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.

P 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
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

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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.
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
The company maintains a leading distributed among Central Depository
position in Pakistan as an infrastructure Company, Financial Institutions and
provider to other telecom operators and Individuals.
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 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 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:

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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”

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.

MISSION:

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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.

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

OBJECTIVES OF THE COMPANY:

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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 Objectives
b. 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.

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

PTCL Positioning Statement

“Hello to the Future”

“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

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
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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 Philosophy

As 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.
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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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.

Broadband 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.

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.

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

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Pakistan in the list of a few countries across the globe that offers this state of the art
interactive TV service to its subscribers.
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.

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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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.

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

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

Value Added Services:

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CLI (Caller’s Line Identification):
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:

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

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.
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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:

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
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a common user cross Pakistan and by continuous improvements in customer care for the
service.

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:
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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 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 Region
Southern Telecom Region-I Hyderabad
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Southern Telecom Region-II Karachi
Southern Telecom Region-V Sukkur
Western Telecom Region Quetta.
Switching network Central region Lahore.

These Regions provide Telecommunications services to the customers in their respective

areas. Apart from these, PTCL has an Optical 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:

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“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.

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 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:

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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.
WEAKNESSES:

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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

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description and 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:

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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.
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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UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE
Supporting Activities:
• Firm Infrastructure
• Human Resource Department
• Technology Development
• Procurement
Primary Activities:
• Inbound Logistics
• Operations
• Outbound Logistics
• Marketing and Sales
• Services
Human 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

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UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE
• Distribution of Performa’s for the preparation of making comprehensive job description,
job specification and evaluation.

Technological Development:
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
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UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE
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.
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 Sales
TVCs 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
activities
Services
Being 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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UNIVERSITY OF EDUCATION LOWER MALL CAMPUS LAHORE