.

To face the challenge, a new Marketing and Business Developing wing headed

by a Member with appropriate organizational structure has been made functional with a

view to expanding business and taking good care of the customers. It was introduced as

One Stop Shop (OSS). Customer service is a series of activities designed to enhance the

level of customer satisfaction – that is, the feeling that a product or service has met the

customer expectation. High standard customer service is an integral part of PTCL’s

customer value proposition. As part of strategy PTCL has invested huge some of money

to improve the environment & efficiency of its service centers. With all together

complete change in outlook, services to customers & facilities available, these centers

are called “One Stop Shop”. They are aimed to provide better services to our valued

customers for sales of products and after sales services.

These “OSS” are nine in number and are in Major cities of Pakistan. By the end

of this year there will be 19 OSS operational in 11 cities of Pakistan. Customer


93feedback about services standards at these OSS is very positive; these centers help to

provide better service to PTCL customers.

Some other initiatives are as follows:

PTCL Coming Back Strong

PTCL has consistently been facing market criticism with respect to its strategic

management, policy, procedures, quality assurance, product flavors and orientation

towards customer services. If PTCL continues on the same path with focus on product,

market & corporate leadership, they have all the means to differentiate for clear

competitive advantage.

The Balanced Scorecard is a management tool that helps an enterprise to focus

on holistic development across the organization rather than just focusing on a single

area or on a specific objective, for instance, revenues & finance. Today, many large

corporate entities across the world have adopted the BSC technique to exceed the

overall growth objectives.

The initiatives taken by the PTCL may not be enough for an abrupt change,

however, if the strategic focus and strategy remains correct and effective as stated

above, the list of initiatives will keep on increasing and shall lead PTCL towards

Leadership in all the segments it serves.

Maintain its Previous Position

PTCL will definitely get a sound market share when it maintains its previous

position as it was doing as the sole and the whole.


94

New Technology

Prior to the start of the competition, PTCL should be well equipped with new

technologies, billing, marketing & customer care infrastructure, skilled trained

professionals with focus to win business and earn customer loyalty.

Cross Subsidization

PTCL is providing range of services i.e. Fixed Line, Cellular Mobile and

Internet etc. As the world experience shows, incumbent can engage in cross

subsidization which means that price of one market may be increased above the cost and

use the surplus revenue obtained from this market to subsidize the lower prices in other

markets where more competition is faced.

Analyzing PTCL position against this experience and seeing the prevailing

competition environments of Pakistan, it can be safely concluded and seeing the

prevailing competition environments of Pakistan, it can be safely concluded that cross

subsidization is not possible in Cellular Mobile and ISP markets. However, in Fixed

Line segment, there is a real possibility of cross subsidization. PTCL can lower rates of

line rent, installation charges and local calls and correspondingly increase rates of NWD

and International out bound traffic / maintain present level/ lower the prices but still

remain on the higher profit margin side. Alternatively as part of overall business

strategy, it can offer different packages i.e. residential and corporate customers, rural

and urban and economy groups etc. within each package the prices can be cross

subsidized. This practice can have adverse effects on the growth of other licenses

particularly those not having vertical integration. This abuse can be controlled through

license conditions and accounting separation which will determine the existence of

cross subsidization.


95

Price Discrimination

In order to retain and even expand the market share, PTCL can resort to price

discrimination. This can be between users of own network and other operators

networks. For example PTCL may fix different rates for intra-network calls and inter-

network calls. Lower rates of intra-network calls will be strong temptation for

customers to remain stuck with PTCL instead of switching over to other choice

operators. This practice will be a restraint for other operators, hence will be considered

anticompetitive.

Vertical Price Squeeze

PTCL can increase the price of upstream input (local access). It monopolizes,

and keep the downstream services (ISPs, DSL and Payphones etc.) price same. The

effect would be reduction or elimination of the profit of downstream service providers

because their margins would be squeezed. To increase the squeezing effects, PTCL can

also reduce downstream price of its own services. To control price discrimination, the

regulator can impose wholesale cost imputation requirements.

Brands that can take it up

IPTV (PTCL Smart TV), Broadband Internet, Vfon can take PTCL up

because these are called future brands of PTCL. IPTV can replace local TV cable and

dish antennas if it is provided on cheaper rates and to everywhere in the country.

Similarly, Broadband internet has key importance in our daily lives not only for

teachers and students but also in public and private offices, in homes, in mobile shops

etc. Vfon GSM can become a new product of PTCL if it converts Vfon wireless to Vfon

GSM and can take lead over its rivals.


96

Part—4Finding and Recommendations



Short-falls / weaknesses of PTCL

Conclusion

Recommendations


Short-falls / weaknesses of PTCL

Conclusion

RecommendationsPar

t-4

O

bj

ecti

ves

97

4.1—SHORT-FALLS / WEAKNESSES OF

PTCL PTCL has not been able to nurture its growth around customer services oriented

strategy.

Pathetic management who always makes trying to sell its assets on cheaper

rates.

Customer is not focused but designations of personnel are changed day by day to

get results.

Internal organizational and business processes issues.

Conflict between management and PTCL workers.

Corporate culture similar to government departments and this ex-culture of

Government owned PTCL is not being abolished.

Unknown charges like following news cutting


98

Monopolistic culture has further added to its complexities.

Paknet, the internet service provider arm of PTCL has lost its position and incur

losses due to poor management and lack of network optimization.

PTCL-V, the fixed wireless phone service is poor.

Over employment & low productivity.

PTCL helpline services are very poor. Customer has to wait for its complain and

has to listen its commercial advertisement tape on helpline service. He is also

charged for double call when company representative receives call after almost 7

minutes.

Dealer’s margin for Vfon brand is too little where its franchisers are working.

Corporate support for Customer Facilitation Camps (CFC) is very poor.

Slow decision making including external interferences.

Increased competition in long distance continues to exert pressure.

VOIP use is increasing despite ambiguous and discriminatory policies.

Exposure to market competition.

Migration to Cellular Networks.

Less ability to attract & retain quality professionals.

Reduction in international settlement rates.

Bogus calls and new packages are imposed to users without their will.


99

4.2—CONCLUSIONS“No business can do everything. Even if it has the money, it will never have

enough good people. It has to set priorities. The worst thing to do is a little bit of

everything. This makes sure that nothing is being accomplished. It is better to

pick the wrong priority than none at all”. (Peter Drucker)

PTCL is enjoying monopoly but the time is come when competition will force

the organization to change its policies to become favorite telecom service provider in

telecom sector & to keep its current place as customer oriented.

Going forward, PTCL is poised to align itself in to a more customer friendly and

commercially oriented organization. This will be achieved through improved customer

experience, offering better quality of service, and introducing new products and

emerging services to satisfy specific market segment needs besides consolidating its

leadership position in fixed line business. The customer interfaces will be fully

empowered to achieve corporate objectives. Automation and simplification of internal

process, optimization of operational expenditure, migration of services to Next

Generation Networks, enhancement of national backbone infrastructure, expansion of

robust and resilient IP infrastructure and proliferation of broadband services are few of

the milestones for the way forward.


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4.3—RECOMMENDATIONS PTCL must adopt customer oriented strategy to bring back its valued products.

Highly qualified professionals must be hired at management level and ex-Govt.

culture must be abolished.

Internal organizational and business processes issues must be resolved and must

not kept pending.

PTCL needs innovative service offerings — currently it doesn’t even offer

bundles or a single bill

Network of IPTV must be spread in big cities as well as in small towns where

other cable operators are working.

Conflict between PTCL management and workers must be come to an end.

Overall PTCL still behaves as a monopoly … it has to change its attitude. At a

minimum, avoiding billing errors and providing competent and courteous

service to its customers is essential if PTCL wants to show that it is transforming

itself to a competitive company which cares for its customers.

Fixed telephone line services must be provided on-time.

PTCL helpline services must need improvement and give quick response to the

customers.

Franchiser’s margin for its key products must enhance so that they feel attraction

for getting PTCL business.

EVO Wireless Broadband must available in even small towns where PSTN

connections are not available.

Vfon Internet connectivity rate must be enhanced.

Corporate support for CFC camps must be included and staff should equipped

with knowledge of well designed market strategy.

PTCL must introduce GSM technology in Vfon.

Lowest price calling cards must be introduced.

Card validity must be increased to maximum period.


101 Easy balance must be introduced as other organizations are giving (i.e. easy load

etc.).

After sale service quality should be improved.

Accessories for all the products must be available at OSS and also provide to

franchisers.

Customer must get involved in the whole campaign by giving them value and

satisfaction.

Strategic Business Units (SBUs) must be fully involved in marketing activities.

Integration Market Communication (IMC) Process should be adopted.

Availability and visibility of all the products during the CFC campaign.

Media vehicle must run before the CFC campaign.

Facilitate SBUs.

Demo must be shown to the viewers at CFC campaign

Line rent must not be deducted as it is burden to PTCL users.

PTCL must reduce the worries of their workers.

8000 workers employed in “New Contract Group” are worried about their jobs

so PTCL must facilitate them.

PTCL must give more and more facilities in this competition era so that people

get new PTCL connections rather than disconnecting them.

It is said that the best assets of a company go home to their family in the

evening. Can the culture of PTCL be changed to a performance and service

based organization? According to the latest director’s report from PTCL the

“organization is being revamped”. Only time can tell the impact


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Part—5Completion of Training Report


After studying this part, we shall know about the following:

References

Annexes

Persons Consulted

Documents Consulted

After studying this part, we shall know about the following:

References

Annexes

Persons Consulted

Documents Consulted

Par

t-5

O

bj

ecti

ves

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5.1—REFERENCES

(a) PTCL annual reports 2004, 2005, 2006, 2007, 2008, 2009

(b) PTCL broachers and magazines

(c) www.ptcl.com.pk

(d) Reports of Sales & Distribution Department of PTCL

(e) Principles of Marketing—11th Edition by Philip Kotler and Gary Armstrong

(f) Marketing Management—12th Edition by Philip Kotler and Kevin Lan Keller

(g) Business Communication (International Edition)—7th Edition by Herta

A.Murphy, Herbert W. Hildebrandt and Jan P. Thomas

(h) Fundamentals of Financial Management—12th Edition by James C.Van Horne &

John M. Wachowicz, JR

(i) Management—8th Edition by Stephen P.Robbins and Mary Coulter

(j) Strategic Management—11th Edition by Fred R.David

(k) Electronic Learning Assessment Resources (ELAR) www.elar.com

(l) www.google.com

(m)www.1000ventures.com/business_guide/marketing

(n) Daily Nawa-I-Waqt

(o) Daily “The News” for financial highlights and business trends

(p) Pakistan Telecommunication Authority reports


http://www.google.com/

http://www.elar.com/

http://www.ptcl.com.pk/

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Annexes-I


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Annexes-II


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Annexes-III


107

Annexes-IV


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Annexes-V


109

Annexure-IV


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Annexes-IIV

Abbreviations Used in Internship ReportSM (HR&A) Senior Manager (Human Resource & Admin)

SM(S&D) Senior Manager (Sales & Distribution)

(F&MA) (Finance & Maintenance)

CFC Customer Facilitation Camp

T&T Telegraph & Telephone

PTC Pakistan Telecom Corporation

FAB Frequency Allocation Board

NTC National Telecommunication Corporation

SEVP Senior Executive Vice President

EVP Executive Vice President

GM General Manager

SM Senior Manager

PSTN Public Switch Telephone Network

VMS Voice Mail Service

IPTV Internet Protocol Television

UAN Universal Access Number

UIN Universal Internet Number

DPLC Domestic Private Leased Circuit

ISDN BRI Integrated Services Digital Network Basic Rate Interface

ISDN PRI Integrated Services Digital Network Primary Rate Interface

VPN Virtual Private Network

DXX Digital Cross Connect

CLI Caller’s Line Identification

PPT Prepayment Telephony Services

NSS Network Switching System

CMS Complaint Management System

BNCC Billing & Customer Care System

LDI Long Distance International

WLL Wire Local Loop

VSS Voluntary Separation Scheme


PTCL Internship Report Part 3 of Yasir

Documents

Transcript of PTCL Internship Report Part 3 of Yasir