ptcl report 1
TRANSCRIPT
Ptcl1.1 BACKGROUND OF THE STUDY:
This report is a study of PTCL. Now as a student why I needed to undertake a study of PTCL? The reason was that after completion of my MBA (general) 2nd semester course work, it was an academic requirement to undergo an internship for 6 week in any reputable organization so that to test and practice the concepts that I had theoretically learnt in my courses. And that’s why I undertook an internship in PTCL and now as an academic requirement, I am putting the details of that internship forward, in the form of this report.
1.2 PURPOSE OF THE STUDY
The purpose of this study is not to fulfill an academic requirement. Rather the purpose of this study is “to practically learn all the concepts that I have learnt theoretically in my Master”. And also to know that what I have studied is to what extent practically observable or practicable.
1.3 SCOPE OF STUDY
The scope of this study is very broad. I have tried my level best to each and every aspect and area regarding the organization. And that’s why this study gives an overview of Pakistan Telecommunication Limited. An overview in the sense that in this study all areas, including PTCL’s service marketing, Human Resource Management, Revenue and financial, have been provide that the data for this study, that I have used, is the most recent one. So that no inconvenience could occur. But even then my main emphasis in this study is on the PTCL’s financial, revenue, service related and administration areas.
1.4 RESEARCH METHODOLOGY
In this very report I have used Secondary data, which helped me a lot composing this report includes, PTCL’s Annual report, accounts summary, websites, newspapers, KSE’s websites, different books relating to it.
TelecommunicationTelecommunication is the transmission of messages, over significant distances, for the purpose of communication. In earlier times, telecommunications involved the use of visual signals, such as smoke, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded drumbeats, lung-blown horns, or sent by loud whistles, for example.
In the modern age of electricity and electronics, telecommunications has typically involved the use of electric means such as the telegraph, the telephone, and the teletype, the use of microwave communications, the use of fiber optics and their associated electronics, and/or the use of the Internet. The first breakthrough into modern electrical telecommunications came with the development of the telegraph during the 1830s and 1840s. The use of these electrical means of communications exploded into use on all of the continents of the world during the 19th century, and these also connected the continents via cables on the floors of the ocean. These three systems of communications all required the use of conducting metal wires.
A revolution in wireless telecommunications began in the first decade of the 20th century, with Guglielmo Marconi winning the Nobel Prize in Physics in 1909 for his pioneering developments in wireless radio communications. Other early inventors and developers in the field of electrical and electronic telecommunications included Samuel F.B. Morse and Joseph Henry of the United States, Alexander Graham Bell of Canada, Lee de Forest of the U.S., who invented the amplifying vacuum tube called the triode, Edwin Armstrong of the U.S., John Logie Baird of England, and Nikola Tesla whose most important inventions were created in the United States.
Telecommunications play an important role in the world economy and the worldwide telecommunication industry's revenue was estimated to be $3.85 trillion in 2008. The service revenue of the global telecommunications industry was estimated to be $1.7 trillion in 2008, and is expected to touch $2.7 trillion by 2013
Optical fibre provides cheaper bandwidth for long distance communication.
In an analog telephone network, the caller is connected to the person he wants to talk to by switches at various telephone exchanges. The switches form an electrical connection between the two users and the setting of these switches is determined electronically when the caller dials the number. Once the connection is made, the caller's voice is transformed to an electrical signal using a small microphone in the caller's handset. This electrical signal is then sent through the network to the user at the other end where it is transformed back into sound by a small speaker in that person's handset. There is a separate electrical connection that works in reverse, allowing the users to converse.
The fixed-line telephones in most residential homes are analog — that is, the speaker's voice directly determines the signal's voltage. Although short-distance calls may be handled from end-to-end as analog signals, increasingly telephone service providers are transparently converting the signals to digital for transmission before converting them back to analog for reception. The advantage of this is that digitized voice data can travel side-by-side with data from the Internet and can be perfectly reproduced in long distance communication (as opposed to analog signals that are inevitably impacted by noise).
Mobile phones have had a significant impact on telephone networks. Mobile phone subscriptions now outnumber fixed-line subscriptions in many markets. Sales of mobile phones in 2005 totaled 816.6 million with that figure being almost equally shared amongst the markets of Asia/Pacific (204 m), Western Europe (164 m), CEMEA (Central Europe, the Middle East and Africa) (153.5 m), North America (148 m) and Latin America (102 m). In terms of new subscriptions over the five years from 1999, Africa has outpaced other markets with 58.2% growth. Increasingly these phones are being serviced by systems where the voice content is transmitted digitally such as GSM or W-CDMA with many markets choosing to depreciate analog systems such as AMPS.
There have also been dramatic changes in telephone communication behind the scenes. Starting with the operation of TAT-8 in 1988, the 1990s saw the widespread adoption of systems based on optic fibres. The benefit of communicating with optic fibers is that they offer a drastic increase in data capacity. TAT-8 itself was able to carry 10 times as many telephone calls as the last copper cable laid at that time and today's optic fibre cables are able to carry 25 times as many telephone calls as TAT-8. This increase in data capacity is due to several factors: First, optic fibres are physically much smaller than competing technologies. Second, they do not suffer from crosstalk which means several hundred of them can be easily bundled together in a single cable. Lastly, improvements in multiplexing have led to an exponential growth in the data capacity of a single fibre.
Assisting communication across many modern optic fibre networks is a protocol known as Asynchronous Transfer Mode (ATM). The ATM protocol allows for the side-by-side data transmission. It is suitable for public telephone networks because it establishes a pathway for data through the network and associates a traffic contract with that pathway. The traffic contract is essentially an agreement between the client and the network about how the network is to handle the data; if the network cannot meet the conditions of the traffic contract it does not accept the connection. This is important because telephone calls can negotiate a contract so as to
guarantee themselves a constant bit rate, something that will ensure a caller's voice is not delayed
in parts or cut-off completely. There are competitors to ATM, such as Multiprotocol Label Switching (MPLS), that perform a similar task and are expected to supplant ATM in the future.
In Pakistan, Pakistan telecommunication company limited (ptcl) provides telecommunication services at largest level.
Telecommunication Company Limited
Type Public
Industry Telecommunication
Founded 1947
Headquarters Islamabad, Pakistan.
Key people
Walid Irshaid
(President & CEO)
Naguibullah Malik
(Chairman)
Products
Wireless
Telephone
Internet
Smart TV
RevenuePKR 59.24 billion ~ 697 million USD ( June
30, 2009)
Net income▲ PKR 9.1 billion ~ 108 million USD (June
30, 2009)
Owner(s)Etisalat, UAE & The Government of
Pakistan
Website www.ptcl.com.pk
Introduction of ptclPakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. Pakistan Telecommunications Company Limited (PTCL) is the 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 Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite arrival of a dozen other telcos including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA and Internet are other resources of PTCL, making it a gigantic organization. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public.
PTCL is also part of the consortium of three major Submarine communication cable networks: SEA-ME-WE 3, SEA-ME-WE 4 and I-ME-WE. In addition to wire line operations, PTCL also provides fixed line service through its countrywide CDMA based WLL (Wireless Local Loop) network, under the Vfone brand name. In the cellular segment, the second largest cellular provider in Pakistan, Ufone, is also a wholly History
From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan.
Pakistan Telecommunication Corporation (PTC) took 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 pay-phones, paging and, lately, data communication services.
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTCL, 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. 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
PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. None of the brands made it to the top slots in the respective competitions. Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the period of time. Recent DSL services launched by PTCL reflects this by the introduction of a new brand name and operation of the service being directly supervised by PTCL.
As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. The post-monopoly era came with Pakistan’s Liberalization in Telecommunication in January 2003. On the Government level, a comprehensive liberalization policy for telecoms sector is in the offering.
In 2005 Government of Pakistan decided to sell 26 percent of this company to some private corporation. There were three participants in the bet for privatization of PTCL. Etisalat, a Dubai based company was able to get the shares with a large margin in the bet. Government's plan of privatizing the corporation were not welcomed in all circles; countrywide protests and strikes were help by PTCL workers. They disrupted phone lines of institutions like Punjab University Lahore along with public sector institutions were also blocked. Military had to take over the management of all the exchanges in the country. They arrested many workers and put them behind bars. The contention between Government and employees ended with a 30% increase in the salaries of workers.
In 2009 PTCL launched its new product with the name of EVO.
Company Profile
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. 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.
Vision
To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'.
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.
MissionTo achieve our vision by having:
An organizational environment that fosters professionalism, motivation and quality
An environment that is cost effective and quality conscious
Services that are based on the most optimum technology
"Quality" and "Time" conscious customer service
Sustained growth in earnings and profitability
Core Values
Professional Integrity
Customer Satisfaction
Teamwork
Company Loyal
REGISTERED OFFICE
Block-E, sector G-8/4, Islamabad , pakistan
Bankers
Habib bank limited
United bank limited
MCB Bank limited
National bank of Pakistan
Askari bank limited
Citi bank
Faysal bank limited
Standard Chartered bank limited
Privatization of ptcl
The privatization of the company was completed in the FY06; following the purchase of 26% 'B' class ordinary shares by Etisalat International Pakistan L.L.C. (EIP) on April 12th 2006. EIP took over management control on the 12th of April 2006. Since then, EIP has engaged the services of various technical and management advisors to improve the performance of PTCL. In the nine months period if FY08, PTCL achieved one of the major milestones of transformation subsequent to privatization by implementation of country's most successful Voluntary Separation Scheme (VSS). The change process has been strengthened with new corporate look, human resource quality and systems of service delivery and integrated resource management. Management of the company is committed to turn PTCL into a state of the art organization through these initiatives.
Product and services
Value Added Services Value Added Services One Call Away
Toll Free 0800
VPN Service
Premium Services (0900)
UAN (Universal Access Number)
UIN (Universal Internet Number)
Broad band Broadband Double Speed
Broadband WiFi Free Email
Broadband Packages
Broadband Installation Guide
PTCL BUZZ
Broadband Student Package
Business DSL
Easy Learning
Coverage Area
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.
Click the following link to avail the Free Email account service:
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 414 cities/towns across Pakistan
Broadband Entertainment Portal (PTCL BUZZ)
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 entertainment 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.
Broadband Pakistan (Unlimited) PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. Since
its launch on 19th May 2007, PTCL has acquired 432,821 Broadband customers in over 414 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan.
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
Convenient ordering on phone and web
No upfront charges
"Broadband
Pakistan is now available in over 414 cities/towns including Lahore, Karachi, Islamabad, Rawalpindi, Quetta, Faisalabad, Multan, Hyderabad, Peshawar, Gujrat, Gujranwala and Bahawalpur.With the option of subscribing to the speed of (1Mbps, 4Mbps, 6Mbps) and (8Mbps) packages, you can now choose
one that best suits your surfing style.
Packages
DSL-1 Mbps Unlimited
Rs 1,199 / month
Free Unlimited download
Free Modem
Order Online
DSL-4 Mbps Unlimited
Rs 1,999 / month
Free Unlimited download
Free Modem
Order Online
DSL-6 Mbps Unlimited
Rs 4,999 / month
Free Unlimited download
Free Modem
Order Online
DSL-8 Mbps Unlimited
Rs 6,999 / month
Free Unlimited download
Free Modem
Order Online
Installation ChargesOne time Installation charges of Rs. 500. The installation charges are applicable from July 1, 2010
To subscribe to PTCL broadband service call 0800 80800
For complain registration please call 1218
Broadband Student Package PTCL broadband Student package apply 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. visit the broadband student link and access the form http://www.ptcl.com.pk/student/index.php2. If institute is registered with PTCL, then please process with the filling of the form. In case institution / university is not
yet registered with PTCL then please request institute / university administration to do by calling 0800-80800. 3. After completing the form, press “Submit Request” tab.4. A link will appear on the top of the page to download the form in PDF format. Download the PDF file and
printed.5. This printed form has to be then validated (signed and stamped) by any of the following officials of
institute/ university.
Dean
Principal
Head of the Department
Professor
Lecturer
Any faculty member or
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: [email protected]
Option 3: Order Registration by calling PTCL Call Center
1. The order can also be placed by calling contact center 0800-808002. The call center agent will guide through the procedure of order registration and validation of request by CSR contacting institute/university administration.
Other items
Broadband WiFi
Broadband Double Speed
PTCL Landline
Landline Lucky Draw Promo
NTC RS 500 installation charges Promotion
PTCL Cricket Info Service
Personal Global Number service
Song Dedication & Music Station Service
International Plus
One Rupee One Minute
Premium Number Service
Identical Number Service
Reconnect PTCL
Packages
Conference Call
Plan Switching
NTC Promotion
Value Added Services
Year 2009-10 has been declared as the “year of customer care and gain” whereby all efforts are directed towards retaining existing customers.
Features:
Incentives being offered for restoration of services
New simplified procedure for Landline restoration
New Products and Services available for Landline users
IncentivePTCL Management has approved a number of incentives for customers who want to come back to PTCL and get their services restored. They are:
Rs. 500/- Restoration Charges have been waived off for all customers who want their services restored
Waiver of all fixed charges for the months in which the customer has no variable charges (usage) from the total outstanding amount.
Payment of outstanding amount in a number of installments and restoration of services on payment of 1st installment
Convenient re-activation process
Re-Connection Procedure
Customers who wish to reconnect their PTCL landline, can now simply call 1236, select option 7 and talk to a CSR for restoration of services.
The customers’ request will be forwarded to the concerned region and the operations team will visit the customer premises, for initiating the restoration process.
Packages
PTCL launches new packages; Basic plus, Pakistan plus, International Plus.
Basic Plus
Pakistan Plus
International Plus
PTCL Plus FAQs
Plan Switching
Press Advertisement
Basic Plus Basic Plus is designed to meet the needs of the low usage segment and includes basic services along with voicemail and call waiting. All customers who were not on Pakistan Package as of 31st March 2008 have been shifted to Basic Plus with effect from 1st April 2008
Line rent(excl. taxes)
Rs. 174
Package charge NIL
Local Rs. 1.00/1 min
NWD call Rs. 1.00/1 min
Mobile Rs. 2.50/min
Note: Value Plus was abolished effective November 1, 2008. All subscribers on Value Plus were automatically shifted to Basic Plus thereon".
Pakistan Plus
Pakistan Plus offers 1000 minutes of nationwide calls for a fixed package charge of Rs. 199. The package also
includes free voicemail and call waiting. Moreover, for convenience to customers, modified package will be effective from 1st August 2009.
Line rent(excl. taxes)
Rs. 174
Package charge Rs. 199
Local Rs. 1.00/1 min
NWD call Free (up to 1000 minutes)additional minutes would be charged at Rs. 1.00 /1 min
Mobile Rs. 2.50/min
Note: All Pakistan Plus Package subscribers will have 1000 free minutes instead of 2500 free minutes to make NWD Calls.
NO ONE ELSE
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.
Vfone Azadi Offer
Vfone Promotion (free balance for three months)
New & Exciting Promotions
CONNECTION CHARGES
VFONE CALL PACKAGES
CARDS LOADING OPTIONS
VFONE SALES OUTLETS
VALUE ADDED SERVICES
INTERNATIONAL CALL RATES
INSTALLATION PROCEDURE
SCO NETWORK CHARGES
VPCO PAYPHONES
FREQUENTLY ASKED QUESTIONS
VFONE CUSTOMER CARE
Over the mountains and across the plains; in deserts and through cities, Vfone is the country’s largest WLL network. So whether it’s unparallel voice quality, network reliability, affordability or unsurpassed presence; the answer will always be Vfone---No one Else!!
With Vfone, we make sure you never lose touch with your dear ones…Vfone lets you connect wirelessly to the whole world. It’s easy to use and economical too! With Vfone you can enjoy wireless connectivity and freedom of movement within your premises. You can use your Vfone to connect to the internet and enjoy a world of information and entertainment. And that’s not all; we are continuously enhancing our range of Value Ads to make Vfone experience even more fun. Using CDMA2000 1X technology, already have built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVO Broadband.
Connection Charges
FWT Connection Total Package Price
Rs. 3,600 FREE Rs. 3,600
Balance of Rs.1000 Absolutely FREE with every new connection.
PaknetFrom December 31, 2007 Paknet Limited has been merged into to PTCL and now all assets and users are managed by PTCL Internet Division.
According to an official survey conducted by the telecom regulator PTA (results of which appeared 3 July 2006), Paknet enjoys the number 1 or number 2 position in 75% regions of Pakistan for its- quality of services. The company has taken its ranking up by an average of 7 positions in metropolitan cities like Karachi and Lahore PTA
Smart services
PTCL Smart TV is an IPTV service in Pakistan owned by PTCL that was launched on 14 August 2008. The service is currently available in 15 major cities including Karachi, Lahore, Islamabad, Rawalpindi, Gujranwala, Faisalabad, Peshawar, Sialkot, Multan, Jhelum, Sargodha, Wah Cantt, Taxila, Sukkur, Hyderabad and Abbotabad.
Delivering the outstanding network for PTCL
Pakistan Telecommunication Company Limited (PTCL) is the largest state-owned telecommunication company and the largest fixed-line operator in Pakistan. While Pakistan
Telecommunications Mobiles Limited (PTML), wholly PTCL’s owned subsidiary is the second largest mobile operator in Pakistan, operating under the brand name of Ufone. Etisalat, a
multinational telecommunications operator from United Arab Emirates, acquired 26% shares of PCTL for $2.6 billion and took over the management control of the company in 2005. PCTL has
become a unit of Etisalat since 2005. Aside from carrying all services from PTCL and PTML, PTCL’s national optical transmission network is the largest size and most maturity optical network in Pakistan and delivers long distance transmission sevices to other operators in
Pakistan by means of leasing bandwidth. Statistically, over 60% backbone transmission services (including voice, data, Internet) nationwide are carried over PTCL transmission backbone
network.
Network transformation to carrying triple play services
In the face of quickly expanding services, traditional TDM voice services are phasing out while data services are emerging as the new growth point with strong demands on IPTV, VOIP and
INTERNET. PTCL has put emphasis on enabling existing transmission network to act rapidly to support IP services. ZTE has been supplying to PTCL its mature MSTP products (ZXMP S320,
ZXMP S330, ZXMP S380, ZXMP S390 and ZXMP S385) and DWDM product (ZXWM M900) in support of multi-service access to build the optical transmission network since the OFAN project in 2003. All MSTP products fully support data services. Targeting PCTL’s business
mode, ZTE provide excellent planning and design and coped with customer’s all requirements by upgrading and adding relevant data boards in the existing equipments and, significantly cutting
PTCL’s investment. Simple to operate and swift for implementation, capacity expansion on existing equipments can also speed up the network deployment and allow PTCL to make market
gains.
ZTE IP over WDM solution pushing PTCL’s service development
During building the national IP core backbone network, PTCL intended to deploy core routers in the three largest cities to form the ring network with 10GE bandwidth. PTCL focused on
enabling the long-haul transmission network to carry IP core network cheaply and quickly. With full understanding of customer’s requirements, ZTE adopted advanced IP over WDM technology
in its long-haul WDM system ZXWM M900, to carry the 10GE service connections between core routers which was quick to implement and save the equipment investment. Unlike to SDH, 10GE services also lack of protection mechanism, WDM-level protection mechanism is of great
importance to 10GE services, as a result ZXWM M900’s robust optical layer protection functions fully comply with the carrier-class protection switching time of sub-50ms, solving the
future problems of the customer.
Multiple protection schemes ensuring high network security
Due to Pakistan’s unique regional environment and political economy conditions, PTCL has stringent requirement for network security. ZTE employed ZXWM M900, the industry-leading large-capacity and long-haul DWDM equipment capable of offering 6 WDM-level protection
modes and ZXMP S385, the new generation MSTP for hybrid networking. Multi-route protection available at SDH/DWDM levels ensures non-service affecting performance in case of
multiple fiber cuts.
Large-capacity smooth upgrade driving down initial construction cost
PTCL adopted “pay as you grow” strategy. ZTE solution with MSTP supports large-capacity, smooth upgrade, capable of upgrading from 2.5G to 10G and WDM capable of upgrading from
2.5G to 10G and up to 40-80-160 wavelengths cutting PTCL’s initial investment cost.
Rapid delivery allowing for fast deployment
It took only 5 months for ZTE to accomplish production, transportation, installation, commissioning and service turn-up on inking the contract of national backbone network.
Master-slave NM monitoring supporting un-staffed sites
ZTE employed master-slave NM solution to national backbone network ensuring 24-hour monitoring network with zero failure and enabling un-staffed sites.
Listening to customer fostering long-term partnership
Targeting PTCL’s backbone transmission demands in future 5 year, the WDM backbone network is of great consequence. PTCL formed a technical group comprising most professional
technicians, while Etisalat assigned an expert group to Pakistan to support the project. With thorough understanding of PTCL’s development planning and customized requirements, ZTE
partnered with PTCL to tackle the challenge and pressure on PTCL and delivered a customized solution in line with its high technical requirements. The outstanding and cutting-edge solution
and mature equipments finally gained approval.
Environmental AnalysisAnalysis of internal environment
•
•
Analysis of External Environment
Industrial structure
Market Operations
Market Structure
Regulatory Environment
BUSINESS STRATEGIES
As part of the Company’s vision of maintaining and growing its position as the leading ICT service provider and a profit leader, a five year Strategic Master Plan for the Company, with defined corporate KPI targets, timelines and ownerships was developed by the PTCL management. Defining yearly targets on market shares for various voice and data services, introduction of a corporate KPI based performance measurement system, Restructuring of the organization, formulation of IPTV, Triple Play and converged services, migration to an end to end IP based network, Investment strategies such as Assets Management for risk diversification and improved Return on Investments, were all part of the master plan. The five year master plan will be reviewed and updated on an annual basis. PTCL chose August 14th, the Independence Day, to launch its new logo and theme of „feel the difference‟. To support the new spirit and to reinforce its commitment, PTCL offered „free‟ nationwide calls to the people of Pakistan. The traffic on 14th August 2007 jumped to 4 times the level on a similar holiday to give credence to our hypotheses that the „good old telephone‟ Company is still the trusted landmark of the people of Pakistan. This unprecedented response to free calls on 14th August was a heartwarming experience as it reassured the faith of our customers in our services, making us even more aware of our responsibilities towards putting our customer first.
Fixed Line Telephony
PTCL fixed line segment has witnessed decline in numbers in 2007-08 as against last year with a decrease of 452K lines during the past year. The market for the FLL segment has least amount penetration primarily due to the major inclination towards cellular and wireless segments by users. PTCL‟s fixed line potential is anticipated to remain stable with its having the largest network, coverage and better quality service as compared to WLL and cellular networks. The fixed line segment is anticipated to cater the needs of the business community at large and as expected is to be driven by the country’s future economic growth. Wireless Local Loop PTCL‟s WLL segment has depicted immense amount of growth, nevertheless at a slower pace than expected. It started its service from the northern regions slowly moving towards the metro cities using its CDMA wireless technology.
Wireless local loop
PTCL has laid an Optical Fibre 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. World Call and Telecard were the other major operators that introduced the WLL services using CDMA2000 and CDMA technology to cater the needs of its customers. Time cards started its operations from Karachi, flowing into Baluchistan region while World Call initiated its operation in Lahore in Jun 2005 with aim of rollout its network to update its capacity to 1.5 mn subscribers in the years to come. PTCL has been facing stiff competition however with vast presence and infrastructural facilities across Pakistan, has the potential to outrun its competitors in the segment.
Broadband and Value Added Services
PTCL through diversification and assorted products and services could retain its fundamental presence in the Telecom Sector. Introduction of DSL Broadband services across major cities with plans to include
more cities in times to come will enhance the revenue base of PTCL. Stiff competition from other cable based broadband service providers and local cable operators still persists. PTCL‟s broadband services were introduced in Jun 2007 with free installation service with an initial capacity of 100,000 subscribers by providing services in the five largest cities and had a decent start by adding over 10,000 subscribers within the first few months of its operations depicting PTCL‟s brand recognition.
Furthermore, with the introduction of WLL segment, Phone N Net, IPTV, VMS and Carrier Services is expected to bring product leadership in the sector.
Human Capital Management (HCM)
The sub-modules of Personnel Development & Appraisals, and Training & Event Management have gone live in the Phase A2 of the implementation cycle.
HCM - Personnel Development & Appraisals module takes care of management of the information related to the educational qualifications according to the requirement of the particular post. It helps in determining the right individuals for processing through personnel appraisals. This is a powerful feature to do effective planning requires with regards to the development of employees by identifying the right matches of individuals with the right job positions. The planning feature is tightly integrated with the Training Feature of HCM for identification of training needs for future leaders of the company.
HCM - Training & Event Management has also been implemented in the SAP Systems during Phase A2. This module provides complete management to the Trainings
and Events happening in the company. It takes care of the basic functionality needed to maintain the necessary historical record for better visibility into company wide events and trainings. The whole process starts with defining the events in the System and covers the complete cycle including the event attendance, administration, expenditures, earnings, facilities management like room reservations and having tight integrations with Financials System for real time update of financial data. This module also provides effective solution to the needs of managing the commercial courses in Institute of Communication Technologies (ICT) of PTCL.
Certain HCM – Payroll enhancements have also been successfully developed and implemented. The enhancements include the critical areas of Cost of Living Allowance (COLA), Car Maintenance Allowance (CMA), New Tax Slabs for Fiscal year 2008-09 and 35% increment for non-management employees"Human Management is The Key Factor For Any
Enterprise"
ERP Human Capital Management provides the most comprehensive global HCM solution available today. With ERP HCM, We gain the following business benefits: Consistently achieve corporate objectives
Retain talented people
Proactively identify and fill talent gapsLower costs of compliance and employee administrationBalance global and local coverage
Improve employee satisfaction
Improve decision making and manage human capital more effectively
Reduce risk
Realize return on investment
Implement value-added activitiesEnable business process outsource
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.
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
CHIEF ENGINEER(HRM&P)
DIRECTOR
DIVISIONALENGINEER
ASST.DIVISIONALENGINEER
STAFF
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.
The general hierarchical
structure is as follows: -
Their classifications of
the DIRECTORS are
through their region like
KARACHI, LAHORE,
and CENTRAL AND
NORTH.
SPECIAL TASKS
There are no defined and
precise responsibilities of this
department as it has already
been mentioned that this
department is still in the
development stage. However
some special task has been
assigned to the department
so that its activities can be
started and the flow of
activities and their harmony
with other department can
be established. For this
purpose numbers of activities
are assigned, out of which
some were accomplished and
some others are in the
process of accomplishment.
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.
The organization of data
base management system
was also assigned to the
HRM department, which
was also successfully
done by the department.
This helped PTCL to
gather the distributed
employee data which is
then helpful for the
regulation of pay system
for the employees and
also helpful for the
regulation of seniority
system for the employees
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. Establishmen
t 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. Establishmen
t of
compatibility
between the
expertise and
their
appointment.
h. Reduction of
union
influence in
the company
matters.
i. Establishmen
t of programs
for the
development
and training
of employees.
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. 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.
Education-Training
At PTCL, special
attention and care is
given to nurturing
potential and building
human assets. Great
emphasis is being laid on
the inculcation of sense
of responsibility and
management of staff.
Numerous training
courses have been
introduced for all levels
of management and staff
in order to train and
groom the human capital.
The National Post
Graduate Institute of
Telecom & Informatics
(NPGITI) is also being
revitalized. The institute
currently offers Masters
Programs in Telecom
Engineering and
Telecom Management
apart from Diploma in
Routing Technology.
Engineers and other
professionals are sent
overseas to have a
greater insight into
emerging technologies
and grasp latest
management skills.
Educational and training
institutes that are run by
PTCL include Telecom
Staff College, Haripur,
Regional Telecom
Training Schools and
fifteen Divisional
Training Centers spread
across the country. These
facilities are fully
equipped with all the
required paraphernalia
and have experienced
faculty to groom the
future resources for the
organization.
The modern training
facilities at National Post
Graduate Institute of
Telecom & Informatics
are accessible to the
whole of the telecom
sector. All telecom
players can benefit from
our facilities. This open
approach gives PTCL the
edge of achieving self-
sustenance in its training
projects, besides catering
to the telecom sector
through trained and
efficient human
resources, thus
catalyzing the growth
and progress.
To streamline the
existing
procedures and
processes, further
steps have been
taken by
integrating
Recruitment
Management and
the Job
Management
System into the
Human Resource
Management
Information
System (HR-
MIS).
The cycle above describes the organization management process at PTCL. Yellow blocks describe the core functions of the company performed at all levels in the organization. Grey blocks describe strategic functions which are performed at the strategic level.
SAP software control main matters of ptcl
Projects and Activities
1. Urgent Training Needs Programme:
The Urgent Training Needs which realistically depict the post VSS scenario are being assessed and catered immediately by conducting customized training programs. The involvement of all departments, regions and business units for providing their valuable input in the form of TNA response is essential for accurate identification of their requirements. Given the transformation stage, the most eminent developmental needs were highlighted and incorporated in this
programme.
2. Customer Care Initiative:
To achieve the pinnacle of Excellence in Customer Service envisioned by the President/CEO the Training and Development department has assumed the responsibility for effectively imparting training under the Customer Care Initiative to all PTCL employees.
3. HRD Plan for 2009-10:
Training is one of the tools used for the development of employees and to consolidate change on sustainable ground. In order to address the training needs of all stakeholders of PTCL, EVP (T&D) has directed training region administration to conduct comprehensive Training Need Assessment of PTCL employees. This exercise of TNA is required for developing an effective and need satisfying Human Resource Development Plan for PTCL training centers. The pilot run of this programme is expected to commence by the end of April 2009.
4. Training Incentive offered to VSS Optees:
For the rehabilitation of VSS Optees, PTCL offered a package of post VSS training & development services, out of which the most beneficial and helpful service offers were Vocational and Technical
trainings.
5. Revamping Project of PTCL Training & Development by Etisalat Academy:
PTCL has a huge training infrastructure throughout the country that is geographically wide spread. To revamp this wing of PTCL and transform it into a profit center, Etisalat Academy has been engaged for this project with the following main objectives:
Evaluation of existing training infrastructure
Identification of potential and non-potential training institutes
Development plan for proposed training set-up
Comprehensive workforce analysis of existing Human Resources in T&D department
Proposals regarding computerized learning management system
Preparation of Quality Assurance (QA) systems & procedures
Determination of Key Performance Indicators (KPIs)
6. Implementation of ERP system in T&D:
The focus of the project is to set up and maintain the qualifications catalogs, create and evaluate profiles for a range of objects (for
example, persons and positions), evaluate career and succession planning scenarios, set up appraisal systems, as well as plan, hold, and evaluate appraisals, create development plans, and work through individual development planning scenarios by customizing the functions of personnel development to meet customer requirements.
7. PTCL Academy activities:
PTCL Academy has been revitalized with a new vision to be recognized locally and regionally as a center of excellence in the provision of state-of-the-art training and consultancy services in telecommunications and related fields. It will provide a platform for the creation, dissemination and exchange of knowledge and expertise in all areas of telecom and IT to internal and external stakeholders. Some of the programmes on its agenda are:
• Ph.D. Programme• MS programme• Post Graduate Diploma• Cisco Regional Academy Programme• Oracle Academy Programme• Joint venture with CISCO and NUST• Seminars / Short Courses / Certificate programmes• Course development for new offerings (technical
and management courses)• Testing / Inspection of telecom equipment
8. Lineman Training Programme:
The declaration to celebrate year 2008-09 as year of Customer Care & Satisfaction by the President/CEO of the company, has entrusted upon Training & Development Department a gigantic task to transform our line staff who are the real customer care agents of PTCL. This initiative is the part of company’s strategic vision to turn PTCL a leading corporate entity in highly competitive business environment of telecom industry. A mega training campaign has been launched for all the Linemen of PTCL. The training module prepared by Training & Development department has tried to address all skill needs most direly required by our Linemen to cope with emerging technologies in telecommunication. This training will significantly improve both soft and technical competencies of our linemen and we believe that this training shall be remembered as a milestone in PTCL’s history.
9. Quality Awareness Programme:
In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA plan has been made. The project is scheduled from March 2007 to December 2009. Following four types of programmes are under the work plan:
• Installation Quality Standards • Quality Auditor Course • Companywide Quality Awareness • ‘Train the Trainer Programme’ offered to the faculty of PTCL training centers
10. Senior Management Development Program:
Etisalat Academy being the lead consultants of PTCL’s Training and Development department has proposed a meritorious program for the development of Senior Management Team (SMT) of PTCL. The workshops, their contents and out comes have been reviewed and have been found beneficial for the company. Proposed plan of five workshops is in line with emerging concept of Continuous Professional Development. CPD is being promoted for conscious updating of professional knowledge and enhancement of professional competence throughout a person's working life. PTCL Training
& Development wing is committed to the pursuit of professional excellence with its Senior Management Team. PTCL’s SMT, though possesses matchless functional competencies, will benefit from these workshops.
11. Internship Programme:
As per existing policy approximately 194 internship offers were made during 2008-09. Currently, we are in the process of invigorating our Internship Policy. During the last couple of years Internship Programme at PTCL has received special attention and focus. The overall concept has evolved from its traditional perspective into a strategic perspective. We look forward to this programme not only as a learning opportunity for the participants but also a prospect for PTCL in its continuous endeavor for talent hunt. It is the process by which we not only contribute significantly to the development of the best talent in professional and leading universities and schools, but it also aims at creating “PTCL Ambassadors” that spread goodwill of the company all over the country. This programme is intended to provide students with the opportunity to apply what they are learning in their academic pursuits to real
world situations. Through the successful implementation of this programme, PTCL looks forward to rightly identify, recruit, train and develop its most important need of the day i.e. the Human Resource.
12. Nominations for Open House Training Programmes:
Besides aforementioned activities the Training and Development Department is organizing a complete database of the training firms/institutes and the freelance training consultants. Staff is being nominated for open house training programs offered by reputable firms to assess the efficacy and the relevancy of the program.
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
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 assists 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),VP
N( 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.
ACCOUNTING SYSTEM OF PTCL
In PTCL the
rules contained
in the special
volume of the
PTCL under
which the
SEVP
(FINANCE) is
responsible for
creating the
procedure of
Accounting
matters.
CAPITAL RECEIPTS SIDE.
1. REVENUE
FROM
BILLING
SYSTEM
a. Revenue
from Usual
customer.
b. Revenue
from DXX
System
c. Revenue
from DSL
System
d. Revenue
from
PABX/PBX
System
e. Revenue
from Card
Phone
Operators
f. Revenue from
IPOs Internet
service
providers
g. Revenue
from Mobile
Phone
Operators
h. Co-location
charges from
various
companies
2. REVENUE
FROM
OTHER
a. Revenue
from Overseas
calls
(Incoming)
b. Revenue
from Premium
PRS (0900)
calls
c. Income from
Dismantle
Exchanges
d. Revenue
from MDF used
by other
companies
CAPITAL EXPENDITURES
INSTALLATION OF
NEW EXCHANGES
Expenses of installation
of new Exchanges are the
major capital expense of
PTCL because PTCL
purchases the new
telephone exchanges
from France, Italy,
Germany and China. So
heavy cost is to be paid
for purchasing process in
order to proper margin.
Each exchange having
different capacity and
due which each Engineer
should has to be trained
accordingly so expenses
rises on purchasing of
new Telephone
Exchanges. This is the
main expense of PTCL.
EXTENSION OF
EXISTING
EXCHANGES
The extension of the
existing exchanges is the
dire need as the density
of the population is
increasing day by day
and in order to fulfill the
basic communication and
fill the communication
gap PTCL has to extend
its normal Telephone
Exchanges in accordance
with the demand and per
paid connection. So
PTCL sustain heavy
expenses on the
extension of exchanges.
INTERNAL AUDIT
AND TECHNICAL
INSPECTION
The PTCL has sustained
huge amount in context
of internal audit both
Accounts and Technical
from various agencies.
For example M/s
Ferguson conduct both
internal audit and
external audit and
payment made to
auditors in the expenses
of the company.
ADMINISTRATION
AND CONTROL
EXPENSES
Sometime in the best
interest of company,
some expenses could be
occurred for example if
there is need of induction
of a financial analyst in
one region or if there is
need of an Engineer then
transfer and posting
order can be issued and
traveling and training
expenses could be
realized to employees.
SALARIES OF STAFF
The monthly salary of
the staff is rest with the
approval of PTCL H.Q
Islamabad. PTCL is
spending lot of amount
on the salaries.
PRINTING AND
STATIONARY
CHARGES
On printing of stationery
PTCL spends reasonable
amount.
CONTRIBUTION IN
PROVIDEND FUND
There is also contribution
in the provident fund
from the PTCL.
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:
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.
Financial aspects of ptcl from 2007-08 Financial year 2007-08, total revenue of the company
was Rs 44.0 billion, showing a decline of 9% compared with Rs 48.5 billion of the same period last year. However, revenue performance has shown a consistent growing trend from quarter to quarter during the current fiscal year.
The operating expenses increased to Rs 56.9 billion from 33.7 billion only because of VSS cost impact. As a result, there was an operating loss of Rs 13.0 billion. The non-operating income increased by 11% to Rs 3.4 billion. The company suffered a loss before tax of Rs 10.0 billion for the nine-month period ended 31st March 2008.
There is a net gain in the provision for tax amounting to Rs 3.4 billion, which reduced the net loss to Rs 6.6 billion. The consolidated results of PTCL group showed a better picture as the net loss before tax amounting to Rs 8.3 billion was less due to positive contribution of Ufone. Excluding VSS impact, the group would have shown a profit before tax of Rs 14.9 billion.
The company has been implementing investment plans aiming to improve quality of services besides bringing new products like EVDO, Broadband,
Multimedia and IPTV services. Looking ahead, the PTCL management is striving to improve its market share in the longer run.
As a consequence of the fading sales revenue for the period, the profit after tax of the company in FY06 declined by 21.91% over the FY05. The net profit margin has also been declining since the FY04 and the trend persisted in the FY06. The revenues have declined enormously which turned the FY08 nine months results negative.
The decline in profit margin may be attributed to an increase in operating expenses for the year. This was mainly due to an increase in salaries, marketing costs and rents. This led to a 24.66% decline in operating profit during the year, compared to FY05.
However, a 15.53% boost in other income helped ease the pressure on profits. The higher income was brought about by a higher return on surplus funds and an increased dividend income from the subsidiary 'Ufone', which significantly helped the company to avoid a significant loss as compared to what it incurred during 9 months 2008.
The lower profits have resulted in a decline in the return on assets and return on equity of the company. Increases in equity and assets also contributed to the trend.
Owing to a change in management, introduction of reengineering and enhancement programmes, liquidity position of the company considerably improved in FY07. Now PTCL enjoys above average liquidity position. However, the idle cash and bank balances that PTCL has incurred might be a great opportunity cost for PTCL in the long run.
The liquidity position of the company suffered a setback in the FY06. This trend has been witnessed despite increasing current assets, as current liabilities grew more sharply. The short-term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio.
It may be noted that the company holds large amounts of cash and bank balances compared to the other companies in the business. This may provide an edge to the company over its competitors. Although the liquidity stance of the company is fairly satisfactory at the
moment, but a continuation of the current negative trend may spell trouble for the company.
The debt ratios of the company showed a decreasing trend in the FY07. The debt to asset ratio of the company had declined considerably in the FY05 but the trend reversed in the FY06, declining again in FY07. It is important to note, however, that the company maintains a largely unleveraged capital structure, with the current trend in debt ratios bought about largely by changes in current liabilities of the company.
This was brought about mostly due to a decline in current liabilities of the company in the FY05 and an increase in the same in the FY06. The absence of the dividends payable portion of current liabilities in FY05 and its coming back online in FY06 was an important contributor to the trend.
Furthermore, the FY06 also saw an increase in short-term borrowings of the company, complemented by increases in other components of current liabilities. Increases in assets, mainly arising from higher cash and bank balances, could not prevent the trend of the debt ratios.
The financial strength of PTCL is evident from the healthy TIE ratio of the company. The TIE ratio of the company continued to rise in the FY06 despite lower profits during the period. However, it declined in FY07, as a result of decrease in profits as discussed before.
This reflects the little ability of the company to pay off its liabilities as they become due. The major portion of debt arises from current liabilities. The DSO of PTCL has seen an upward trend throughout the period under analysis, except for the FY05 when an improvement was witnessed.
The ratio jumped up considerably in the FY06, completely nullifying the effect of the decline in FY05, and exacerbating the already long collection period of the company. However, DSO showed a decline in FY07 showing that management of PTCL is constantly striving for improvement and enhancement despite stiff competition. As a result, the operating cycle has also decreased in FY07.
The total assets turnover and sales to equity ratio of the company also declined in the FY06 as revenues shrunk during the period. Sales/equity declined with
the increase in equity of the company.
The EPS touched its lowest level in quarterly results of PTCL declining to 1.29. The lower net profit in the FY06 has resulted in a considerable decline in the EPS of the company. The EPS mirrored the 21.9% decline in the net profit of the company. The book value of the company continued o increase in the FY06 as assets increased with no change in the number shares issued by the company.
The P/E ratio, however, registered a decline in the FY06. The Shareholders' equity has also shown a growth of 5.2% in FY07 as the net worth of the Company rose to Rs 110.91 billion. This positive growth was also reflected in the market capitalization of the company which increased by Rs 83.01 billion. Hence book value of the company rose in FY07 along with a rise in price earnings multiple.
SUPPORT FOR CUSTOMER CARE
Customer care is at the core of all PTCL activities. It is endeavor to provide customers’ services through various touch points for their ease, be it online, through phone or by visiting one of our locations. There are many facilities for ptcl customers but some are discussed here.
One stop shop
Customers can reach us by visiting one of our One Stop Shops (OSS) or Customer Service Centers (CSC). Offering one window operation, these One Stop Shops and Customer Service Centers are strategically located to ease the reach of our valued customers. In all, 19 OSS and 71
CSCs operate in selected cities and towns across Pakistan.Our courteous and friendly staff is trained to handle customers from varying backgrounds and different walks of lives.Equipped with our latest products and services our OSS/CSCs have been designed to facilitate customers and provide all the convenience under one roof.
The following services are available at One Stop Shops and Customer Service Centers
o Order Booking (Telephone, Broadband, Smart TV)o Sales (Wireless Local Loop and EVo Wireless Broadband)o Billing Serviceso Information Services
OSS Multan
One Stop Shop
LMQ road Central Telephone exchange Dera Adda Multan.
Customer Assistance
1200 Billing Information
Valued subscribers can simply dial 1200’ from their home or office to access instant billing information of the required PTCL service. 1200 is a dedicated service to exclusively provide billing information.
Corporate Customer Centers
PTCL Corporate Customer Centre is a one-point contact facility designed to give our valued Corporate Customers maximum convenience with personalized and prompt service. These centres will facilitate Corporate Customers in:
New service provisioning
Maintenance support
End-to-end communication solutions provisioning
At Corporate Customer Centers, ptcl give business top-of-the-line telecommunication services.
Objectives:
PTCL has established Corporate Customer Centers to facilitate corporate customers. Currently, these centers have been established in Islamabad, Karachi and Lahore. Our aim is to provide better customer care through:
Swift processing of
Corporate Customer requests.
One window for all Telecom Services.
Convenient registration procedure.
Minimum documentation for hassle-free registration.
Bill Payment Options
Banks / Financial Institutions
Bank Counter: You can pay your PTCL bill at all banks across Pakistan. Payments at ATMs: You can pay your bills by using your ATM Card. Your “Customer ID” on your telephone bill is required for payment.Internet banking (Selected Banks): You can pay your telephone bill by using internet banking (if offered by your bank). Your “Customer ID” on telephone bill is required for payment. Direct Debit: You can instruct your bank or credit card issuing bank to deduct your telephone bill from your account as soon as the bill in delivered. You can subscribe to this facility by requesting your bank.Drop Box Facility: Drop boxes are available at selected branches of various banks. Customer can deposit cheque, (local, in favor of PTCL) attached with the monthly bill in the designated drop box.
Pakistan Post OfficeYou can pay at all Pakistan Post Offices. Payments
made at PPO are as reliable as paid at any bank.
NADRA KiosksBill payment facility is available at NADRA Kiosk machines available across the country.
One Stop Shop (PTCL Centers)
PTCL service centers “One Stop Shops” facilitate subscribers for payment of bills. Payments through cash, credit / debit card, local cheque, demand draft or pay order can be made at your nearest OSS.
Service Support Centre
PTCL has established Service Support Centers throughout the country. The SSCs perform core functions such as communication with customers, analysis and follow-up on faults and service provisioning regarding all PTCL services. The SSCs also are engaged in coordination with local exchanges for expediting Customer Service issues.
5 forces
Threat of New Entry
As government of Pakistan
is showing liberalism in case of telecommunication sector and opened its policies to award new licensees to new mobile service providers so threat of new entry is high.
As set-up cost is in billions of dollars so in this case threat of new entry is low, but there are companies who are working to achieve licenses and approaching PTA to know terms and conditions for this.
As for this business companies need a well established distributions and franchises network so threat of new entrant is high in this case.
Bargaining Power of Buyers
Power of buyer is high in telecommunication sector. There are six market players and players are offering different packages at different prices and a situation of price war is running. Buyers have a power to buy any package which is suited to them.
Cost of switching from one company package to other company package is low. Hence, power of buyers is high.
Bargaining Power of Suppliers
The power of suppliers is low in case of telecommunication sector.
But the fact is that numbers of suppliers are few in the market but they are competing in the market to make agreements with mobile service providers.
Threat of Substitute Products
Government also gave so many land lines and wireless local loop licenses to different companies like PTCL wireless local loop, GO CDMA etc. these services in future will be like mobile phone services like they are planning to offer services a lot but currently they are offering SMS and CLI services to their customers.
Competitive Rivalry
Currently there are six market players but in future they will be eight and nine or even more.
Thruway satellite service is offering subscribers freedom of mobility and uninterrupted service. Thruway‟s satellite
technology supplements of existing mobile service providers, overcoming the challenges of large geographical areas and insurmountable terrain.
SWOT ANALYSIS
Strengths • Largest operational network and infrastructure within ICT
(Information & Communication Technologies) segment. • An integrated Monopoly. •
Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony. • PTCL (Ufone) is market challenger in GSM segment.
• Ufone is performing well though Warid and Telenor are tough
Competitors. PTCL, Ufone’s profitability increased by 49.2percent to Rs 977 million in 1H/FY07 as compared to Rs 655million in the corresponding period last.• Competitors still depend on PTCL network either directly or
Indirectly. •
Experienced Telecom
Resources.
Weakness • Not been able to nurture its growth around customer
Services oriented strategy. • Not been able to nurture its growth around customer
Services oriented strategy. • Monopolistic culture has further added to its complexities. •
Paknet, the internet service provider arm of PTCL continuesto incur losses due to poor management and lack ofnetwork optimization.•
PTCL-V, the fixed wireless phone service is poor. • Over employment & low productivity.
• Slow decision making including external interferences.
Ability to Attract & Retain Quality Professionals. •
Reduction in International Settlement Rates.
Corporate culture akin to government departments.
Opportunities • Low teledensity
of Pakistan.
• Have vast infrastructure and real estate assets which can be
Leveraged further. • Global connectivity reliability has been improved. PTCL is
expanding the long distance and infrastructure side through Spreading out two sea-me-we submarine cables. • Partnership with new entrants in a deregulated environment.
• Scope for efficient/cost effective operations.
Threats • Increased competition in long distance continues to exert
Pressure. •
VOIP use is increasing despite ambiguous and discriminatory Policies. •
Exposure to market competition.
Corporate Responsibi
lity
PTCL employees donate One-Day salary for IDPsPakistan Telecommunication Company Limited employees have contributed their one day salary that amounts Rs. 20 million for the support of internally displaced people of Swat and other affected areas.CEO and President of PTCL Mr. Walid Irshaid called on Prime Minister Syed Yousuf Raza Gilani at PM’s House and presented him a cheque of Rs. 20 million on behalf of PTCL employees for PM’s Special Fund for the Relief of Victims of Terrorism.While thanking PTCL employees for their generous contribution and appreciating their willingness to help IDPs, Mr. Waild Irshaid said that PTCL employees have exhibited their profound sense of sharing and empathy on this occasion. This highly speaks of the strong commitment of our employees with this national cause.”“Contribution from our employees during these days specially donating one day salary for IDPs in these testing times shall be greatly helpful in mitigating IDPs miseries and will go a long way in their rehabilitation process.
Donation to SOS Villages
PTCL keeping with its healthy tradition of supporting non-governmental organizations recently donated a sum of Rs.2.5 million to the SOS
Villages. As most people would be aware, SOS is an organization that looks after the well-being and education of orphans and the destitute.
Last year, PTCL organized a special event at the SOS Village Rawalpindi, which the then Prime Minister of Pakistan, Mr. Shaukat Aziz, attended. He handed over a cheque of Rs.2.5 million, donated by PTCL for this noble cause, to the SOS Children’s Village.
PTCL as a socially aware and responsible entity is determined to do its utmost in furthering worthy causes that contribute to the lives of individuals and help better the standards of society as a whole.
Scholarships for Persons with Disabilities
Another recent CSR initiative taken by PTCL was announced at the World Telecommunication Day held on May 17, 2008. This year the worldwide theme for the Day was “Connecting Persons with Disabilities.” To raise awareness of this theme and support initiates focusing on less privileged persons, PTCL chose to become the lead sponsor of the World Telecom Day event in Islamabad contributing PKR 6.8 Million.
During his address at the event, PTCL’s President/CEO, Mr. Walid Irshaid announced five academic scholarships per year for persons with disabilities so that they could pursue their career of choice by obtaining higher education at any university with Pakistan. PTCL would bear the full tuition costs and living expenses of those awarded these scholarships. PKR 1.5Million was announced focusing on the education of the special people
Collaboration with Universal Service Fund (USF)
The Universal Service Fund (USF) and PTCL have entered in a contract to provide basic telephony and data services to the population in the yet un-served areas of Baluchistan districts of Pishin, Killa Abdullah and Quetta. PTCL is making consistent efforts to enhance Pakistan’s capacity to develop and produce a globally competitive telecom sector and industry.
Making a determined effort develop Pishin, a far flung area of Baluchistan is a clear manifestation of PTCL’s resolve to bridge the digital divide. With the support of USF, PTCL is set to extend the benefits of its ubiquitous network
coverage to the under-served communities in the un-served areas. PTCL is contributing Rs. 149 million to this endeavor in an effort to bring information and communication technology to the remotest areas. The total costs of the projects is PKR 2000 Million out of which PTCL contribution is PKR 1275 Million while USFCo contribution is PKR 725 Million.
Thus, PTCL, as a socially responsible corporate entity, has been pursuing different social causes touching on areas of culture, sports, music, environment and general welfare by supporting different initiatives. As such, PTCL’s CSR activities and new ventures are warmly welcomed.
Donation to Earthquake victims in Baluchistan
Earthquake struck the western telecom region Quetta leaving terrifying effects in the region. Mr. Walid Irshaid President & CEO PTCL donated Rs.10 Million for the reconstruction and rehabilitation of the area.
Donation to Benazir Income Support Program
Mr.Walid Irshaid President & CEO PTCL donated
Rs.10 Million to the Benazir Income Support Program. This program directly focuses on the poor populace of Pakistan.
Sponsoring Event at LUMS
PTCL was the lead sponsor for Synergies 2008; the 1st ever Business School Competition in Pakistan organized by Lahore University of Management Sciences costing PKR 1 Million.
PTCL President Mr. Walid Irshaid announces Rs 10 Million for National Press Club Islamabad
The president of PTCL, Walid Irshaid has said that PTCL was still one of the most profitable National organizations, despite all economic and financial crisis and back draws.Addressing the inaugural of the new building, alongside president NPC (National press Club), Tariq Chaudhry, general secretary Afzal Butt, and other luminaries, including SEVP PTCL Sikandar Naqi, EVP Ali Qadir Gilani. Walid Irshaid expressed the company's willingness and readiness to tackle any impending challenges with élan and preparedness.Mr. Walid Irshaid also assured press club about his full cooperation and assistance, and during the
lunch hosted in his honor by NPC also announced a grant of Rs. 10 million, DSL Internet services, IPTV and other facilitiesHe said that PTCL would continue to work for betterment of media in Pakistan, and also lauded media services rendered during the last few years
PTCL Gets Environment Friendly
The Pakistan Telecommunication Company Limited (PTCL) has decided to introduce a new bill format for its customers, effective February 2009.This decision was taken to ensure that PTCL stir towards adopting environmental-friendly and customer-friendly policies in line with the government of Pakistan's efforts, which recommends companies and institutions to go green.This initiative of PTCL also coincides with the Government’s decision to celebrate 2009 as the "Environment Year". PTCL's decision to reduce the number of billing pages is an environment friendly initiative and is a way forward towards becoming a paperless enterprise. According to Dr. Sadik Al-Jadir, SEVP Commercial PTCL, preceding bill format comprising multiple pages, would be replaced with a new one-page bill format, thus packing all the essential billing details on a
single page. This single page bill format would help save, at least 12 million papers every month that are being used for printing the billing details. To facilitate the customers, itemized billing details would remain obtainable and accessible. Customers would be able to obtain their itemized billing details by visiting any customer service centre of PTCL and would also be able to access essential billing details through IVR by dialing 1200. PTCL Call center is also expected to start taking orders from customers for their itemized billing details. Subsequently, these details would be delivered to the customers through courier within a certain time frame.Dr. Sadik said, “PTCL is determined to improve and build good relationship with its customers by providing novel and superior telecom products and services to its valued customers and is striving hard to meet their expectations.”
PTCL, CISCO and NUST to establish Center of Excellence for Internet Technologies
Islamabad: Under the banner of PTCL, CISCO and NUST, Center of Excellence for Internet Technologies is being established at NUST SEECS, Islamabad. The
Center – a brainchild of Mr Walid Irshaid, President and CEO, PTCL - is to be set up in the state of the art. An MoU to this effect was signed yesterday by the three parties, with the Chief Guest being Dr Ata ur Rahman, Chairman HEC. The occasion was also graced by high officials from public sector, academia and industrial organizations. The ceremony was a huge success and PTCL, CISCO and NUST’s leading role in taking up new challenges to improve the quality of IT education in Pakistan was greatly lauded by members of academia, industry and the media present at the ceremony.
Mr Sikander Naqi Executive Vice President Corporate Development speaking on the occasion said that by setting up such a Center, PTCL will be able to benefit from world class research that will be of immense value to them. In addition, the human resources that will be developed at this Center will be able to export their skills and expertise to the region and beyond. This will spur growth in the Pakistani IT sector, and will contribute towards enhancing the quality and quantity of exportable IT related skills to the global marketplace.
The Center, staffed by researchers from NUST, will work closely with Cisco
engineers in the US who will provide the thematic direction of the joint research. The Center’s research is to be funded by the National ICT R&D fund. Dr. Qasim Sheikh, the CEO of ICT R&D fund, stated that his organization is pleased that PTCL, NUST and CISCO are forming a joint research group that will work on significant problems that are relevant to Pakistan. A research project under similar arrangements, funded by the National ICT R&D Fund, is currently underway with Cisco scientists and Pakistani researchers collaborating to develop open source tools for performance monitoring of network traffic. The output of this work has already generated An application for a US patent is being filed as a result of the work carried out during the course of that research. In addition to its research ambitions, the Center will also be providing high quality professional training courses to PTCL and other telecom companies.
FUTURE OUTLOOK:
The privatization of PTCL and the transfer of control to the new owner, Etisalat carries
important implications for the company. Etisalat has announced an aggressive 5-year expansion plan for
the company and is viewing options to re-structure the organization, improve customer care, increase
revenue, enhance cost control and change the mindset of employees to bring about a positive change in
the operations and running of the company.
As a result of the expansion plans of the company, revenues are expected to grow at a rate of 8%-9%.
The management is also striving for improvement in the field of asset management, with special focus
towards revenue assurance and timely collection of overdue receivables and effective utilization of the
assets of the company. A new Enterprise Resource Planning system along with a new billing and
customer care system is also being implemented. Through these, measures, the company hopes to
improve its profitability and productivity.
Since the deregulation of the telecom sector, PTCL is learning to survive in a more competent
environment and respond effectively to these changes. Despite the deregulation, however, PTCL
effectively remains a monopoly as it is the only fixed line service provider in the country. Moreover, the
company has a fiber-optic network connecting over 700 cities, which can be used for data transmission
and most broadband companies will require the use of this network, hence adding to the strength of the
company.
PTCL realizes the commercial importance of the WLL or Wireless Local Loop technology and has therefore
been increasing its capacity for WLL connections over the years. PTCL has also subsidized the costs of
wireless telephone sets to gain maximum capacity utilization of its WLL connections but is facing
competition from another large player in the sector. Moreover, with the tremendous attention towards
and demand of mobile phone connections, increased focus on the subsidiary Ufone will be beneficial for
the company.
The disguised increase in the local call rates of PTCL will not bode well in the future, as it will lead to
lesser call traffic. Consumers will be disillusioned by the increase in call rates under the guise of shorter
time duration for one call. The shift to the cellular services shall be more evident in the coming time.
The increased competition from deregulation has hit the profitability of the company as it is forced to
reduce its calling rates to maintain its market position. In addition, NWD and International call revenues
may decline further in the future due to new phone cards being available in the market. Since these cards
are based on VoIP and charge lower rates than PTCL, they pose a threat to the company's profitability in
future.
Although the current infrastructural developments undertaken by the company, such as increasing of
bandwidth from kbps (kilo bytes per second) to mbps (Mega bytes per second) and new additions to its
product line are currently resulting in a drain on profits, but they are expected to generate considerable
returns in the future. The company is also working on adopting new strategies to improve revenues. The
company's decision to extend ISD facility to all customers has had a positive impact on international
traffic. Incoming and outgoing traffic have by 27% and 148% respectively, a 10% growth in domestic
leased lines revenue has also been recorded for the three month period. Moreover, the company is
developing strategies to reduce operating costs and increase productivity. This includes the VSS
(Voluntary separation scheme) provided to its employees, which the majority of the 65,000 employees of
the company are eligible to avail.
In addition, Etisalat the management company plans to increase its share in the company from 26% to
51% in the near future.
With the large number of new entrants and large sums of Foreign Direct Investment flowing into the
industry, the telecom sector has considerable potential for growth. The steps being taken by PTCL to
improve cost efficiency and network capacity and service capability will enable the company to face the
intense competition in the industry more effectively.
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