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PAKISTAN TELECOMMUNICATION COMPANY LIMITED

INTERNSHIP REPORTON

PAKISTAN TELECOMMUNICATION COMPANY LIMITEDBANNU

SUBMITTED TO:

PROF. AMAN ULLAH AWAN DIRECTOR I.M.S UST BANNU

SUBMITTED BY:

HAMEED ULLAHROLL NO: 780BBA –IT(Hons)SESSION: 2006-2010

INSITUTE OF MANAGEMENT SCIENCESUNIVESITY OF SCIENCE & TECHNOLOGY BANNU

Prepared by Hameed ullah


INTERNSHIP REPORTON


SUBMITTED TO:

PROF. AMAN ULLAH AWAN DIRECTOR I.M.S UST BANNU

SUBMITTED BY: HAMEED ULLAH

ROLL NO: 780 BBA –IT(Hons)

Session: 2006-2010

Internship report submitted to the Director, Institute of Management Sciences, in partial Fulfillment of the reuqirments for the degree of Bachelor in Business Administration.

INSITUTE OF MANAGEMENT SCIENCESUNIVESITY OF SCIENCE & TECHNOLOGY BANNU.



. A P P R O V A L S H E E TINTERNSHIP REPORT

ON


EXTERNAL EXAMINAR:

Signature __________________________________

Designation ___________________________________

DIRECTOR:

Name PROF. AMAN ULLAH AWAN

Designation __________________________________

Signature __________________________________

SUPERVISOR:

Name Mr. Aftab Khan

Designation __________________________________

Signature __________________________________



DEDICATION

I dedicated this report to my loving parents whosePrayers, affection and support are always a source

Of encouragement for me to reach at this destination and humble icon for others in future. My parent and teachers who give me real eyes that help me to lead

myself and others in the dark world.



Table of contents:

S. No: Description Page no.

PrefaceAcknowledge

III

1 Introduction of study1.1 Introduction1.2 Purpose of study1.3 Scope of study1.4 Objectives of study1.5 Limitation of study1.6 Benefits of study1.7 Research methodology

1-2

2 Overview of ptcl2.1 History of PTCL2.2 mission 2.3 vision2.4 core of ptcl2.5 objectives2.6 privatization 2.6.1 Telephone Industry of Pakistan (Tip)

2-9

3 Organizational structure3.1 Board of directors3.2 Board of directors3.3 products and services3.4 digital facilities3.4.1Data (DSL)3.4.2 Speed factors of DSL3.4.3 Faults in DSL3.5 marketing strategies3.5.1Through New Users3.5.2 Through New Uses3.5.3 Stock Exchange Report3.5.4 Calling Line Identification3.5.5 Internet Accessibility3.6 my work as internee3.7 broad band Pakistan

10-26

4 SWOT Analysis4.1 strength4.1.1The Biggest Foreign Exchange Earner4.1.2Adequate Financial Resources4.1.3Free from Competitive Pressure4.1.4Leadership in the Market4.1.5Adequate Financial Resources4.1.6Modern Technology

27-37



4.1.9Wide Distribution Channels

4.2 weaknesses4.2.1Seniority Bases Promotions4.2.2Lack of Human Resources Management4.2.3Lack of Training Program4.2.4No Effective Marketing Department4.2.5Ineffective Human Resource Management4.2.6Customer Dissatisfaction4.2.7Absence of Company Culture4.3 opportunities4.4 threats4.4.1Exchange Rate Risk4.4.2Government Legislation4.4.3Turnover4.4.4Decrease in Market Share Conclusion Recommendation Bibliography



CHAPTER# 1

INTRODUCTION OF STUDY

1.1 Introduction

As parts of the academic requirement for completing BBA (IT) Bachelor of Business Administration and

Information Technology . The students are required to under go for two (2) months of internship with an

organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge

of the discipline of banking administration. This report is about PTCL was established in 1949 and since then,

it has expended its network, becoming the largest commercial corporation of Pakistan. It offers different

products of services to its customers.

1.2 Purpose of the Study

The main purpose of the study in hand is together relevant information to compile internship report on PTCL .

To observe, analyze and interpret the relevant data competently and in a useful manner.

To work practically in an organization.

To develop interpersonal communication.

1.3 Scope of Study

As an internee in PTCL the main focus of my study research was on general operation procedures in one of

the branches of PTCL.

Similarly different aspects of overall of PTCL are also covered in this report.

1.4 Objectives of the Study

Discuss thorough study of PTCL

To understand the various operations and to equip with practical knowledge of the Pakistan

Telecommunication Company Limited.

1.5 Limitation of the Study

Some thing is better than nothing. No matter how efficiently a study is conducted, it cannot be

perfect in all respects. This study was conducted in accordance with the objectives of the study. The Prepared by Hameed ullah


study may not include broad explanations of facts and figures due to the nature of the study.

Secondly, the limitation, which affects the study, is the restriction on mentioning every fact of the

PTCL due to the problem of secrecy of the PTCL. In addition, the availability of required data was a

problem as all the documents and files are kept strictly under lock and key due to their strictly

confidential nature. Thirdly, the problem of short time period also makes the analysis restricted as

one cannot properly understand and thus analyze all the operations of PTCL just a very short time of

eight weeks.

1.6 Benefit of the Study

The study done will benefit the BBA (IT) students because the networking section of this report

comprehensively encompasses all respects of networking analysis. Furthermore,

PTCL Bannu branch may also benefit from the recommendations made at the end of the report.

1.7 Report Methodology

The report is based on my two months internship program in PTCL. The methodology reported for collection

of data is primary as well as secondary data. The biggest source of information is my personal observation

while working with staff and having discussion with them. Formally arranged interviews and discussions also

helped me in this regards.

Primary data:

Primary data include, Personal observation and Interviews of The Staff Members

Secondary data:

Secondary data consist of Manuals, Journals, magazines, Annual Reports and Internet

CHAPTER#2Prepared by Hameed ullah


OVEREVIEW OF PAKISTAN TELECOMMUNICATION COMPANY

LIMITED (PTCL)

2.1 History of PTCL

After the partition of Indo-Pak subcontinent in1947, the areas that became part of Pakistan were

mostly neglected in respect of telecommunication services. The supporting organization and

manufacturing telecommunication equipment were almost non-existent in Pakistan

2.1.1 The Pakistan posts and telegraphs department (1947 to 1962)

In 1947, the Pakistan Posts and Telegraphs Department was attached with the Ministry of

Communication. During the first fifteen years, a sound foundation was laid by creating supporting

organizations like telephone stores, workshops, training centers, production and repair of equipments

etc, necessary for running of PT&T Department. However, telecommunication network systems

remained limited to major cities of the country. The Government of Pakistan started five-year plans

to build a proper base for systematic development of the telecom sector.

2.1.2 Pakistan telegraphs and telephone department (1962-1990)

With the expansion of the postal and telecommunication services, government decided to split the

PP&T Department into two departments i.e. Pakistan Telegraph and Telephone Department and

Pakistan Post Office Department. The process of bifurcation was completed by July 1962.

Significant developments took place during the first forty years in terms of infra-structure

development and transfer of technology from EMD to digital switching systems and increase in

telephone lines from 12,000 in 1947 to 922,000 in 1990, besides establishment of manufacturing

facilities of various types.

2.1.3 Establishment of Pakistan telecommunication corporation (PTC)

In 1990, PT & T department was transformed into a corporation and titled as Pakistan

Telecommunication Corporation. The objective of this initiative was to provide greater autonomy

and flexibility to the organization in achieving its long-term objectives

During the next five years, the telecommunications sector made tremendous progress in the provision

of telecommunication services. It started manufacturing and production of Prepared by Hameed ullah


Telecommunication equipment/materials by using the latest technologies. During PTC period the

number of lines increased to 21, 26,054 in 1995, an increase of over 230 percent over 1990.

2.1.4 Pakistan Telecommunication Company limited (PTCL)

In December 1995, PTC was converted into a joint stock company under Pakistan

Telecommunication (Reorganization) Ordinance; assets of the PTC were divided among Pakistan

Telecommunication Company Limited (PTCL), Pakistan Telecommunication Authority (PTA),

National Telecommunication Corporation (NTC) and Frequency Allocation Board (FAB). While

policy was reserved for the government, the regulation of the sector was entrusted to the Pakistan

Telecommunication Authority (PTA). Frequency Allocation Board (FAB) was created for the

management of the radio frequency spectrum and National Telecommunication Corporation (NTC)

was created. For government’s telecommunication services PTCL inherited about 94.8% of PTCL’s

assets; including 2.862 million access line installed (ALI) and 2.228 million subscribers (ALIS).

Later, in October 1996, the parliament of Pakistan passed the Pakistan Telecommunication (Re-

organization) Act. PTCL was established in public sector as a joint stock company in 1996 by

enactment of the parliament of Pakistan. Pakistan Telecommunication Company Limited (PTCL)

was issued a license by Pakistan Telecommunication Authority (PTA) to provide telecommunication

services in Pakistan for a period of 25 years commencing from January 1, 1996

2.2 MISSION STATEMENT OF PTCL

A company’s mission statement is typically focused on its present business scope-“who they are and

what they do” mission statement broadly describes an organization’s present capabilities, customer

focus, activities and business makeup2.

Pakistan Telecommunication company limited statement is stated as

1 An organizational environment that fosters professionalism, motivation and quality.

2 An environment that is cost effective and conscious.

3 Services that are based on the most optimum technology.

4 “Quality” and “Time” conscious customer service.

5 Sustained growth in earnings and profitability.

2.3 VISION OF PTCL



Strategic vision is a roadmap of a company’s future- providing specifics about technology and

customer focus, the geographic and product markets to be pursued, the capabilities it plans to

develop, and the kind of company that management is trying to create4. Strategic vision of Pakistan

Telecommunication Company is “to be the leading ICT service provider in the region by achieving

customer’s satisfaction and maximizing shareholders value.

2.5 CORE VALUES OF PTCL

Values are general statements, procedures or understandings that guide or channel thinking in

decision making. It provides direction for action and regularizes the decision making in certain

circumstances.

Pakistan Telecommunication Company limited defines its values as

1 Professional Integrity

2 Customer Satisfaction

3 Teamwork

4 Company loyalty

2.6 OBJECTIVES OF PTCL

Objectives are the ends towards which activity is aimed. These are the results to be achieved.

Pakistan Telecommunication Company limited states its objectives as under

1. To provide quality services to its customers in Pakistan.

2. To provide maximum satisfaction to its customers by using the latest technology.

3. To increase the worth of owners.

4. To lead the telecommunication industry in Pakistan.

2.7 PRIVATIZATION OF PTCL

2.7.1 Paknet

Paknet is a fully owned subsidiary of PTCL. Technical assets and staff were carved out of PTCL to

Paknet, to help new company to meet the competitive market. The staff, thus transferred had

requisite experience and expertise in internet and data communication field. However most of the

employees have been hired from private sector. The recently reconstituted board of directors of

Paknet comprises senior and experienced professionals nominated by PTCL board.



Amount of investment by PTCL in Paknet Limited is of

Rs.150, 000,000 against which 15,000,000 ordinary shares each of Rs.10 are issued. The main source

of funds of Paknet is its retained earnings. Permanent capital in the wholly owned subsidiary of

PTCL having an authorized capital of Rs.350,000,000 represented by 35,000,000 ordinary shares of

Rs.10 each and paid up capital of Rs.50,000,000.

Paknet has the largest internet infrastructure in the country, with PoP in 44 locations and internet

access availability in over 2,000 cities and towns. Paknet made its start by inheriting customer base

of 6,000 internet users from PTCL and ended its first financial year with 76,000customers against its

target of 50,000 customers. Although having the

largest infrastructure, Paknet was unable to fully leverage its competitive advantage and has incurred

losses. Paknet’s revenue for the financial year ended 30 June 2006 is Rs.169.2 million7 i.e.21% lower

than last year. The company made a loss of Rs.125.9 million against Rs.42.2 million losses for the

last year.

The main reasons for this loss are poor commercial orientation, lake of network optimization,

excessive overheads and payables to PTCL amounting to Rs.47.6 million on account of accumulated

co-location charges. The continuous and increasing loses of Paknet makes its existence a question

mark for PTCL because subsidiaries are maintained to increase the profits of parent organizations.

2.7.2 Pak Telecom Mobile Limited (PTML)

In today’s changing trends in the telecom sector, all global telecom have strong cellular networks

either directly or through subsidiaries. While keeping this in mind there was a need for PTCL to have

its own cellular service. Pak Telecom Mobile Limited (PTML), a wholly owned subsidiary of PTCL,

was created. The company commenced its operations under the brand name of Ufone from

Islamabad in January 2001 and subsequently extended its coverage to other cities. Presently Ufone’s

network covers more than 750 cities, towns and major highways of the country. During this last year

Ufone successfully completed its US $170 million phase IV network expansion consequently the

asset base of the company has increased from 20 billion to Rs.27 billion.

As for the company’s approved business plan, Ufone was expected to close its first financial year

(ending June 30, 2001) with about 30,000 customers but Ufone achieved over 100,000 customers by

June 2001.Now during this financial year (ending June 30, 2006) Ufone has increased its customers

from 2.58 to 6.34 million.4

Ufone provides international Roaming in partnership with more than 150 operators across 79

countries. It has also introduced the international Roaming facility for the prepaid customers in the

United Arab Emirates and Saudi Arabia. Ufone at the moment offers very attractive tariff while does Prepared by Hameed ullah


not require a deposit or activation charges. The operating performance of Ufone has been very

encouraging in the face of strong competition. Its revenue and after-tax profit rose by 87% and 61%

respectively compared to the last year and EPS increased from Rs.2.94 to Rs4.74.

Investment of PTCL in Ufone is an amount of Rs.1, 500 millions represented by 150,000,000

ordinary shares of Rs.10 each. The main source funds for Ufone are its retained earnings. Authorized

capital of Ufone is Rs.4, 000 millions represented by 400,000,000 ordinary shares of Rs.10 each.

Existing paid up capital of PTML is Rs.2000 million represented by 200,000,000 ordinary shares of

Rs.10 each.

The world telecommunication sector is gearing towards wireless communication. The mobile

business in Pakistan has huge growth potential/ in this background of growth, it was essential for

PTCL to establish itself in the cellular phone business before the exclusivity on the fixed telephony

expires. Introduction of Ufone in the major cities of Pakistan received an unprecedented response

and with in short time already available capacity exhausted. Ufone customer base grew by 190%

from 2.58 to 7.49 million during financial year 2007.

Ufone is awarded a license for providing cellular services in Azad and Jammu Kashmir and the

Northern Areas. But now when two international cellular companies have entered the market, ufone

will have to improve its services quality to maintain its market shares.

2.7.3 Telephone Industry of Pakistan (Tip)

Telephone industries of Pakistan (Pvt) Ltd Haripur was incorporated as a private limited company in

1953 by Gop with the collaboration of Siemens AG.germany.the company is managed by Board of

Directors having 8 directors on the board, six from PTCL and two from Simens A.G.Germany. The

company started production of Telephone sets. With the passage of time and with the change in

technology, its capacity has increased in addition it was also producing Contains, Exchanges,

distribution boxes, Divisional Cabinets and Drop wire.

The company was having marketing limitations and lakeluster approach predominantly for reasons

of legacy and due to its remote location.

Paid up capital of the company is Rs.759753 million and turn over was depending upon orders from

PTCL, NTC, SCO and WAPDA.

The company continued to perform poorly during the period up to April 12, 2007 when PTCL

withdrew its investment from the company. During the period from July 01,2005 to April 12,2006,

the company suffered a loss of Rs.114 million on revenues of Rs.1,142

million. PTCL management on its part has completed all formalities pertaining to disinvestment of

TIP and transfer of shares to Ministry of IT and T, Govt of Pakistan.



2.7.4 Carrier Telephone Industries (CTI) Carrier Telephone Industries (CTI) was incorporated as a private limited company in the public

sector in 1969 in collaboration with Pakistan telecommunication Company Limited and Siemens

AG, Germany. CTI was established to acquire, develop and produce latest state-of-the-art equipment

in the field of transmission technologies, electronics and other telecommunication areas. It provides a

sophisticated technology base for the country. Today CTI is manufacturing SDH transmission

equipment, Multiplexing products, Optical Fiber and Digital Radio Systems. In addition it has also

ventured in the manufacturing of Microwave Gid Parabolic Antennae, PABX and Pai Gain System.

It has recently started assembly of personal Computers, besides selling other Electro-mechanical

accessories, measuring instruments and other products. The company employs latest manufacturing

techniques i.e. Surface Mounting Technology (SMT) for mounting components and its robotics

arms/machines provides excellent support for after sales services. It is equipped to train and fully

support its customers.

CTI was privatized in November 2005 as part of the PTCL privatization commitment. PTCL’s equity

investment of Rs.8 million was sold for Rs.500 million to Siemens AG.the privatization commission

has not yet released the proceeds of this sale to PTCL. The company had earned a current year profit

of Rs.2 million before privatization in November 2005.



CHAPTER#3

ORGANIZATIONAL STRUCTURE OF PTCL

Organization is the end result of organizing. So organizing is the part of management that involves

establishing intentional structure of roles for the people to fill an enterprise. It is process of breaking

down the overall tasks of an enterprise into individual assignments/activities and then getting them

put together in units, departments or in groups along with the delegation of authority to the manger.

Organizational structure implies a formalized intestinal structure of roles/positions.

A well-developed and properly coordinated structure is an important requirement for the successful

operation of any organization. It provides the basic framework with in which functions and

procedures are performed. In PTCL the functions of planning and policy formulation are carried out

by the Board of Directors whereas the management of the organization is carried out by the

executive management.



Organizational Chart

3.1 BOARD OF DIRECTORS



Walid Irshad

President & Chief Executive Officer

Ali Ahmed Yasouf Al Naqvi

Deputy CEO PTCL

Muhammad Nehmatullah ToorS.E.V.P (Finance) / Chief Financial

Officer (C.F.O)

Yasir Ansari

Chief Information Officer

(C.I.O)

Mohammad Nasrullah

Chief Technical Officer (C.T.O)

Syed Mazhar Hussain

S.E.V.P (HR / Admin & Procurement)

Sikandar Naqi

S.E.V.P (Corporate

Development)

Naveed SaeedS.E.V.P (Commercial)

Mr.TariqSalmanS.E.V.P (Business Zone

North)

Mr.AbdullahYousefS.E.V.P Business Zone South

FarahQamar

Company Secretary

LegalAffairs

Dr.Syed Mohammad Anwar



Shah

3.2 Board of Director

It is the highest body of PTCL, which has been vested with the function of policy formulation. The

first Director was elected by the subscribers in their first meeting. Under the rules, the directors

appointed are not being less than sever in numbers.

There is general body meeting once a year of all the shareholders to elect the members of board of

directors. A director once elected, holds office for a period of three years unless he resigns, becomes

disqualified from being a director or otherwise ceases to hold office. A retiring director is eligible for

re-election.

Presently the board of directors has Ten members, As follow

Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani

Chairman & Chief Executive Officer,

Etisalat International Pakistan L.L.C

Executive Vice President Contracts &

Administration

Etisalat, UAE.

Mr. Salman Siddique

Secretary (Finance), Ministry of Finanance

Government of Pakistan,

Islamabad

Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh

Chief Human Resources Officer

Etisalat, UAE

Mr. Mushtaq Ahmad Bhatti

Member Telecom

Government of Pakistan,



Islamabad

Mr. Fadhil Mohamed Erhama Al Ansari

Executive Vice President Engineering

Etisalat, UAE

Mr. Khursheed Ahmed Junejo

Ambassador, Embassy of Pakistan

Abu Dhabi, UAE

Mr. Abdulaziz Hamad Omran Taryam

General Manager, Northern Emirates

Etisalat, UAE

Dr. Ahmed Al Jarwa

General Manager

RealEstate

Etisalat, UAE

Ms. Farah Qamar

Company Secretary PTCL

PTCL Headquarters,

Islamabad

3.3 PRODUCTS AND SERVICES

After the deregulation of the telecommunication sector PTCL has brought a lot of variety in its



products and services to face the challenging task in the new environment in order to sustain profit

margin at the current level. PTCL is trying to improve its products and services and make it more

cost effective for the customers. The product and services that PTCL is providing to its customers are

as follows.

3.3.1 Prepaid calling cards

PTCL prepaid calling cards gives nation wide access with international facility. It comes in easily

affordable denominations of Rs.100, 250, 500, 1000 & 2000. These cards are easily available

throughout the country and it is easy to use it from any PTCL digital phone. Customer has to pay

neither line rent nor bill. In November 2003 PTCL launched 100 denomination prepaid calling card

with advanced features5.

3.3.2 Universal Access Number (UAN)

UAN allows the customers to call different offices of a company in the different cities by the same

number. UAN consists of six digits preceded by three digit code of 111, common to all UANs e.g.

111202020. UAN operates on existing telephone connection without disturbing normal phone

number. UAN service is ideal for organizations engaged in marketing of products or services. UAN

enables quick and easy access to make queries and complaints, increases customer satisfaction. It is

time saving, convenient and cost saving for customers. PTCL has the policy of “First come, first

served” i.e. customers can choose UAN of their own choice which is simple and memorable. UAN

service is available in 50 major cities of Pakistan.

For installation of UAN one has to fill a form and submit it to that very office. Its installation fee for

one office is Rs.20, 000, 40,000 for two offices and 60,000 for three offices while further 15,000 for

additional office. Customer has to pay its recurring charges in advance on quarter basis i.e. Rs.3000

per quarter per office.

NTR-1 has shown billing of Rs.255, 000 for the last quarter of 2006 from 36 customers.

3.3.3 Premium rate service (0900)

0900 numbers are used throughout the world to provide information via telephone at a premium

rate higher the regular call charges. In case of these calls 60% of the total revenue goes to the

company called while 40% is transferred to PTCL.

3.3.4 ISDN (BRI/PRI)

Broadband services to household and small medium sized organizations are also provided through

Integrated Service Digital Network (ISDN). It transfers the data in digital form. This service has now

been available for some time and its users are benefiting from the

advantageous features like faster data communication, high-speed Internet and clearer voice through

International Gateway Switches installed at Islamabad and Karachi.Prepared by Hameed ullah


Basic Rate Interface (BRI) has three channels, two for the data transfer and one for security. PTCL

charges only for 1.5 channels at the rate of Rs.174 per channel.

Primary Rate Interface (PRI) has 30 channels for data transfer and PTCL charges ISPs only for 20

channels at the rate of Rs.174 per channel. The rest 10 channels are their sole profit.

There are two types of charges in case of PRI

1 Hunting charges:- At the rate of Rs.25 per channel i.e. 25*20=Rs.500 per PRI

2 Rent charges:- At the rate of Rs.174 per channel i.e. 174*20=Rs.3480

15 % general sales tax is charged on the above two charges. And if an ISP doesn’t pay their dues

before due date, is charged for 5 % surcharges on the current dues.

3.3.5 Digital Subscriber Line (DSL)

DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and Internet

facility without keeping their normal telephone number busy. Customer can enjoy voice chat from

telephone with high speed. It is of different band width 64kbps, 128, 256 and of1024kbps. PTCL

does not sells this directly to the ultimate customers but sell it to the ISPs like Paknet, Comsat,

Micronet, Cybernet, Dancom etc. PTCL charges ISPs on the basis of their customers. PTCL charges

either Rs.217 per connection per month from ISPs when they give connection or 5 % of the total bill

for which ISPs charge their customer depending upon the contract signed between PTCL and ISP. In

the second case the ISP is required to send a copy of all the customers’ bills to the PTCL revenue

department.

3.3.6 Speed factors of DSL

Computer systemConnectivity

Cables

Usage of DSL

3.4 Faults in DSLNo connectivity

Low browsing

No browsing

Page drop

Net call drop



3.5The reasons for some problems may beUnpayment of bill

Fingering in modem

Low voltage of light

No patching

Damaged drop wire

3.6 My Work as Internee in PTCL BANNUDSL installation LAN installation

Maintain the DSL Maintain the LAN

Router configuration Complaint handling

Marketing Advertising

3.7 BROADBAND PAKISTAN

2.8.1 Digital Subscriber Line (DSL)

DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and Internet

facility without keeping their normal telephone number busy. Customer can enjoy voice chat from

telephone with high speed. It is of different band width 64kbps, 128, 256 and of1024kbps. PTCL

does not sells this directly to the ultimate customers but sell it to the ISPs like Paknet, Comsat, Micro

net, Cabernet, Dancom etc. PTCL charges ISPs on the basis of their customers. PTCL charges either

Rs.217 per connection per month from ISPs when they give connection or 5 % of the total bill for

which ISPs charge their customer depending upon the contract signed between PTCL and ISP. In the

second case the ISP is required to send a copy of all the customers’ bills to the PTCL revenue

department.

3.8 Digital Cross Connect (DXX)DXX service is used for data connectivity. PTCL charges their customers in advance on the quarter

basis. PTCL charges their customers for three types of charges.



3.8.1 ISDN (BRI/PRI)Broadband services to household and small medium sized organizations are also provided through

Integrated Service Digital Network (ISDN). It transfers the data in digital form. This service has now

been available for some time and its users are benefiting from the

Advantageous features like faster data communication, high-speed Internet and clearer voice through

International Gateway Switches installed at Islamabad and Karachi.

Basic Rate Interface (BRI) has three channels, two for the data transfer and one for security. PTCL

charges only for 1.5 channels at the rate of Rs.174 per channel.

Primary Rate Interface (PRI) has 30 channels for data transfer and PTCL charges ISPs only for 20

channels at the rate of Rs.174 per channel. The rest 10 channels are their sole profit.

There are two types of charges in case of PRI

Hunting charges:- At the rate of Rs.25 per channel i.e. 25*20=Rs.500 per PRI

Rent charges:- At the rate of Rs.174 per channel i.e. 174*20=Rs.3480

15 % general sales tax is charged on the above two charges. And if an ISP doesn’t pay their dues

before due date, is charged for 5 % surcharges on the current dues.

3.8.2 Free e-mail and anti spam service for Broadband SubscriberPakistan oldest and largest IP service provider brings you a mark of association.

Where every PTCL Broadband Connection get a free Personalized e-mail ID for life and enjoy the

most reliable, spam free service.

:

Create E-mail

Highlights: PTCL broadband customers will get a free for life personalized e-mail account with 50mb of

space.

Broadband keeps you connected to high speed internet all the time.

Economical packages for students

Special packages for corporate and individuals

Access to free movies, music, classical Pakistan plays, famous cricket matches, educational

and religious contents exclusively for PTCL broadband customers.



PTCL achieving the important milestone of taking broadband into over 167 cities/towns

across Pakistan

3.8.3 Broadband Entertainment Portal (PTCL BUZZ)Click the banner to enter the world of entertainment and fun.

Now PTCL offers Pakistan's First Entertainment Portal completely free for its DSL Customers.

Experience true broadband entertainment, listen or download melodies, songs, watch classic movies,

Cricket Matches, PTV Plays, Online learning, Gaming, listen to religious Naats and lots of fun.

Now your DSL connection is much more than just speed, it is entertainment and fun!

PTCL BUZZ is an entrainment portal which is Free& Exclusively available only for PTCL

broadband users. PTCL Buzz has a huge library of content including the best of English and Urdu

movies, dramas, Sports, Live radio, Religious programmes and over 10,000 songs to choose from.

3.8.4 PTCL BUZZ FAQs

Broadband Pakistan (Unlimited)

PTCL is now the leader in consumer broadband in Pakistan, leading the country into 21st century.

PTCL Broadband has doubled your speed at no extra cost to all new and existing customers in

celebration of 23rd March

PTCL management pleased to announce the following tariff for broadband internet facilities for its

valued customers, with effect from March 23rd 2009. The existing package of 512Kbps will not be


http://www.ptcl.com.pk/images/files/uploads/file/FAQs%20on%20PTCL%20BUZZ.doc


offered to new customers. Existing 512Kbps packages customers will be upgraded to 1MB

package, 1MB to 2MB and customers of 2MB will be upgraded to 4MB.

Experience the Internet at its fastest with high-speed access from Broadband Pakistan,

simultaneously, enjoy Voice service over the same telephone line without any extra cabling

connections! Broadband Pakistan offers DSL service with unmatched reliability, affordability and

connectivity.

Features Cost effective Always On Internet access

High speed data download

Unlimited download

Free Modem

Free Installation

Convenient ordering on phone and web

No upfront charges

"Broadband Pakistan is now available in over 167 cities/towns including Lahore, Karachi,

Islamabad, Rawalpindi, Quetta, Faisalabad, Multan, Hyderabad, Peshawar, Gujrat, Gujranwala

and Bhawalpur.

With the option of subscribing to the speed of (1Mbps, 2Mbps,) and (4Mbps) packages, you can

now choose one that best suits your surfing style.

DSL-1MB Unlimited

Rs. 1,199 / month

Free Unlimited download

Free Modem & Installation

Order Online

DSL-2MB Unlimited

Rs. 1,999 / month


Free Modem & Installation

Order Online


http://bncc.ptcl.net.pk/WssWeb/cs/oa/wstep02.jsp?packageId=302&packageName=DSL-2Mbps%20Lim

http://bncc.ptcl.net.pk/WssWeb/cs/oa/wstep02.jsp?packageId=301&packageName=DSL-1Mbps%20L


DSL-4MB Unlimited

Rs. 4,999 / month


Free Modem & Installation.

Ord To subscribe to PTCL broadband service call 0800 80800

For complain registration please call 1218

BROADBAND FAQs

3.9 Broadband Student PackageDear customer now you can apply for PTCL broadband Student package through the following

options:

Option 1 & 2: Order registration by submitting form at ‘PTCL OSS/CSCs’ OR emailing the form to ‘

PTCL Contact Center’.

1. If your institute is registered with PTCL, then please process with the filling of the form. In

case your institution / university is not yet registered with PTCL then please request your institute /

university administration to do by calling 0800-80800.

2. After completing the form, press “Submit Your Request” tab.

3. A link will appear on the top of the page to download the form in PDF format. Please

Download the PDF file and have it printed.

4. This printed form has to be then validated (signed and stamped) by any of the following

officials of your institute/ university.

Dean

Principal

Head of the Department

Professor

Lecturer

Any faculty member or Prepared by Hameed ullah

http://www.ptcl.com.pk/images/files/uploads/file/BB%20FAQs_final.doc

http://www.ptcl.com.pk/images/files/uploads/file/BB%20FAQs_final.doc

http://bncc.ptcl.net.pk/WssWeb/cs/oa/wstep02.jsp?packageId=303&packageName=DSL-4Mbps%20Unl


Administration staff of your institute

The completed and validated form can be taken to the PTCL One Stop Shops or customer services

Centers for order entry and validation. OR the completed and validated form can be scanned and

emailed to the following email address:

3.10 DIGITAL FACILITIES

3.10.1 Call waiting

Through this facility a customer during conversation can hear a beep indicating that another call is

coming. A new incoming call can be attended by tapping which will put present call on hold, and

next incoming call can be attended. This service can be availed free of cost through dialing customer

access point by UAN 111465465.

3.10.2Code barring

Customers can prevent misuse of their telephone with the help of code barring facility. This can be

changed by the customer if need arises. Customers can activate and deactivate this facility from their

telephone sets.

3.10.3 Call transfer

3.4.3.1 Immediate Transfer

A customer with this facility may transfer his calls to another predefined desired number. A change

in dial tone will be observed.

3.4.3.2 Call Transfer on Busy

In case the customer number is busy, an incoming call will be transfer automatically to another

predefined specified number.

3.4.3.3 Call Transfer on No Reply

In case there is no reply, call will be transferred automatically to another predefined desired number.

In such cases Customer is required to feed desired telephone number on which call transfer is

required. The facility can be activated through a written application to the concerned DE Phones

along with copy of NIC.

The customers can activate or deactivate the facility from their own telephone sets. It is offered free

of cost by PTCL.

3.10.4 Caller Line Identification (CLI)

CLI allows you to identify the caller before picking up the phone. The customer can check Prepared by Hameed ullah


obnoxious calls and can keep the complete record of all incoming / outgoing calls

with time and date to take any action. This facility can be obtained by dialing UAN 111 465 465 and

where this number is not available, by contacting the concerned DE Phones. PTCL charges Rs.30 per

month for this facility.

3.10.5 Hot line

This service enables customer to be in contact just by lifting the handset and without dialing the

number. System automatically dial a preprogrammed number (after 5 seconds delay), most

appropriate for frequently dialed numbers. The facility can be activating through a written

application to the concerned DE Phones along with copy of NIC. The customers can activate or

deactivate the facility from their own telephone sets. It costs Rs.25 per month to the customers.

3.11 MARKETING STRATEGIES

3.11.1 Marketing position

PTCL is a market leader in the telecommunication industry. It holds the largest market shares. Till

January 2003 PTCL had monopoly in the telecommunication industry, but in

January 2003 the deregulation policy of Government; gave an end to the PTCL monopoly.

3.5.2 Strategies

PTCL is following the strategy of expending the total market. It is trying to expend the total market

through new users and new uses.

3.11.2.1 Through New Users

New user’s means to convince the non users to enjoy services of PTCL. This job is done by PTCL

through

a. By lowering the installation charges: To increase the market shares and convince the non

users, PTCL lowers the installation charges for short period. The PTCL installation charges

were Rs.4000 and have lowered these to Rs.1000 in a short period.

b. Decreasing the connection time: This is another incentive to convince the non users. PTCL

give the connection within eight hours. This is also for short period of time.

c. More locations for registration: This is also short term incentive offered by PTCL. PTCL

establishes temporary tents in the different areas even on the road sides. The purpose of this

is that the customers can easily submit their forms for registration.

3.11.2.2 Through New Uses

PTCL is increases the uses of the current products in order to increase the market shares. PTCL

phone set is not only use for calling but it is also used for Prepared by Hameed ullah


3.11.2.2(a) Stock Exchange Report

This feature of PTCL phone set is especially for those businessmen who are abroad from stock

exchange and restless about stock exchange situation. Those businessmen can easily get information

about stock exchange by dialing a number on PTCL digital phone set.

3.11.3.1 Calling Line Identification

PTCL is continuously providing new value added services for customer convenience. Calling Line

Identification (CLI) allows you to identify the caller before picking up the phone. For a customer to

enjoy this service needs a telephone set with display capability. CLI keeps complete record of

outgoing and incoming calls with time and date.

3.11.3.2 Internet Accessibility

Ufone is the subsidiary of PTCL. In mobile phones Ufone was the first to provide internet

accessibility through GPRS. One can send and receive a message through Ufone by e-mail address.



CAHPTER# 4

SWOT ANALYSES

PTCL BANNU is a big organization regarding all the departments including DSL, Finance,

Operations, Human resource etc. there are several & weakness of these departments, which will be

discussed as follow:

4.1 Strengths Largest operational network and infrastructure

An integrated monopoly

Market leadership

Ptcl u fone is market challenger

Competitors still depend on ptcl network either directly or indirectly

Experienced telecom resourses

4.1.1The Biggest Foreign Exchange EarnerPTCL BANNU is the biggest source of foreign exchange for Pakistan. It earns a lot foreign exchange

form its international traffic.

4.1.2Adequate Financial ResourcesPTCL BANNU earns more Rupees as a major source of capital. These adequate financial resources

not only enable the company to copy with any unexpected event but to deploy its resources to

increase product line and services without feeling any financial difficult.

4.1.3Free from Competitive PressurePTCL BANNU has no competitor in the market and other companies are legally not allowed enter in

competition with PTCL before 2003.So PTCL is performing its activities freely without any

pressure.



4.1.4Leadership in the MarketPTCL BANNU is leading Company to provide telecom facilities in the Pakistan. PTCL BANNU

aims at using the latest technology in the field of engineering and IT for its services. It is also getting

constancy from international Companies in order to remain leader in telecom sector.

4.1.5Adequate Financial Resources PTC BANNU earns more rupees as profit per year and has enough money in its general reserve. It

also has debit as a major source of capital. These adequate financial resources not only enable the

Company to cope with any unexpected event but no deploy its resources to increase its product line.

4.1.6Modern TechnologyPTCL BANNU is running modern technology to develop its products and services and improve the

quality of services. In this connection it has replaced the old exchanges with new digital exchanges.

It has computerized billing system. Due to this technology thousand of complaints have been

reduced. PTCL BANNU has also entered in the business of Mobile phone and Internet services.

4.1.7Optional Polices and Compensation Best and optional policies and attractive compensation packages for employees, which has really

improved their commitment, dedication and hard work towards the achievement of organization

goals.

4.1.8Human Resource DevelopmentHuman resource development and employment of technology towards modern development.

4.1.9Wide Distribution ChannelsEasy access to the customers at their residential localities through wide distribution channel.

5.2 WEAKNESSES

4.1.1Ambiguity in Strategic Direction PTCL BANNUis doing business very well but only to that extend to which customers respond.

Although PTCL BANNU is generating revenue from its value added services but it doesn’t have any

solid financial strategic outline, which can cope the entire complex financial situation, and also



ambiguity exists in implementation strategic financial plans. Externally, PTCL BANNU has no

competitors so it has no benchmark to gauge financial performance of its different departments with

those of competitors.

4.2.1Seniority Bases PromotionsPTCL BANNU is leading information technology but it is not knowledge oriented so far as

promotions of its employees are concerned. Promotions of PTCL BANNU employees are seniority

based. Most of employees are concerned. Promotions of PTCL BANNU employees, who get

promoted on seniority basis, are less knowledgeable and non-professional and cannot cope with the

challenges of this ever-growing field. On the other hand most of its knowledgeable and well-

educated employees have no chance of getting higher Positions. They have to work under their boss

who has more experience but less knowledge about Information Technology and

Telecommunication.

4.2.2Lack of Human Resources ManagementPTCL BANNU has no human resources management department. It doesn’t have clear policy

regarding hiring & training of work force. In PTCL BANNU, for most of the jobs there is no job

work & evaluation of performance of employees.

4.2.3Lack of Training Program There is no proper training program to improve the skill of PTCL BANNU employees to cope with

ever-changing telecommunication sector. Less skilled & inefficient workers are creating hurdles in

its growth.

4.2.4No Effective Marketing DepartmentIn PTCL BANNU there is no effective marketing department. There is only marketing officer

working as a manager, further more marketing staff in the field region is also not available.

4.2.5Ineffective Human Resource ManagementPTCL BANNU has although now set up a HRM department but still it is not functioning as per the

requirement of the competitive environment. Most of the jobs have no proper job description and

specification.



4.2.6Customer Dissatisfaction and Delayed ResponsesMany customer of PTCL BANNU are not satisfied with its services because of wrong billing, late

delivery of bills and delayed responses for any fault in the telephone. Some customer complains that

they received their bills in full amount although they have stayed out of the home and had not use the

telephone at all.

4.2.7Absence of Company Culture There is no inclusion or company culture and approaches among the officers of PTCL BANNU and

mostly their behavior with general public is still bureaucratic and their approach is not objective or

profit-oriented.

4.3 OPPORTUNITIES

4.3.1Increasing Awareness RatePTCL BANNU can show its interest in educating people & increasing literality rate. In this way,

PTCL BANNU will not only fulfill its social responsibility but will also be able to increase

awareness rate & it will be help full in the expansion of PTCL BANNU business.

4.3.2Skillful human resources:PTCL BANNU can improve the skill of its manpower by providing them the opportunities of

advanced courses that will make them to cope with the ever-changing condition in field of

telecommunication.

4.3.3Entering the New MarketPTCL BANNU recently is starting its mobile services hence; it will enter in the market. PTCL can

expand its business by exploring and entering in new markets in similar way.

4.3.4Telecom Facilities in Rural AreasAll the value added services and digital facilities are available only in the main cities of Pakistan.

PTCL BANNU can expand its business by providing telecom facilities in rural areas, which is only

possible when adequate planning is done.



4.3.5Recruitment PTCL BANNU can also improve the human resources by the selection of competent person for

different departments and this can only possible by discouraging the corruption and favoritism.

4.3.6Addition to the Product LineTop management of Organization can make additions to its existing product line by providing more

services. In this way it can increase its revenue and customer satisfaction. This requires market

research.

PTCL BANNU has already captured the industry so all kind of the opportunities are for PTCL till

the end of monopoly.

5.4 THREATS

4.4.1Exchange Rate RiskExchange Rate Risk will cause PTCL BANNU net exchange loss on foreign loans. Devaluation of

rupees will increase the cost of production, machinery, and almost all the equipment, imported from

foreign countries. So exchange rate risk will affect the Profitability of PTCL BANNU and also

increase the risk of getting foreign loans in future.

4.4.2Government Legislation Government policies can affect the performance of PTCL BANNU. Hence government policies will

be a real threat for PTCL BANNU if they are not in favor of PTCL BANNU business activities. This

can affect the recruiting policies of PTCL BANNU.

4.4.3TurnoverAt the end of the monopoly, competitors will enter the industry and the completion will increase as a

result of which they will offer high pays and facilities to skill-person of the industry. This can

increase the turnover of PTCL BANNU, which can create a serious threat for the organization.

4.4.4Decrease in Market Share Due To CompetitionAfter the end of monopoly, dissatisfied customers may shift to those telecom services providers who

they think would offer better services than PTCL BANNU, and will increase customer satisfaction. Prepared by Hameed ullah


Decrease in market share would decrease the profitability of PTCL BANNU, which will be a real

threat in near future.

CONCULUSIONThe overall performance of PTCL BANNU has been declining after privatization. The main signals

of performance trend are summarized below:

Aside from the numerical performance indicators, PTCL BANNU took several steps to commence

the journey to bring a culture charge in the organization. This entails putting greater focus on

customer service and emphasizing merit, integrity and openness in the Company’s business practices

and process. So there is a hope that numerical performance positive result in near future.

Moreover since the tele-density of mobile phones has grown a lot, so there are no further chance of

huge increase in tele-density for mobile companies.

RECOMMENDATIONS

Keeping in view the aforementioned hurdle / problems the following are some remedial measures,

which help to create a better system.

This study shows that existing system is not up to the slandered and must be replacing with an

efficient one.

A comprehensive financial information system is required to be streamlined, so that availability

of accurate data records may be insured.

It is proposed that the system of funds allotment may immediately be discontinued and the

Regional Offices may be allocated lump sum fund. This will surely help to speed up the

execution of the work.

All the tool of enforcement of strict financial discipline may be under taken in order to monitor

the whole system.

All the records should be computerized and for this purpose special computer program should

be used.

Employees should be equipped with up to date IT skills and for this purpose refresher &

training courses should be designed.

There should be a total computerized accounting system to save the precious time.

The officer may be trained to adopt company culture soft-spoken, good relations with

customers and target oriented.

Finance and marketing offices and engineers may be sending to international seminars/

workshops to get knowledge of new technique and procedures.Prepared by Hameed ullah


There should be effective human resource department in order to get right people on the right

job. Promotion should be made the basis of performance rather than seniority.

Moreover, the element of corruption exists throughout the operation and finance department,

which must be checked to get high performance.

Strategic planning and especially long term planning should be done in a way, which doesn’t

only fulfill the requirement of today, but also those of future.

Most of the PTCL BANNU personnel are non-professional; I suggest that the competent

authority of PTCL BANNU should be appointing professionals.

Almost all employees of PTCL BANNU are worried about their jobs the competent authority

should immediately announce the policy of PTCL BANNU in this regard.

There should be effective human resource department in order to get right people on the right

job.

Over staffing and unbalanced distribution of employees in departments. Like all the

government and semi government institutions PTCL BANNU has also excessive staff than

required. In order to increase the efficiency of worker job is assigned to its caliper to develop

his interest in work that increase the out put and decrease the overall cost of organization.

In the company there is an unnecessary emphasis on documentation. In transitions a lengthy

procedure of paper work is involved that decrease the efficiency and results in wastage of time.

It should be the duty of management to automate the documentation of record on line to all

offices at same time.

There are very few programs for career development of the employees. People working in one

section or department from years are still with the same knowledge and style of doing job.

There should be proper career planning of employee that not only sharpens the skills of the

employee & improve its efficiency but also results in better and improved output for the

organization.

Some employees are working in the same department or section since they are appointed.



BIBLIOGRAPHY

C.James, W Achowied. 1999. Financial management 11th edition: printice Hall.

PTCL Annual Report 2006.



Sekran, U.2000 Research Methods of Business USA. John Willey & Sons, Inc

Thompson S.L. strategic Management concept& cases, New Delhi Tata Megra-Hill

publishing Company Ltd

www.ptcl.com.pk


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

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