ptcl project

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PAKISTAN TELECOMMUNICATION COMPANY LIMITED Introduction: PTCL (Pakistan Telecommunication Company Limited) is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, for millions of people, we demand instant access to new products and ideas. More importantly we want them for their better living standards with increased values in this ever- shrinking globe of ours. We are setting free the spirit of innovation. PTCL is the largest telecommunication service provider in Pakistan, offering fixed line, mobile and internet services throughout the country. PTCL is going to be your first choice in the future as well, just as it has been over the past six decades. PTCL delivers fixed line services to over 90 percent of current residential and corporate customers in Pakistan. In 2006, the company achieved significant growth in its fixed line business especially through wireless local loop technology. TCL 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 Fiber Access Network in the major metropolitan centre of Pakistan and P UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE 1

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Page 1: PTCL Project

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

Introduction:PTCL (Pakistan Telecommunication Company Limited) is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, for millions of people, we demand instant access to new products and ideas. More importantly we want them for their better living standards with increased values in this ever-shrinking globe of ours. We are setting free the spirit of innovation. PTCL is the largest telecommunication service provider in Pakistan, offering fixed line, mobile and internet services throughout the country. PTCL is going to be your first choice in the future as well, just as it has been over the past six decades. PTCL delivers fixed line services to over 90 percent of current residential and corporate customers in Pakistan. In 2006, the company achieved significant growth in its fixed line business especially through wireless local loop technology.

TCL 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 Fiber Access Network in the major metropolitan centre of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is being expanded to meet the increasing demand of International traffic

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Pakistan Telecommunication Company Limited (PTCL) is proud to be Pakistan’s most reliable and largest converged services carrier providing all telecommunications services from basic voice telephony to data, internet, video-conferencing and carrier services to consumers and businesses all over the country.Whether it is an office in the largest city of Pakistan or a home in a small village, we are present in every corner of Pakistan to serve our customers.

Pakistan Telecommunication Company Limited (PTCL) was incorporated as a public limited company, with the objective of providing domestic and international telecommunication and related services. About 95% of the assets and liabilities of PTC, at net book value, were transferred to PTCL whereas the remaining 5% assets were vested in PTA, FAB, NTC and PTET. The vesting of assets to new entities took place with effect from 1st January 1996.

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With employee strength of 65,000 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.PTCL is listed at all three Stock Exchanges of the country. Besides Government of Pakistan which own 88% of Shares, remaining shares are distributed among Central Depository Company, Financial Institutions and Individuals.

It has the potential to be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network.On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is being expanded to meet the increasing demand of International traffic.

Privatization of PTCL:Pakistan Telecommunication Corporation Limited, a governmental entity is a high earning organization in the country.

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The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country.

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The Privatization Commission, Government of Pakistan had planned to privatize 51 % shares of entity through bidding. In response, the government faced stirred opposition from the employees of PTCL lead of employee’s parties and strike of about 20 days lead the knees of government down, which re-scheduled the mechanism and presented plan of privatizing 26 % of shares along with the managerial powers. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% shares are held by the general public.

Brief History of PTCL:

•1947 Posts & Telegraph Dept established •1961 Pakistan Telegraph & Telephone Dep’t. •1990-91 Pakistan Telecom Corporation. •1995 about 5% of PTC assets transferred to PTA, FAB & NTC. •1996 PTCL Formed listed on all Stock Exchanges of Pakistan. •1998 Mobile (Ufone) & Internet(PakNet)subsidiaries established. •2000 Telecom Policy Finalized. •2003 Telecom Deregulation Policy Announced. •2006 Etisalat Takes Over PTCL's management.

Nationwide Infrastructure:We have the largest Copper infrastructure spread over every city, town and village of Pakistan with over million installed lines.The network has over 6 million PSTN lines installed across Pakistan with more than 3 million working. Further more installed capacity of broadband is more than 0.6 million ports spread across 318 cities and town of the country National Long-haul Core Network:We have over 10,400 km fully redundant, fiber optics DWDM backbone network. It connects over 840 cities and towns with 270G bandwidth.

ORGANISATIONAL ANALYSIS

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

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The future is unfolding around us. In times to come, we will be the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom services that bring us closer.

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MISSION:

CORE VALUES: Professional Integrity. Customer Satisfaction. Teamwork. Company Loyalty.

PTCL Slogan:

FEEL THE DIFFERENCE is the new slogan of PTCL. They are now providing the most innovative and advanced technologies to their customers

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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.

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OBJECTIVES OF THE COMPANY:The primary objective of Pakistan Telecommunication Company Limited is to provide telecommunication services to the people in the country or in short to satisfy the telecommunication needs of its customers. Responding to the rapid economic and technological growth, the company is determined to meet the challenge of expanding needs of telephone and data communication such as public data 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 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 objectives can be divided into two phases:a. Financial Objectivesb. Marketing Objectives

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

Launch consumer satisfaction survey. To introduce computerized directory assistance and complaint services reform billing and

a revenue collection system. 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

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PTCL Positioning Statement“Hello to the Future”

comprised of two words “Hello” and

“Future” that provides the inward communication through the word “Hello”, i.e. PTCL welcomes its customers and the future. Also it offers the outward communication through the word “Future” by promising customers the futuristic ideas and products.

The first key word “Hello” captures the essence of the whole telephony network that is the backbone of PTCL. “Hello” is a word which is related to the telecommunication history and has been used ever since and will be used in future. This word expresses the welcoming nature of the PTCL brand, its customer oriented approach and warm environment. Everyday most conversations and relationships start with the word “Hello”, hence it portrays the relationship building of PTCL with its customers.

The second key word “Future” translates PTCL philosophy in a nutshell to provide planned and proactive solutions and products to its customers. PTCL is constantly evolving and taking its customers into the future. The word “Future” holds the promise that PTCL is committed to, by providing complete customer satisfaction through innovative and futuristic services and products. PTCL is breaking the stereotypical perception launching into the Future embracing it as the mission to transform the world of telecommunication and the way its customers communicate. PTCL establishes itself as a futuristic entity which is working constantly towards inventing paramount solutions for its customers.

PTCL Brand PhilosophyAs the leading Information and Communication Technology Service Provider in the region we are the link that allows global communication. We are striving towards mobilizing the world for the future. ready to shape a future that offers telecom services to bring the world closer.

SERVICES OF PTCL:Pakistan Telecommunication Company Limited not only Provides Conventional telephone facilities, it also offers optical fiber services to the private sector. We will briefly discuss below the product lines being offered by the PTCL. Basically PTCL divide their services into two parts.

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“Hello to the Future” is an amalgam of our vision, brand philosophy, brand values and strategy. The essence is “futuristic approach”. The positioning statement “Hello to the Future” is basically

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1. Services for consumers.2. Services for corporate customers.

SERVICES FOR CONSUMERS:These services are basically for the common users (Individual/home users) those use telephone in their home/work place and they are basically non business users.

New Telephone Connections: As mentioned earlier, PTCL is presently the only telecom company, who provided fixed line telephony in the country. So whenever, any Private business concern or any individual needs a new telephone connection for provision of telephone service.EVO Wireless Broadband

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Broadband Pakistan

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PTCL EVO is currently offering its services in more than 18 cities on EV-DO technology offering speeds up to 3.1 Mbps. PTCL EVO gives its customers the advantage of nationwide roaming with seamless internet connectivity across Pakistan. The coverage of EVO is not limited to 18 cities as EVO customers can enjoy CDMA-1X data rates of up to 153.6 Kbps at more than 1000 destinations across Pakistan.

PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. In less than three years of it launch, PTCL has acquired approximately 392,648 Broadband customers in over 318 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan.

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With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user across Pakistan and by continuous improvements in customer care for the service.

IPTV Service (Smart TV):PTCL SMART TV Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few countries across the globe that offers this state of the art interactive TV service to its subscribers.

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Unique offers that makes PTCL’s Broadband unmatchable are special packages for the student segment, FREE modem and installation, Availability of Wi-Fi Modems, FREE dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas, cricket matches, online gaming, educational and religious content on PTCL’s entertainment portal ‘BUZZ’, (the access to PTCL Buzz & Gaming lounge is exclusive to PTCL Broadband subscribers). PTCL also offers multiple FREE personalized e-mail accounts exclusively to its broadband users. In addition, PTCL recently doubled its broadband speed for all its existing and new customers at the same price, making 1 MB as its minimum offered speed.

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Currently PTCL Smart TV offers its viewers 125 live channels and over 500 Movie titles through its Video on Demand service’. The service is available in 16 cities including Karachi - Lahore - Islamabad - Rawalpindi - Gujranwala - Faisalabad - Peshawar - Sialkot - Multan - Sargodha - Jehlum - Wah Cantt - Taxila - Hyderabad - Abbotabad and Sukkur however it is planned to be expanded to all the major cities and towns across Pakistan during the year 2010.

V-fone:

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Branded under ‘PTCL Smart Line’, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCL’s telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to ‘rewind’ and ‘pause’ live TV channels through TSTV (Time Shift Television) feature, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content.

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The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO Broadband.

Value Added Services:

CLI (Caller’s Line Identification):

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PTCL also continues to be the largest CDMA operator in the country with approximately 1.25 million V-fone customers. It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology, ours is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural areas.

V-fone can be bought from our franchises or by dialing 1236 and it will be delivered within 48-72 hours. PTCL Vfone is a superior phone connection with advanced features like Internet, caller ID, speaker phone, address book etc that lets you connect wirelessly to the whole world

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Calling line Identification (CLI) allows customers to identify the caller before picking up the phone receiver. To subscribe to CLI services, a customer needs a telephone set with display capability or a CLI device attached to the phone.Prepaid calling cards:

E-Bill payment: Billing system is a part of customer services so providing connivance to its valuable customers PTCL launched a new billing service which is available through “ PTCL Calling Card” This is another service from PTCL. This service is basically providing billing solutions for the users.

Digital Facilities: Pakistan Telecommunication Company Limited offers the digital facilities that are available to the subscriber of digital exchanges. There are following digital Telephone facilities with very nominal price excluding the secret coding and detailed printed bill.Call Waiting: 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.Code 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.Call Transfer: You can receive your call at another number when you are away from your Telephone. As long as you wish the incoming calls will be diverted automatically to the number of your choice.Hotline: This is really hot, you pick up the receiver and if you don't dial for five seconds, you will automatically connect with the number programmed by you.

SERVICES FOR CORPORATE CUSTOMERS:

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PTCL calling card is the most popular choice of millions of customers all over the country. It is now available with balance transfer facility and follow on call facility

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PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suite the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the following services, PTCL Corporate Customer Centers can be contacted.

WHO ARE COMPETITORS?

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Product:

With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user cross Pakistan and by continuous improvements in customer care for the service.

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Unique offers that makes PTCL’s Broadband unmatchable are special packages for the student segment, FREE modem and installation, Availability of Wi-Fi Modems, FREE dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas, cricket matches, online gaming, educational and religious content on PTCL’s entertainment portal ‘BUZZ’, (the access to PTCL Buzz & Gaming lounge is exclusive to PTCL Broadband subscribers). PTCL also offers multiple FREE personalized e-mail accounts exclusively to its broadband users. In addition, PTCL recently doubled its broadband speed for all its existing and new customers at the same price, making 1 MB as its minimum offered speed.

Price:Being a government organization, PTCL is not authorized to determine the prices of its products itself; the Telecom Regulator Authority viz. Pakistan Telecommunication Authority (PTA) fixes the prices of telecom services. The process is such that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls

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consumers’ representatives, journalists and other interested groups for discussion on the proposal. After listening to the viewpoints of all the interested parties, PTA gives its decision.

If PTA approves PTCL’s proposal, the new rates are enforced. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. PTCL also rationalizes its tariff with the passage of time. Tariff rationalization process started in 1997 as part of GoP Telecom Sector policy for privatization of this sector. It was mainly focused on rebalancing the domestic process like NWD, international, local call, line rent etc. Rebalancing is completed by the end of 2009 (as per Tariff rates) with the objective to position PTCL for competition.Place:

The Head Office of Pakistan Telecommunication Company Limited is situated in SectorG-8/4, Islamabad, which is headed by the “President”. Besides, it has Regional Headquarters like:Islamabad Telecom Region,Rawalpindi Telecom Region,Hazara Telecom Region Abbottabad,Northern Telecom Region-I Peshawar,Lahore Telecom Region (South),Lahore Telecom Region (North),Multan Telecom Region,Faisalabad Telecom RegionSouthern Telecom Region-I HyderabadSouthern Telecom Region-II KarachiSouthern Telecom Region-V SukkurWestern Telecom Region Quetta.Switching network Central region Lahore.

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These Regions provide Telecommunications services to the customers in their respective areas. Apart from these, PTCL has an Optical Fibre Construction Region Lahore and Optic Fiber System Islamabad, each headed by a General Manager to install, operate and look after optic fiber systems/cables. In each District and Tehsil, an Exhchange, Franchisor, Call Centers, Customer Care Centers are available to facilitate the customer need.Promotion:PTCL is using following components of promotional mix for the promotion and Publicity of its product/services.ADVERTISING:

“Inquiry 1217”, “Complaint 1218”, phone bill cards prepaid telephone etc. to remind the customers of these services.Sometimes, corporate ads are also released to print media to mark special occasions.At the moment, PTCL’s Customer Services Centers are playing the role of sales outlets. Customers can make telephone calls; send fax messages from these Customer Services Centers.

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In promotional mix, PTCL’s main stress is on advertising in print and electronic media .PTCL periodically places its advertisements in print media on services like “H/Qs hotline0800-44544”, “Caller line identification (CLI)”, “Voice Messaging Service”, “Digital Facilities”, “PTCL Prepaid Calling Cards

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They can also get connected their telephone bills and get duplicate bills from these outlets.PTCL’s Commercials on, “CLI”, “Voice Messaging”, “Digital Facilities” “EVO wireless”, “Broadband Pakistan” etc. are also broadcast immediately on electronic media as reminders to Customers.SALES PROMOTION:

PTCL charges 2rps/20min from all Pakistan to connect internet through Dial Up modem by using landline and v-fone to promote the usage of its telecom network. More over, PTCL offers special packages of Ptcl Broadband Pakistan, which offer customer reduced rate of DSL internet. Ptcl offer unlimited downloading on Broadband packages and also provide the BUZZ portal where consumers can watch hundreds of movies and can listen songs online. Ptcl also provide the free E-mail service to their customers who have the Ptcl package or connection. Ptcl also provide the student internet packages and special packages time to time to attract customers.

PERSONAL SELLING:As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales force because the company has not felt any strong need to use the Services of a sales force for increasing the sale of its products. At the moment, PTCL’s Customer Services Centers are playing the role of sales outlets. Customers can make telephone calls; send fax messages from

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these Customer Services Centers. They can also get connected their telephone bills and get duplicate bills from these outlets.However, with the establishment of Marketing Department in PTCL, The marketing professionals are now in the process of inducting professional sales force for the company.PERSONAL SELLING:As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales force because the company has not felt any strong need to use the Services of a sales force for increasing the sale of its products.

SWOT ANALYSIS:

STRENGTHS

Leadership in the Market:PTCL is leading company in the market, as it is sole and largest Telecommunication services provider in Pakistan. PTCL aims at using the latest technology for its services. PTCL is also inducting professionals in the field of engineering and information technology. It is also getting consultancy from international companies in order to remain leader in telecommunication sector.The Biggest Foreign Exchange Earner:PTCL is the biggest source of foreign exchange for Pakistan. Currently, it is earning more than $400 million from its international traffic.Free From Competitive Pressure:PTCL has no competitor in the market and other companies were legally not allowed to enter into competition with PTCL before DECEMBER, 2002 until its monopolistic status s55 activities freely without any pressure.Adequate Financial Resources:PTCL earns billions of rupees as profit each year and has enough money in its general reserve. PTCL also has debt as a major source of Capital. These adequate financial resources not only enable the company to cope with any unexpected event but to deploy its resources to increase product line and services without feeling any financial difficulty.Flexibility in Operations:Because of its adequate financial resources and leadership in the market, PTCL has flexibility in changing its operations, as customers have no alternative available. Marketing department responds to the customers whenever they contact and ask problems. So, marketing department acts freely and independently.Modern Technology:PTCL is using modern technology to develop its products and services and to improve the quality of services. In this connection it has replaced the old exchanges with new digital exchanges. It has developed computerized billing system. Due to this technology thousands of complaints has been reduced. PTCL has also entered in the business of Mobile phone and Internet services.

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WEAKNESSES:

PTCL is doing business very well but only to that extent to which customers respond. Although PTCL is generating revenue from its value added services but it doesn't have any competitor so it cannot compare its performance and has no benchmark to gauge performance of its different departments.Lack of Effective Controlling System:PTCL has lack of effective control on its employees, whenever, there exists discrepancy between actual performance and expected performance of an employee, and there is no criterion to take corrective action to fill the gaps. So PTCL has no effective controlling system to keep the activities of employees on the track.Seniority Based Promotions:PTCL is leading information technology but it is not knowledge oriented so far as promotions of its employees are concerned. Promotions of PTCL employees are seniority based. Most of employees, who get promoted on seniority basis, are less knowledgeable & nonprofessional and can't 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.Less Earning From Its Subsidiaries:Telephone Industries of Pakistan (TIP) and Carrier Telephone Industries are subsidiaries of PTCL but PTCL is not earning much from its investment of nearly 313 million rupees which it has made in capital of Its subsidiaries. So PTCL is getting very nominal profit from its investment in subsidiaries. Customer Dissatisfaction and Delayed Responses:Many customers of PTCL are not satisfied with its services because of wrong billing, late delivery of bills and delayed responses for any fault in the Telephone. Some customers complain that they received their bills in full amount although they had stayed out of the home and had not used the telephone at all. Most of the customers complain the wrong attitude of CSC staff when they call to them for any defect in telephone service.Illegal Use of International Calls:PTCL is using international call revenue in millions due to alleged illegal use of international calls. The dedicated international lines are provided to international banks, Petroleum companies and Internet services providers (ISP's) for transfer of data instead of voice communication. It was noticed that some ISP's were using the voice over international phone technology commercially to fetch overseas call revenue from customers. Consumer wants to get benefit from lower call rates, which are two third times less than international call rates.Lack of Human Resources Management:PTCL has no human resource management department. It doesn't have clear policy regarding hiring and training of work force. In PTCL, for most of the jobs there is no job description and

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Job specification. Due to this management often get confused in assigning work and evaluation of performance of employees.Lack of Training Program:There is no proper training program to improve the skills of PTCL's employees to cope with ever-changing telecommunication sector. Less skilled and inefficient workers are creating hurdles in its growth.Absence of Company Culture:There is no inclusion or company culture and approaches among the officers of PTCL and mostly their behavior with general public is still bureaucratic and their approach is not objective or profit oriented. Labor Unions:In PTCL the labor union is very strong. They go on strikes to fulfill their demands. This leads to the wastage of resources of the organization.Influence of Government:Although PTC have been converted in to PTCL but it is still under the control of bureaucracy i.e. ministry of communication. For all the important matters whatever administrative or financial, ministry of communication is approached.

OPPORTUNITIES:

Entering the New Market:PTCL, recently is starting its mobile services, hence, it will be entered in the market. PTCL can expand its business by exploring and entering new markets in similar way.Telecom Facilities In Rural Areas:All the value added services and digital facilities are available only in the main cities of Pakistan. PTCL can expand its business by providing telecom facilities in rural areas where potential customers do exist. In this way, PTCL, domestically, can get more market coverage.

Addition to the Product Line:Top management of PTCL can make additions to its existing product line by providing more services. In this way, PTCL can increase its revenue and customer satisfaction. This requires market research i.e. what the customer wants and what is the need of market with innovative technology.Vertical Integration:PTCL can create a level of coordination among its operations; PTCL can make itself self sufficient and can reduce the transportation costs of transferring technical instruments and machinery from one place to another.Increasing Awareness Rate:PTCL can show its interest in educating people and increasing the literacy rate. In this way, PTCL will not only fulfill its social responsibility but will also be able to increase awareness rate and it will be help full in the expansion of PTCL business.

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Faster Market Growth:PTCL has the opportunity to increase its market growth. PTCL can do this by quickly responding to changing business environment and by the use of new technology.

THREATS

Expected Entry Of Competitors:PTCL will maintain its monopoly till the year 2002. But after this time all business organizations will be allowed to enter the market in competition with PTCL. Hence end of monopoly and entry of new competitors will be a challenge for PTCL.Decreases in Market Share Due To Competition:After the end of monopoly, dissatisfied customers may shift to those telecom services providers who they think would offer better services than the PTCL, and will increase customer satisfaction. Decrease in market share would decrease the profitability of PTCL, which will be a real threat in near future.Slow Market Growth:Although PTCL is the biggest earning company for Pakistan, but it requires continually increase in its market share. Slow market growth will be a challenge for PTCL as it has favorable market opportunities for growth by efficient utilization of its work force.Government Legislation:Government policies can affect the performance of PI'CL. Hence government policies will be a real threat for PT'CL if they are not in favor of PTCL business activities.Exchange Rate Risk:Exchange rate risk will cause PTCL a net exchange loss on foreign loans. Devaluation of rupee 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 and also increase the risk of getting foreign loans in future.Value Chain Analysis

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Supporting Activities: Firm Infrastructure Human Resource Department Technology Development ProcurementPrimary Activities: Inbound Logistics Operations Outbound Logistics Marketing and Sales ServicesHuman Resource Department:The training administration region of PTCL consists of eight constituent formation handed by senior professionals. There is a renowned training academy at Haripur known as Telecom Staff College, located at Lahore, Karachi, Peshawar, Quetta and Islamabad. The training administration region of PTCL supports the vision of PTCL.To retain the PTCL employees, PTCL is launching a comprehensive Key Talent Plan that will offer commercial compensation package to their professionals. PTCL is encouraging performance oriented culture where competent human resources will be incentivized. The performance of HRM department is very effective. Its progress can be evaluated in the light of following achievement. Head office database system Regional database system Payroll system Distribution of Performa’s for the preparation of making comprehensive job description, job

specification and evaluation.

Technological Development:

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PTCL is most dynamic organization using latest technologies. PTCL management is using electronic data processing for decision-making. Few examples are: i. Oracle based Accounting system, which is able to detect a wrong entry.ii. Computerized record of all employees, which help in human resource planning. iii. Computerized record of traffic relating to local, NWD and International calls help

management in Network Planning, Call Routing and pricing.ERP to redefine new business process in PTCL. ERP is used for the phrase Enterprise Resource Planning. For PTCL ERP means a system that will hold data across the enterprise of PTCL / Paknet / Ufone. All the information would be integrated, making access to the good quality information. Previously the lack of integration between various computer systems has limited the useful information for controlling the business and decision making.PTCL has an online facility and has developed a website. www.ptcl.com.pk

Procurement:The Procurement function is driven by the objective of procuring materials and equipment from the best possible sources according to the specifications and requirements.To procure, PTCL asks for Request for Proposals from different vendors. PTCL asks for sealed bids from the vendors and these bids are dropped into the Tender Box. These bids are should be received within the prescribed dates. Select the company whose final bid offer price is the lowest, or the two companies that have the lowest and second lowest bids. Finally, negotiation meeting with the vendor/vendors. In it further discounts are acquired by PTCL. The company with lower price qualifies. Vendors interested in becoming registered with PTCL must pre-register with the Procurement Department/Vendor relation section. This registration process is mandatory and supersedes all previous registration, such registration is valid for “3“ years, thereafter, it is the vendor’s responsibility to renew their registration in a timely manner at least 3 months ahead of expiry. All new and existing vendors are required to register by completing form and submitting the specific documents along with form.Primary Activities

Inbound Logistics: PTCL’s main raw material which they use is cable. PTCL asks for International Tenders. These tenders are usually bided by the countries like France, Spain, Italy, China. These tenders are approved which is discussed in procurement section. Shipping is the responsibility of the vendor to send the cables to Karachi. Main storage is at Karachi and raw material is stored in the stores. As PTCL cables are used under-ground and in open air so there isn’t any type of particular design of ware houses. These cables are stored under the open-sky.After reaching in the main store at Karachi, these cables are then transferred to the other main store which is built in Islamabad. After reaching there these cables are sent to the other cities where they are required. Small houses are built in Peshawar, Chakwal and Quetta.

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PTCL doesn’t produce any significant material themselves, so they haven’t any plants to operate. Their main operations are usually the installation of cables Marketing and SalesTVCs billboards and print media are the main sources for marketing its services. Road shows are arranged in order to increase the market awareness. Promotion through other activitiesServicesBeing a service provider, PTCL is mainly focusing on the customer services and facilitation. They are offering different packages and taking different types of initiatives to increase affordability of installation and usage was launched.

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