CHAPTER 2



INTERNSHIP REPORT

ON

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

BANNU

[pic]

SUBMITTED TO:

PROF. AMAN ULLAH AWAN

DIRECTOR I.M.S UST BANNU

SUBMITTED BY:

HAMEED ULLAH

ROLL NO: 780

BBA –IT(Hons)

SESSION: 2006-2010

INSITUTE OF MANAGEMENT SCIENCES

UNIVESITY OF SCIENCE & TECHNOLOGY BANNU

INTERNSHIP REPORT

ON

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

BANNU

[pic]

SUBMITTED TO:

PROF. AMAN ULLAH AWAN

DIRECTOR I.M.S UST BANNU

SUBMITTED BY:

HAMEED ULLAH

ROLL NO: 780

BBA –IT(Hons)

Session: 2006-2010

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

INSITUTE OF MANAGEMENT SCIENCES

UNIVESITY OF SCIENCE & TECHNOLOGY BANNU.

. APPROVAL SHEET

INTERNSHIP REPORT

ON

PAKISTAN TELECOMMUNICATION COMPANY LIMITED

BANNU

EXTERNAL EXAMINAR:

Signature __________________________________

Designation ___________________________________

DIRECTOR:

Name PROF. AMAN ULLAH AWAN

Designation __________________________________

Signature __________________________________

SUPERVISOR:

Name Mr. Aftab Khan

Designation __________________________________

Signature __________________________________

DEDICATION

| |

| |

|I dedicated this report to my loving parents whose |

|Prayers, affection and support are always a source |

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

|eyes that help me to lead myself and others in the dark world. |

Table of contents:

|S. No: |Description |Page no. |

| |Preface |I |

| |Acknowledge |II |

| | |1-2 |

|1 |Introduction of study | |

| |Introduction | |

| |Purpose of study | |

| |Scope of study | |

| |Objectives of study | |

| |Limitation of study | |

| |Benefits of study | |

| |Research methodology | |

|2 |Overview of ptcl |2-9 |

| |2.1 History of PTCL | |

| |2.2 mission | |

| |2.3 vision | |

| |2.4 core of ptcl | |

| |2.5 objectives | |

| |2.6 privatization | |

| |2.6.1 Telephone Industry of Pakistan (Tip) | |

|3 |Organizational structure |10-26 |

| |3.1 Board of directors | |

| |3.2 Board of directors | |

| |3.3 products and services | |

| |3.4 digital facilities | |

| |3.4.1Data (DSL) | |

| |3.4.2 Speed factors of DSL | |

| |3.4.3 Faults in DSL | |

| |3.5 marketing strategies | |

| |3.5.1Through New Users | |

| |3.5.2 Through New Uses | |

| |3.5.3 Stock Exchange Report | |

| |3.5.4 Calling Line Identification | |

| |3.5.5 Internet Accessibility | |

| |3.6 my work as internee | |

| |3.7 broad band Pakistan | |

|4 |SWOT Analysis |27-37 |

| |4.1 strength | |

| |4.1.1The Biggest Foreign Exchange Earner | |

| |4.1.2Adequate Financial Resources | |

| |4.1.3Free from Competitive Pressure | |

| |4.1.4Leadership in the Market | |

| |4.1.5Adequate Financial Resources | |

| |4.1.6Modern Technology | |

| |4.1.9Wide Distribution Channels | |

| | | |

| |4.2 weaknesses | |

| |4.2.1Seniority Bases Promotions | |

| |4.2.2Lack of Human Resources Management | |

| |4.2.3Lack of Training Program | |

| |4.2.4No Effective Marketing Department | |

| |4.2.5Ineffective Human Resource Management | |

| |4.2.6Customer Dissatisfaction | |

| |4.2.7Absence of Company Culture | |

| |4.3 opportunities | |

| |4.4 threats | |

| |4.4.1Exchange Rate Risk | |

| |4.4.2Government Legislation | |

| |4.4.3Turnover | |

| |4.4.4Decrease in Market Share | |

| |Conclusion | |

| |Recommendation | |

| |Bibliography | |

| | | |

chapter# 1

introduction of study

1. Introduction

As parts of the academic requirement for completing BBA (IT) Bachelor of Business Administration and Information Technology . The students are required to under go for two (2) months of internship with an organization. The internship is to serve the purpose of acquainting the students with the practice of knowledge of the discipline of banking administration. This report is about PTCL was established in 1949 and since then, it has expended its network, becoming the largest commercial corporation of Pakistan. It offers different products of services to its customers.

2 Purpose of the Study

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

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

• To work practically in an organization.

• To develop interpersonal communication.

3 Scope of Study

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

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

1.4 Objectives of the Study

▪ Discuss thorough study of PTCL

▪ To understand the various operations and to equip with practical knowledge of the Pakistan Telecommunication Company Limited.

1.5 Limitation of the Study

Some thing is better than nothing. No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study was conducted in accordance with the objectives of the study. The study may not include broad explanations of facts and figures due to the nature of the study. Secondly, the limitation, which affects the study, is the restriction on mentioning every fact of the PTCL due to the problem of secrecy of the PTCL. In addition, the availability of required data was a problem as all the documents and files are kept strictly under lock and key due to their strictly confidential nature. Thirdly, the problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of PTCL just a very short time of eight weeks.

1.6 Benefit of the Study

The study done will benefit the BBA (IT) students because the networking section of this report comprehensively encompasses all respects of networking analysis. Furthermore,

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

1.7 Report Methodology

The report is based on my two months internship program in PTCL. The methodology reported for collection of data is primary as well as secondary data. The biggest source of information is my personal observation while working with staff and having discussion with them. Formally arranged interviews and discussions also helped me in this regards.

• Primary data:

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

• Secondary data:

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

CHAPTER#2

oveREVIEW OF Pakistan Telecommunication Company Limited (PTCL)

2.1 History of PTCL

After the partition of Indo-Pak subcontinent in1947, the areas that became part of Pakistan were mostly neglected in respect of telecommunication services. The supporting organization and manufacturing telecommunication equipment were almost non-existent in Pakistan

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

In 1947, the Pakistan Posts and Telegraphs Department was attached with the Ministry of Communication. During the first fifteen years, a sound foundation was laid by creating supporting organizations like telephone stores, workshops, training centers, production and repair of equipments etc, necessary for running of PT&T Department. However, telecommunication network systems remained limited to major cities of the country. The Government of Pakistan started five-year plans to build a proper base for systematic development of the telecom sector.

2.1.2 Pakistan telegraphs and telephone department (1962-1990)

With the expansion of the postal and telecommunication services, government decided to split the PP&T Department into two departments i.e. Pakistan Telegraph and Telephone Department and Pakistan Post Office Department. The process of bifurcation was completed by July 1962. Significant developments took place during the first forty years in terms of infra-structure development and transfer of technology from EMD to digital switching systems and increase in telephone lines from 12,000 in 1947 to 922,000 in 1990, besides establishment of manufacturing facilities of various types.

2.1.3 Establishment of Pakistan telecommunication corporation (PTC)

In 1990, PT & T department was transformed into a corporation and titled as Pakistan Telecommunication Corporation. The objective of this initiative was to provide greater autonomy and flexibility to the organization in achieving its long-term objectives

During the next five years, the telecommunications sector made tremendous progress in the provision of telecommunication services. It started manufacturing and production of

Telecommunication equipment/materials by using the latest technologies. During PTC period the number of lines increased to 21, 26,054 in 1995, an increase of over 230 percent over 1990.

2.1.4 Pakistan Telecommunication Company limited (PTCL)

In December 1995, PTC was converted into a joint stock company under Pakistan Telecommunication (Reorganization) Ordinance; assets of the PTC were divided among Pakistan Telecommunication Company Limited (PTCL), Pakistan Telecommunication Authority (PTA), National Telecommunication Corporation (NTC) and Frequency Allocation Board (FAB). While policy was reserved for the government, the regulation of the sector was entrusted to the Pakistan Telecommunication Authority (PTA). Frequency Allocation Board (FAB) was created for the management of the radio frequency spectrum and National Telecommunication Corporation (NTC) was created. For government’s telecommunication services PTCL inherited about 94.8% of PTCL’s assets; including 2.862 million access line installed (ALI) and 2.228 million subscribers (ALIS). Later, in October 1996, the parliament of Pakistan passed the Pakistan Telecommunication (Re-organization) Act. PTCL was established in public sector as a joint stock company in 1996 by enactment of the parliament of Pakistan. Pakistan Telecommunication Company Limited (PTCL) was issued a license by Pakistan Telecommunication Authority (PTA) to provide telecommunication services in Pakistan for a period of 25 years commencing from January 1, 1996

2.2 MISSION STATEMENT OF PTCL

A company’s mission statement is typically focused on its present business scope-“who they are and what they do” mission statement broadly describes an organization’s present capabilities, customer focus, activities and business makeup2.

Pakistan Telecommunication company limited statement is stated as

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

1. An environment that is cost effective and conscious.

1. Services that are based on the most optimum technology.

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

1. Sustained growth in earnings and profitability.

2.3 VISION OF PTCL

Strategic vision is a roadmap of a company’s future- providing specifics about technology and customer focus, the geographic and product markets to be pursued, the capabilities it plans to develop, and the kind of company that management is trying to create4. Strategic vision of Pakistan Telecommunication Company is “to be the leading ICT service provider in the region by achieving customer’s satisfaction and maximizing shareholders value.

2.5 CORE VALUES OF PTCL

Values are general statements, procedures or understandings that guide or channel thinking in decision making. It provides direction for action and regularizes the decision making in certain circumstances.

Pakistan Telecommunication Company limited defines its values as

1. Professional Integrity

1. Customer Satisfaction

1. Teamwork

1. Company loyalty

2.6 OBJECTIVES OF PTCL

Objectives are the ends towards which activity is aimed. These are the results to be achieved. Pakistan Telecommunication Company limited states its objectives as under

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

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

1. To increase the worth of owners.

1. To lead the telecommunication industry in Pakistan.

2.7 PRIVATIZATION OF PTCL

2.7.1 Paknet

Paknet is a fully owned subsidiary of PTCL. Technical assets and staff were carved out of PTCL to Paknet, to help new company to meet the competitive market. The staff, thus transferred had requisite experience and expertise in internet and data communication field. However most of the employees have been hired from private sector. The recently reconstituted board of directors of Paknet comprises senior and experienced professionals nominated by PTCL board.

Amount of investment by PTCL in Paknet Limited is of

Rs.150, 000,000 against which 15,000,000 ordinary shares each of Rs.10 are issued. The main source of funds of Paknet is its retained earnings. Permanent capital in the wholly owned subsidiary of PTCL having an authorized capital of Rs.350,000,000 represented by 35,000,000 ordinary shares of Rs.10 each and paid up capital of Rs.50,000,000.

Paknet has the largest internet infrastructure in the country, with PoP in 44 locations and internet access availability in over 2,000 cities and towns. Paknet made its start by inheriting customer base of 6,000 internet users from PTCL and ended its first financial year with 76,000customers against its target of 50,000 customers. Although having the

largest infrastructure, Paknet was unable to fully leverage its competitive advantage and has incurred losses. Paknet’s revenue for the financial year ended 30 June 2006 is Rs.169.2 million7 i.e.21% lower than last year. The company made a loss of Rs.125.9 million against Rs.42.2 million losses for the last year.

The main reasons for this loss are poor commercial orientation, lake of network optimization, excessive overheads and payables to PTCL amounting to Rs.47.6 million on account of accumulated co-location charges. The continuous and increasing loses of Paknet makes its existence a question mark for PTCL because subsidiaries are maintained to increase the profits of parent organizations.

2.7.2 Pak Telecom Mobile Limited (PTML)

In today’s changing trends in the telecom sector, all global telecom have strong cellular networks either directly or through subsidiaries. While keeping this in mind there was a need for PTCL to have its own cellular service. Pak Telecom Mobile Limited (PTML), a wholly owned subsidiary of PTCL, was created. The company commenced its operations under the brand name of Ufone from Islamabad in January 2001 and subsequently extended its coverage to other cities. Presently Ufone’s network covers more than 750 cities, towns and major highways of the country. During this last year Ufone successfully completed its US $170 million phase IV network expansion consequently the asset base of the company has increased from 20 billion to Rs.27 billion.

As for the company’s approved business plan, Ufone was expected to close its first financial year (ending June 30, 2001) with about 30,000 customers but Ufone achieved over 100,000 customers by June 2001.Now during this financial year (ending June 30, 2006) Ufone has increased its customers from 2.58 to 6.34 million.4

Ufone provides international Roaming in partnership with more than 150 operators across 79 countries. It has also introduced the international Roaming facility for the prepaid customers in the United Arab Emirates and Saudi Arabia. Ufone at the moment offers very attractive tariff while does not require a deposit or activation charges. The operating performance of Ufone has been very encouraging in the face of strong competition. Its revenue and after-tax profit rose by 87% and 61% respectively compared to the last year and EPS increased from Rs.2.94 to Rs4.74.

Investment of PTCL in Ufone is an amount of Rs.1, 500 millions represented by 150,000,000 ordinary shares of Rs.10 each. The main source funds for Ufone are its retained earnings. Authorized capital of Ufone is Rs.4, 000 millions represented by 400,000,000 ordinary shares of Rs.10 each. Existing paid up capital of PTML is Rs.2000 million represented by 200,000,000 ordinary shares of Rs.10 each.

The world telecommunication sector is gearing towards wireless communication. The mobile business in Pakistan has huge growth potential/ in this background of growth, it was essential for PTCL to establish itself in the cellular phone business before the exclusivity on the fixed telephony expires. Introduction of Ufone in the major cities of Pakistan received an unprecedented response and with in short time already available capacity exhausted. Ufone customer base grew by 190% from 2.58 to 7.49 million during financial year 2007.

Ufone is awarded a license for providing cellular services in Azad and Jammu Kashmir and the Northern Areas. But now when two international cellular companies have entered the market, ufone will have to improve its services quality to maintain its market shares.

2.7.3 Telephone Industry of Pakistan (Tip)

Telephone industries of Pakistan (Pvt) Ltd Haripur was incorporated as a private limited company in 1953 by Gop with the collaboration of Siemens AG.germany.the company is managed by Board of Directors having 8 directors on the board, six from PTCL and two from Simens A.G.Germany. The company started production of Telephone sets. With the passage of time and with the change in technology, its capacity has increased in addition it was also producing Contains, Exchanges, distribution boxes, Divisional Cabinets and Drop wire.

The company was having marketing limitations and lakeluster approach predominantly for reasons of legacy and due to its remote location.

Paid up capital of the company is Rs.759753 million and turn over was depending upon orders from PTCL, NTC, SCO and WAPDA.

The company continued to perform poorly during the period up to April 12, 2007 when PTCL withdrew its investment from the company. During the period from July 01,2005 to April 12,2006, the company suffered a loss of Rs.114 million on revenues of Rs.1,142

million. PTCL management on its part has completed all formalities pertaining to disinvestment of TIP and transfer of shares to Ministry of IT and T, Govt of Pakistan.

2.7.4 Carrier Telephone Industries (CTI)

Carrier Telephone Industries (CTI) was incorporated as a private limited company in the public sector in 1969 in collaboration with Pakistan telecommunication Company Limited and Siemens AG, Germany. CTI was established to acquire, develop and produce latest state-of-the-art equipment in the field of transmission technologies, electronics and other telecommunication areas. It provides a sophisticated technology base for the country. Today CTI is manufacturing SDH transmission equipment, Multiplexing products, Optical Fiber and Digital Radio Systems. In addition it has also ventured in the manufacturing of Microwave Gid Parabolic Antennae, PABX and Pai Gain System. It has recently started assembly of personal Computers, besides selling other Electro-mechanical accessories, measuring instruments and other products. The company employs latest manufacturing techniques i.e. Surface Mounting Technology (SMT) for mounting components and its robotics arms/machines provides excellent support for after sales services. It is equipped to train and fully support its customers.

CTI was privatized in November 2005 as part of the PTCL privatization commitment. PTCL’s equity investment of Rs.8 million was sold for Rs.500 million to Siemens AG.the privatization commission has not yet released the proceeds of this sale to PTCL. The company had earned a current year profit of Rs.2 million before privatization in November 2005.

CHAPTER#3

ORGANIZATIONAL STRUCTURE OF PTCL

Organization is the end result of organizing. So organizing is the part of management that involves establishing intentional structure of roles for the people to fill an enterprise. It is process of breaking down the overall tasks of an enterprise into individual assignments/activities and then getting them put together in units, departments or in groups along with the delegation of authority to the manger. Organizational structure implies a formalized intestinal structure of roles/positions.

A well-developed and properly coordinated structure is an important requirement for the successful operation of any organization. It provides the basic framework with in which functions and procedures are performed. In PTCL the functions of planning and policy formulation are carried out by the Board of Directors whereas the management of the organization is carried out by the executive management.

Organizational Chart

[pic]

3.1 BOARD OF DIRECTORS

 Walid Irshad

President & Chief Executive Officer

Ali Ahmed Yasouf Al Naqvi

Deputy CEO PTCL

Muhammad Nehmatullah Toor

S.E.V.P (Finance) / Chief Financial Officer (C.F.O)

Yasir Ansari

Chief Information Officer (C.I.O)

Mohammad Nasrullah 

Chief Technical Officer (C.T.O)

Syed Mazhar Hussain

S.E.V.P (HR / Admin & Procurement)

Sikandar Naqi

S.E.V.P (Corporate Development)

Naveed Saeed

S.E.V.P (Commercial)

Mr.TariqSalman

S.E.V.P (Business Zone North)

Mr.AbdullahYousef

S.E.V.P Business Zone South

FarahQamar

Company Secretary

LegalAffairs

Dr.Syed Mohammad Anwar Shah

3.2 Board of Director

It is the highest body of PTCL, which has been vested with the function of policy formulation. The first Director was elected by the subscribers in their first meeting. Under the rules, the directors appointed are not being less than sever in numbers.

There is general body meeting once a year of all the shareholders to elect the members of board of directors. A director once elected, holds office for a period of three years unless he resigns, becomes disqualified from being a director or otherwise ceases to hold office. A retiring director is eligible for re-election.

Presently the board of directors has Ten members, As follow

| Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani |

|Chairman & Chief Executive Officer,  |

|Etisalat International Pakistan L.L.C  |

|Executive Vice President Contracts & Administration  |

|Etisalat, UAE. |

|  |

| Mr. Salman Siddique |

|Secretary (Finance), Ministry of Finanance |

|Government of Pakistan,  |

|Islamabad  |

|  |

|Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh |

|Chief Human Resources Officer |

|Etisalat, UAE |

|  |

| Mr. Mushtaq Ahmad Bhatti |

|Member Telecom |

|Government of Pakistan, |

|Islamabad |

|  |

|Mr. Fadhil Mohamed Erhama Al Ansari |

|Executive Vice President Engineering |

|Etisalat, UAE |

|  |

|Mr. Khursheed Ahmed Junejo |

|Ambassador, Embassy of Pakistan |

|Abu Dhabi, UAE |

| |

|Mr. Abdulaziz Hamad Omran Taryam |

|General Manager, Northern Emirates |

|Etisalat, UAE |

|  |

| Dr. Ahmed Al Jarwa |

|General Manager |

|RealEstate |

|Etisalat, UAE |

|  |

|Ms. Farah Qamar |

|Company Secretary PTCL |

|PTCL Headquarters,  |

|Islamabad |

3.3 PRODUCTS AND SERVICES

After the deregulation of the telecommunication sector PTCL has brought a lot of variety in its products and services to face the challenging task in the new environment in order to sustain profit margin at the current level. PTCL is trying to improve its products and services and make it more cost effective for the customers. The product and services that PTCL is providing to its customers are as follows.

3.3.1 Prepaid calling cards

PTCL prepaid calling cards gives nation wide access with international facility. It comes in easily affordable denominations of Rs.100, 250, 500, 1000 & 2000. These cards are easily available throughout the country and it is easy to use it from any PTCL digital phone. Customer has to pay neither line rent nor bill. In November 2003 PTCL launched 100 denomination prepaid calling card with advanced features5.

3.3.2 Universal Access Number (UAN)

UAN allows the customers to call different offices of a company in the different cities by the same number. UAN consists of six digits preceded by three digit code of 111, common to all UANs e.g. 111202020. UAN operates on existing telephone connection without disturbing normal phone number. UAN service is ideal for organizations engaged in marketing of products or services. UAN enables quick and easy access to make queries and complaints, increases customer satisfaction. It is time saving, convenient and cost saving for customers. PTCL has the policy of “First come, first served” i.e. customers can choose UAN of their own choice which is simple and memorable. UAN service is available in 50 major cities of Pakistan.

For installation of UAN one has to fill a form and submit it to that very office. Its installation fee for one office is Rs.20, 000, 40,000 for two offices and 60,000 for three offices while further 15,000 for additional office. Customer has to pay its recurring charges in advance on quarter basis i.e. Rs.3000 per quarter per office.

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

3.3.3 Premium rate service (0900)

0900 numbers are used throughout the world to provide information via telephone at a premium rate higher the regular call charges. In case of these calls 60% of the total revenue goes to the company called while 40% is transferred to PTCL.

3.3.4 ISDN (BRI/PRI)

Broadband services to household and small medium sized organizations are also provided through Integrated Service Digital Network (ISDN). It transfers the data in digital form. This service has now been available for some time and its users are benefiting from the

advantageous features like faster data communication, high-speed Internet and clearer voice through International Gateway Switches installed at Islamabad and Karachi.

Basic Rate Interface (BRI) has three channels, two for the data transfer and one for security. PTCL charges only for 1.5 channels at the rate of Rs.174 per channel.

Primary Rate Interface (PRI) has 30 channels for data transfer and PTCL charges ISPs only for 20 channels at the rate of Rs.174 per channel. The rest 10 channels are their sole profit.

There are two types of charges in case of PRI

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

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

15 % general sales tax is charged on the above two charges. And if an ISP doesn’t pay their dues before due date, is charged for 5 % surcharges on the current dues.

3.3.5 Digital Subscriber Line (DSL)

DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and Internet facility without keeping their normal telephone number busy. Customer can enjoy voice chat from telephone with high speed. It is of different band width 64kbps, 128, 256 and of1024kbps. PTCL does not sells this directly to the ultimate customers but sell it to the ISPs like Paknet, Comsat, Micronet, Cybernet, Dancom etc. PTCL charges ISPs on the basis of their customers. PTCL charges either Rs.217 per connection per month from ISPs when they give connection or 5 % of the total bill for which ISPs charge their customer depending upon the contract signed between PTCL and ISP. In the second case the ISP is required to send a copy of all the customers’ bills to the PTCL revenue department.

3.3.6 Speed factors of DSL

Computer system

Connectivity

Cables

Usage of DSL

3.4 Faults in DSL

No connectivity

Low browsing

No browsing

Page drop

Net call drop

3.5The reasons for some problems may be

Unpayment of bill

Fingering in modem

Low voltage of light

No patching

Damaged drop wire

3.6 My Work as Internee in PTCL BANNU

DSL installation LAN installation

Maintain the DSL Maintain the LAN

Router configuration Complaint handling

Marketing Advertising

3.7 BROADBAND PAKISTAN

2.8.1 Digital Subscriber Line (DSL)

DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax and Internet facility without keeping their normal telephone number busy. Customer can enjoy voice chat from telephone with high speed. It is of different band width 64kbps, 128, 256 and of1024kbps. PTCL does not sells this directly to the ultimate customers but sell it to the ISPs like Paknet, Comsat, Micro net, Cabernet, Dancom etc. PTCL charges ISPs on the basis of their customers. PTCL charges either Rs.217 per connection per month from ISPs when they give connection or 5 % of the total bill for which ISPs charge their customer depending upon the contract signed between PTCL and ISP. In the second case the ISP is required to send a copy of all the customers’ bills to the PTCL revenue department.

3.8 Digital Cross Connect (DXX)

DXX service is used for data connectivity. PTCL charges their customers in advance on the quarter basis. PTCL charges their customers for three types of charges.

3.8.1 ISDN (BRI/PRI)

Broadband services to household and small medium sized organizations are also provided through Integrated Service Digital Network (ISDN). It transfers the data in digital form. This service has now been available for some time and its users are benefiting from the

Advantageous features like faster data communication, high-speed Internet and clearer voice through International Gateway Switches installed at Islamabad and Karachi.

Basic Rate Interface (BRI) has three channels, two for the data transfer and one for security. PTCL charges only for 1.5 channels at the rate of Rs.174 per channel.

Primary Rate Interface (PRI) has 30 channels for data transfer and PTCL charges ISPs only for 20 channels at the rate of Rs.174 per channel. The rest 10 channels are their sole profit.

There are two types of charges in case of PRI

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

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

15 % general sales tax is charged on the above two charges. And if an ISP doesn’t pay their dues before due date, is charged for 5 % surcharges on the current dues.

3.8.2 Free e-mail and anti spam service for Broadband Subscriber

Pakistan oldest and largest IP service provider brings you a mark of association.

Where every PTCL Broadband Connection get a free Personalized e-mail ID for life and enjoy the most reliable, spam free service.

:

Create E-mail

Highlights:

• PTCL broadband customers will get a free for life personalized e-mail account with 50mb of space.

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

• Economical packages for students

• Special packages for corporate and individuals

• Access to free movies, music, classical Pakistan plays, famous cricket matches, educational and religious contents exclusively for PTCL broadband customers.

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

 

 

 

3.8.3 Broadband Entertainment Portal (PTCL BUZZ)

Click the banner to enter the world of entertainment and fun.

Now PTCL offers Pakistan's First Entertainment Portal completely free for its DSL Customers. Experience true broadband entertainment, listen or download melodies, songs, watch classic movies, Cricket Matches, PTV Plays, Online learning, Gaming, listen to religious Naats and lots of fun.

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

PTCL BUZZ is an entrainment portal which is Free& Exclusively available only for PTCL broadband users. PTCL Buzz has a huge library of content including the best of English and Urdu movies, dramas, Sports, Live radio, Religious programmes and over 10,000 songs to choose from.

3.8.4 PTCL BUZZ FAQs

 

Broadband Pakistan (Unlimited)

[pic]

 

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

PTCL Broadband has doubled your speed at no extra cost to all new and existing customers in celebration of 23rd March 

PTCL management pleased to announce the following tariff for broadband internet facilities for its valued customers, with effect from March 23rd 2009. The existing package of 512Kbps will not be offered to new customers. Existing 512Kbps packages customers will be upgraded to 1MB package, 1MB to 2MB and customers of 2MB will be upgraded to 4MB.

Experience the Internet at its fastest with high-speed access from Broadband Pakistan, simultaneously, enjoy Voice service over the same telephone line without any extra cabling connections! Broadband Pakistan offers DSL service with unmatched reliability, affordability and connectivity.

Features

• Cost effective Always On Internet access

• High speed data download

• Unlimited download

• Free Modem

• Free Installation

• Convenient ordering on phone and web

• No upfront charges

 

"Broadband Pakistan is now available in over 167 cities/towns including Lahore, Karachi, Islamabad, Rawalpindi, Quetta, Faisalabad, Multan, Hyderabad, Peshawar, Gujrat, Gujranwala and Bhawalpur.

With the option of subscribing to the speed of (1Mbps, 2Mbps,) and (4Mbps) packages, you can now choose one that best suits your surfing style.

|DSL-1MB Unlimited |

|  |Rs. 1,199 / month |

|  |Free Unlimited download |

|  |Free Modem & Installation |

|  Order Online |

|DSL-2MB Unlimited |

|  |Rs. 1,999 / month |

|  |Free Unlimited download |

|  |Free Modem & Installation |

| Order Online |

|DSL-4MB Unlimited |

|  |Rs. 4,999 / month |

|  |Free Unlimited download |

|  |Free Modem & Installation. |

|  Ord |

 

 

To subscribe to PTCL broadband service call 0800 80800

For complain registration please call 1218

BROADBAND FAQs

3.9 Broadband Student Package

Dear customer now you can apply for PTCL broadband Student package through the following options:

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

1. If your institute is registered with PTCL, then please process with the filling of the form. In case your institution / university is not yet registered with PTCL then please request your institute / university administration to do by calling 0800-80800.

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

3. A link will appear on the top of the page to download the form in PDF format. Please Download the PDF file and have it printed.

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

o Dean

o Principal

o Head of the Department

o Professor

o Lecturer

o Any faculty member or

o Administration staff of your institute

The completed and validated form can be taken to the PTCL One Stop Shops or customer services Centers for order entry and validation. OR the completed and validated form can be scanned and emailed to the following email address:

3.10 DIGITAL FACILITIES

3.10.1 Call waiting

Through this facility a customer during conversation can hear a beep indicating that another call is coming. A new incoming call can be attended by tapping which will put present call on hold, and next incoming call can be attended. This service can be availed free of cost through dialing customer access point by UAN 111465465.

3.10.2Code barring

Customers can prevent misuse of their telephone with the help of code barring facility. This can be changed by the customer if need arises. Customers can activate and deactivate this facility from their telephone sets.

3.10.3 Call transfer

3.4.3.1 Immediate Transfer

A customer with this facility may transfer his calls to another predefined desired number. A change in dial tone will be observed.

3.4.3.2 Call Transfer on Busy

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

3.4.3.3 Call Transfer on No Reply

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

In such cases Customer is required to feed desired telephone number on which call transfer is required. The facility can be activated through a written application to the concerned DE Phones along with copy of NIC.

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

3.10.4 Caller Line Identification (CLI)

CLI allows you to identify the caller before picking up the phone. The customer can check obnoxious calls and can keep the complete record of all incoming / outgoing calls

with time and date to take any action. This facility can be obtained by dialing UAN 111 465 465 and where this number is not available, by contacting the concerned DE Phones. PTCL charges Rs.30 per month for this facility.

3.10.5 Hot line

This service enables customer to be in contact just by lifting the handset and without dialing the number. System automatically dial a preprogrammed number (after 5 seconds delay), most appropriate for frequently dialed numbers. The facility can be activating through a written application to the concerned DE Phones along with copy of NIC. The customers can activate or deactivate the facility from their own telephone sets. It costs Rs.25 per month to the customers.

3.11 MARKETING STRATEGIES

3.11.1 Marketing position

PTCL is a market leader in the telecommunication industry. It holds the largest market shares. Till January 2003 PTCL had monopoly in the telecommunication industry, but in

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

3.5.2 Strategies

PTCL is following the strategy of expending the total market. It is trying to expend the total market through new users and new uses.

3.11.2.1 Through New Users

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

a. By lowering the installation charges: To increase the market shares and convince the non users, PTCL lowers the installation charges for short period. The PTCL installation charges were Rs.4000 and have lowered these to Rs.1000 in a short period.

a. Decreasing the connection time: This is another incentive to convince the non users. PTCL give the connection within eight hours. This is also for short period of time.

a. More locations for registration: This is also short term incentive offered by PTCL. PTCL establishes temporary tents in the different areas even on the road sides. The purpose of this is that the customers can easily submit their forms for registration.

3.11.2.2 Through New Uses

PTCL is increases the uses of the current products in order to increase the market shares. PTCL phone set is not only use for calling but it is also used for

3.11.2.2(a) Stock Exchange Report

This feature of PTCL phone set is especially for those businessmen who are abroad from stock exchange and restless about stock exchange situation. Those businessmen can easily get information about stock exchange by dialing a number on PTCL digital phone set.

3.11.3.1 Calling Line Identification

PTCL is continuously providing new value added services for customer convenience. Calling Line Identification (CLI) allows you to identify the caller before picking up the phone. For a customer to enjoy this service needs a telephone set with display capability. CLI keeps complete record of outgoing and incoming calls with time and date.

3.11.3.2 Internet Accessibility

Ufone is the subsidiary of PTCL. In mobile phones Ufone was the first to provide internet accessibility through GPRS. One can send and receive a message through Ufone by e-mail address.

CAHPTER# 4

SWOT ANALYSES

PTCL BANNU is a big organization regarding all the departments including DSL, Finance, Operations, Human resource etc. there are several & weakness of these departments, which will be discussed as follow:

4.1 Strengths

• Largest operational network and infrastructure

• An integrated monopoly

• Market leadership

• Ptcl u fone is market challenger

• Competitors still depend on ptcl network either directly or indirectly

Experienced telecom resourses

4.1.1The Biggest Foreign Exchange Earner

PTCL BANNU is the biggest source of foreign exchange for Pakistan. It earns a lot foreign exchange form its international traffic.

4.1.2Adequate Financial Resources

PTCL BANNU earns more Rupees as a major source of capital. These adequate financial resources not only enable the company to copy with any unexpected event but to deploy its resources to increase product line and services without feeling any financial difficult.

4.1.3Free from Competitive Pressure

PTCL BANNU has no competitor in the market and other companies are legally not allowed enter in competition with PTCL before 2003.So PTCL is performing its activities freely without any pressure.

4.1.4Leadership in the Market

PTCL BANNU is leading Company to provide telecom facilities in the Pakistan. PTCL BANNU aims at using the latest technology in the field of engineering and IT for its services. It is also getting constancy from international Companies in order to remain leader in telecom sector.

4.1.5Adequate Financial Resources

PTC BANNU earns more rupees as profit per year and has enough money in its general reserve. It also has debit as a major source of capital. These adequate financial resources not only enable the Company to cope with any unexpected event but no deploy its resources to increase its product line.

4.1.6Modern Technology

PTCL BANNU is running modern technology to develop its products and services and improve the quality of services. In this connection it has replaced the old exchanges with new digital exchanges. It has computerized billing system. Due to this technology thousand of complaints have been reduced. PTCL BANNU has also entered in the business of Mobile phone and Internet services.

4.1.7Optional Polices and Compensation

Best and optional policies and attractive compensation packages for employees, which has really improved their commitment, dedication and hard work towards the achievement of organization goals.

4.1.8Human Resource Development

Human resource development and employment of technology towards modern development.

4.1.9Wide Distribution Channels

Easy access to the customers at their residential localities through wide distribution channel.

5.2 WEAKNESSES

4.1.1Ambiguity in Strategic Direction

PTCL BANNUis doing business very well but only to that extend to which customers respond. Although PTCL BANNU is generating revenue from its value added services but it doesn’t have any solid financial strategic outline, which can cope the entire complex financial situation, and also ambiguity exists in implementation strategic financial plans. Externally, PTCL BANNU has no competitors so it has no benchmark to gauge financial performance of its different departments with those of competitors.

4.2.1Seniority Bases Promotions

PTCL BANNU is leading information technology but it is not knowledge oriented so far as promotions of its employees are concerned. Promotions of PTCL BANNU employees are seniority based. Most of employees are concerned. Promotions of PTCL BANNU employees, who get promoted on seniority basis, are less knowledgeable and non-professional and cannot cope with the challenges of this ever-growing field. On the other hand most of its knowledgeable and well-educated employees have no chance of getting higher Positions. They have to work under their boss who has more experience but less knowledge about Information Technology and Telecommunication.

4.2.2Lack of Human Resources Management

PTCL BANNU has no human resources management department. It doesn’t have clear policy regarding hiring & training of work force. In PTCL BANNU, for most of the jobs there is no job work & evaluation of performance of employees.

4.2.3Lack of Training Program

There is no proper training program to improve the skill of PTCL BANNU employees to cope with ever-changing telecommunication sector. Less skilled & inefficient workers are creating hurdles in its growth.

4.2.4No Effective Marketing Department

In PTCL BANNU there is no effective marketing department. There is only marketing officer working as a manager, further more marketing staff in the field region is also not available.

4.2.5Ineffective Human Resource Management

PTCL BANNU has although now set up a HRM department but still it is not functioning as per the requirement of the competitive environment. Most of the jobs have no proper job description and specification.

4.2.6Customer Dissatisfaction and Delayed Responses

Many customer of PTCL BANNU are not satisfied with its services because of wrong billing, late delivery of bills and delayed responses for any fault in the telephone. Some customer complains that they received their bills in full amount although they have stayed out of the home and had not use the telephone at all.

4.2.7Absence of Company Culture

There is no inclusion or company culture and approaches among the officers of PTCL BANNU and mostly their behavior with general public is still bureaucratic and their approach is not objective or profit-oriented.

4.3 OPPORTUNITIES

4.3.1Increasing Awareness Rate

PTCL BANNU can show its interest in educating people & increasing literality rate. In this way, PTCL BANNU will not only fulfill its social responsibility but will also be able to increase awareness rate & it will be help full in the expansion of PTCL BANNU business.

4.3.2Skillful human resources:

PTCL BANNU can improve the skill of its manpower by providing them the opportunities of advanced courses that will make them to cope with the ever-changing condition in field of telecommunication.

4.3.3Entering the New Market

PTCL BANNU recently is starting its mobile services hence; it will enter in the market. PTCL can expand its business by exploring and entering in new markets in similar way.

4.3.4Telecom Facilities in Rural Areas

All the value added services and digital facilities are available only in the main cities of Pakistan. PTCL BANNU can expand its business by providing telecom facilities in rural areas, which is only possible when adequate planning is done.

4.3.5Recruitment

PTCL BANNU can also improve the human resources by the selection of competent person for different departments and this can only possible by discouraging the corruption and favoritism.

4.3.6Addition to the Product Line

Top management of Organization can make additions to its existing product line by providing more services. In this way it can increase its revenue and customer satisfaction. This requires market research.

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

5.4 THREATS

4.4.1Exchange Rate Risk

Exchange Rate Risk will cause PTCL BANNU net exchange loss on foreign loans. Devaluation of rupees will increase the cost of production, machinery, and almost all the equipment, imported from foreign countries. So exchange rate risk will affect the Profitability of PTCL BANNU and also increase the risk of getting foreign loans in future.

4.4.2Government Legislation

Government policies can affect the performance of PTCL BANNU. Hence government policies will be a real threat for PTCL BANNU if they are not in favor of PTCL BANNU business activities. This can affect the recruiting policies of PTCL BANNU.

4.4.3Turnover

At the end of the monopoly, competitors will enter the industry and the completion will increase as a result of which they will offer high pays and facilities to skill-person of the industry. This can increase the turnover of PTCL BANNU, which can create a serious threat for the organization.

4.4.4Decrease in Market Share Due To Competition

After the end of monopoly, dissatisfied customers may shift to those telecom services providers who they think would offer better services than PTCL BANNU, and will increase customer satisfaction. Decrease in market share would decrease the profitability of PTCL BANNU, which will be a real threat in near future.

CONCULUSION

The overall performance of PTCL BANNU has been declining after privatization. The main signals of performance trend are summarized below:

Aside from the numerical performance indicators, PTCL BANNU took several steps to commence the journey to bring a culture charge in the organization. This entails putting greater focus on customer service and emphasizing merit, integrity and openness in the Company’s business practices and process. So there is a hope that numerical performance positive result in near future.

Moreover since the tele-density of mobile phones has grown a lot, so there are no further chance of huge increase in tele-density for mobile companies.

RECOMMENDATIONS

Keeping in view the aforementioned hurdle / problems the following are some remedial measures, which help to create a better system.

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

▪ A comprehensive financial information system is required to be streamlined, so that availability of accurate data records may be insured.

▪ It is proposed that the system of funds allotment may immediately be discontinued and the Regional Offices may be allocated lump sum fund. This will surely help to speed up the execution of the work.

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

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

▪ Employees should be equipped with up to date IT skills and for this purpose refresher & training courses should be designed.

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

▪ The officer may be trained to adopt company culture soft-spoken, good relations with customers and target oriented.

▪ Finance and marketing offices and engineers may be sending to international seminars/ workshops to get knowledge of new technique and procedures.

▪ There should be effective human resource department in order to get right people on the right job. Promotion should be made the basis of performance rather than seniority.

▪ Moreover, the element of corruption exists throughout the operation and finance department, which must be checked to get high performance.

▪ Strategic planning and especially long term planning should be done in a way, which doesn’t only fulfill the requirement of today, but also those of future.

▪ Most of the PTCL BANNU personnel are non-professional; I suggest that the competent authority of PTCL BANNU should be appointing professionals.

▪ Almost all employees of PTCL BANNU are worried about their jobs the competent authority should immediately announce the policy of PTCL BANNU in this regard.

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

▪ Over staffing and unbalanced distribution of employees in departments. Like all the government and semi government institutions PTCL BANNU has also excessive staff than required. In order to increase the efficiency of worker job is assigned to its caliper to develop his interest in work that increase the out put and decrease the overall cost of organization.

▪ In the company there is an unnecessary emphasis on documentation. In transitions a lengthy procedure of paper work is involved that decrease the efficiency and results in wastage of time. It should be the duty of management to automate the documentation of record on line to all offices at same time.

▪ There are very few programs for career development of the employees. People working in one section or department from years are still with the same knowledge and style of doing job. There should be proper career planning of employee that not only sharpens the skills of the employee & improve its efficiency but also results in better and improved output for the organization.

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

BIBLIOGRAPHY

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

• PTCL Annual Report 2006.

• PTCL Annual Report 2007.

• PTCL Annual Report 2008.

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

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

• .pk

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