PTCL

PAKISTAN TELECOMMUNICATION
COMPANY LIMITED

INTERNSHIP REPORT

Submitted To : Col. Imtiaz A. Mohar

Submitted By : M Farrukh Arif

Program : MBA(Finance)

Enroll # : 01-222092-007

TABLE OF CONTENTS

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EXECUTIVE SUMMARY...................................................................1
INTRODUCTION.............................................................................2
CENTRAL BACKGROUND......................................................................................................2
COMPANY BACKGROUND.....................................................................................................3
VISION..............................................................................................................................5
Mission.............................................................................................................................5
Core Values......................................................................................................................5
DEREGULATION POLICY .......................................................................................................5
RESTRUCTURING OF PTCL....................................................................................................6
PRIVATIZATION OF PTCL......................................................................................................7

COMPANY’S ANALYSIS..................................................................9
PTCL’S CORE OBJECTIVES .................................................................................................10
FINANCE & ACCOUNTING SYSTEM OF PTCL........................................................................12
FINANCE.........................................................................................................................12
ACCOUNTS.....................................................................................................................12
REVENUE........................................................................................................................13
Finance planning............................................................................................................14
HUMAN RESOURCE ASSESSMENT......................................................................................14
SPECIAL TASKS...............................................................................................................17
GRANT FOR TRAINING PERSONNEL IN INFORMATION TECHNOLOGY BY SUBSIDIZING
INTERNATIONAL CERTIFICATION FEES............................................................................18
GRANT FOR HUMAN RESOURCE DEVELOPMENT and Institutional Up gradation.............18

ENVIRONMENTAL ANALYSIS.........................................................19
ANALYSIS OF EXTERNAL ENVIRONMENT..............................................................................................19
Industrial structure.........................................................................................................19
MARKET OPERATIONS..................................................................................................................20
Market Structure............................................................................................................21
REGULATORY ENVIRONMENT...........................................................................................................23
ANALYSIS OF INTERNAL ENVIRONMENT...............................................................................................24
FINANCIAL ANALYSIS..........................................................................................................25
BUSINESS STRATEGIES......................................................................................................26
PTCL Landline.................................................................................................................26
PTCL V-Fone...................................................................................................................27
U-Fone............................................................................................................................28
Paknet Limited...............................................................................................................28
PTCL Broadband..........................................................................................................29
Smart Services...............................................................................................................29
.........................................................................................................................................30

DEPARTMENT WORKED DURING INTERNSHIP AND SPECIFIC/LEADING

CONTRIBUTION MADE..................................................................30

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AT THE START THEY GAVE ME A BRIEF INTRODUCTION OF ALL THE

ASPECTS RELATED TO THEIR FIELD OF BUSINESS, THEIR PRODUCTS,
CHANGES IN PRODUCTS. I GOT KNOW HOW OF GENERAL OVERVIEW
OF PTCL. AT FINANCE DEPARTMENT WHERE MY DUTIES WERE TO DO
DATA ENTRY OF AMOUNT RELATED TO PURCHASES OF AN
EXCHANGE ON ONE OF SAP MODULES.THE WORKING STAFF WAS
VERY COOPERATIVE AND REMAINED HELPFUL DURING MY STAY
OVER THERE...............................................................................30
PROBLEMS IDENTIFIED................................................................30
SUGGESTIONS AND RECOMMENDATIONS......................................32
CONCLUSION .............................................................................34

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EXECUTIVE SUMMARY

With employee strength of 30,000 and 5.7 million customers, PTCL is the largest
telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator
in the country with 0.8 million V-fone customers. 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 an Optical Fibre Access Network in the major metropolitan centres of Pakistan and local
loop services have started to be modernized and upgraded from copper to an optical network.

This report is being started with the brief and complete introduction of organization, its historical
background, its services and its products offerings. In this report organization structure is
discussed as pr the requirement of internship. What is the hierarchy in the organization as well as
working of various departments are concisely discussed.

The most important thing the BUSINESS STRAGTEGIES is discussed in such a way that it’s
not difficult to understand it. Internal and External analysis has the vital importance, which in
this report is also done. More over the Financial Analysis is also done which is depicting the
financial position of the org in the market place. Whereas SWOT analysis is done which clearly

sows what are the strengths, weaknesses, opportunities and threats in the organization. Finally
some suggestions and recommendations are given to org in this report. Limitation although very
few but can’t be negligible are discussed. Thus this report completely depicts the true picture of
PTCL in a meaningful way.

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INTRODUCTION

CENTRAL BACKGROUND

The telecommunications industry is at the forefront of the information age—delivering voice,

data, graphics and video at ever increasing speeds and in an increasing number of ways. Whereas
wire line telephone communication was once the primary service of the industry, wireless
communication services and cable and satellite program distribution make up an increasing share
of the industry.

The largest sector of the telecommunications industry continues to be made up of wired

telecommunications carriers. Establishments in this sector mainly provide telephone service via
wires and cables that connect customers’ premises to central offices maintained by
telecomm1urinations companies. The central offices contain switching equipment that routes
content to its final destination or to another switching center that determines the most efficient
route for the content to take. While voice used to be the main type of data transmitted over the
wires, wired telecommunications service now includes the transmission of all types of graphic,
video, and electronic data mainly over the Internet.

These new services have been made possible through the use of digital technologies that provide
much more efficient use of the telecommunications networks. One major technology breaks
digital signals into packets during transmission. Networks of computerized switching equipment,
called packet switched networks, route the packets. Packets may take separate paths to their
destination and may share the paths with packets from other users. At the destination, the packets
are reassembled, and the transmission is complete. Because packet switching considers alternate
routes, and allows multiple transmissions to share the same route, it results in a more efficient
use of telecommunications capacity as packets are routed along less congested routes.

Wireless telecommunications carriers are deploying several new technologies to allow faster data
transmission and better Internet access that should make them competitive with wire line

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carriers. One technology is called third generation (3G) wireless access. With this technology,
wireless carriers plan to sell music, videos, and other exclusive content that can be downloaded
and played on phones designed for 3G technologies. Wireless carriers are developing the next
generation of technologies that will surpass 3G with even faster data transmission. Another
technology is called “fixed wireless service,” which involves connecting the telephone and/or
Internet wiring system in a home or business to an antenna, instead of a telephone line. The
replacement of landlines with cellular service has become increasingly common because
advances in wireless systems have provided data transmission speeds comparable to broadband
landline systems.

COMPANY BACKGROUND

Pakistan has made steady progress in expanding telecommunication networks and services in
recent years. In Pakistan this industry had few big giants in the past with PTCL being the sole
provider of landline telephone service in the country. At present the organization’s principal
activity is to provide telecommunication services all over the country. It offers both domestic and
international services throughout Pakistan. PTCL also manufactures telecommunication related
equipment.

Pakistan Telecommunication Company Limited had exclusive rights to provide basic telecom
services in Pakistan till the end of year 2002. With the announcement of Deregulation Policy by
the Government of Pakistan in 2003, PTA has issued licenses for basic telephony to the private
sector in Pakistan who will be competing PTCL, the incumbent. From the humble beginnings of
Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph
Department in 1962, to this very day, ours is a story of commitment and vision.

PTC set sails for its voyage of glory in December 1990, taking over operations and functions
from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication
Corporation Act 1991. This coincided with the Government's competitive policy, encouraging
private sector participation and resulting in award of licenses for cellular, card-operated
payphones, paging and, lately, data communication services.

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Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC,
and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be
PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers
were converted into PTCL shares in mid-1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL
monopoly over basic telephony in the country. It also paved the way for the establishment of an
independent regulatory regime. The provisions of the Ordinance were lent permanence in
October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year,
Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of
Pakistan

Since then, PTCL has been working vigorously to meet the dual challenge of telecom
development and socio-economic uplift of the country. This is characterized by a clearer
appreciation of ongoing telecom scenario wherein convergence of technologies continuously
changes the shape of the sector. A measure of this understanding is progressive measures such
as establishment of the company's mobile and Internet subsidiaries in 1998.

As telecommunication monopolies head towards an imminent end, services and infrastructure

providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with
deregulation of the sector in January 2003. On the Government level, a comprehensive
liberalization policy for telecom sector is in the offing.

PTCL is in full awareness of the same, and future policies feature a strong conviction of healthy
competition.

The company is in process of enhancing organizational and business proficiency through

vertical integration and horizontal diversification. At the same time, cross-national ownerships,
operations and partnerships are being evaluated with a view to developing and diversifying the
business.

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VISION

“To be the leading ICT services provider in the region by achieving customers’ satisfaction and
maximizing shareholders’ value”.

MISSION

 An organizational environment that fosters professionalism, motivation and quality

 An environment that is cost effective and quality conscious
 Services that are based on the most optimum technology
 Quality and Time conscious customer service
 Sustained growth in earnings and profitability

CORE VALUES

 Professional Integrity
 Customer Satisfaction
 Teamwork
 Company Loyalty

DEREGULATION POLICY

Telecommunication de-regulation policy (“Policy”) has been prepared in line with Government’s
objective to de-regulate and liberalize various sectors of the economy. The Policy applies to
opening up of the fixed-line telecommunication sector. The exclusive rights of Pakistan
Telecommunication Company Limited (“PTCL”) to provide basic telephone services (local, long
distance, international and leased line services), which it enjoyed under The Pakistan
Telecommunication (Re-Organization) Act 1996 (“Telecom Act 1996”), have expired since 31 st
December 2002.

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RESTRUCTURING OF PTCL

The government’s efforts to restructure and privatize PTCL have been on-again off-again since
1991. It had an offer in the late 1990s for 26 percent equity, reputedly totaling $3 billion, but
held out in negotiations and ultimately missed the unique global market window at that time.
Since then, it has had difficulty attracting potential buyers.

Investors have been concerned about political risk, and appropriate support from the government
to transform the utility into a commercially-oriented corporation. With fortunes rising in the local
telecom sector, the government hoped to make privatization of the company a landmark deal for
broader reform of the economy. A successful deal would demonstrate the government’s
increasing support for market capitalism and, it was hoped to, boost anemic levels of direct
foreign investment.

PTCL and the government were contemplating different strategic options for restructuring. Plans
were vetted for both a geographic and functional split of operations. Analysts believed the most
likely scenario is a break-up into three new companies, tracking with the firm’s largest business
units: local, long distance and mobile. This approach mirrors the policy environment fashioned
for new competitive entrants. From the government perspective, breaking up PTCL prior to a
sell-off will help curtail the market power of any one single service provider, thereby stimulating
competition.

Unbundling the sale was also likely to increase revenues for the government. The risk, of course,
was that the mobile company, PTML (branded as “Ufone”), was disproportionately more
attractive than the other businesses. According to AKD Securities, PTML's contribution to
PTCL's total revenues was expected to rise to 12.5% over the next five years − and was assumed
to contribute 39% of PTCL’s overall revenue growth. Future growth of mobile, both in terms of
subscribers and net revenues, was considered to almost certainly outstrip demand for fixed line
services. The target was to sell up to a 26 percent stake in PTCL; the government held 88 percent
of shares. Some estimates placed the value of the trance at around $1 billion. PTCL’s net profit

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for the year ending June 2003 was 23 billion rupees ($400 million). The new buyer would gain
management control.

Splitting up PTCL could take at least two years or longer, complicating hopes for a quick
disposal. Leading international investors that publicly stated their interest in the sale include
Singapore Telecommunications Ltd., Egypt's Orascom Telecom Holding, Saudi firm Oger and
the Menara Telecom consortium. Unsolicited offers were reportedly made the planning process a
moving target. The eventual new owner(s)’ greatest challenge was considered to be
organizational. PTCL needed a fundamental shake-up of its corporate culture, and a massive
reduction in staff

PRIVATIZATION OF PTCL

PTCL was sold to Etisalat at a loss of $394 million with the share price reduced from the original
bid of $1.96 per share to $1.66, according to a report. The original bid offered in June 2005 by
Etisalat priced PTCL at $ 2.599 billion while the revised bid approved by the cabinet in March
2006 valued the company at $2.205 billion. However, the government denied giving any
concessions to Etisalat. Officials aid the price of 26 percent PTCL shares remained the same i.e.
$2.6 billion, and then any lowering of bid price in the revised agreement approved by the cabinet
in March. The official documents state that the accumulated bidding price in the revised bid
came down to $2.205 billion against the original Etisalat bid of $2.599 billion, said a report in
the Gulf Today.

The PTCl privatization agreement with Etisalat allegedly inflicted a further loss of billions of
rupees to the national exchequer besides unprecedented concessions offered in the long term, in
direct conflict with Article 30 of the Public Procurement Rules 2004, it said. By far, the PTCL
has been the highest profit earning state-owned company with real-estate assets worth billions of
rupees across the country including commercial plazas, residential colonies and exchanges.

According to the government documents, the Share Purchase Agreement (SPA) of the PTCL
with Etisalat lapsed in September 2005 after the non-payment of the dues by the winner bidders.

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After further negotiations with the Etisalat management, the government agreed to offer
additional concessions and modifications to the transaction structure.

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COMPANY’S ANALYSIS

Pakistan Telecommunication Company Limited (PTCL) is the primary provider of

Telecommunication services in Pakistan. The range of services include basic telephony,
telegraph, fax, telex, Public data, Internet, E-mail, ISDN (Integrated Services Digital Network),
Universal Access Numbers (UAN), and other value added services. Pakistan
Telecommunication Company Limited is a professionally managed company and has initiated
measures, with active support of the Federal Government, to inculcate a corporate culture that
benefits company. Pakistan Telecommunication Company Limited believes that it has an
inherent potential that it can exploit to emerge as an important and active business entity.

Pakistan Telecommunication Company Limited has some basic strength and the potential that
needs to be exploited into real business opportunities. The Directors of the Company feel that a
firm and unwavering commitment towards provision of a complete range of market driven
telecommunication services to its customers using state of the art technology proven products
and a customer care approach is essential in a rapidly expanding telecom market. The radical
change from a monolith state controlled culture to a open market competitive environment. The
customer is becoming and more conscious of the value of telecom services in an improving
business environment.

The advent of digital systems, increasing application of computer technologies and development
of wide-band systems has generated new customer needs. Innovative products and services such
as cellular mobile, high-speed data, Internet etc are much in demand. The current decade has
proved to be the period of sector restructuring and growth globally. To keep pace with the
changes and to meet the emerging new demands, Pakistan Telecommunication Company
Limited has adjusted its programs to meet the requirements of the market. Traditional telecom
monopolies like Pakistan Telecommunication Company Limited need to explore new avenues of
technology and financing to accomplish a quantum leap in growth and bridge the gap between
demand and supply, still remaining financially viable. The Company has taken initiatives and a
change is gradually becoming visible through expanded capacity and increasing revenue.

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The Government of Pakistan has encouraged the growth of the telecom sector to enable Pakistan
to keep pace with the rapid technological advancement in the field of telecommunication. The
tariff structure remains under constant review of the government to rationalize from the point of
providing adequate returns to the telecom operators and to tap the tremendous potential of the
growth in the demand and market for telecom services. The GOP has reduced the CED on
telecom services, encourages the use of value added services with special emphasis on
proliferation of Internet. It has also reduced the import duties on telecom equipment and allows
tax exemption.

Private sector data and Internet services providers are operating under license and revenue share
arrangements. Internet & information technology services are now very popular in the market
and numbers of new entrants are competing, providing Pakistan Telecommunication Company
Limited an opportunity lease capacity. Its available IT & Internet infrastructure both for private
sector licensed operators and Pakistan Telecommunication Company Limited own customers.
Pakistan Telecommunication Company Limited is launching a three-phased project for IT &
Internet to expand the service to take care of 300,000 customers including the needs of private
license for infrastructure.

PTCL’S CORE OBJECTIVES

The primary objective of Pakistan Telecommunication Company Limited is to provide

telecommunication services to the people in the country or in short to satisfy the
telecommunication needs of its customers. Responding to the rapid economic and technological
growth, the company is determined to meet the challenge of expanding needs of telephone and
data communication such as public data network, integrated services digital network and Internet
services.

The major focus of attention is to improve and expand the services, minimize the faults and
provide communication facilities to rural areas. It is also one of the major objectives of
management that the company should not improve its performance but also encourage the

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private sector to enter the Tele business. The company has entered the domain of free market
economy, which necessitates the liberal management policies and private sector.

The following basic policy steps have been taken to meet the objectives laid in PTCL Act to
expand and operate telecommunication services in the country. The main objective of any
company is to earn the profit and minimize expenses by winning goodwill in the market.

The following are the long-term objectives of the organization.

 Provision of Telecom services all over the country.

 Plan, establish and maintain telecommunication

 Acquire, promote and manage research and development, transfer of technology and
software development including manufacturing of telecommunication equipment and
plant

 Enhance efficiency, improve quality and expand the system to meet customer
satisfaction and provide service on demand.

 Create congenial climate for binding of human skill and horizon of employees through
training and education.

 Convert its cash basis single entry accounting system to accrual basis double entry
system meeting the commercial international accounting standards.

 To introduce computerized directory assistance and complaint services reform billing

and a revenue collection system.

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 Strengthen relation with foreign international administration, entities, services

providers, international and regional telecom organizations for better international
communication and technical cooperation in telecommunication business.

 Expand customer awareness of all value-added services of PTCL.

 To improve the efficiency of Customer Service Centers by deputing qualified persons

who are well aware of public relation techniques.

 To introduce new services of audio Tex and video conferencing for the business
community.

FINANCE & ACCOUNTING SYSTEM OF PTCL

The PTCL FINANCE & ACCOUNTING system is actually divided into three wings.

1- FINANCE

2- ACCOUNTS

3- REVENUE

FINANCE

The SEVP (FINANCE) is concerned with the makeup of the all type of financial decisions
especially in the context of acquisition, financing and management of all assets with some goal
in mind. The EVP (Finance) with the General Manager (Finance) extend their expertise in the
decision making process.

ACCOUNTS

Here the SEVP (Finance) is once again concerned by heading the EVP(ACCOUNTS) and General
Manager (Accounts) to deal with all Accounts Decision. In PTCL the Finance and Accounting are so
correlated but the difference between finance and Accounting is the method of Funds Recognition and the

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decision making. In the Accounting the Director Accounts in the PTCL Regions assist the higher
management.

REVENUE

Here the SEVP (Finance) is once again concerned by heading the EVP (Revenue) and General
Manager (Revenue) to deal with all Revenue matters. One Director Revenue within the Region
assist to implement and control the inflow of Revenue and Reconcile it with the PTCL
Headquarters Islamabad.

The PTCL is actually the Revenue Generation organization. PTCL Collect the Revenue from the
following modes.

1) Revenue from System Billing of Land Line Numbers.

a) Through Line Rent of Land Line Numbers.
b) Through National wide dialing from LLN’s (Land Line Numbers)
c) International dialing from LLN’s
d) Providing Value Added services to customers. Like UAN (Universal
Access Numbers), PABX (Private Auto Branch Exchanges),VPN( Virtual Private
Network) Bandwidth of ISP’S (Internet service providers)
e) PTCL has its three subsidiaries PAKNET (leading ISP in the country),
UFONE (unique cellular phone company in Pakistan), TF (Telecom
Foundation) the leading foundation for the welfare of employees of Telecom Sector.

FINANCE SYSTEM OF PTCL

PTCL has magnificent finance structure; it is basically Product Oriented organization so here, the
Revenue is the Life Blood as such for any other profit seeking organization. So we should have
isolated the Revenue from Finance side or either we should consider the Finance in the context
of Revenue.

Finance activities can be evaluated in terms of PTCL’s basic financial statements analyzing
through:

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FINANCE PLANNING

On PTCL HQ Islamabad, SEVP (Finance) is, who with the concurrence with the CEO for
making all the Finance Planning that’s way the PTCL has to inject the money in order to boost
up the business and in order to complete the stiff competition faced in the telecomm sector.
Before taking any decision regarding financial planning the draft could be presented before the
Board of Governors. In this section there is need of financing either in the WLL (wireless local
loop) sector or wire-line or mobile operator services.

Managing the PTCL’s Asset structure

PTCL is very organized organization and it has also its fixed as well with the current asset. So
there are many experts in order to keep the eye watch on the PTCL infrastructure, for example
Director (Fixed Assets) is responsible for the maintenance and repair of the building and
machinery on the Regional level.

Managing the PTCL’s financial structure

PTCL financial structure is in the safe hands the basic qualification for the post of Assistant
Accounts Officer is MBA (Finance) and for the SEVP (Finance) the incumbent should possess
the degree of MBA with ACMA & CA. Due to such fresh blood the young and energetic
financial management taking some bold decision the results of which are awaited up till.

HUMAN RESOURCE ASSESSMENT

It is the department of the PTCL which has been established in 1999 so it is still in the
development stage and there are number of activities which are yet to be decided to take into the
consideration by the HUMAN RESOURCE DEPARTMENT OF PTCL. It is established to
regulate the human resource activities and to solve number of critical activities and the problems
of PTCL regarding the human resource and their critical matters. This department has its own
importance and course of action to resolve and to foresee the future for the development of the
employee and the customers’ interests simultaneously.

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A great deal of delay has been there for the establishment of HUMAN RESOURCE
DEPARTMENT. PREVIOUSLY recruitment of the employees was the responsibility of the
RRR DEPARTMENT but now it is to decide that activity would be given under the supervision
of the HUMAN RESOURCE DEPARTMENT OF PTCL. This is also done in the recent years to
cope with the new market condition of telecommunication industry in PAKISTAN as the
GOVERNMENT has decided to privatize the PTCL. SO to attract the healthy customer, it was
also necessary to make valuable arrangements so that the company can fulfill all kind of
international standards which would be then helpful to convince the customer about the worth
and the value of PTCL. Besides the functional requirement this was another factor, which played
vital role for the establishment of the HUMAN RESOURCE DEPARTMENT.

THE HUMAN RESOURCE DEPARTMENT is lead by the CHIEF ENGINEER and he is

responsible for the activities carried out by the department. There are four DIRECTORS working
under the supervision of the chief engineers. Then these DIRECTORS supervise the divisional
engineers and assistant divisional engineers and so on. As it is at its initial stages so authorities
and responsibilities are still under the process of development and precise definition of these are
not finalized by the top-level management. The hierarchy of the human resource department
clarifies the responsibilities and level of authorities between the different level of the department
and also between the persons of human resource department.

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The general hierarchical structure is as follows: -

CHIEF ENGINEER

(HRM&P)

DIRECTOR

DIVISIONAL

ENGINEER

ASST.DIVISIONAL

ENGINEER

STAFF

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This is general hierarchy where as there are four DIRECTORS working under the supervision of
the CHIEF ENGINEER. Their classifications of the DIRECTORS are through their region like
KARACHI, LAHORE, and CENTRAL AND NORTH.

SPECIAL TASKS

There was confusion about the exact number of PTCL employees. Exact data was not provided
to the top-level management, approximate figure was there. More over different departments of
PTCL claim different number of employees, which they collected through their own resources.
Top level management was not satisfied which such kind of information, so it assigned the first
task to the HUMAN RESOURCE DEPARTMENT.

The challenge was accepted by the department and was successfully met with in the given time
period. The figure of fifty five thousands three hundreds and eighty five (55,385) was found for
the regular employees and figure eight thousands (8,000) was found out for the employees on
contract basis. This figure is for the year 2002, so is the latest figure and is accepted by the top-
level management.

These works are done successfully by the HRM DEPARTMENT. There are some other
responsibilities, which are still in process of accomplishment.

a. The development of recruitment manager software.

b. Restructuring of organization structure.
c. Revising of performance appraisal process.
d. Establishment of some new rules and regulations to cope new market conditions.
e. Changes in the salary structure of the employees.
f. Changes in the medical facilities.
g. Establishment of compatibility between the expertise and their appointment.
h. Reduction of union influence in the company matters.
i. Establishment of programs for the development and training of employees.

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GRANT FOR TRAINING PERSONNEL IN INFORMATION TECHNOLOGY BY

SUBSIDIZING INTERNATIONAL CERTIFICATION FEES

In order to meet the international standards in Information Technology there was need of
certification and qualification improvement by getting training and passing the examinations of
different classifications of IT. So a grant was approved for the said purpose. The purpose of this
grant is to support the candidates in obtaining specified and internationally recognized
certification relevant to information technology and telecommunication by either completely or
partially subsidizing the fee of examinations.

GRANT FOR HUMAN RESOURCE DEVELOPMENT AND INSTITUTIONAL UP

GRADATION

Capacity-building in science and technology is one of most important aspects of a viable infra
structure. Unfortunately majority of institutions in Pakistan suffer from a severe lack of human
and institutional capacity to conduct any meaningful research and development projects and to
provide quality teaching in the areas of science and engineering. There was therefore an urgent
need to train manpower and upgrade scientific institution in Pakistan. SO a grant was approved
by PTCL. This grant scheme was thus aimed to train manpower. The purpose of this grant was
fold: to support the candidates in obtaining essential training/certification

STAFF-WELFARE

PTCL is providing free medical facilities (indoor / outdoor) to both its serving and retired
employees and their dependent family members from panel hospitals as well as from 42 staff
dispensaries / medical centers established in various cities. The total number of beneficiaries is
296,850. Besides this, employees are given merit/stipend awards and general education grants
for professional and general studies of their children.

Benevolent grants of Rs. 1 lac as special compensation is paid to the employees on accidental
death. Widows are also financially compensated out of welfare funds on the eve of Eid. Marriage
grant is paid to the employees on the marriage of their dependent daughters as well.

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Transportation facilities for the commutation of staff and school going children are provided on
nominal charges. Schools being run by Telecom Foundation (TF) are providing quality education
to the children / wards of PTCL employees at concessional fees.

Environmental Analysis

Analysis of External Environment

INDUSTRIAL STRUCTURE

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Market Operations

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MARKET STRUCTURE

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Regulatory Environment

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Analysis of Internal Environment

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FINANCIAL ANALYSIS

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BUSINESS STRATEGIES

Products and Services

PTCL LANDLINE

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PTCL V-FONE

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U-FONE

PAKNET LIMITED

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PTCL BROADBAND

SMART SERVICES

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Department worked during internship and specific/leading

contribution made.

At the start they gave me a brief introduction of all the aspects related to their field of business,
their products, changes in products. I got know how of general overview of PTCL. At
Finance department where my duties were to do data entry of amount related to purchases of
an exchange on one of SAP modules.The working staff was very cooperative and remained
helpful during my stay over there

Problems Identified
PTCL is a well organized company and operates efficiently in this competitive environment so it
was difficult for me to identify the problem. But nothing is perfect in this world there is always a
room for improvement. According to my limited knowledge following were the problems and
challenges that can directly affect the efficiency and performance of the bank or in other words
improvement need be made in the following areas:

• There is a lack of balance in incentives given to old and new employees. New employees
are paid more which de-motivates the old ones.
• Lack of proper computer skills in old employees is another problem.
• System problems do arise at times and customers have to wait for the system to work
properly.
• Some employees misuse the resources of the company.
• Employees were not very effective in communication among themselves. They didn’t
share the experience with each other and didn’t care about the other employees. Some
employees lacked the trust in management.
• Ineffective public dealing was another major problem which I experienced during my
internship.

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• Regularity and punctuality shows the character of big and good executives. But this
problem is also faced by the overconfident employees.

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Suggestions and Recommendations

• No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone

Connection in Pakistan and its playing its role magnificently. In current scenario
P.T.C.L has increases its Revenue quite dramatically, and probably that as soon as
this organization has become privatized it will flourish its revenue in better manner.
• PTCL should immediately change its Finance upper level of hierarchy and should
stream line in the good manner.
• PTCL should also encourage the Billing On line system that each and every customer
should have to pay his/her bill on line basis.
• The system of E-PAYMENT which although exist in PTCL finance system but there
is need of improvement this facility.
• The image of PTCL being leading Telecom Providing is not good in the eyes of
common customer especially there are lot of complaints about the including the bogus
local calls in the monthly bills of various customers. PTCL should also provide the
detail of local calls made from any Land Line Number which would be provided in
Micro level to the customer.
• Faulty Telephone connection should be Fault Free within 24 hours in order to
maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty
Telephone.
• PTCL should make Customer Care Centers in remote areas.
• The punching system of Billing through automation at CITI Bank Karachi takes so
much time to adjust so it should be revived.
• The Financial D.D.O powers should be entrusted to the Director Finance rather GM.
• PTCL is not utilizing its surplus profit in long-term investment projects which be
done.
• PTCL management should give concentration towards the Securities of deposit and it
should be on maximum level.

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• The return on deposit should be checked accordingly.

• The cash generated from the operation must be utilized accordingly.
• Each Region should allocate the funds at its own level.
• PTCL should take the services of highly qualified financial analysts.
• The promotion system in the Finance & Revenue wing should be revived in true
manner all promotion must be made strictly on merit.
• Each Region should maintain Profit & Loss and Balance sheet and the statement of
Cash inflow and outflow.

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Conclusion

PTCL needs innovative service offerings — currently it doesn’t even offer bundles or a single
bill. Has been unclear about its IPTV and WiMAX plan and strategy (trials are in progress)

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.

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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