Study of Pakistan Telecommunication Company Ltd.

Table of Content

CHAPTER NO 1 Introduction to the report 1. 1 BACKGROUND OF THE STUDY: This report is a study of PTCL. Now as a student why I needed to undertake a study of PTCL? The reason was that after completion of my MBA (Marketing) course work, it was an academic requirement to undergo an internship for 8 week in any reputable organization so that to test and practice the concepts that I had theoretically learnt in my courses. And that’s why I undertook an internship in PTCL and now as an academic requirement, I am putting the details of that internship forward, in the form of this report. . 2 PURPOSE OF THE STUDY The purpose of this study is not to fulfill an academic requirement and get a degree. Rather the very purpose of this study is “to practically learn all the concepts that I have learnt theoretically in my Master”. And also to know that what I have studied is to what extent practically observable or practicable. 1. 3 SCOPE OF STUDY I could venture only financial aspects of the organization (PTCL). But that would have helped me, meet my study objectives partially.

Now the scope of this study is very broad. I have tried my level best to venture each and every aspect and area regarding the organization and to do justice with it. And that’s why this study gives an overview of Pakistan Telecommunication Limited. An overview in the sense that in this very study all areas, including PTCL’s service marketing, managerial, strategic and financial, have been ventured into provide that the data for this study, that I have used, is the most recent one. So that no inconvenience could occur.

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But even then my main emphasis in this study is on the PTCL’s financial, strategic, service related and managerial areas. 1. 4 RESEARCH METHODOLOGY In this very report I have used two types of data: Secondary data, which helped me a lot composing this report includes, PTCL’s Annual report, accounts summary, websites, newspapers, KSE’s websites, different books relating to different areas of concern, articles written about it by different scholars and other pamphlets and brochures.

Primary data includes interviews from different personalities of PTCL (DE’s, Directors etc), discussions about PTCL and its performance with different people of concern and most importantly the discussions with PTCL’s customers. The data have helped me a lot, composing this report and recommendations given, if any in the report are on the basis of text given in the report, which is based on this very data. 1. 5 SCHEME OF THE REPORT Scheme of the report is straightforward. The report is divided in different sections.

Each section consists of different chapters. But this division is not done on the basis of importance; rather it is a jump from shallow to deep water. CHAPTER NO 2 A BRIEF HISTORY OF TELECOMMUNICATION IN PAKISTAN The history of telecommunication in the sub continent is as old as the history of our slavery. In the subcontinent before independence this sector was under the Indian post and telegraph department and developed as a successful industry. The role of telecommunication in Pakistan can be broadly divided in to four phase. PAKISTAN POST AND TELEGRAPH

At the time of independence and telecommunication services were performed by a single department known as Pakistan past and telegraph (p&T). his department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. All the telephone service at that time was manual. This department continues its business up to 1962. the government of Pakistan adopted the government of India telegraph act 188 to control and direct the activities of telecommunication. PAKISTAN TELEPHONE AND TELEGRAPH (T&T)

The first step towards reform in telecommunication sector was made in 1962. when the ayyub khan government decided to split up the p&t department into two separate departments Pakistan post and Pakistan telephone & telegraph (pt&t) under the presidential ordinance. The pt&t in fact a civil service department under the minstrel controls. This department was headed by director general. The decision making power was concentrated with the post of dg, whilst the responsibilities were delegated to general managers and chief engineers and general managers reporting directly to the director general.

The centralized structure of pt&t caused inefficiency in operations and long delay in implementing decisions. At the time of inception of ptcl the total number of employees working in pt&t was 45686 and total network comported of 922,000. PAKISTAN TELECOMMUNICATION CORPORATION (PTC) Thedecadeof1990sbroughtaboutmany changes in the economic structure of Pakistan. The government of Pakistan pursued the deregulation and liberalization policy in production and service industry.

The major change in this regard was privatization and deregulation of many of the departments of government of Pakistan. The objective was to reduce the burden of the government minimize the bureaucratic influence and improve the efficiency of these departments. A major break through in the history of telecommunication in the country occurred with the gradual deregulation and privatization of t) t, at the first stage Pakistan telephone and telegraph department (t&t) was converted into a statutory corporation Pakistan telecommunication corporation.

On December `51990 the pt&t department was transformed into Pakistan telecommunication corporation with a legal identity separate from the government. This change in the statute introduced by the government of Pakistan enabled PTC to move from administrative to contractual relationship with its customer. It provided the opportunity for the development of telecommunication facilities to an unprecedented level and also for an increased customer satisfaction. Working under the ptcl act oxv111 of 1991, the corporation was responsible for establishment maintenance and operation of telecommunication services telephone telegraph telex, tele fax and data transmission with in the country and establishment of international link with all member countries of itu (international telecommunication union Pakistan telecommunication corporation in it five years life spread the network of its services all over the country and the total number of telephone lines expanded tp 2127344 in addition to telegraph the telex services.

The total number of employees at the end of 1995 was 53705. In addition to inland telephone network ptcl did a lot to improve the international communication. The international communication network of ptcl comprised of variety of satellite earth stations, terrestrial systems, submarine cable system and coastal radio systems, as well as international gateway exchanges. PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCL) Pakistan telecommunication company limited (ptcl) is a company established to undertake the telecommunication business formally carried on by Pakistan.

Telecommunication corporation (ptcl) Pakistan telecommunication corporation (ptcl) was transformed into Pakistan telecommunication company limited (ptcl) on January 1,1996under Pakistan telecommunication reorganization act 1996 according to which ptcl took over all the properties assets rights and obligations of ptcl. Under the PTCL reorganization act, 1996 the telecommunication sectors were spelt up into four bodies. Pakistan Telecommunication Company limited (ptcl) Pakistan telecommunication authority (pta) National Telecommunication Corporation (ntc) Frequency allocation board (fab)

Pakistan telecommunication authority is a regulatory body responsible for monitoring the telecommunication business in Pakistan. It frames rules and regulation for private telecom companies such as mobile phone companies, internet service providers, paging companies and pay card phone companies. It also issues licenses to the new companies in entering to this business. National Telecom Corporation (ntc) is responsible to provide the telecommunication services to the various departments of government and armed services. Pakistan Telecommunication Company limited is the primary provider of telecommunications services in Pakistan.

The range of its services includes basic telephone, telegraph, fax, telex, email, digital cross connect, public data network, internet, isdn, and other digital facilities. The total number of installed telephone lines (ali) at June 30, 1998 was 35, 19,877 while the total number of actual lines in service (alis) was 26, 60,898. The difference between ali and alis issue to pending and potential future demands. OBJECTIVES OF THE COMPANY The primary objective of Pakistan Telecommunication Company limited is to provide telecommunication services to the people in the country or in short to satisfy the telecommunication needs of its customers.

Responding to the rapid economic and technologically growth the company is determined to meet the change of expanding needs of telephone in data communication such as public data network, integrated services, and digital network and internet services. The major focus of attention is to improve and expand the service, minimize the faults and provide communication facilities to rural areas. It is also one of the major objectives of the management that the company should not improve its performance but also encourage the private sector to inter the tele business.

The company has entered the domain of free marketing economy, which necessitates the liberal management in 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 objectives of any company as to earn the profit and minimize expanses by wining well will in the market. The objectives can be divided in to two phases. Marketing objectives Financial objectives The following are the long term objectives of the organization. Telecom services all over the country Plain, establish and maintain telecommunication.

Acquire, promote and manage research and development, transferred of technology and software development include manufacturing of telecommunication equipment and plant. Enhance efficiency, improved quality and expand the system to meet customer’s satisfaction and provide services on demand. Create convenient climate for binding of human skill and horizon of employees to training of education. Convert its cash basis single entry accounting system to approval basis double entry system meeting the commercial international accounting standards. Launch consumer’s satisfaction survey.

To introduce computerized directory assistance and complaints services reform billing and a revenue collection system. Strengthen relation with foreign international administration, entities, service providers, international and regional telecom organization for better international communication and technical cooperation in telecommunication business. Expand customer awareness of all value added services (ptcl) to improve the efficiency of customer service centers while deputing qualified persons who are well aware of public relation techniques. To introduce new services of audio taz and video conferencing for the business community.

OPERATING ENVIRONMENT OF THE COMPANY. The operating environment of the company can be divided into two broad categories Macro environment Micro environment MACRO ENVIRONMENT The macro environment of the company can be discussed in three dimensions. Economic environment Technological environment Social cultural environment Economic environment… ptcl operating all over the country can be considered as the backbone of the company. Its not only generate huge amount of revenue for the country but also assist the business sector by providing fast and effective communication facilities to this sector.

The overall economy of the country cannot be said excellent. It is probably the hard luck that there is constant political instability since its independence. The rapid change in the government comes with changing policies. There is continuous rise in inflation and unemployment. The selling’s of people are very low and a common man can not think of lugholes like telephone or internet. This has ultimately effected the growths and expansion plains of ptcl. So we can shortly say that the future growth of ptcl is very much dependent on the economic growth of the company.

TECHNOLOGICAL ENVIRONMENT Another eternal factor that very much affects the business of the company is the rapid technological advancement in the world. To cope with the continuously changing technological needs of the society ptcl needs to explore needs horizons of technology and benefit from the technologies of other countries and continuously invest in the new fields to bridge the gape between the demand and supply. The demands for better services compel ptcl to increase the install lines by five lack /year. All the telephone exchanges are being digitized gradually. tcl has entered in to contract with different foreign companies to import hard ware and software for digital system. Introduction of new technology it becomes crucial for ptcl to keep pace with the changing technologies being adopted in the developed countries. SOCIO CULTURAL ENVIRONMENT Social or cultural factors play important role in the growth in any business. A good proportion f the main power of Pakistan is working abroad. They ultimately use the telephone to contact there families in the country, international coming calls are major source of revenue for ptcl.

This service alones generates more than 40% of total revenue for ptcl. Similarly with the increase in the let racy rate and trade the use of telephone has increased as the income in the rural areas has usually low. The use of telephone in other value added services is not expanded too much. How ever ptcl has a separate department known as rural communication (RC) to find opportunities and develop communication facilities for rural areas. The curse of bribery and commission mafia is also affected ptcl. The call theft from private Pcos with equal contribution of ptcl exchange staff is a major cause of lockage of revenue.

The political influences on the revenue collection policies also affect ptcl. However ptcl has taken courage’s steps to collect arrears from defaulters by announcing their names in the newspapers. It is notable that where values, trends and customs of people change it has a significant effect on the social environment of the organization. MICRO ENVIRONMENT Micro environmental factors like customers, suppliers, employees and regulatory authorities have more direct impact on the organization. The boundary between the external and the internal environment is dynamic, as change in former may have an impact on the later.

The internal factors are discussed below… CUSTOMERS ptcl has different type of customers they include Telephone subscribers. Internet service providers (ISPS) Telegraph/telex users Pcos Mobile phone companies TELEPHONE SUBSCRIBERS There are more than three million telephone connections installed by ptcl. Ptcl offers same rates for all subscribers regardless of weather they are general public, businesses or government departments. There are different packages and value added services along with telephone services being offered by ptcl. Internet service providers (ISP’S)

There are about 41 private companies who provide the internet services to the subscribers of ptcl they use the telephone lines and pay for it. ptcl its self also provides the internet facilities to its customers at the rate of 20 rupees /hour. TELEGRAPH/ TELEX USERS ptcl is providing telegraph, telex and fax services through telegraph centers. The users of these services are usually are banks, news agencies and newspapers. Pcos… Private Pco, s is also customers of ptcl. Rates of pcos are lower than that of ordinary telephone subscribers. How ever ptcl requires a big security deposit for pco connections. MOBILE PHONE COMPANIES

There are six mobile telephone companies operating in Pakistan these companies (paktel, mobilink, instaphone, ufone, warid and telenor) use the network of ptcl and pay for every telephone call made by mobile phones. Now ptcl has also start its own mobile phone services and people are also taking interest in it. COMPETITORS Al though ptcl has been given complete monopoly in the field of telecommunication unto year 2005 still there are some competitors from other sources of communication. They include: Email service providers Internet service providers Mobile pone companies Pay card phone companies EMAIL SERVICE PROVIDERS

With the introduction of modern technology it is now possible to transmit large amount of information from one computer to another computer using the email service. There are several email service providers serving locally and one can open his mail account with that company. Email messages are transmitted very fast and it depends upon the user to receive from his mail box. Email service is very popular in Pakistan and it will also be a great threat to ptcl as this service is cheaper than telephone. MOBILE PHONE COMPANIES Mobile or cellular phone has earned has earned greater popularity in the people, especially business man.

It is now easy for a business person to be in contact with his business customer and his suppliers at any time being at any place away form his office. The mobile phone companies working in Pakistan are the subsidiaries a world leading telecommunication companies and they offer new packages for there customers. As many companies are entered in the market so ptcl monopoly is going to be vanish and a lot of competitors are there in the market. INTERNET SERVICE PROVIDER The modern technology has brought about many opportunities accompanied by challenges for ptcl. One of such challenges is the internet.

Using the internet one can make long distance calls at very cheap rate but it requires high speed modems and communication network. PTA (Pakistan telecommunication authority) has given licenses to 41 private internet companies to operate in Pakistan. It will definitely affect the traffic of ptcl especially international calls. There are some companies providing this service illegally. PAY CARD PHONE COMPANIES The pay card phone service is also getting popularity among the telephone users. It is both convenient and economical for the casual users compared with private pcos.

The holder of the card may call any where in the country using the card in the telephone booth of the same company. Some of the pay card phone companies also install there equipment on private pcos. These companies include tellips, world call, Telecard and many others. EMPLOYEES ptcl has more than 55 thousand employees. Most of the employee is permanent. How ever ptcl hires employees on contract and temporary according to the demand of tasks. The pay scales of the employees are about the same of government except some special amounts, which are given to ptcl employees.

As a ptcl is a public limited company mot of its personal are same as for government institutions. There are 11 emp0loyees union are registered with ptcl and there is a collective bargaining agent (CBA) which bargains the employees problems with the management. In past due to the efforts of CBA the management has provided many facilities to the employees. REGULARITY AUTHORITY The government of Pakistan controls the telecommunication sector through regularity powers via the ministry of communication and through Pakistan telecommunication authority (PTA), which was formed under ptcl reorganization October 1996.

One of the key aspects of telecom October 1996 was to stress the independence of PTA, which is now the main regularity of Pakistan. CHAPTER NO 3 ORGANIZATIONAL STRUCTURE OF PTCL All of us have been members of organizations, team, classes, or groups that were very “organized”, like wise; we have been members of groups that could be characterized as being much “disorganized”. There are more likely to be good feelings and positive results from our association with the former (organizations).

Organizing promotes collaboration and negotiation among individuals in a group and thus improves the effectiveness and efficiency of c communications within the organization. The organizing function creates clear-cut lines of authority and responsibility in an organizations thus improving the activating and controlling functions of the manager. For example, hazing and placing a person in the wrong job can result in surquent motivational difficulties. 3. 1 FORMAL ORGANIZATIONAL ELEMENTS There are at least three basic concepts associated with formal organizational structure. They are: Division of labor. Departmentation. And

Span of control. I will try to explain the organizational structure of PTCL with seperence to the above there concepts and deviously it will comprise of much more. 3. 1. 1 Division of Labor AND PTCL Organizational Structure: Division of labor is a synonymous term for specialization which simply means: “To know more and more about less and less”. This is specialization or division of labor, which give birth to departmentation, which again give birth to span of control. PTCL’s organizational chart is a full picture of the division of labor. As we can see that the whole organization is “departmentalized” into six major activities.

These are: Administration Finance Technical Operations Human Resources (H) and Marketing Although specialization is criticized very much but I must say that for a large organization like PTCL, specialization is a pre-requisite. PTCL’s Organizational chart shows a vertical expansion in the positions of the organization. And that’s the reason that in PTCL job requirements and manager (in case of PTCL and SEVP) specifications are developed and matched to assign personnel. Every manager or SEVP in case of PTCL has his or her own job requirements for which he or she is best fit.

Take for example the SEVP Administration department, who is one of the assisting sub heads to the company, secretary, GM internal Audit and General Manager Solutions, who again assist the president. The administration SEVP in PTCL is obliged to take care of so many things, for example: He / she have to handle all the issues related to human resource and planning. Has to take care of co-ordination among different departments. Will handle issues related to transport and telecommunication. And so many other activities like public relations, HR telecommunications etc.

For all these activities, he / she are then supported by eleven more managers who again are the experts in their own fields. 3. 1. 2 Departmentation As discussed earlier that division of labor gives birth to departmentation. “Departmentation is the efficient and effective grouping of jobs into meaningful work units to co-ordinate numerous jobs. All for the expeditious accomplishment of the organizations objectives”. 3. 1. 2. 1 PTCL’s Basic Organizational Units As discussed earlier PTCL’s organizational chart shows that it has six main supporting sub-heads or working unit or departments.

Now the scope of these main fundamental organizational units and the complexity of the enterprise give rise of additional organizational units. These types result mainly from such things as the nature and amount of work to be done, the degree of specialization or division of labor practiced, and the people and the workplace available for the work. To illustrate, for example in PTCL’s organizational chart, taking the supporting head of finance into consideration, the scope of the work may be so broad that it is believed advantageous to divided the work into accounts, finance and revenue and for each places a subordinate (The EVP’s) in charge.

Revenue EVP will be appointed to manage the revenue work in the field and so on. These are three additional units appear in the organization structure at the level immediately below that of the fundamental unit of finance. And as we move down the chart we see that this vertical expansion has taken place of each fundamental level from 1 to 6 additional subordinate levels. For example the services and the work of the organization continue to grow and conditions become such that further units are deemed necessary for efficient operation.

Accordingly from the accounts unit is SPVN off the two subordinate units of (i) simple book account keeping and (ii) computerized accounts. Similarly from other two units, additional one subordinate unit is SPUN off. 3. 1. 2. 2 Differentiated Departmentation But it is not enough to know that the president is supported by three persons with six supporting heads (SEVP’s) and they again are supported by their subordinates (EVP’s) and they have their own subordinates. It’s not the end of the story rather it’s a mature beginning of the story. The departmentation we discussed is differentiated because it hasn’t got one single base.

Rater: Under the finance unit, the departmentation is done on the basis of activity or activity based departmentation and similar in the case with administration unit. Under the technical unit, departmentation is done on the basis of subsidiaries and processes. Under the operations head, the departmentation has taken place, on the basis of territories or territorial departmentation. Under marketing head the departmentation has taken place on the basis of customer service and activities. And same is the case with HR unit. Now this expansion gives birth to yet another concept called span of control. . 1. 3 Span of Control Span of control refers to the number of immediate subordinates who report to a manager wide spans or a manager who has a relatively large number of immediate subordinates, usually results in few organization levels and a flattening out of the structure. But in case of PTCL, it’s and complexity of the work does play their roles. 3. 1. 3. 1 Centralization And Decentralization As a result of vertical expansion in stead of horizontal expansion, we see that in PTCL the decentralized management operates. Although centralization is there, but it is only up to the fundamental level.

Centralization tends to concentrate decision making at the top of the organization whereas decentralization disperses decision-making and authority throughout and further down the organization hierarchy and that’s why PTCL follows a decentralized pattern because it gives, the employ people of the organization an impression, that the organization belongs to them and they belong to it. 3. 2 LEVELS OF ORGANIZATIONAL CHART Every large organization structure contains three levels of management and so is the case with PTCL’s organization chart. It also includes those levels namely: Strategic Level

Business Level. And finally Functional Level These three levels of management again serve three basic and important activities. These are: The strategy formulation and decision-making Implementation of the strategies and decisions. Execution of them. The PTCL’s strategic level, which consists of the president and his ultimate four subordinates on the top, perform the function of strategic formulation and decision-making with the assistance of other units. PTCL’s business level consists of the six supporting expert’s heads and their 12 subordinates.

They perform the implementation function. Whereas the functional level, consisting of subordinate units and employees, executes the strategies and decisions taken by the strategies level and assigned and communicated to them by the business level. CHAPTER NO 4 PTCL corporate services PTCL is one of the most revenue earning companies of Pakistan. But it’s not an easy thing to be on the top rather a sharp and intelligent management is necessary for that purpose. Today’s growth in businesses is just because of the early and timely adaptation to the change and adaptation of the change.

PTCL knows that without the knowledge of the time and money management (financial management) a company can’t succeed. Knowing this PTCL has started so many of innovative services for the customers, which give the customers the convenience of time, place and money. This innovative policy could be seen in every type of services like consumer services, corporate services and value, added, services. 4. 1 PTCL Aasan prepaid phone connections PTCL always endeavors to offer new privileges, superior benefits and maximum facilities to its valued customers and clients through its broad spectrum of unparalleled services.

Now PTCL proudly introduces yet another new service to its subscribers i. e. PTCL Aasan Prepaid Phone Service. PTCL Aasan Prepaid Phone Service is one of the modern era telecommunication services available on landline phone connection to the customers through prepaid cards with denominations of Rs. 500, Rs. 1000, and Rs. 2000. By following a simple procedure customers can access a wide number of features and facilities while attractive incentives of 10% and Rs. 1000 card and 12% on Rs. 2,000 card respectively are also offered. 4. 1. How To Dial Dial from digital phone 1224 # or Dial 1224 Area Code telephone No. #. Dial Area Code + telephone Number and press # (for local & NWD calls). Dial 00 + Country code + Tele phone Number and press # (for ISD calls). Enjoy your call 3. 1. 2 Management Functions |1. Recharging |6. Abbreviated Number Information | |Dial 1225 #. Account |Dial 1225 #. | |Press 11 followed by # key. |Press 66 followed by # key. | |Dial your card No. followed by # key. Enter number from 0 to 9 about the abbreviated | |Your Account has been charged. |number you want to inquire. | |  |System will play the telephone number. | | |  | |2. Out Going PIN Setting (4 to 8 Digits) |7. Abbreviated Number Setting | |Dial 1225 #. |Dial 1225 #. | |Press 22 followed by # key. |Press 77 followed by # key. | |Enter PIN you want to set followed by # key. Press any digit from 0 to 9 to set abbreviation. | |You PIN has been set. |Enter the telephone number followed by # key. | |  |Your abbreviated number has been set. | | |  | |3. Out Going PIN Cancellation |8. Balance Information | |Dial 1225 #. |Dial 1225 #. | |Press 33 followed by # key. |Press 88 followed by # key. | |Press 1 to cancel outgoing PIN. |System will play the balance amount in the Account. |Your outgoing PIN has been cancelled | | |  |  | |4. Out Going PIN modification |9. Total Call Cost Query | |(4 to 8 digits) |Dial 1225 #. | |Dial 1225 #. |Press 99 followed by # key. | |Press 44 followed by # key. |System will play total cost of all calls. | |Enter new PIN followed by # key. |  | |Enter

PIN again followed by # key. | | |Your PIN code has been modified. | | |  | | |5. Language Selection |10. Validity Query | |Dial 1225#. |Dial 1225 #. | |Press 55 followed by # key. |Pres 00 followed by # key. | |To select language-type press 1 for Urdu or 2 for |System will play the card validity date. | |English.   | |Your language has been selected | | |  | | Table 1 Mainly due to NO documentation, avoidance of billing hassles, reduction in excessive billing complaints, budget control, telephone connection at places where it was previously impossible due to unavailability of property documents or address problems like hostels, guest houses, kachi abadi, melas and exhibitions etc, this is called Aasan connection.

Currently it has 300,000 subscribers with provision of expansion up to 1. 5 Million within 4 to 6 months from placement of order. For the connection to Internet we have to follow the following two steps: Dial 1224 from your telephone Enter 131xxxxx#,0 Incentive is high on high denomination cards because of the principle of “Spend more, save more”. Also the user segment of high denomination cards has been motivated to use this service. This further reduces printing and logistic costs for PTCL.    In case of recharge of account with more than one card the validity will be updated two months with respect to the date of recharge of the last card. In case of the expiry of the account a grace period of 7 days will be given to the subscriber during which he will listen to the announcement to recharge the account. But he will not be allowed to make outgoing calls even if the balance is there. If he recharges the account during these 7days, his previous balance will be added to his account.

Two months line rent is charged I advance because the user will be given 2 months period for incoming calls if he does not recharge his or her account. If he or she does not recharge within the given 2 months the line will be permanently disconnected and he or she will have to go through the process of installation of NTC. And one has to dial the area code for the local calls also. The PTCL is working to universalize the card for all type of services. Customers can find the billing details by dialing 0800 80808 help line number that is mentioned on the card.

A 10% WHT will be applicable on all types of prepaid cards. A customer would be provided with the tax certificate thereon. PTCL’s average revenue per telephone from this service has been estimated as rupees 1000 per month. 4. 2 PREMIUM RATE SERVICE -0900 PTCL 0900 Premium Rate Service (PRS) is the use of telephone to receive valuable, dedicated information and entertainment, allowing interaction with central computer databases at any time of the day or night and via any telephone. As a point-of-purchase appliance, PRS has become the world’s fastest growing and the only proven interactive marketing tool.

No wonder it is being readily embraced by entertainment industry and print/broadcast media as a valuable add-on feature to their core activities. 4. 2. 1 Functioning the service is made possible by linking to the telephone network a powerful computer with voice recognition capabilities, that is, the audio text equipment. The consumer just has to have a standard telephone to dial a duly advertised telephone number to connect to this computer. PTCL 0900 gives every telephone the power of a sophisticated and extremely user-friendly computer terminal. 4. 2. 2Applications his value added service has a wide range of applications, which can be broadly divided into: Social Services Business Information Services Recreational Services 43. 2. 3 ADVANCED APPLICATIONS Fax-on-demand Transaction fulfillment Interactive television TARIFF 0900 can be subscribed within the following cost-effective tariff slabs:   |Service |Tariff |GST | |Social Service |Rs. 6. 03/min |Rs. 0. 90 | |Business Information Group |Rs. 10. 05/min |Rs. 1. 50 | |Sports, chatting and prize |Rs. 4. 07/min | | |competition | |Rs 2. 10 | Table 2 4. 3 UNIVERSAL INTERNET NUMBER 131 numbering scheme for Internet Service Providers, represents exclusive code assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves allocation of numbers to individual ISPs who are licensed by PTA. The service functions under single-metering billing system, with promise of rich dividends in terms of customer care. The benefit of the service, of course, goes to the end-users, who happen to be any ISP customers.

Once subscribed, the service means timeless communication for your customers, allowing them to pay for a single call irrespective of its duration. The service relevance in today’s competitive corporate market is therefore inestimable. The Internet Service Providers can therefore subscribe this highly effective service and send to their customers a strong message of care and service excellence. 4. 3. 1 Number Allocation A minimum of two numbers is allocated to each ISP. E-1 level standby numbering is also available if lines from two different exchanges or PSTN connectivity are required. 4. 3. How To Apply Prescribed UIN service order forms are available at Corporate Customer Centers. Please fill up the UIN service form and submit it in the office of Manager Corporate Customer Center along with pay order/bank draft covering installation fee and subscription charges in favour of Pakistan Telecommunication Company Limited. 4. 3. 3Installation Charges The installation fee is as follows: |1. |For 1st  131-code          |Rs. 20,000   | |2. |For 2nd 131-code            |Rs. 20,000 | |3. |For 3rd 131-code          |Rs. 5,000   | |4. |Additional 131-code      |Rs. 15,000   | Table 3 For all subsequent 131-code Rs. 15,000 will be charged for each. 4. 3. 4 Subscription Charges Subscription charges are recurring and payable in advance on quarterly basis @ Rs. 3,000 per quarter per ISP code +15% GST. 4. 4 DIGITAL FACILITIES PTCL provides several digital facilities and the customers can get any or combination of these facilities. PTCL offers attractive discount based packages for digital facilities. 4. 4. 1. 1 Immediate Transfer

A customer with this facility may transfer his / her calls to another predefined desired number. A change in dial tone will be observed. 4. 4. 1. 2 Call Transfer On Busy In case the customer number is busy, an incoming call will be transferred automatically to another specified number. Customer is required to feed desired telephone number on which call transfer is required. 4. 4. 1. 3 Call Transfer On No Reply In case the number is not replied, the call will be transferred automatically to another specified desired number. Customer is required to feed desired telephone number on which call transfer is required 4. 4. 1. 4 How to activate

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 by following the procedure. 4. 4. 2Hotline on lifting the handset has a direct link without dialing to a preprogrammed number (after 5 seconds delay), most appropriate for frequently dialed numbers. 4. 4. 2. 1 How To Activate? 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 by following the procedure. . 4. 3codebarring Customers can prevent misuse of their telephone with the help of a code. Customers can change the code at their own whenever they require. The customers can activate or deactivate the facility from their own telephone sets by following the procedure. This facility is free of cost. 4. 4. 3. 1 Abbreviated Dialing Dial a short number (single digit) to get desired number. A maximum of 10 such numbers can be registered. 4. 4. 3. 2 How To Activate 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 by following the procedure. 4. 4. 4 Do Not Disturb Activating of this facility allows customers not being disturbed for a predetermined time for all incoming calls. The caller will get a pre-recorded message. 4. 4. 4. 1 HOW TO ACTIVATE? The facility can be availed 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 by following the procedure. 4. 4. 5 ABSENT CUSTOMER a customer with this facility may inform the calling person about his absence.

This calling person will get an announcement or a special tone. 4. 4. 5. 1 HOW TO ACTIVATE? The facility can be availed 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 by following the procedure. 4. 4. 6 CALL WAITING a customer in conversation with another customer is informed of an incoming call by means of a beep. He/she may put on hold, the current call and attend to the incoming call. 4. 4. 6. 1HOW TO ACTIVATE? The facility can be availed 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 by following the procedure. 4. 4. 7 WAKE UP FACILITY Ringing of a Customers telephone is initiated automatically at the fixed time so specified in advance. In case Customer does not answer the ring at the first offering, subsequent rings follow after five minutes. 4. 4. 7. 1 FACILITY ACTIVATION This facility can be obtained by dialing 14. Only one local call will be charged for each wake up call. CHAPTER no 5 Telephone connection This chapter includes a lot of sub-topics and every topic will be explained in due detail in the upcoming sections.

The sub-topics are as under: Registration and new connection Internal and external Demand note Advice note Disconnection Closing Defaulter Arrears Shifting of telephone Change of telephone numbers Change of name or ownership Restoration of telephone after disconnection Now each sub-topic will be explained in due detail. 5. 1 Registration and new connection Registration is a simple process. What one does is to pick up a form from DE phones/DE telegraphs/PTCL website, fill it and submit it to the DE of telephone or telegraph with the required documents attached.

The required documents are as follows: A. Address in application and NADRA issued NIC is the same NIC only B. Additional telephone in the same name and same premises  No additional documents C. Additional telephones in the same name at different addresses  For Non-STD connection, NIC only. For conversion to STD, either good payment record or Lease agreement would be required. D. Application by family members of owner (spouse and children)  NIC of applicant plus NIC of parents/spouse. E. Application by tenants NIC Lease agreement Then the DE makes a demand note. . 2 Demand note The subscriber pays rupees 100 on a non-custom bill (a bill other than that is used to bill the customers monthly) and receives a receipt. An I. D copy and other home documents are attached with that receipt and then it is sent to the DE. The DE draws a feasibility (sometimes the area will be tight and the applicant has to be refused because of the unavailability of any connection in that particular area from where he or she belongs or some other reasons may arise and he or she might be refused per se) to the supervisor.

If he thinks the applicant qualifies to be given a connection the DE then draws a demand note. The purpose of the demand note is the approval of a connection to the subscriber and without that he or she cannot be given the connection. The demand note contains a full fledge data about the customer and the month and date from which he or she is rewarded a connection and from which they will be billed (The connection date and the billing date might differ in most instances see billing).

And then the customer pays the amount mentioned earlier in the bank (see billing) and goes and reports to the DE and gets a number (after the issuance of the advice note). Provided that the bank is in the customer services section and one will deposit the sum of rupees in that very bank. 5. 3 Advice note The DE also draws advice note. The advice note is for the service of the internal and external (explained later). The customer will give one copy of the said advice note the internal and the other to the external. The internal will eventually allot the number to the applicant.

Some types of the advice note are as under: A change of number advice note (AN) is drawn when some inconvenience occurs to the subscriber and he can get a new number revising the steps discussed earlier. A change of name or ownership AN is drawn when by the agreement of both the parties a number is allotted to the second party. And the transferee in that case will incur all the charges related to that very connection or number. A final closed AN is drawn on a person whose number was disconnected because of not paying the two consecutive months bills.

And on the 60th day his number was disconnected, and now he wants to re connect after paying the due bills. A permanent closing AN is drawn on a person who wants his number be closed permanently and that could be possible if ha has paid all dues against him or her. 5. 4 Internal and external Internal is called internal because his work is mostly in the exchange or within the exchange and the external is called the external because his activities are outside the premises of the exchange and he is also called a lineman.

The lineman goes to the area where the DP is and draws a line for the applicant and informs the internal who then without wasting any time allots a number to the applicant. 5. 5 Disconnection A disconnection occurs when the subscriber is unable to deposit the two consecutive months bills on due time or in the grace period provided for that period (after due date the subscriber has to pay 5% more than the original amount of bill). Such a person is also called a defaulter and he or she is then billed on non-system basis with a different and simple structure of a bill. And after the two months final closing or disconnection occurs.

Other cases or reasons of disconnection include: Heavy calling: in this case a person will make a lot of calls a month but the bill against him or her will not be accordingly high and by knowing this his or her number will immediately be disconnected. Disconnection due to other number: Some times the customer has more than one number in use. Circumstances may arise where he or she might become defaulter on any one of those numbers. In this very case all other numbers in use of that person will be disconnected so that to get due payment against the defaulted number. 5. 6 Arrears

Some times the connection is awarded to a person in themed of the billing month whereas the billing month starts from any other date. For example a person might be given a connection on 22nd November whereas the billing month will start from 1st December to 31st December. In this very case that particular person is billed for the amount of the billing month only and the amount against the eight days of November is shown as arrears in the bill of the billing month in the arrears section given on the bill and that person is charged for that too. So no separate bill is issued for the arrears of non-complete months. . 7 Installation charges for urban areas For urban areas the installation charges for new connection are Rs. 750 plus GST at 15%. The line rent per month is Rs. 174 and GST is 15% of line rent. The GST revenues go to CBR whereas the billing revenue is of PTCL. So the total line rent charges are Rs. 200 (174+. 15*174=200). 5. 8 Installation charges for rural areas For rural areas the installation charges for new connection are Rs. 500 with 15% GST. And the line rent charges is with the same composition as was for the urban areas. 5. 9 PTCL Charges for Local Call

PTCL Charges and timing for local call unit are as under: |Particulars |Rates (in Pak Rupees) | | |From 0700-2230 Hours |From 2230 to 1200 & |From 1200-0600 Hours | | | |0600-0700 Hours | | | |Pulse Duration: 5 |Pulse Duration: 10 |Pulse Duration: | | |Minutes |Minutes |Unlimited | |PTCL Call Charges |2. 01 |2. 1 |Free | Table 4 The PTCL unit price for pulse duration shown in the above table shall be Rs. 2. 01 up to 25 KM whether the dialing is made through zero based system or numbering based system. This will supercede the circular of even number dated November 24, 2003. Free local calls will not be available to Payphones and special services i. e. 0800, 0900, UAN and UIN. Free local calls facility will be available within PTCL network only. For interconnect calls i. e. PTCL to Mobile/others operator’s network applicable tariff will be charged from customers.

Free local calls will be for six months and then PTCL will review it. 5. 10 RESTORATION OF TELEPHONE CLOSED DUE TO NON-PAYMENT OF PTCL BILL A customer can get his telephone restored within 59 days after clearing all outstanding dues. The outstanding dues to be cleared by the customer for restoration of his telephone include the followings: All outstanding amounts against his telephone including surcharge. Line rent for two months following the month of default. 4. 11 RESTORATION AFTER 59 DAYS If telephone connection is restored in 59 days the following conditions may pply: Telephone connection will be restored subject to technical feasibility. Customer has to pay the following charges for the restoration of service: All PTCL charges outstanding against his previous telephone connection. . Connection restoration charges of Rs. 500 + 15% GST. 5. 12 Closing of Telephone The valued customers can close their   telephone numbers if they need so. Following are the categories of closing telephone. 5. 12. 1 Premises being Shift On shifting from one premise to another, the telephone can be closed at the original premises (free of cost) to avoid misuse. 4. 12. 2 under safe custody

Telephone can be kept under safe custody for a maximum of 6 months subject to advance payment of prescribed line rent. Tariff |Restoration fee with in a period of seven days from the date of disconnection |Rs. 12 | |Restoration fee with in a period of 14 days |Rs. 24 | |Within 59 days |Rs. 60 | |Exceeding 59 days |  Rs. 500 | Table 5 These charges apply to the change of name and ownership and to the change of telephone number as well.

CHAPTER NO 6 CHAPTER NO 6 Strategic analysis of PTCL In the worlds of Peter Drunker, any business, manufacturing or any other, is a business owned by its customers. Because any thing you produce or any service you provide has to be produced or provided, viewing the customer’s choice and taste. And therefore it is concluded that the customer is the ultimate boss of any business. “This standing of a business in a customer mind is known as the image of that very business”. Image of any business is one of the most important things for any type of business.

Whether you want to produce some thing, want to capture a market, penetrate a market, go globally or want to diversify the product line or lines, each and every decision and strategy is taken and formulated keeping in view, how does the business stands in customer’s eyes? Or what is it is ranking in customer mind? A good quality product of a bad image company or a company with new existence would not sell it all or would not meet the standards or objectives and goals but a poor quality product or a produced of a fair or medium (not super quality) would sell like products of super quality, “Just because of its image”.

But customer’s image of a product or products or of a company is not “the whole fact”. Rather a company’s own management’s view about its own company or business is also very important. The management of a company, oblivious of the fact, where its company or business stands in customer (s) eye, could never make its company or business popularized in customers and couldn’t develop its company’s or business good or sound image. Only when the management would know its standing would they strive for the development of sound image and the business or company would get customer acceptance.

How would the management know about its company’s or business standing? So many methods or adopted for that purpose. One such tool is called “SWOT”. What is SWOT? Actually SWOT stands for: |S |—————- |Strengths | |W |—————- |Weaknesses | |O |—————- |Opportunities | |T |—————- |Threats | SWOT is a tool, used by the management of a company (internally) to know; where does its business stand? The management by applying this tool comes to now about its strengths and weakness, which is its internal environment. The management then, knowing its SWOT, formulates 4 types of strategies, to improve its image, standing or existing condition. These four types of strategies are formulated through TOWS matrix. Through TOWS matrix 4 type’s strategies are formulated, namely: SO Strategies ST Strategies. WO Strategies, and WT Strategies. SO strategies are formulated to exploit internal strengths to grab external opportunities. ST strategies are aimed at spotting and exploiting strengths to avoid external threats.

WO strategies are for recognizing the organization’s internal weaknesses to avoid them to grab external opportunities and finally WT strategies are made to recognize the weaknesses to fix them to avoid threat. The ultimate aim of the company concerned will be to add to its strengths. This addition to strengths is done by converting opportunities and weakness into strengths. And by avoiding weakness, evading the threats to be the strengths for the company in future. So at its climax, the “SWOT” becomes or should become only “S” together with its TOWS matrix to see where any chance (s) exist for its further improvement. . 1 SWOT AND TOWS OF PTCL |Strengths (S) |Weaknesses (W) | | |Monopolistic power in telecom | |Weak internal analysis. | | |Abundant resources | |Government venture. | | |Good financial position | |Employee’s dissatisfaction | | | | |(currently). | |Quality service | | | | |Diversified service | | | | |Good sound image | | | |Opportunities (O) |SO |WO | | |Innovation |A: S1O1, B: S1O2 |A: |W1O1 | | |Market Growth |C: |S2O1, D: S2O2 |B: |W1O2 | | |E: |S3O1, F: S3O2 |C: |W2O1 | | |G: |S4O2, G: S3O2 |D: |W2O2 | | |I: |S5O1, J: S5O2 |E: |W3O2 | | |K: |S6O1, L: S6O2 | | |Treats (T) |ST |WT | |1. |Competition |A: |S1T1 |A: |W1T1 | |2. Devaluation |B: |S2T1 |B: |W1T2 | | |C: |S3T1 |C: |W2T1 | | |D: |S4T1 |D: |W2T2 | | |E: |S5T1 |E: |W3T1 | | |F: |S6T1 |F: |W3T2 | | |G: |S4T2 | | | | |H: |S6T2 | | | Table 6 As we can see that the SWOT-TOWS of PTCL suggests about 31 strategies by which PTCL can make itself more adaptable to the “change process” and can prolong its good image and keep good running position for long period further. “It can prevent its image to be damaged”. Here I will give a brief explanation of the strategies, suggested by SWIT-TWOS.

The strategies, which I think, could be proved very much beneficial for PTCL have asterisk (*) upon them, although all these 31 strategies are beneficial and important for PTCL. 6. 1. 1 SO STRATEGIES FOR PTCL: A summary of the strategies is as: PTCL can prolong its monopolistic position and strengthen it through innovation. The more monopolistic a firm is, the more market it has under its influence. Abundant resources and good financial position are keys to innovation and market growth. Quality service together with innovative behavior gives a company an edge over others and helps it grow its market. Diversified service is not possible without innovation.

And market growth is only possible with bringing diversity into its service, so that to target different markets, segments or niches, through different service. Good sound image is prolonged through innovation and as long as a company has good image, its market will be growing. It should be remembered that even very good image, starts smelling badly without innovation. 6. 1. 2 ST STRATEGIES FOR PTCL: These are summarized as: PTCL’s all strengths could be used as shield against competition. When you start a business and establish a monopoly in it, you always believe that your business will, sooner or later, be started by other people called competitors.

And that’s why you always get ready for it and make arrangements in advance that if competitors enter your market, you still get the highest share. And this can only be done if your business is resourceful and financially strong just as PTCL is. Good quality always gives you an edge and if it is impaired then you are done. Diversified services and good image are “the most important” elements for defeating competition. By Devaluation here I mean that could take place and PTCL’s image could be impaired by elements like bad quality. So good quality is a very important element and it will help you avoid any damage to your image. 6. 1. 3 WO STRATEGIES FOR PTCL:

Weaknesses of PTCL are very few but those few are very or can be very hazardous. So these strategies are very important for PTCL. PTCL has weak internal analysis and if could avoid it, it can grow its market even more and that will need some innovation as well. Rather internal analysis will help you innovate and seen innovative ways more and more. Fore example PTCL, currently, is losing a huge potential market just because of the levy of line rent of 200 rupees that a customer has to pay even if he or she has not made even a single call. Because of that many poor, middle class and blue collar people, even badly wishing to have a telephone connection at home, are not applying for connection.

If PTCL could install a telephone freely, foregoing about Rs. 500 for same time why can’t it forego the line rent, even experimentally? Long-term profits should be viewed instead of short-term. This strategy is also related somehow to the first one. Government ventures lack innovation and therefore PTCL should be privatized immediately. So that to have more and more innovation and to grow the market more and more. (This strategy has already been recognized by the government and PTCL is going to be privatized very soon). Currently the employees of PTCL are dissatisfied, just because of PTCL being a government venture. Although these employees enabled PTCL to get Rs. 0 billion after tax profit (PAT), and they as a result must be positively re-enforced, get instead of doing that government didn’t give 15% increment on their basic salaries……why? Government is not accepting their due demands? So in situations like these it becomes even harder to keep the current good flow going than to grow the market further. So employee’s dissatisfaction must not be there if we want to grow more and more. 6. 1. 4 WT STRATEGIES FOR PTCL: Internal analysis will help us grow the market (as discussed earlier) and as a result PTCL will be able to beat the competitors. Internal analysis will enable PTCL to keep its value positive and at peak. Lack of internal analysis (as discussed earlier) has caused PTCL to lose some of its precious value already.

This is the most important “Government venture” label must not be there any more because it’s the government because of whom, devaluation of PTCL has taken place (discussed earlier) so PTCL must be privatized and that’s the only way to beat strong competitors too. Also very much important dissatisfied employees are least motivated to do any work or to do good work (PTCL is observing strikes now-a-days as we see). And in that case how would it compete with competitors and how will it get its value back. So satisfaction and positive re-enforcement is must for the employees to work in a best possible manner. CHAPTER NO 7 REGULATION FOR TELE- MARKET LIBERALIZATION

Last decade saw a number of changes happening in telecommunications industry and most predominantly the emergence of Internet, innovations and inventions in electronic equipment and software applications. Globalization and international trade on one end and ICT (Information Communication Technology including telecommunications on the other end, have created a new way of life to be lived. Numerous state-owned telecommunications operators were privatized, and a wave of pro-competitive and deregulatory telecommunications policies swept the world. New market-based approaches to the supply of telecommunications services were introduced in scores of countries.

This liberalization of telecommunications markets was motivated by various factors, including: Increasing evidence that more liberalized telecommunications markets were growing and innovating faster and serving customers better. The need to attract private sector capital to expand and upgrade telecommunications networks, and to introduce new services. Growth of the Internet, which caused data traffic to overtake voice traffic in many countries, and led to the introduction of many new service providers. Growth of mobile and other wireless services, which provided alternatives to fixed networks and introduced new service providers to telecommunications markets.

Development of international trade in telecommunications services, which are increasingly provided by transnational and global service providers. The objectives of telecommunications regulation vary from country to country. Governments in most countries continue to see telecommunications as an essential public service. Even they no longer run telecommunications networks, governments normally retain a regulatory role to ensure that telecommunications services are supplied in a manner consistent with national perceptions of the public interest. 7. 1TELECOMMUNICATIONS REGULATORY FRAMEWOR

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