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Pakistan Telecommunication LTD

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Pakistan Telecommunication
LTD

Financial
Management

A PROJECT ON

FINANCIAL STATEMENT
ANALYSIS

COMPANY: PTCL

YEAR taken: 2006 to 2010


(Session 2009-2013)

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Pakistan Telecommunication
LTD

Acknowledgement

Thanks to Almighty Allah for enabling us to fulfill all the requirements for the
completion of our project report.

It would not be a justice in presenting this report without mentioning the people
around us who have been inextricably related with the completion of this
report. For assisting us in all respect and regards to complete this report our
heartfelt thanks to our teacher
SIR RIAZ HUSSAIN, who enriched us knowledge with wealth, led ideas to
pursue and power of writing this project. It could not have been possible to
accomplish this report without his thoughtful guidance and expertise. It is also
a great pleasure to record honorable regards to all those who helped us lot in
learning and enhancing our knowledge and ability during the project especially.

Finally for all possible errors, omissions and shortcomings in writing of this
report only are responsible for which we hope that all concerning regards of
this report will forgive us.

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Pakistan Telecommunication
LTD

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Pakistan Telecommunication
LTD

CONTENTS

Topic page number

Preface………………………………………………………………………………..05

Dedication ………………………………………………………………………….06

Executive summary………………………………………………………………………08

President message ………………………………………………………………14

Company
introduction……………………........................................................................................10

Financial
ratios……………………………….........................................................................................43

Conclusion………………………………………...........................................................79

References……………………………………....................................................................80

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Pakistan Telecommunication LTD

PREFACE

We had to complete this project because it was included in our


financial management course. This project is about financial
statement analysis of PTCL Company. We have conducted a
mathematical research on PTCL financial position. We collected data
from internet regarding the basic financial statements about the
company.
During our project completion our group faced also some troubles,
data shortage, their entry problems and time shortage. Anyhow we
were passionate about our first project so we completed it with hard
work and continuous struggle.

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Pakistan Telecommunication
LTD

DEDICATION

DEDICATED
TO Our PARENTS
WHO ALWAYS
LOVED US
& all those who have a soft corner
for us in their hearts

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Pakistan Telecommunication
LTD

EXECUTIVE SUMMARY

T his project is about management affairs and management hierarchy of PTCL. PTCL is

the largest and solely line based communication system in Pakistan. The purpose of
this project is to practically know about all the aspects of management of PTCL.

This is a report on PTCL (Pakistan Telecommunication Company


Limited). This assignment is assigned to us by Sir RIAZ HUSSAIN. In this report there is a
detailed introduction of the PTCL and its top management, middle management and lower
management and their functionality as well services.

V fone

PAK Net

Smart Services

We also discussed its financial aspects in which we took the analyzed is liquidity
And its profitability position. We got information about PTCL business strategies,
Motivations procedures and its internal and external resources and departmentalization,
(Engineering finance, marketing and also the HR department of the PTCL. It also includes
the functions of HRM e.g. selection, training and development, motivation, maintenance and
other functions of HR department. At the end of this project we have written down the
SWOT analysis of PTCL Company.

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Pakistan Telecommunication LTD

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Pakistan Telecommunication LTD

Introduction
As per given task we chosen Telecommunication industry due to getting a better place in
market and their growth rate boost up day by day.
If we see market over view of telecommunication industry in Pakistan that telecom sector is
seeing exorbitant growth in Pakistan.
Mobile subscribers are in 2009 were 90.7 million and in December 2010 the mobile
users reached over 100 million.
Currently 102.8 million as of February 2011, according to Pakistan Telecommunications
Authority (PTA), 2.7 million subscribers are added monthly. In fact Pakistan has the highest
mobile penetration rate in the region. According to the PTA, Mobilink continues to lead the
market with 31.4 million subscribers, followed by Telenor (24.01 million), Ufone (20.18
million), Warid Telecom(17.16 million) and Zong (7.78 million).

The telecom infrastructure is improving dramatically with foreign and domestic investments
into fixed-line and mobile networks; fiber systems are being constructed throughout the
country to aid in network growth. Major businesses have established their own private
systems; since 1988, the government has promoted investment in the national
telecommunications system on a priority basis, significantly increasing network capacity.
There are currently 7 million landline subscribers in the country.
Our selected Company is "Pakistan Telecommunication Company Limited" (PTCL)
which is the largest telecommunication company in Pakistan.
The Government of Pakistan sold 26% shares and control of the company to Etisalat in
2006 which is a Dubai based company.

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Pakistan Telecommunication LTD

Company Profile
PTCL operates in one of the most dynamic, deregulated and competitive markets in the
world; Pakistan with a population of 171 million people is a fast growing economy with
relatively low penetration of Information Communication Technology (ICT) services.
PTCL intends to be the leading ICT provider in the region by achieving customers'
satisfaction and maximizing shareholders' value and as such PTCL perceives its future as
a customer centric organization enhancing its infrastructure and investing in people.
PTCL have 6.5 million customers and also continues to be the largest CDMA operator in
the country with 01 million V-fone customers the Employee strength of 65,000
The company maintains a leading position in Pakistan as an infrastructure provider to
other telecom operators and corporate customers of the country. It has the potential to be
an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fiber
Access Network in the major metropolitan centers of Pakistan and local loop services
have started to be modernized and upgraded from copper to an optical network.
Since then, PTCL has been working vigorously to meet the dual challenge of telecom
development and socio-economic uplift of the country. In keeping with the convergence of
technologies in the telecom sector PTCL’s mobile and internet subsidiaries were created
in 1998.
Ufone, the country’s second largest mobile service provider, boosted its operations by
rolling out the country’s largest ever expansion of its network, worth US$ 525 million. The
new investment aims to expand capacity and coverage in existing and new cities, as well
as providing high speed cellular mobile and wireless data services. By mid-2008 the two
major expansions will give Ufone coverage in over 4,500 cities, towns and villages, and
all major highways in the country.
Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication
company in Pakistan. The Government of Pakistan sold 26% shares and control of the
company to Etisalat in 2006.

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Pakistan Telecommunication LTD

Corporate and Commercial Initiatives


As part of the transformation of PTCL, the management initiated work on the re-branding of
the Company as a modern and customer-centric national carrier. Externally changing the
logo was carried out to reflect the commitment to the customers and the modernizing of the
infrastructure. Internally it gave employees a new zeal to stimulate the mindset change from
a technology and operations focused company to a competitive carrier that has customer
services as its hallmark.
PTCL made several investments in infrastructure development and added network capacity
to enhance services and expand its reach across the country. The market in Pakistan is
extremely competitive and PTCL has the largest nationwide installed network infrastructure
capability including switching, transmission, fibre optic backbone, co-location and
international capacity. This gives PTCL a unique position in terms of providing to carriers
and individual consumers alike.
With the introduction of Vfone, the new CDMA-based WLL platform of PTCL, is poised to
become the largest fixed wireless telephony network in Pakistan. On the wireless broadband
front, a major upgrade of the WLL CDMA network was rolled out in order to provide wireless
broadband services in 17 major cities.
Broadband Pakistan offers DSL services with unmatched reliability, affordability and
connectivity. Customers have the option to packages with varying speeds from 512Kb to
2Mb with unlimited downloads. Broadband customer service is available twenty-four hours a
day, seven days a week at 1236 with highly trained and professional representatives.
As part of offering converged services, expanding its service portfolio and improving
customer retention and acquisition, PTCL initiated the multi-channel Inter Protocol
Television (IPTV) project during 2006-07. This will be a landmark addition to the PTCL
service portfolio and will enable the company to provide Triple Play (voice, video and data)
services over a single fixed line connection. With IPTV the customer will be provided with a
single interface to satisfy his communication and entertainment needs along with single
billing.
Keeping in mind customer convenience, PTCL is actively engaged in bringing an array of bill
payment options to its customers. PTCL customers now have the flexibility to choose
between dropping a cheque in a drop box at a location near them to sending their payments
through mail at a nearby post office.
PTCL has also offered a dedicated service to provide billing information to its valued
subscribers who can simply dial '1200' to access instant billing information of the required
PTCL service. With the introduction of this service, customers no longer need to personally
visit customer service centers to find out what their bill amounts are and the automated
service is available twenty-four hours a day, seven days a week to further facilitate
customers.
Moreover, PTCL has introduced a variety of valued added services for its customers while a
number of others are in the pipeline.
Alongside the many packages and services PTCL is continually seeking ways to facilitate its
customers of which payment cards and electronic modes of payments are just a part.

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On the technical front, PTCL has laid an Optical Fibre Access Network in the major
metropolitan centres of Pakistan and local loop services have started to be modernized and
Pakistan Telecommunication LTD

upgraded from copper to an optical network.


PTCL has invested in the capacity of two SEA-ME-WE submarine cables to meet the
increasing demand of international traffic. Additionally, PTCL is also part of a consortium
that will put in place a high-capacity fiber-optic submarine cable that stretches from India to
Italy and France via the Middle East, named I-ME-WE, to provide effective resilience to the
existing cable systems (SMW3 & SMW4).

PTCL has also signed an agreement with Huawei Technologies Pakistan and Hewlett
Packard (HP) to jointly launch the ‘Network Operation Center’ project which has state-of-the-
art fault detection and resolution technology. This project would establish one main network
operation center and three regional ones with the implementation of an alarm management
system across the entire PTCL network in an integrated manner.Beyond improved
packages and new products, PTCL, as a socially responsible corporate entity, has been
pursuing different social causes touching on areas of culture, sports, music, environment
and general welfare by supporting different initiatives.
As such, PTCL’s CSR activities and new ventures are warmly welcomed .

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Pakistan Telecommunication LTD

President's Message (PTCL)

I have taken immense pride in assuming the duty as President and CEO of
PTCL, which is a great opportunity for me to execute my responsibilities as a
team leader. To me Pakistan and PTCL are synonymous
with an opportunity for growth. The potential of this growth is
visible to me as it is about the human capital we have in the
form of talented and experienced employees. I can assure
you that with the traditional dedication and determination of
PTCL workers we will transform this company into a world
class ICT company.
I am proud of my fellow colleagues who have been leading the
market so far and have been adapting to changing
technological advancements. After the
deregulation in the telecom sector of Pakistan, PTCL is now again ready to
face new challenges in a
competitive environment.
We are poised to retain our leadership position by giving PTCL a new and
improved look. The new colors of the Logo are in context with every
Pakistani’s sense of identity and patriotism; green and white being the colors
of purity and honesty, the colors of trustworthiness and integrity, the colors of
Pakistan’s flag and the colors of every Pakistani’s passion.
Be assured that PTCL will remain the people’s first choice of communication
in the future. Promising you the best of our services, at all times.
Best Wishes

Walid Irshaid
President & CEO

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Pakistan Telecommunication LTD

Vision

To be the leading Information and Communication


Technology Service Provider in the region by
achieving customer satisfaction and maximizing
shareholders' value'.
The future is unfolding around us. In times to come, we
will be the link that allows global communication. We
are striving towards mobilizing the world for the future.
By becoming partners in innovation, we are ready to .
shape a future that offers telecom services that bring
us closer.

Mission
To achieve our vision by having:

1. An organizational environment that fosters


professionalism, motivation and quality.

2. An environment that is cost effective and quality


conscious.

3. Services that are based on the most optimum


technology.

4. Quality and time cincious customer services.

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.

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Pakistan Telecommunication LTD

HISTORY (PTCL)

1947 to 1996
From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of
Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in
telecommunication in Pakistan. Despite having established a network of enormous size,
PTCL workings and policies have attracted regular criticism from other smaller operators and
the civil society of Pakistan.
Pakistan Telecommunication Corporation (PTC) took over operations and functions from
Pakistan Telephone and Telegraph Department under Pakistan Telecommunication
Corporation Act 1991. This coincided with the Government's competitive policy, encouraging
private sector participation and resulting in award of licenses for cellular, card-operated pay-
phones, paging and, lately, data communication services.
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC,
and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be
PTCL in two separate placements. Each had a par value of Rs. 10 per share. These
vouchers were converted into PTCL shares in mid-1996
1998 to 2003
In 1996, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL
monopoly over basic telephony in the country. It also paved the way for the establishment of an
independent regulatory regime. The provisions of the Ordinance were lent permanence in
October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year,
Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of
Pakistan
PTCL launched its mobile and data services subsideries in 2001 by the name of Ufone and
PakNet respectively. None of the brands made it to the top slots in the respective competitions.
Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand
has effectively dissolved over the period of time. Recent DSL services launched by PTCL reflect
this by the introduction of a new brand name and operations of the service being directly
supervised by PTCL instead of Paknet.
As telecommunication monopolies head towards an imminent end, services and infrastructure
providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with
deregulation of the sector in January 2003. On the Government level, a comprehensive
liberalization policy for telecom sector is in the offing.
2004 to Date
In the middle of 2005 Government of Pakistan had decided to sell at least 26 percent of this
company to some private agency. There were three participants in the bet for privatization of
PTCL. Etisalat, a Dubai based company was able to get the shares with a large margin in the
bet.
In this year when Government was going to privatize the company there was country wide
protest and strike by PTCL workers. They even disrupted Phone lines of some big
Government institutions like Punjab University Lahore and many lines of public sector were
also blocked. Military had to take over the management of all the Exchanges in the country.
They arrested many workers and put them behind bars. The contention between Government
and employees ended with a 30% increase in the salaries of workers.
Many big change events are happening in PTCL at the moment after its privatization. these
include the VSS (Voluntary Separation Scheme for its employees), ERP (SAP based),
restructuring, B& CC (Billing and Customer Care Software) etc. Another seemingly minor change
was change of brand identity (logo) that will present PTCL's new face after privatization, with
Bahaudin Zakaria University Multan(sub campus sahiwal) 17
greater focus on customer satisfaction and bringing about of new advancements in telecom for
Pakistani consumers.

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Pakistan Telecommunication LTD

Alexander Graham Bell

(3 March 1847 – 2 August 1922) was an eminent scientist, inventor and innovator
who is credited with the invention of the telephone. His father, grandfather and
brother had all been associated with work on elocution and speech, and both his
mother and wife were deaf, profoundly influencing Bell's life's work. His research on
hearing and speech further led him to experiment with hearing devices that
eventually culminated in Bell being awarded the first U.S. patent for the invention of
the telephone in 1876.
Many other inventions marked Bell's later life including groundbreaking work in
hydrofoils and aeronautics. In 1888, Alexander Graham Bell was one of the founding
members of the National Geographic Society. In reflection, Bell considered his most
famous invention an intrusion on his real work as a scientist and refused to have a
telephone in his study. Upon Bell's death, all telephones throughout the United
States "stilled their ringing for a silent minute in tribute to the man whose yearning to
communicate made them possible

Born 3 March 1847 Edinburgh, Scotland.


Died 2 August 1922 (aged 75)
Beinn Nova Scotia, Canada.
Bhreagh, Pernicious anemia
Cause of University of Edinburgh University College London University of Toronto
death Inventor, Scientist, Professor (Boston University)
Education Inventor of the telephone
Occupation Mabel Hubbard (married 1877–1 922)
Known for (4) Two sons who died in infancy and two daughters
Spouse Alexander Melville Bell Eliza Grace Symonds Bell
Children Gardiner Greene Hubbard (father-in-law) Gilbert Hovey Grosvenor (son-in-law)
Parents Melville Bell Grosvenor (grandson)

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Pakistan Telecommunication LTD

Subsidiaries
Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its
operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has
expanded its coverage and customer base at a rapid pace and established itself as one of the
leading cellular service providers in Pakistan. Ufone is now considered to be one of the most
active, aggressive and innovative players in the mobile sector of Pakistan.
The growth of the cellular industry is a direct result of the successful implementation of the
telecom deregulation and cellular mobile policy by the Ministry of IT and
Telecommunications (MOIT&T) and the support, guidance and timely enforcement of
regulatory process by the Pakistan Telecommunication Authority (PTA).

Privatization
The growth of the cellular sector in Pakistan can also be attributable to good governance
policies of the government of Pakistan and the Privatization Commission. In April 2006,
Emirates Telecommunication Corporation, which is commonly known as Etisalat, has
assumed management control of Pakistan Telecommunication Corporation Ltd – part of the
$2.6bn deal to buy a 26% stake in PTCL. The successful privatization of PTCL, and
consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan.
Now, under the management of Etisalat, Ufone will concentrate on customer needs and
benefits and is more determined than ever to be the leading cellular player in the market.
Ufone has been known for providing superb propositions and quality service to its
customers. With the new expected investment, Ufone can now aggressively expand its
network coverage.

Key Accomplishments
Ufone has always played a pivotal role in the development of the cellular market in Pakistan.
For the most part, it has been a step ahead in introducing innovative products to the market.
Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service
(MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid
international roaming for these services in the Pakistani market.

Performance
As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has
maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of
around 6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth
rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million
subscribers onto its network. A remarkable achievement indeed, especially considering the
fact that two new international players also entered into the market in 2005. Subsequently
the growth in subscriber base caused a healthy trend in revenues which have doubled.

Brand
While keeping its tradition of being the trend setter in the industry, Ufone changed the image
of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the
common man. Since its inception, Ufone has positioned its brand for masses. In keeping
with the upcoming competition and market dynamics, Ufone increased its focus on the youth
segment (which comprises 50% of the population), with the Prepay brand. By designing

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Pakistan Telecommunication LTD

market focused products, Ufone’s brand team launched aggressive campaigns, which
further increased the brand equity. The new brand image gained huge popularity amongst
the targeted market. A recent marketing survey conducted by a prominent marketing
research company showed that Ufone has considerably increased its brand visibility and

image. Ufone’s Prepay brand is now considered to be one of the most favored brands by the
youth market and is followed by other mobile operators launching their respective brands for
the youth market.

Product and Pricing


Since the recent telecom de-regularization and the issuance of two more GSM licenses, the
Pakistan telecom market has become very competitive and is changing at a very fast pace.
Remaining competitive has now become a challenge. Ufone once again set a trend in the
market by introducing simplified tariffs. The company has two main product lines (prepaid
and post paid) for all its valued customers. To capture every segment of the market, Ufone
has further customized its packages. Postpaid is further differentiated into 4 plans including
a very competitive Zero Line Rent package. Ufone has introduced a very simplified tariff
structure for its customers with a flat rate of Rs. 2.50/ minute to any operator all over the
country. The on net off peak rates also remain amongst the lowest at Rs. 1.50/ minute.
Similarly Ufone has the most competitive SMS, GPRS and MMS rates having the lowest
international SMS rate at Rs. 1.50. These simplified tariff plans and user friendly packages
have greatly helped Ufone in becoming the fastest growing operator in the country.
Ufone understands the need to communicate effectively and efficiently at all levels of society
and its various products are catering for the needs of the Pakistan corporate market. It offers
services such as mobile office and the Virtual Private Network (VPN) which have
revolutionized communication.

International Coverage
Ufone provides International Roaming facility with more than 150 international operators
across 79 countries. Ufone has GPRS roaming agreements with several international
operators and also provides prepaid roaming facility to selective destinations.

Customer Service
Ufone is proud to have an efficient and friendly customer service through 21 company-
owned Sales & Customer Service Centers and nearly 250 franchisees across the country.
The outlets are able to service the customers with innovative solutions, and are empowered
with Web based franchise management systems. Ufone is poised to face the ever
increasing challenges of the market and is confident it will attract new customers. It has the
ability to retain its existing customer base with a high level of customer satisfaction via
optimum network service and a 24 hour call center facility.

Network Coverage
Ufone has always believed in a solid commitment to growth, security and reliability.
Therefore, Ufone has always balanced its expansion efforts and quality of service. With a
total current investment of $400 Million, Ufone has network coverage in more than 260 cities
and towns and across all major highways of the country.
Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company
committed to excellence. Under the new vision of Etisalat and with the support and
collaboration of its employees and vendors, Ufone aspires to be the best in the market by

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Pakistan Telecommunication LTD

DEPARTMENTS OF PTCL

Every organization is divided into definite departments. Each department


performs different kind of jobs and requires staff with specialized skills to handle
particular job. This increases the efficiency of workers and makes.
There are several aspects on which departmentalization in an organization can be
based. The division can be done on the basis of function, product, customers or
geographical locations.
The PTCL Head Quarters is comprised of several departments. The division is
made on the basis of function they perform. Hence it can be concluded that PTCL has
adopted the policy of functional departmentalization. The main departments of PTCL are
mentioned below.
1.Human Resource Management Dept.
2.Finance Dept.
3.Commercial Dept.
4.Operational Dept.
5.Technical Dept.
6.IT Dept.
7.Corporate Affairs Dept.
8.Special Projects Dept.
9.Marketing department
10.Customer care departments
11. Revenue department

HUMAN RESOURCE DEPARTMENT.


1. It is a huge organization and being considered as one of the biggest company in
Pakistan.
2 .It has more than 56,000 employees and a huge network of organizational
management has been spread throughout the country.
3 . PTCL is engaging a substantial number of experts and specialists of standing
caliber in different spheres of profession.
4.Job analysis and revision of jobs description was undertaken for improving the
performance standards.
5. To meet the future challenging situations in the face of privatization and post
monopoly challenges, a corporate culture and competitive environment has to be
developed, for which all the available resources have been taped.

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Pakistan Telecommunication LTD

6. Special training courses and workshops have been conducted for the top and
middle management through reputed organizations like LUMS.
7. Efforts are being made to improve productivity and efficiency of the Company
while emphasis is also being placed on effective management employees
relationship and better line of communications to achieve corporate goals
Finance department
This department is divided into following three sub-sections:
•Finance
• Accounts
• Revenue
The Finance Wing deals with the revenue matters of the company & the Accounts
Wing is responsible for proper book-keeping of the financial transactions, commercial
audit & preparation of periodic accounts of the company. The Accounts Office of PTCL
is in Lahore.
Finance is the backbone of every organization because without finance any
organization can’t run its business. It plays an important role in determining the long-
term objectives and evaluating the feasibility of the business. The financial activities of
PTCL have been split up into three major branches: Finance, Accounts & Revenue. The
details regarding this section will be covered in finance section with reference to my
project

Commercial Department
1. Commercial section with qualified/experienced staff is being established.
2. Company section is taking both short-term and long-term view of emerging trends
of highly competitive markets as its monopoly is coming to an end.
3. It analyzes all the possible Company options, i.e. introducing new services,
adopting new technologies to maintain the leading role in the sector and preserve
its dominant position in the industry

4. The Company likes to reiterate that it will continue to play a prominent role in
Telecom sector of Pakistan.
5. It considers that one of the most important aspects of the forthcoming competitive
environment is pricing of products and services.
The new paradigm would require cost-based services with thin-profit margins but
higher volumes. Inherently, PTCL services were not cost-based. There were in-built
subsidies and long distance calls, both domestic and international, were highly priced.
The Company, therefore, evolved strategies of gradual price rationalization
Commercial department should try to make PTCL the most profitable organization,

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which should generate a great deal of revenue in local & foreign currency.
Operational Department
Manages operations of PTCL HQ, with regional offices, branches, and,
subsidiaries as well as with other corporations.
Technical Department
This department is engaged in the management and control of technical aspects of
the company, e.g. technical manpower, technical training, technical equipment, etc.
IT Department
This department is established to introduce new and advance technology in PTCL.
Due to IT department working system is to converted in a computerized system.
Corporate Development Department
This department deal corporate level issues such as PTA, International Telecom
Union, Legal and Regulatory affairs etc.
Special Projects Department
This department is doing their activities on behalf of president.
Marketing Department
Marketing Department is called a revenue-generating department of an
organization. Marketing Department undertakes market research and gives
feedback to management about customers needs and wants on the basis of
which, products and services are developed and positioned to give value
to the customers.
CUSTOMER CARE & CUSTOMER SERVICES DEPARTMENT
PTCL has established its Customer Services Department at different levels the
overview of the said department is as follows.
Corporate Customer Care Center
To facilitate Corporate Customers PTCL has established Corporate Customer
Care Centers at all Operation Regional Head Quarter Level, in all the meager cities
country wide. The Corporate Customers can get their problems resolved under one roof
in a one window environment by dialing UAN 111-20 20 2. The Customer Relation
Officers register the complaints & forward these to the related office.
Customer Services Centers
To facilitate consumers PTCL has established Customer Services Centers at all
Tehsil Level cities/offices. Here the consumers can use Fax Facility, Voice Telephony for
Local/NWD/ISD dialing. On divisional Offices Level duplicate phone bills may also be
obtained from C.S.C’s.
Toll Free Help Lines
PTCL offers state-of-the-art call center network to its all type of valued customers
for convenient frequently asked Questions, Complaints regarding their services, T/No

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Pakistan Telecommunication LTD

enquiry. The following three Toll Free T/Numbers are available for this purpose.
REVENUE DEPARTMENT
The revenue generated by the marketing department through selling the company
services/products is collected by the Revenue Department. The roles played by the
Revenue Department are following:
i. Bill Printing & Distribution
ii. Issuance of Duplicate Bills.
iii. Error correction of Bills.
Iv Collection of defaulter amounts.
Bill Printing & Distribution:
The printing is basically carried out by regional billing computer center at every
regional headquarter. These printed bills are handed over to Post Office after sorting &
stapling by the Assistant Revenue Officer’s staff at Distt level
Issuance of Duplicate Bills
In case of missing or damaged bills received to customers the correction is also
Revenue department’s responsibility. For this purpose the revenue office deputes its staff
for each Tehsil level PTCL office during the bill payment dates normally from 18th to
30th of each month.
Error Correction of Bills
In case of late payment or any other discrepancy due to missed collection by
banks the previous amount is also included in the new bill. The revenue office is
responsible for such kind of correction.
Collection of Defaulter Amounts
The amounts defaulted by the customers or the bad debts are also collected
through revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target
of bad debts collection on monthly bases. Now a days as incentive is also offered on
more than 100% recovery each month.

Mobilink
Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having more
than31,958,597 users base which is the 36% of total cellular industry of Pakistan. Mobilink
isbasically competing Ufone which is subsidiaries of PTCL.
Telenor
Telenor is another cell phone company it have 17,841,074 subscribers which is 20 % of
totalmobile industry.
Warid Tel
Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more
than15,114,678 subscribers which is 17% of Pakistan mobile industry.
ZONG
Zong is although new company and offering different packages and attracting more and
morecustomers and it can be future market leader

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Pakistan Telecommunication LTD

World call
Worldcall Telecom is a service provider company and is dealing in

telecommunicationservices, cable providers, internet service provider, and payphone

services. They are operating inPakistan since 1996 when First Securities Commission

began their operations in Pakistan. Theystarted their cable service in1998 from Lahore.

Then in 2005, they got the license of wirelessloop for 14 major divisions in Pakistan. They

are improving their business tactics and planningas the time passes and become number

one in private telecom services. Salman Taseer is thechairman of the company. The major

decision making lies in the hands of executives. Forinternal communication they are using

LAN. Managing directors are responsible for the projectsmanagement and also for the

operations of the business. At operational level, Worldcall needs tohave information about

its daily operation like daily sales transactions, No. of orders placed bythe franchises, no of

complaints from their customer. Company should be aimed to check theSWOT analysis to

increase the efficiency of company. External environment has a great effect onthe company.

The major impact is of technology, because infrastructure and the efficiency of thecompany

depend on the use of technology. The threat of entrance is high, there are manysuppliers,

bargaining power of the buyer is high, but there is no threat of substitutes of thecompany.

The major competitors of the company are PTCL, WATEEN, CYBERNET, GSMoperators.

Services
PTCL Cricket Info Service
All the existing and new PTCL customers either of PSTN or WLL, who
are CricketDiehards/affecters of electricity load sheddingTelecom market is coming up with
different valued added services these days as the customer demand is evolving due to fast
and furious daily life in which people don’t get time for recreation like going out with family
and friends rather prefer sitting at their premises andenjoying some readily available

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services.
Pakistan Telecommunication LTD

This part of world being the diehards of Cricket game,do get time for cricket whether
they have to go .You just have to dial 1216 and listen to the livecommentary of ongoing
match.

PTCL does have solution to their problems!!!


Previously T-20 World Cup and Asia Cup 2010 and now for all futures games, PTCL
proudlyannounces Cricket info service through which PSTN and VFONE subscribers of
PTCL will beable to listen to live commentary of cricket matches just by dialing a four digit
access code 1216and listening to the live commentary.”

Package Tariff:
Each call will be charged @ Rs 1 / Minute (Exclusive of tax)
No service subscription required.

Personal Global Number Service


Due to an ever increasing number of Pakistanis migrating overseas each year, the amount
of international calls being made has amplified remarkably. PTCL has introduced
“InternationalPlus” that will provide PTCL subscribers with lowest international call rates
and more talk time.Subscribers need not unsubscribe from their existing package to be able
to benefit fromInternational Plus. In fact subscription to International Plus will enable them to
talk with their near and dear ones in UK, US, Canada, Australia and China for a fixed
monthly charge.“International Plus” will provide PTCL subscribers with lowest international
call rates and moretalk time. With this package customers will be able to talk freely with their
near and dear ones inUK, US, Canada, Australia and China for a fixed monthly charge. All
international plussubscribers will get 500 international minutes each month and will be
charged Rs. 499 monthlyfor calling on landline & mobile both in USA, Canada & China and
on landline only in UK &Australia.A. No, this will be an Opt In Package and customers
who already are on Pakistan Plus, BasicPlus or Value Plus will have the option of
subscribing to International Plus in addition to their existing Price Plan.countries can we call
by using International Plus?. Landline & mobile in China, USA, Canada and landline only in
UK & Australia.PTCL in its endeavor to provide quality services at affordable prices to its
subscribers, has yetagain come up with an amazing Tariff for its wire line subscribers. PTCL
wire line subscriberswill now be able to call anywhere in Pakistan at Rs.1 per minute and
enjoy talking to their lovedones or business associates without worrying about the cost.

Rs. 1 per minute for all Local and Nationwide Long Distance Calls (PTCL to PTCL and
PTCL to V.FONE )
Free Conference Call Service for all PTCL Wire line subscribers from 1st March-2010 to31st
Dec-2010

PTCL Premium Number Service


To be a part of a fast growing telecom market and to get aligned with the number of
serviceswhich Cellular companies are providing, PTCL once again has come up with
another innovativeand appealing offer which is a part of ongoing Synergy Projects with its
sister concernedcompany UFONE .Through this offer any customer who wants to acquire a
new telephone connection (NTC) canalso get UFONE SIM with the same number (03xx-7
digit) as of PTCL Landline. There wouldn’tbe any special charges for UFONE SIM , on the
top of that UFONE SIM would be sent to thecustomer through TCS.This shows PTCL’s
commitment towards its valued customers by providing them a service withan ease of

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remembering just one number for both landline and Mobile Phone. This also givescomfort to
your callers as they
Pakistan Telecommunication LTD

don’t have to remember more than one number.Product Tariff:


No special charges for PTCL number/UFONE SIM

Same installation fee and line rent charges for PTCL Landline.


SIM will be sent to the customer through TCS. Customer just needs to pay ordinaryUFONE
charges (Rs 150 and a balance of Rs 100 will be available)

Order Line:
This service can be acquired by calling 0800 80 800 helpline or through walk-in channels
All the customers who want to have new PTCL landline connection and are interested to get
theUFONE SIM with the same as of landline.There are no special service charges for
PTCL#/UFONE SIM. There will be same installationfee and line rent charges. SIM will be
sent to the customer through TCS. Customer just needs topay ordinary UFONE charges (Rs
150 and a balance of Rs 100 will be available)By calling 0800 8 0800 helpline or through
Walk-In channels.Customer yet.

PTCL EVO offers exciting new packages


Making its products more affordable for its valued customers, Pakistan
TelecommunicationCompany has launched more economical and exciting EVO packages
starting from as low asRs.799 only.The packages are designed while keeping all sort of
customer base in mind; either they are casualsurfers on the go or users who need to be
connected all the time. EVO is offering new EVO GO1GB package for casual surfers at an
amazing price of Rs.799 only. Other packages include,EVO 2GB Lite package, and WIZ
package with a wholesome 5GB download that makesdownloading the games, music and
occasional videos at a far higher speed. Whereas EVO MAXpackage offers unlimited
download throughout the month. SEVP Commercial Naveed Saeed saidthe launching of
these packages is the extension of the whole thought behind this product i.e.since there is
no limit to imagination, why there should be any limit to what one can do withEVO.He further
added that customer’s convenience and affordability has always been the primeobjective
behind launching any product or package. That is why PTCL products have
becomecustomers top priority in recent times and we pledge to continue with providing them
with thebest possible.EVP Commercial Planning Syed Asim Ali said PTCL EVO because of
its 3G technology gives
customers the flexibility to roam around freely like never before while they stay connected.
Andin future we plan to introduce a variety of innovative services and packages for our
customer’sfacilitation, which is our ultimate goal

V FONE Call PackagesSimple


For those customers how don’t make calls ,for this there is no daily charges ,but1.5
rupees to VFONE TO V FONE to v fone.2.00 rupees v fone to PTCL and 2.5 rupees for
mobile and theseare permanent charges

Family
For those customers how make calls, for this there is 5 rupees daily charges, free rupeesto
v fone to v fone.1.5 rupees v fone to PTCL and 2.5 rupees for mobile and these are per
mintcharges

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Pakistan Telecommunication LTD

Unlimited
For those customers how they make calls at both v fone and PTCL, for this there is 20
rupeesdaily charges, free to v fone to v fone. FREE rupees v fone to PTCL and 2.5 rupees
for mobileand these are permit charges

PTCL Smart TV
A PTCL digital multi channel Television service that delivers television programs to
householdsvia a broadband connection using the Internet Protocol (IP) technology. The
service requiressubscription and Customer Premises Equipment (CPE). An IP-based
platform allows the TVservice to be ‘smarter’ than the traditional broadcast and cable TV
services, by making the TVviewing experience more interactive and personalized.Smart TV
features unction is available to the TV viewers for the first time in Pakistan and onlythrough
the PTCL Smart TV service.• Parental ControlThis feature enables parents to restrict certain
channels which are not suitable for juvenileviewing. Restriction is enabled by assigning a
password to particular channel(s) thusempowering parents to control the content their
children can watch.• EPG (Electronic Program Guide)Electronic Program Guide (EPG) is an
extremely responsive and feature-rich application thatmanages viewer interaction during
channel and program selection. It is an on-screen guide toschedule broadcast television
programs, allowing viewers to navigate, select, and discover content by time, title, channel,
genre, etc, by use of their remote control. It also provides accessto billing details, changing
password and managing favorites.• VoD (Video On Demand)Video on Demand is a service
that provides end users to interactively request and receive videos.VoD permits a customer
to select a program from a catalogue using EPG (Electronic ProgramGuide). The play out of
the selected movie starts nearly instantaneously on the customer's TV. Afilm that is chosen,
for example, will be available for multiple viewing during 24 hours withoutany extra charge

NVOD (Near Video On Demand


NVoD is another exciting feature working like a community TV Channel. A number
of channels are allocated for NVoD. Popular or recently released movies and proVoD
isanother exciting feature working like a community TV Channel. A number of channels
areallocated for NVoD. Popular or recently released movies and programs are played
onNVoD channels and are available to all Smart TV viewers. mers at no extra cost. In case
of NVoD channels, customer feedback plays a pivotal role in content selection. List
of channels[uture ChannelsThese channels are to be available soon.PTCL has still 125
channels and these channels are work satisfactorily future channels will beavailable

SERVIES FOR CORPORATE CUSTOMERS


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

IN BASED VALUE ADDED SERVICES


0800-Toll Free PTCL Calling Cards Domestic andInternational Premium Rate Service 0900
Virtual Private Network VALUE ADDED SERVICES Universal Access Number (UAN)
Universal Internet Number (UIN) ISDN PRI TelePlus (ISDN/BRI) Local

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/Domestic/International Leased Bandwidth AndPoint To Point Leased Lines (DXX) Local

Pakistan Telecommunication LTD

Leased Circuits (2 Wire/4 Wires) (DXX) DigitalFacilities Digital Subscriber Loop (DSL) Co
Location Tele mail Call Centers (new)Universal Access Number (UAN)UAN (Universal
Access Number) service is ideal for organizations Engaged in marketing of products or
services. Here is a list of business who can avail UAN Service. Banks NewspapersAirlines
Hotels Shipping Lines Fast Food Outlets Consumer Products Companies Insurance

Credit Card Companies Travel Courier Services Utility Services Trading Companies
Stock Brokers

Voice Messaging Service: (VMS)


With PTCL Messaging Service, you can have all for (or Desired) calls recorded when you
areabsent, busy on phone or do not want to attend the calls for any reason. You can, later
on at your convenience, retrieve all recorded messages from any telephone anywhere in the
country.Security of message is ensured against eavesdropping through subscriber
controlled password.PTCL VMS is designed for those who do not want to miss a call or Fax
because that can bebeneficial.Great for anyone owning a telephone or Fax, at home or
business. Much more powerful andflexible than answering machine due to Message options
available in your voice mail system.Internship ReportFeatures Call answer Fax Messaging
Notification Capacity 10 messages Free for user paying RS.2000/- or more bill/month.PTCL
Messaging Plus:PTCL MESSAGINH PLUS is designed for small and medium business
enterprises havingproblems with managing telephone message.PTCL MESSAGING PLUS
will definitely handle these problems for you. Advanced messagingfeatures save time, make
you truly mobile and increase productivity.
Co- Location Centers
Pakistan Telecommunication Company has taken land mark decision to establish co
locationcenters throughout the country. Service concept this service is basically for telecom
data and I.Tcompanies. These companies will install their equipment directly in
PTCL premises in readyfitted environment. The primary purpose is to provide a number of
resilient and centralizedconnection and control facilities in which co-location center’s
communication can be located.Benefits Easy access to local & international connectivity
Quick deployment of servicesMinimum capital investment and cost saving higher reliability
and quality of service Full

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Pakistan Telecommunication LTD

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Pakistan Telecommunication LTD

They offer to search tele


phone info via Directory.

A family Ad to connect with


everyone at every time via
PTCL land line or WLL
(Vfone).

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Pakistan Telecommunication LTD

Regarding PTCL Broadband DSL


connection offer and service and
extremely good service to
256kb/minut with 30 to 40 GB per
month.

Toll Free Service 0800 to


grow your business and
costumers.

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Pakistan Telecommunication LTD

In This Ad’s they show their all Product and Services and very beautiful Ad.

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Pakistan Telecommunication LTD

New offers for PTCL


calling cards form Price
Rs. 50 to 1000 with many
facilities such as balance
transfer and low rates etc.

Pay less Talk more new


offers PTCL Vfone, 03
new
packages "Bachat,
Sahulat, Kafayat"

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Pakistan Telecommunication LTD

PTCL Subscriber Information


Top of Form

Enter Name:

Enter Address:

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Pakistan Telecommunication LTD

Bill Payment Options

Bill Payment
Card

Keeping the tradition of providing


convenience to its customer at their doorstep, PTCL offers another valuable prepaid card -
"PTCL Bill Payment Card" - Through this card you can pay your telephone bill through your
PTCL fixed line round the clock round the month, while staying at home. It also has a Card
Binding feature allowing you to pay multiple times. PTCL Bill Payment Card is:

1 - Convenient
2 - Hassle Free
3 - Eliminates Commuting Cost
4 - No Extra Charges
PTCL Bill Payment Card is available in denominations of Rs.300, Rs.500 and Rs.1000 at a
shop near you.

Cash Payment Options

BANKS
PTCL valued customers can pay their bills through out the country at the following banks in
their respective areas:
1. ABN AMRO Bank
2. Allied Bank of Pakistan
3. Askari Commercial Bank
4. Bank Alfalah
5. Bank of Punjab
6. Bolan Bank
7. Citi Bank
8. First Women Bank
9. Habib Bank Limited
10. Industrial Development Bank of Pakistan
11. KASB
12. MCB
13. National Bank of Pakistan
14. Punjab Provincial Cooperative Bank
15. Standard Chartered Bank / Union Bank
16. United Bank Limited
17. NIB Bank

PAKISTAN POST OFFICES (PPO)


PPO has provided this facility through their more than 3,000 branches across the country .

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Pakistan Telecommunication LTD

ELECTRONIC BILL PAYMENT


PTCL is actively engaged in bringing more convenience to its customers. For this purpose, it has
made arrangements with the leading banks of the country to allow its customers to pay their
PTCL bills through the electronic modes stated below:

a. MCB Bank Limited


i. MCB ATMs
ii. MCB Call Centre (111-000-622)
iv. Internet Banking
b. ASKARI COMMERCIAL BANK
i. Prepaid card
ii. ATM card
iii.Internet Banking

Service Changes

Shifting of Phone
Customers can shift their telephones if they want to change their current premises /offices etc.

How to Apply?
Customers can apply for the shifting of telephone to the concerned Divisional Engineer
Phones / SDO Phones / Customer Service Centre.

Tariff
The charges for shifting of telephone are Rs. 500 (excluding 15% GST) irrespective of
whether the telephone connection is shifted in the jurisdiction of the same exchange or to
another exchange area within the same multi exchange area.

Change of Telephone Number


Customers can change their telephone numbers if they need to.

How to Apply?
Customers can apply for the change of telephone number to the concerned Divisional Engineer
Phones / SDO Phones/Customer Service Center.
Tariff
PTCL charges for change of telephone number is Rs. 500 (excluding 15% GST). However a
customer can get his telephone number changed subject to availability of spare number in the
exchange and on clearance of dues against old number.

Transfer of Ownership
Customers can change the name/ ownership of their telephone numbers if they
need so.
How to Apply?
Customers can apply for the change of ownership to the concerned Divisional Engineer Phones
/ SDO Phones/Customer Service Centre
Tariff
Currently PTCL charges Rs. 500 (excluding 15% GST) for change of name/ownership. However
PTCL will not charge customer for this service after 18-08-04.

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Pakistan Telecommunication LTD

Restoration of Telephone

Restoration Of Telephone Closed Due To Non-Payment Of Bill

Customers can get telephone restored within 59 days after clearing all outstanding dues. The
outstanding dues to be cleared by the customer for restoration of telephone include the
following:
All outstanding amounts against his telephone including surcharge.
Line rent for two months following the month of default.

Restoration After 59 Days


If telephone connection is restored after 59 days, the following conditions will
apply: 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.

National Dialing Codes,

Approximately 100 city's dialing codes are available on online PTCL website.

International Dialing Codes

Approximately 247 Country's dialing codes are available on online PTCL website.
Value Add Services

Toll Free.0800

The benefits of Toll-Free numbers to businesses are widely understood. For example, in the
USA the biggest economy in the world, over 90% of businesses have a toll-free number. Some
of the benefits of toll-free 0800 number to your business include following.
Benefits of Toll-free 0800
· A 0800 number encourages your customers to call you NOW, rather than "think about it"
later.
· A 0800 number encourages potential buyers to call YOU, not your competitors.
Hence giving your business an edge over competitors who do not have such a facility.
· A 0800 number means that you can compete with big national names, for little extra cost.
· A 0800 number expands your geographic accessibility. Customers out of your area are
no longer
deterred by having to call long distance. It gives your business a national and international
(with
international 0800) market presence.
· A 0800 number can cut your advertising costs, since less space is needed to
encourage the customer to call.
· A 0800 number enhances your image with customers and the market and pushes you
forward as a "customer friendly" business.
· A 0800 number attracts more enquiries.
· A 0800 number encourages customers to place sales orders by toll-free phone or toll-free
fax.
· Your 0800 number is location independent, so you can be based anywhere and have
a business with national and even international customer accessibility.

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Pakistan Telecommunication LTD

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Pakistan Telecommunication LTD

UAN (Universal Access Number)


UAN (Universal Access Number) service is ideal for organizations engaged in marketing of
products or services.
How it Works?~
UAN consists of 6 digits, preceded by 3 digit code of 111, common to all UANs. Example 111 -
20 20 20
UAN operates on Existing telephone connection without disturbing normal phone number.
UAN never changes. If you move your office or your normal telephone number is changed, your
UAN will remain unchanged.
UAN works both in multiline PABX and multi phone connections. The incoming call hunts for a
free junction or free phone connecting instantly.
UAN service can also be used for facsimile.
UAN can be accessed from other cities by dialling the area code first. Example: (021) 111-20
20 20.

Why Use the UAN?

UAN makes it easier for customers to contact you by dialling a simple number.
A quick and easy access to make queries and complaints increases customer satisfaction.
Consumers are increasingly aware of the benefits of doing business by phone because it is time
saving and both convenient and cost saving.

UAN of Your Choice


You will get the UAN of your choice.
You may choose any combination of 6 digits from 0 to
9. Choose a simple memorable number.
Example 007 007 or 13 13 13 or simply 900000.
PTCL allots the UAN on a first come first served basis.

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Pakistan Telecommunication LTD

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 is required.

How to Apply
Prescribed UIN service order forms are available at Corporate Customer Centres. Please fill up
the UIN service form and submit it to the office of Manager Corporate Customer Centre along
with pay order/bank draft covering installation fee and subscription charges in favour of
Pakistan Telecommunication Company Limited.
Marketing Campaigns

Print Media

Print Media we already discussed in Advertising section, here is some images for just
references,

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Bahaudin Zakaria University Multan(sub campus sahiwal) 43
Pakistan Telecommunication LTD

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Pakistan Telecommunication LTD

Financial analysis
Of
Pakistan Telecommunication

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Pakistan Telecommunication LTD

Ratio analysis
Liquidity ratios
Liquidity ratios are used to measure firm’s ability to meet short term obligations. They
compare short term obligations to short term current resources available to meet these
obligations from these ratios, much insight can be obtained into the present cash
solvency of the firm and the firms ability to remain solvent in the event of adversity.

Current ratio:
Current assets are divided by current liabilities. It shows a firm’s ability to cover its current
liabilities with its current assets.

Current ratios= current assets


Current liabilities

2006 2007 2008 2009 2010

1.65 2.19 1.73 1.50 1.51

Interpretations:

Comparing internally theses ratios Ptcl ratio has decreased from 2.19 to 1.50. It means
that Ptcl is deppreciating its liquidity position. So Ptcl is depreciating its liquidity position.

Total assets turnover:

2006 2007 2008 2009 2010

7.33 0.42 0.44 0.38 16.22

Interpretation:
It basically indicates company’s ability to use its asset base efficiently to generate
revenue. Turnover is decreasing as compared to 2010. It has increased from 0.38 to
16.22. It means that Ptcl has utilize its assets efficiently to increase its revenues.

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Pakistan Telecommunication LTD

Working capital
A measure of both a company's efficiency and its short-term financial health. Positive
working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable
to meet its short-term liabilities with its current assets (cash, accounts receivable
and inventory).
If a company's current assets do not exceed its current liabilities, then it may run into
trouble paying back creditors in the short term. The worst-case scenario is
bankruptcy. A declining working capital ratio over a longer time period could also be a
red flag that warrants further analysis. For example, it could be that the company's
sales volumes are decreasing and, as a result, its accounts receivables number
continues to get smaller and smaller.

Working capital also gives investors an idea of the company's underlying operational
efficiency. Money that is tied up in inventory or money that customers still owe to the
company cannot be used to pay off any of the company's obligations. So, if a
company is not operating in the most efficient manner (slow collection), it will show up
as an increase in the working capital. This can be seen by comparing the working
capital from one period to another; slow collection may signal an underlying problem in
the company's operations.
The working capital ratio is calculated as:
  WORKING CAPITAL = CURRENT ASSESTS

2006 2007 2008 2009 2010

50,168,177 53,560,840 39,603,406 54,220,241 45,450,236

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Pakistan Telecommunication LTD

Interpretation
Working capital is to meet day to day operations in 2009. In 2009 it ismore
than other years because ptcl has low trade debts. And ptcl has more bank
balance.

Net Working Capital,


Net Working Capital, is defined as Current Assets minus Current Liabilities. Current
assets include stocks, debtors, cash & equivalents and other current assets. Current
liabilities include all the short-term borrowings.

Net working capital is calculated as

NET WORKING CAPITAL = CURRENT ASSESTS – CURRENT LIABILITIES

2006 2007 2008 2009 2010

19,892,645 51,116,099 15,033,611 18,133,919 15,257,458

Interpretation.
In 2006 our net working capital is more than any other year. Because ptcl
has more current assets and less lia.

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Pakistan Telecommunication LTD

AVERAGE COLLECTION PERIOD

The approximate amount of time that it takes for a business to receive payments owed, in
terms of receivables, from its customers and clients.
Due to the size of transactions, most businesses allow customers to purchase goods or
services via credit, but one of the problems with extending credit is not knowing when the
customer will make cash payments. Therefore, possessing a lower average collection
period is seen as optimal, because this means that it does not take a company very long
to turn its receivables into cash. Ultimately, every business needs cash to pay off its own
expenses (such as operating and administrative expenses).
Calculated as:
AVERAGE COLLECTION PERIOD = 365 / ACCOUNT RECEVABLES
TURNOVER

2006 2007 2008 2009 2010


84.88 days 63.81 days 73.74 days 66.36 days 64.95 days

Interpretation.
If company has less ACP it is more beneficial for company because they can
invest more easily and according to this 2007 is favourable for company ptcl.

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Pakistan Telecommunication LTD

ACCOUNT RECEVABLE TURNOVER

An accounting measure used to quantify a firm’s effectiveness in extending credit as well


as collecting debts. The receivables turnover ratio is an activity ratio, measuring how
efficiently a firm uses its assets.
By maintaining accounts receivable, firms are indirectly extending interest-free loans to
their clients. A high ratio implies either that a company operates on a cash basis or that its
extension of credit and collection of accounts receivable is efficient.

A low ratio implies the company should re-assess its credit policies in order to ensure the
timely collection of imparted credit that is not earning interest for the firm.
Formula:

2006 2007 2008 2009 2010


4.30 times 5.72 times 4.96 times 5.50 times 5.62 times

Interpretation.

2007 is favourable for the company because it has more acount receivable
turnover.

Leverage or solvency ratios


Solvency is the company’s ability to meet its long term obligations as they become due.
An analysis of solvency concentrates on the long term financial and operating structure of
business. The degree of long term debt in capital structure is also considered. Solvency is
dependent upon profitability since in the long run as a firm will not be able to meet its debt
unless it is profitable

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Pakistan Telecommunication LTD

Debt ratio:

It Indicates what proportion of the company's assets are being financed through debt.
It can be calculated as

DEBT TO ASSET RATIO = DEBTS / ASSETS

2006 2007 2008 2009 2010


30% 27% 30% 35% 34%

Interpretation:
This ratio highlights the relative importance of debts financing to the firm by showing the
%age of the firm’s assets that are supported by debt financing. The debt ratio has
decreased from 0.35 to 0.27 which means that company is not depending more on debts.

Profitability Ratios
A class of financial metrics that is used to determine a company's ability to pay off
its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the
margin of safety that the company possesses to cover short-term debts.  
Profitability Ratios indicate the earnings potential of a company

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Pakistan Telecommunication LTD

Return on total assets:

An indicator of how profitable a company is relative to its total assets. ROA gives an


idea as to how efficient management is at using its assets to generate
earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is
displayed as a percentage. Sometimes this is referred to as "return on investment".
ROA tells you what earnings were generated from invested capital (assets). ROA for
public companies can vary substantially and will be highly dependent on the industry. This
is why when using ROA as a comparative measure, it is best to compare it against a
company's previous ROA numbers or the ROA of a similar company. 
The assets of the company are comprised of both debt and equity. Both of these types of
financing are used to fund the operations of the company. The ROA figure gives investors
an idea of how effectively the company is converting the money it has to invest into net
income. The higher the ROA number, the better, because the company is earning more
money on less investment.
The formula for return on assets is:

Return On Assests = Net Income / Assests X 100

2006 2007 2008 2009 2010


14% 10.2% (2.5%) 6% 6.2%

Interpretation:
This ratio shows that company is earning 14 percent on each rupee of asset investment in
2006. This has increased (2.5)% to 6% in 2009.

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Pakistan Telecommunication LTD

Operating profit ratio:

2006 2007 2008 2009 2010


9.74% 29% 25% 18% 39.7%

Interpretation:
The operating profit indicates the percentage of each rupees remaining after all costs and
expenses other than interest, taxes. It has decreased in 2006.

Net profit margin:

2006 2007 2008 2009 2010


30% 24% (4.2)% 15% 16%

Interpretation:
The net profit margin measures the percentage of each revenue remaining after all costs
and expenses, including interest, taxes and dividends. The higher the firms net profit
margin, the better. It has decreased from 30% to (4.2)%.

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Pakistan Telecommunication LTD

Market ratios
Earning per share

It is used to gauge the quality of a company's earnings per share (EPS) if all convertible
securities were exercised. Convertible securities refer to all outstanding convertible
preferred shares, convertible debentures, stock options (primarily employee based) and
warrants. Unless the company has no additional potential shares outstanding (a relatively
rare circumstance) the diluted EPS will always be lower than the simple EPS. 

EPS= (Net profit after tax − Preference dividend) / No. of equity shares (common shares)
2006 2007 2008 2009 2010
04 Rs. 03 Rs. (.55) Rs. 1.79 Rs. 1.82 Rs.

Intrerpretation
More EPS in beneficial for the company. And 2006 is more beneficial and 2008 is wrost
year of the company.

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Pakistan Telecommunication LTD

Swot
Analysis

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Pakistan Telecommunication LTD

SWOT ANALYSIS:

An overall evaluation of the company’s strengths, weaknesses, opportunities and


threats.

Strengths and weaknesses are related to internal environment and opportunities


and

threats are related to external environment.

SWOT Analysis of PTCL:

Strengths:

 Largest operational network and infrastructure with in ICT.


 An integrated monopoly.
 Market leadership
 Ptcl u fone is market challenger in GSM.
 Competitors still depend on ptcl network either directly or indirectly.
 Experienced telecom resources

Pakistan Telecommunication LTD

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Weaknesses:

 Internal organizational issues.


 Monopolistic culture has further added to complexities.
 Ptcl v, the fixed wireless service is poor.
 over employment and low productivity.
 Slow decision making.
• Not been able to nurture its growth around customerservices oriented strategy.

Opportunities:

 Low teledensity of Pakistan.


 Has fast infrastructure.
 Scope for cost effective operations.

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Pakistan Telecommunication LTD

Threats:

 Increased in long distance countries.


 Exposure to market competition.
 Migration to cellular network.
 Ability to attract and retain quality.

Pakistan Telecommunication LTD

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Recommendations
There is always a room for the “change”, so while we studied the PTCL we
concluded, on

the basis of our theoretical studies. Following are the recommendations for
improvement of

PTCL:

1. One department that seriously needs attention is PTCL's customer care.


There have been numerous occasions and news regarding the poor
performance and troubleshooting when an instance arises. Nevertheless,
Pakistan ISP industry is up for some interesting turns.

2. Technical department and they always suggest changing proffered and


alternate DNS server addresses, and when they know that, by changing
DNS server addresses the problem is still

3. Orientations should be better.

4. Only issue with PTCL is their customer services, calling 1236 is useless, all
they say is we have got your complain this is your complain number and
your issue will resolve in 24 hours.

5. DSL Internet is very good service but in Quetta the ptcl complain service is
very bad. they do not think of their client. we had SUGGEST them to make
it good.

6. There is also need for training of newly hired incumbent on priority basis.

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Pakistan Telecommunication LTD

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Pakistan Telecommunication LTD

Conclusion:
PTCL needs innovative service offerings — currently it doesn’t even offer
bundles or a single bill. Overall PTCL still behaves as a monopoly … it has to change its
attitude.
At a minimum, avoiding billing errors and providing competent and courteous service to
its
Customers is essential if PTCL wants to show that it is transforming itself to a competitive
company which cares for its customers. It is said that the best assets of a company go
home to their family in the evening. Can the culture of PTCL be changed to a
performance and service based organization? According to the latest director’s report
from PTCL the “organization is being revamped”.  Only time can tell the impact.

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Pakistan Telecommunication LTD

References :

www.ptcl.com
www.scribd.com

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