Internship Report on PTCL

INTERNSHIP REPORT ON PTCL

INTERNSHIP REPORT ON

PTCL (Pakistan Telecommunication Company Limited)

Presented to:

Department of Commerce

University of Sargodha, Sargodha

Presented by:

Muhammad Ashraf

Roll # 31-ss

M. Com (2008-2010)

Email: redeyes11@live.com

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University of Sargodha


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IN THE NAME OF ALLAH WHO IS THE MOST
BENEFICENT

&

EVER MERCIFUL

PRESIDENT’S MESSAGE
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.

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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.

Preface

In fact, for the students of M. Com. The two months internship is a golden chance to
develop the capability and skill of administration and management in the practical environment of
different organizations. In the context, I select the PTCL (PAKISTAN
TELECOMMUNICATION COMPANY LIMITED). This report shows and will guide the
readers to have an idea about maintain accounts, its operations and the practices followed today
in Pakistan. My reasons for doing the internship program in PTCL is to get first hand knowledge
about maintain accounts and improve my business life, because PTCL is the best organization
indeed.

I tried to remain to the point, in writing the report. Brief history, management, organizational
structure of PAKISTAN TELECOMMUNICATION COMPANY LIMITED and my work at
branch suggestions, for improvement are also given in it.

Moreover, particularly being a student of Finance & Accounts it is necessary for me to get
practical knowledge of the managerial & financial activities of the organization. So I have tried
my best to learn a lot about accounts because it relates with financial activities. I have made all
possible efforts to summaries the broad history and working of the organization.

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This work is a collection of my observations and experience during the internship period and
afterward. The sources of my information for the preparation of this report also include the
written notes, literature on banking, verbal discussion with staff members, senior students and my
fellows.

Internship Program is a conventional constituent is part of total spectrum of M. Com. The
information contained in the report is based on my personal observation, practical working and
interviews with the staff during my internship training.

Dedication

No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so enable me to do this work successfully.

Acknowledgements
In the name of Allah, who gave me ability and strength to complete my internship. I owe
considerable debt to large number of persons who either directly or indirectly helped me during
various phases of internship. It was a new experience, exciting but challenging and indeed
guidance rather frequently, which was afford very generously.

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My special thanks to Miss Imrana Asad for her guidance and support during my internship report
preparation.

In PTCL I am grateful to all the staff members for providing me an opportunity to work in the
organization at the style and speed of my convenience. I also wish to record my gratitude for the
following staff members for transforming my theoretical knowledge in practical understanding,
despite their heavy commitments they always found time to answers my questions, resolve
queries and never ran out of patience.

Executive Summary
By the grace of almighty God, I have successfully completed my 8 weeks internship as per
requirement of M.com course. I was appointed at PTCL Headquarter Islamabad Sector G-8/4. I
feel my self-lucky to have worked with such a cooperative, dedicated, result-oriented team. They
all helped me in every possible way they can. I was happened to work in INTERCONNECT

REVENUE DEPARTMENT.
With employee strength of 30,000 and 5.7 million customers, PTCL is the largest
telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator
in the country with 0.8 million V-fone customers. 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.

This report is being started with the brief and complete introduction of organization, its historical
background, its services and its products offerings. In this report organization structure is

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discussed as pr the requirement of internship. What is the hierarchy in the organization as well as
working of various departments are concisely discussed.

The most important thing the BUSINESS STRAGTEGIES is discussed in such a way that its not
difficult to understand it. Internal and External analysis has the vital importance, which in this
report is also done. More over the Financial Analysis is also done which is depicting the
financial position of the org in the market place.

Whereas SWOT analysis is done which clearly sows what ar e the strengths, weaknesses,
opportunities and threats in the organization. Finally some suggestions and recommendations are
given to org in this report. Limitation although very few but cant be negligible are discussed. Thus
this report completely depicts the true picture of PTCL in a meaningful way.

I have completed my 8 weeks internship successfully in PTCL(Pakistan Telecommunication
Ltd.) in Interconnect Revenue Department from

June 21, 2010 to Aug 23, 2010.

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TABLE OF CONTENTS

Industry Introduction 10

-- History of Organization 12

a. Vision Statement 18

b. Mission Statement 18

-- Main Features 19

-- projects& activities 23

Products & Services 28

Compatetors 32

Moral Values of Employees 32

Organizational Structure 34

-- Hierarchy Chart 37

-- Number of Employees 37

-- Introduction of all Departments 38

Departments and their Working 41

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Finance system of PTCl 46

Funding of PTCL 48

. Work done by Internee 54

Financial Analysis of Organization 56

-- Significance of ratio 56

-- Components of ratios (formulae used ) 60

6. SWOT Analysis 69

7. Conclusion 73

8. Recommendations 78

9. Limitations 80

10. Bibliography 80

11. Annexes 81

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INTRODUCTION

Pakistan Telecommunication Corporation (PTC) has established in December 1990,
taking 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 payphones, paging and,
lately, data communication services.

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In 1994, the PTCL becomes the company limited (Pakistan Telecommunication Company
Limited) by issued six million vouchers exchangeable into 600 million shares of the PTCL in two
separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted
into PTCL shares in mid-1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for
PTCL monopoly over basic telecommunication sector 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 year 2006-07 in the telecom sector was marked by the phenomenal growth in the
mobile sector in Pakistan, which doubled its subscriber base to 60 million. The teledensity
increased from 26% to 40%, helping to spread the benefits of communication technology across
the country. PTCL ’s mobile phone subsidiary Ufone’s subscriber base grew by more than 87%,
from 7.49 million to 14 million. The year also witnessed the entry of major telecom companies,
most notably China Telecom and Singtel, into market.

The privatization of the company was completed in the FY06, following the purchaser of
26% ‘B’ class ordinary shares by Etisalat International Pakistan L.L.C. EIP took over
management control on 12th on April 2006.

In short PTCL has been working vigorously to meet the dual challenge of telecom
development and socio-economic uplift of the country. This is characterized by a clearer
appreciation of ongoing telecom scenario wherein convergence of technologies continuously
changes the shape of the sector.

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CENT RAL BACKGROUND

The telecommunications industry is at the forefront of the information age²delivering voice,
data, graphics and video at ever increasing speeds and in an increasing number of ways. Whereas
wire line telephone communication was once the primary service of the industry, wireless
communication services and cable and satellite program distribution make up an increasing share
of the industry.

The largest sector of the telecommunications industry continues to be made up of wired
telecommunications carriers. Establishments in this sector mainly provide telephone service via
wires and cables that connect customers premises to central offices maintained by
telecomm urinations companies. The central offices contain switching equipment that routes
1content to its final destination or to another switching center that determines the most efficient
route for the content to take. While voice used to be the main type of data transmitted over the
wires, wired telecommunications service now includes the transmission of all types of graphic,
video, and electronic data mainly over the Inter net.

These new services have been made possible through the use of digital technologies that provide
much more efficient use of the telecommunications networks. One major technology breaks
digital signals into packets during transmission. Networks of computerized switching equipment,
called packet switched networks, route the packets. Packets may take separate paths to
their destination and may share the paths with packets from other users. At the destination, the
packets are reassembled, and the transmission is complete. Because packet switching considers
alternate routes, and allows multiple transmissions to share the same route, it results in a more
efficient use of

telecommunications capacity as packets are routed along less congested routes. Wireless
telecommunications carriers, many of which are subsidiaries of the wired carriers, transmit
voice, graphics, data, and Internet access through the transmission of signals over networks
of radio towers. The signal is transmitted through an antenna into the wire line network.
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Other wireless ser vices include beeper and paging services. Because wireless devices require no
wire line connection, they are popular with customers who need to communicate as they travel,
residents of areas with inadequate wire line service, and those who simply desire the convenience
of portable communications. Increasing numbers of consumers are choosing to replace their
home landlines with wireless phones.

Wireless telecommunications carriers are deploying several new technologies to allow faster data
transmission and better Internet access that should make them competitive with wire line
carriers. One technology is called third generation (3G) wireless access. With this technology,
wireless carriers plan to sell music, videos, and other exclusive content that can be downloaded
and played on phones designed for 3G technologies. Wireless carriers are developing the next
generation of technologies that will surpass 3G with even faster data transmission.
Another technology is called ³fixed wireless service,´ which involves connecting the
telephone and/or Internet wiring system in a home or business to an antenna, instead of a
telephone line. The replacement of landlines with cellular service has become increasingly
common because advances in wireless systems have provided data transmission speeds
comparable to broadband landline systems.

COMPANY BACKGROUND

Pakistan has made steady pr ogress in expanding telecommunication networks and services
in recent years. In Pakistan this industry had few big giants in the past with PTCL being the
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sole provider of landline telephone service in the country. At present the organizations
principal activity is to provide telecommunication services all over the country. It offers both
domestic and international services throughout Pakistan. PTCL also manufactures
telecommunication related equipment.

Pakistan Telecommunication Company Limited had exclusive rights to provide basic
telecom services in Pakistan till the end of year 2002. With the announcement of Deregulation
Policy by the Government of Pakistan in 2003, PTA has issued licenses for basic telephony to the
private sector in Pakistan who will be competing PTCL, the incumbent. From the humble
beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone
& Telegraph Department in 1962, to this very day, ours is a story of commitment and vision.

PTC set sails for its voyage of glory in December 1990, taking 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
payphones, paging and, lately, data communication ser vices.

Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and
in 1994 issued six million voucher s exchangeable into 600 million shares of the would-be PTCL
in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were
converted into PTCL shares in mid- 1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL
monopoly over basic telephony in the country. 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 for med and listed on all stock exchanges of
Pakistan

Since then, PTCL has been working vigorously to meet the dual challenge of telecom
development and socio-economic uplift of the country. This is characterized by a clearer
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appreciation of ongoing telecom scenario wherein convergence of technologies continuously
changes the shape of the sector. A measure of this understanding is progressive measures such as
establishment of the company's mobile and Internet subsidiaries in 1998.

As telecommunication monopolies head towards an imminent end, services and infrastructure
provider s 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.

PTCL is in full awareness of the same, and future policies feature a strong conviction of healthy
competition.

The company is in process of enhancing organizational and business proficiency through
vertical integration and horizontal diversification. At the same time, cross-national ownerships,
operations and partnerships are being evaluated with a view to developing and diversifying the
business.

RESTRUCTURING OF PTCL

The governments efforts to restructure and privatize PTCL have been on-again off-again
since1991. It had an offer in the late 1990s for 26 percent equity, reputedly totaling $3 billion,
butheld out in negotiations and ultimately missed the unique global market window at that time.
Since then, it has had difficulty attracting potential buyers.
Investors have been concerned about political risk, and appropriate support from the government

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to transform the utility into a commercially-oriented corporation. With fortunes rising in the local
telecom sector, the government hoped to make privatization of the company a landmark deal for
broader reform of the economy. A successful deal would demonstrate the governments increasing
support for market capitalism and, it was hoped to, boost anemic levels of direct foreign
investment.

PTCL and the government were contemplating different strategic options for restructuring. Plans
were vetted for both a geographic and functional split of operations. Analysts believed the most
likely scenario is a break-up into three new companies, tracking with the firms largest business
units: local, long distance and mobile. This approach mirrors the policy environment fashioned
for new competitive entrants. From the government perspective, breaking up PTCL prior to as
ell-off will help curtail the market power of any one single service provider, thereby stimulating
competition.

Unbundling the sale was also likely to increase revenues for the government. The risk, of course,
was that the mobile company, PTML (branded as ³Ufone´), was disproportionately more
attractive than the other businesses. According to AKD Securities, PTML's contribution to
PTCL's total revenues was expected to rise to 12.5% over the next five years í and was assumed
to contribute 39% of PTCLs overall revenue growth. Future growth of mobile, both in terms of
subscribers and net revenues, was considered to almost certainly outstrip demand for fixed line
services. The target was to sell up to a 26 percent stake in PTCL; the government held 88 percent
of $2.6 billion, and then any lowering of bid price in the revised agreement approved by the
cabinet in March. The official documents state that the accumulated bidding price in the revised
bid came down to $2.205 billion against the original Etisalat bid of $2.599 billion, said a report in
the Gulf Today.

The PTCl privatization agreement with Etisalat allegedly inflicted a further loss of billions of
rupees to the national exchequer besides unprecedented concessions offered in the long term,

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indirect conflict with Article 30 of the Public Procurement Rules 2004, it said. By far, the
PTCLhas been the highest profit earning state-owned company with real-estate assets worth
billions ofrupees across the country including commercial plazas, residential colonies and
exchanges. According to the government documents, the Share Purchase Agreement (SPA) of the
PTCLwith Etisalat lapsed in September 2005 after the non-payment of the dues by the winner
bidders. After further negotiations with the Etisalat management, the government agreed to
additional concessions and modifications to the transaction structure offer

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.

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MISSION

 An organizational environment that fosters professionalism, motivation and quality

 An environment that is cost effective and quality conscious

 Services that are based on the most optimum technology

 Quality and Time conscious customer service

 Sustained growth in earnings and profitability

CORE VALUES

 Professional Integrity

 Customer Satisfaction

 Teamwork

 Company Loyalty

Features

Pakistan Telecommunication Company Limited (PTCL) is the primary provider of
Telecommunication services in Pakistan. The range of
services include basic telephony, telegraph, fax, telex, Public data, Internet, E-mail,
ISDN(Integrated Services Digital Network),Universal Access Numbers(UAN), another value-
added services.
Pakistan Telecommunication Company Limited is a professionally managed company and has
initiated measures, with active support of the Federal Government, to inculcate a corporate
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culture that benefits company. Pakistan Telecommunication Company Limited believes that it has
an inherent potential that it can exploit to emerge as an important and active business entity.
Pakistan Telecommunication Company Limited has some basic strength and the potential that
needs to be exploited into real business opportunities. The Directors of the Company feel that a
firm and unwavering commitment towards provision of a complete range of market driven
telecommunication services to its customers using state of the art technology proven products and
a customer care approach is essential in a rapidly expanding telecom market. The radical change
from a monolith state controlled culture to a open market competitive environment. The customer
is becoming and more conscious of the value of telecom services in an improving business
environment.
The advent of digital systems, increasing application of computer technologies and development
of wide-band systems has generated new customer needs. Innovative products and services such
as cellular mobile, high-speed data, Internet etc are much in demand. The current decade has
proved to be the period of sector restructuring and growth globally. To keep pace with the
changes and to meet the emerging new demands, Pakistan Telecommunication Company Limited
has adjusted its programs to meet the requirements of the market. Traditional telecom monopolies
like Pakistan Telecommunication Company Limited need to explore new avenues of technology
and financing to accomplish a quantum leap in growth and bridge the gap between demand and
supply, still remaining financially viable. The Company has taken initiatives and a
change is gradually becoming visible through expanded capacity and increasing revenue.
Pakistan Telecommunication Company Limited has taken decisions to cope with the competition
within the next years. The initiatives taken resulted in the establishment of 100% Pakistan
Telecommunication Company Limited owned subsidiaries like Pak Telecom Mobile
Limited.Paknet and Pak Telecom Pay Phone services limited. These new entities shall provide
cellular mobile information technology, Internet, payphone, prepaid calling cards and other range
of services, Pakistan Telecommunication Company Limited made a conscious decision to enter
the cellular business as it has tremendous potential and an accelerated annual growth of about
60%which is likely to continue for many years.
Pakistan Telecommunication Company Limited has been successful in obtaining a Cellular

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Mobile License for its subsidiary and has selected the GSM 900 state -of the²art technology,
which is growing at a much faster rate internationally. Pak Telecom Mobile Limited was
incorporated on 18th July 1998 to establish and run this new business independent of Pakistan
Telecommunication Company Limited with full accounting separation thus creating a level
playing field for industry competitors.

Pakistan Telecommunication Company Limited is following a business-oriented policy to
associate private entrepreneurs in telecom sector development. The options are based on
interconnect and revenue sharing arrangements with license operators and through out-sourcing
revenue sharing with 0 & M contractors as business partners. PTCL has successfully entered into
arrangements with foreign and local telecom companies and has signed three contracts prepaid
calling card service to promote international traffic.

The Government of Pakistan has encouraged the growth of the telecom sector to enable Pakistan
to keep pace with the rapid technological advancement in the field of telecommunication. The
tariff structure remains under constant review of the government to rationalize from the point of
providing adequate returns to the telecom operators and to tap the tremendous potential of the
growth in the demand and market for telecom services. The GOP has reduced the CED on
telecom services, encourages the use of value added services with special emphasis on
proliferation of Internet. It has also reduced the import duties on telecom equipment and allows
tax exemption.
Private sector data and Internet services providers are operating under license and revenue share
arrangements. Internet & information technology services are now very popular in the market and
numbers of new entrants are competing, providing Pakistan Telecommunication Company
Limited an opportunity lease capacity. Its available IT & Internet infrastructure both for private
sector licensed operators and Pakistan Telecommunication Company Limited own customers.
Pakistan Telecommunication Company Limited is launching a three-phased project for IT &
Internet to expand the service to take care of 300,000 customers including the needs of private
license for infrastructure.

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PTCL S CORE OBJECTIVES
The primary objective of Pakistan Telecommunication Company Limited is to provide
telecommunication services to the people in the country or in short to satisfy the
telecommunication needs of its customers. Responding to the rapid economic and technological
growth, the company is determined to meet the challenge of expanding needs of telephone and
data communication such as public data network, integrated services digital network and Internet
services.

The major focus of attention is to improve and expand the services, minimize the faults and
provide communication facilities to rural areas. It is also one of the major objectives of
management that the company should not improve its performance but also encourage the
private sector to enter the Tele business. The company has entered the domain of free market
economy, which necessitates the liberal management policies and private sector.
The following basic policy steps have been taken to meet the objectives laid in PTCL Act to
expand and operate telecommunication services in the country. The main objective of any
company is to earn the profit and minimize expenses by winning goodwill in the market

The following are the long-term objectives of the organization.
 Provision of Telecom services all over the country.
 Plan, establish and maintain telecommunication
 Acquire, promote and manage research and development, transfer of technology and
software development including manufacturing of telecommunication equipment and
plant
 Enhance efficiency, improve quality and expand the system to meet customer satisfaction
and provide service on demand.
 Create congenial climate for binding of human skill and horizon of employees through

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training and education.
 Convert its cash basis single entry accounting system to accrual basis double entry system
meeting the commercial international accounting standards.
 To introduce computerized directory assistance and complaint services reform billing
o and a revenue collection system.
 Strengthen relation with foreign international administration, entities, services
o providers, international and regional telecom organizations for better international
o communication and technical cooperation in telecommunication business.
 Expand customer awareness of all value-added services of PTCL.
 To improve the efficiency of Customer Service Centers by deputing qualified persons
o who are well aware of public relation techniques.

Projects and Activities

1. Urgent Training Needs Programme:

The Urgent Training Needs which realistically depict the post VSS scenario are being assessed
and catered immediately by conducting customized training programs. The involvement of all
departments, regions and business units for providing their valuable input in the form of TNA
response is essential for accurate identification of their requirements. Given the transformation
stage, the most eminent developmental needs were highlighted and incorporated in this program.

2. Customer Care Initiative:

To achieve the pinnacle of Excellence in Customer Service envisioned by the President/CEO the
Training and Development department has assumed the responsibility for effectively imparting
training under the Customer Care Initiative to all PTCL employees.

3. HRD Plan for 2009-10:
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Training is one of the tools used for the development of employees and to consolidate change on
sustainable ground. In order to address the training needs of all stakeholders of PTCL, EVP
(T&D) has directed training region administration to conduct comprehensive Training Need
Assessment of PTCL employees. This exercise of TNA is required for developing an effective
and need satisfying Human Resource Development Plan for PTCL training centers. The pilot run
of this program is expected to commence by the end of April 2009.

4. Training Incentive offered to VSS Optees:

For the rehabilitation of VSS Optees, PTCL offered a package of post VSS training &
development services, out of which the most beneficial and helpful service offers were
Vocational and Technical trainings.

5. Revamping Project of PTCL Training & Development by Etisalat Academy:

PTCL has a huge training infrastructure throughout the country that is geographically wide
spread. To revamp this wing of PTCL and transform it into a profit center, Etisalat Academy has
been engaged for this project with the following main objectives:

• Evaluation of existing training infrastructure

• Identification of potential and non-potential training institutes

• Development plan for proposed training set-up

• Comprehensive workforce analysis of existing Human Resources in T&D department

• Proposals regarding computerized learning management system

• Preparation of Quality Assurance (QA) systems & procedures

• Determination of Key Performance Indicators (KPIs)

6. Implementation of ERP system in T&D:

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The focus of the project is to set up and maintain the qualifications catalogs, create and evaluate
profiles for a range of objects (for example, persons and positions), evaluate career and
succession planning scenarios, set up appraisal systems, as well as plan, hold, and evaluate
appraisals, create development plans, and work through individual development planning
scenarios by customizing the functions of personnel development to meet customer requirements.

7. PTCL Academy activities:

PTCL Academy has been revitalized with a new vision to be recognized locally and regionally as
a center of excellence in the provision of state-of-the-art training and consultancy services in
telecommunications and related fields. It will provide a platform for the creation, dissemination
and exchange of knowledge and expertise in all areas of telecom and IT to internal and external
stakeholders. Some of the programs on its agenda are:

• Ph.D. Programme
• MS programme
• Post Graduate Diploma
• Cisco Regional Academy Programme
• Oracle Academy Programme
• Joint venture with CISCO and NUST
• Seminars / Short Courses / Certificate programmes
• Course development for new offerings (technical and management courses)
• Testing / Inspection of telecom equipment

8. Lineman Training Programme:

The declaration to celebrate year 2008-09 as year of Customer Care & Satisfaction by the
President/CEO of the company, has entrusted upon Training & Development Department a
gigantic task to transform our line staff who are the real customer care agents of PTCL. This
initiative is the part of company’s strategic vision to turn PTCL a leading corporate entity in
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highly competitive business environment of telecom industry. A mega training campaign has
been launched for all the Linemen of PTCL. The training module prepared by Training &
Development department has tried to address all skill needs most direly required by our Linemen
to cope with emerging technologies in telecommunication. This training will significantly
improve both soft and technical competencies of our linemen and we believe that this training
shall be remembered as a milestone in PTCL’s history.

9. Quality Awareness Programme:

In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA plan has
been made. The project is scheduled from March 2007 to December 2009. Following four types
of programmes are under the work plan:

• Installation Quality Standards
• Quality Auditor Course
• Companywide Quality Awareness
• ‘Train the Trainer Programme’ offered to the faculty of PTCL training centers

10. Senior Management Development Program:

Etisalat Academy being the lead consultants of PTCL’s Training and Development department
has proposed a meritorious program for the development of Senior Management Team (SMT) of
PTCL. The workshops, their contents and out comes have been reviewed and have been found
beneficial for the company. Proposed plan of five workshops is in line with emerging concept of
Continuous Professional Development. CPD is being promoted for conscious updating of
professional knowledge and enhancement of professional competence throughout a person's
working life. PTCL Training & Development wing is committed to the pursuit of professional

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excellence with its Senior Management Team. PTCL’s SMT, though possesses matchless
functional competencies, will benefit from these workshops.

11. Internship Programme:

As per existing policy approximately 194 internship offers were made during 2008-09. Currently,
we are in the process of invigorating our Internship Policy. During the last couple of years
Internship Programme at PTCL has received special attention and focus. The overall concept has
evolved from its traditional perspective into a strategic perspective. We look forward to this
programme not only as a learning opportunity for the participants but also a prospect for PTCL in
its continuous endeavor for talent hunt. It is the process by which we not only contribute
significantly to the development of the best talent in professional and leading universities and
schools, but it also aims at creating “PTCL Ambassadors” that spread goodwill of the company
all over the country. This programme is intended to provide students with the opportunity to
apply what they are learning in their academic pursuits to real world situations. Through the
successful implementation of this programme, PTCL looks forward to rightly identify, recruit,
train and develop its most important need of the day i.e. the Human Resource.

Products and Services

PTCL Landline

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For local calls the code used is non-STD. For calls to other cities (e.g. Karachi to Lahore) the
code is called STD. For International calls the code used is ISD.

Dialing System

When dialing on landlines, calls made within cities are considered local calls. Calls to other cities
(e.g. Karachi to Lahore) are considered long distance calls and are metered according to distance.
(e.g. When dialing to Lahore from Karachi you have to dial the code for Lahore then followed by
the number of the destination, therefore you dial 0423-XXX-XXXX ). For local calls, you just
dial the local number. For international calls, you dial "00" followed by the country code. (e.g.
For calls to the UK from Pakistan you dial 00 - 44 - XXXXXX ).

PTCL V-fone

It is a product which is wireless. We can use anywhere in Pakistan.

Internet and web browsing is also its feature. It is under CDMA

Ufone

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).

Page | 27



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.

Page | 28



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 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.

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.

Page | 29



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 offering customer
focused products and a quality service and sales network.

Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured product. Ufone is a
leading GSM service provider in Pakistan now a days.

PTCL Broadband

It is providing high speed internet browsing. DSL is now in top internet speed.

Smart Services

PTCL now a days providing smart TV service in different areas. Over 150 live channels are
available to see with good picture quality.

Page | 30



Competitors

 China Mobiles

 Orascom telecom

 Telenor

 Warid

 Mobilink

MORAL VALUES OF EMPLOYEES

CUSTOMER FOCUS

We treat each of our customer equality & as the most important person while we interact with
him/her. We must ensure that we do everything to meet and exceed the customers expectations
with perfect to times, accuracy & quality services.

EMPLOYEE RESPECT & DIGNITY

We treat each of our employees with fairness, which includes giving constructive feedback for
their development. We celebrate diversity and seek suggestions from all employees for
improvement. We ensure that responsibility & fairness in all our decision-making.
Page | 31



TEAM BASED APPROACH

We work towards achievement of our vision & mission as a combines group. We encourage inter
& intra-departmental communications. We treat our colleagues as our internal customers &
ensure that the requirements of internal customer focus are always met.

Organizational Structure

Board of Directors

Mr. Naguibullah Mali
Chairman PTCL Board
Secretary IT & Telecom Division, Ministry of InformationTechnologyGovernmentof
Pakistan,
Islamabad

Page | 32



Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani
Chairman & Chief Executive Officer,
Etisalat International Pakistan L.L.C
Executive Vice President Contracts & Administration
Etisalat, UAE.

Mr. Salman Siddique
Secretary (Finance), Ministry of Finance
Government of Pakistan,
Islamabad

Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh
Chief Human Resources Officer
Etisalat, UAE

Mr. Mushtaq Ahmad Bhatti
Member Telecom
Government of Pakistan,
Islamabad

Mr. Fadhil Mohamed Erhama Al Ansari
Executive Vice President Engineering
Etisalat, UAE

Page | 33



Mr. Khursheed Ahmed Junejo
Ambassador, Embassy of Pakistan
Abu Dhabi, UAE

Mr. Abdulaziz Hamad Omran Taryam
General Manager, Northern Emirates
Etisalat, UAE

Dr. Ahmed Al Jarwan
General Manager
Real Estate
Etisalat, UAE

Ms. Farah Qamar
Company Secretary PTCL
PTCL Headquarters,
Islamabad

Corporate Information

Page | 34



Management

Walid Irshaid
President & Chief Executive Officer
Muhammad Nehmatullah Toor
S.E.V.P (Finance) / Chief Financial Officer (C.F.O)
Mohammad Nasrullah
Chief Technical Officer (C.T.O)
Mr. Javed Mushtaq
Chief Information Officer (C.I.O)

Syed Mazhar Hussain
S.E.V.P (HR / Admin & Procurement)
Sikandar Naqi
S.E.V.P (Corporate Development)
Naveed Saeed
S.E.V.P (Commercial)
Mr Tariq Salman
S.E.V.P (Business Zone North)
Mr Abdullah Yousef
S.E.V.P Business Zone South
Mr Hamid Farooq
S.E.V.P Special Project
Farah Qamar
Company Secretary
Legal Affairs
Dr. Syed Mohammad Anwar Shah

Bankers
Askari Bank Limited
Citibank N.A.
Faysal Bank Limited
Habib Bank Limited
MCB Bank Limited
National Bank of PakistanRBS (formerly ABN AMRO)
Standard Chartered Bank Limited
United Bank Limited

Registered Office
PTCL Headquarters,

Page | 35



Block-E, Sector G-8/4,

Islamabad-44000, Pakistan.

Tel: +92-51-2263732 & 34

Fax: +92-51-2263733

E-mail:company.secretary@ptcl.net.pk

Web: www.ptcl.com.pk

Auditors
A.F. Ferguson & Co.
Chartered Accountants
Ernst & Young Ford Rhodes Sidat Hyder,
Chartered Accountants

Share Registrar
M/S FAMCO Associates (Pvt.) Limited

Ground Floor,

State Life Building 1-A
I . I Chundrigar Road
Karachi 74000

Tel: +92-21-2422344, 2467406

Organization Hierarchy Chart

Page | 36



Number of Employees

Number of employees in PTCL is more then 30000.

Page | 37



Introduction of all department

o Engineering

o Minuteness department

o Operation department

o Research and development

o Marketing

o It is concered with the creation of value for the customers

o Finance

o Accounting department

o Revenue department

o Taxation department

o Human Recourse department

o Training and Development

Comments on the Organizational Structure

Page | 38



The structure of the organization is very good in my opinion.

Departments and their Working

The PTCL Organizational structure needs to be formalized on emergent basis.

FINANCE WING STRUCTURE

At this level there is one head SEVP (Finance) who controls the functions of
FINANCE, ACCOUNTS, and REVENEU with the assistant of EVP in their respective within the
Region, Director Accounts has Senior Revenue Officers in his area of Finance Jurisdiction on
Division Level. The Senior Revenue Officer, usually the head of Finance Division and Revenue
Officers then supervised on District level.

SEVP (Finance)

EVP (Finance), (Accounts) & (Revenue)

The Director (Finance),(Accounts) & (Revenue)

On the Regional Level comprising two or three Divisions.

The Senior Revenue Officers on Division Level

Page | 39



The Revenue Officers on District Level

In view of the challenging scenario PTCL has to take bold steps regarding its
organizational structure in order to demonstrate that PTCL has set-up arms-length
relationships among the staff. There should be separation of Finance Wing from the
Engineering Wing. Finance Wing should give liberty to take the decision in their favor.
Management has to take the strategic decisions, the clear and institutionalized
arrangements.

Finance Wing Structure

SEVP (FINANCE)

EVP EVP(Revenue EVP
(Finance) ) (Accounts)

GM (Finance) GM GM
(Revenue) (Accounts)

Director
(Finance)
General Manager of the
Region. He will report to
the SEVP (OPS) as well as Page | 40
any officer designated by


Director
(Revenue)

Director
(Accounts)

NUMBER OF EMPLOYEES IN FINANCE SECTION

There are about 15987(2006-2007) employees are working in the PTCL, which are being divided
into categorically here under

Division of Employees according to their Status

Regular Daily wager Through T.F Contract *Ad-hoc
12452 1725 956 854 NIL

* There is no any employee in PTCL on Ad-hoc basis. This system of recruitment has since been
changed into contract basis.

FINANCE & ACCOUNTING SYSTEM OF PTCL

Page | 41



The PTCL FINANCE & ACCOUNTING system is actually divided into three wings.

1- FINANCE
2- ACCOUNTS
3- REVENUE

1) FINANCE

The SEVP (FINANCE) is concerned with the makeup of the all type of financial
decisions especially in the context of acquisition, financing and management of all assets with
some goal in mind. The EVP (Finance) with the General Manager (Finance) extend their
expertise in the decision making process.

2) ACCOUNTS
Here the SEVP (Finance) is once again concerned by heading the EVP(ACCOUNTS) and
General Manager (Accounts) to deal with all Accounts Decision. In PTCL the Finance and
Accounting are so correlated but the difference between finance and Accounting is the method of
Funds Recognition and the decision making. In the Accounting the Director Accounts in the
PTCL Regions assist the higher management.

3) REVENUE
Here the SEVP (Finance) is once again concerned by heading the EVP (Revenue) and
General Manager (Revenue) to deal with all Revenue matters. One Director Revenue within the
Region assist to implement and control the inflow of Revenue and Reconcile it with the PTCL
Headquarters Islamabad.

Page | 42



The PTCL is actually the Revenue Generation organization. PTCL Collect the Revenue
from the following modes.

Revenue from System Billing of Land Line Numbers.
a) Through Line Rent of Land Line Numbers.
b) Through National wide dialing from LLN’s (Land Line Numbers)
c) International dialing from LLN’s
d) Providing Value Added services to customers. Like UAN (Universal Access
Numbers), PABX (Private Auto Branch Exchanges),VPN( Virtual Private
Network) Bandwidth of ISP’S (Internet service providers)
e) PTCL has its three subsidiaries PAKNET (leading ISP in the country), UFONE
(unique cellular phone company in Pakistan), TF (Telecom Foundation) the
leading foundation for the welfare of employees of Telecom Sector.
f)
ACCOUNTING SYSTEM OF PTCL

In PTCL the rules contained in the special volume of the PTCL under which the SEVP
(FINANCE) is responsible for creating the procedure of Accounting matters.

CAPITAL RECEIPTS SIDE.

REVENUE FROM BILLING SYSTEM
a. Revenue from Usual customer.
b. Revenue from DXX System
c. Revenue from DSL System
d. Revenue from PABX/PBX System
e. Revenue from Card Phone Operators
f. Revenue from IPOs Internet service providers
Page | 43



g. Revenue from Mobile Phone Operators
h. Co-location charges from various companies

REVENUE FROM OTHER
a. Revenue from Overseas calls (Incoming)
b. Revenue from Premium PRS (0900) calls
c. Income from Dismantle Exchanges
d. Revenue from MDF used by other companies

CAPITAL EXPENDITURES

INSTALLATION OF NEW EXCHANGES

Expenses of installation of new Exchanges are the major capital expense of PTCL because
PTCL purchases the new telephone exchanges from France, Italy, Germany and China. So
heavy cost is to be paid for purchasing process in order to proper margin. Each exchange
having different capacity and due which each Engineer should has to be trained accordingly
so expenses rises on purchasing of new Telephone Exchanges. This is the main expense of
PTCL.

EXTENSION OF EXISTING EXCHANGES

The extension of the existing exchanges is the dire need as the density of the population is
increasing day by day and in order to fulfill the basic communication and fill the communication
gap PTCL has to extend its normal Telephone Exchanges in accordance with the demand and per
paid connection. So PTCL sustain heavy expenses on the extension of exchanges.

Page | 44



MINOR EXPENDITURES

INTERNAL AUDIT AND TECHNICAL INSPECTION

The PTCL has sustained huge amount in context of internal audit both Accounts and Technical
from various agencies. For example M/s Ferguson conduct both internal audit and external audit
and payment made to auditors in the expenses of the company.

ADMINISTRATION AND CONTROL EXPENSES

Some time in the best interest of company, some expenses could be occurred for example if there
is need of induction of a financial analyst in one region or if there is need of an Engineer then
transfer and posting order can be issued and traveling and training expenses could be realized to
employees.

SALARIES OF STAFF

The monthly salary of the staff is rest with the approval of PTCL H.Q Islamabad. PTCL is
spending lot of amount on the salaries.

.

FINANCE SYSTEM OF PTCL
Page | 45



PTCL has magnificent finance structure; it is basically Product Oriented organization so
here, the Revenue is the Life Blood as such for any other profit seeking organization. So we
should have isolated the Revenue from Finance side or either we should consider the Finance in
the context of Revenue.

Finance activities can be evaluated in terms of PTCL’s basic financial statements
analyzing through

Finance planning

On PTCL HQ Islamabad, SEVP (Finance) is, who with the concurrence with the CEO for
making all the Finance Planning that’s way the PTCL has to inject the money in order to boost up
the business and in order to complete the stiff competition faced in the telecomm sector. Before
taking any decision regarding financial planning the draft could be presented before the Board of
Governors. In this section there is need of financing either in the WLL (wireless local loop) sector
or wire-line or mobile operator services.

Managing the PTCL’s Asset structure

Page | 46



PTC is very organized organization and it has also its fixed as well with the current asset.
So there are many experts in order to keep the eye watch on the PTCL infrastructure, for example
Director (Fixed Assets) is responsible for the maintenance and repair of the building and
machinery on the Regional level.

Managing the PTCL’s financial structure

PTCL financial structure is in the safe hands the basic qualification for the post of
Assistant Accounts Officer is MBA (Finance) and for the SEVP (Finance) the incumbent should
possess the degree of MBA with ACMA & CA. Due to such fresh blood the young and energetic
financial management taking some bold decision the results of which are awaited up till.

FUNDING OF PTCL

Page | 47



MOBILIZATION OF FUNDS

PTCL mobilized its funds with following ways.

1) Purchase the new imported infrastructure like new Exchanges etc
PTCL mobilized its finds mostly in the purchase of new telephone exchanges from
abroad (France, Italy & China). There is also purchase of accessories of telephone
exchange generators and other equipments.

2) Capital expenditure for the organization.
There are various expenses for the PTCL in the context of capital expenditure that has
already been mentioned in previous pages.

3) Purchase and acquisition of stores.
PTCL store items are very important components i.e Stationery, stand-by Exchanges,
generators, barites and other equipments. PTCL spend lot of funds on these items.

4) Loan and advances to others, and re-investment.
There are offering of Loan and advances to the employees on various rates according
to the length of services on roll. This is the main source of mobilization of funds.

5) Payment of dividend to the stockholders.
Payment made to the shareholders in the context of dividend to be paid to the
shareholders. PTCL has currently announced the divided of Rs.32/per share.

6) Salaries of the staff all over the country.
Obviously services rendered by the staff and in this way PTCL has to pay handsome
amount to their staff, those are the main source of generating the revenue.

7) Annual Bonus to employees.
PTCL pays annual Bonus of Rs. 12000/- to its employees on the Eid occasion.

8) Security deposits, Transfer of Company’s Land & Building.

Page | 48



Where PTCL does not find any building or land then security deposit may be paid to
the private landholders for the installation of PTCL infrastructure.

9) Insurance of the Company
PTCL offers the insurance from its own side in case of death and medically unfit of its
employees.

10) Pension, graduate, and other fringe benefits.
For the pension and gratuity of the retire official PTCL mobilized its funds
accordingly.

11) Supply of Furniture and Fixtures to the office buildings.
This is the responsibility of the Management to be provided the furniture and fixture
to the office buildings accordingly.

12) Renovation, alteration, and rental charges of privately owned buildings.
PTCL has to pay the handsome amount for renovation and alteration of existing
building and the charges of privately owned builders are being issued accordingly.

GENERATION OF FUNDS

1. Amount Realized from System Billing.
2. Amount Realized from defaulters.
3. Revenue from Value-added Services.
4. Bandwidth facilities provided to the companies.
5. Earning from DXX, PSTN, PABX, VPN, PRI & ISD.
6. Media used by cellular and pay-card companies and earn royalty.
Page | 49



7. Earning from subsidiaries PTML, PAKNET & TF.
8. Amount realized through co-location charges.
9. Basic Rate Interface provided to the subscriber.
10. International dialing customers.
11. Corporate Billing customers, valued customers.
12. Earning from MTR mobile Termination Rate.
13. Earning from Incoming Overseas Calls in shape of premium from overseas

Page | 50



SOURCES OF FUNDS OF PTCL

Cash generated from operations

In this context we can say that PTCL usual earning lot much more depends upon the usual
earning from Telephone number and payments of the bill thereof, this is the primary source of
funds of PTCL.

Security deposits

Various pay card companies like Dancom, World call, Pearl Tel, Soft tech, deposited huge
amount as the securing deposit in the books of PTCL for the media that is being used by these
companies. PTCL is utilizing these security deposits.

Return on deposits

After payment the dividend to the share holders and having paid the income tax on the
profit the surplus amount is being used in the deposits of various national and multinational banks
from where ROD is received accordingly.

Dividend Income

PTCL some time itself purchases the share from the open market and earn the dividend income
thereof. It is also possibly that PTCL if applicable may detain the shares of different other
companies and earn the dividend.

Page | 51



Sale proceeds of fixed assets

The defunct and dismantle Telephone exchanges not allowed re-sell to the other underdeveloped
countries and gain profit. PTCL is also not in the process of planning to be used the idle land,
which could be used on commercial basis by other parties.

Long- Term Investment

There are various long-term project of PTCL. BLT is one of them. PTCL is now expanding its
business through the United Arab Emirates by consortium and through the joint venture with
other telecom operators. PTCL has also some long-term investment in the AT&T (American
Telephone & Telegraph) and ZTE (Zehwing Telecom Engineering Company China).

Long-Term Loan to others

PTCL has also offered long term loan agreement to other Telecom provider companies. PTCL is
providing its expertise and Engineers to them and also offering amount to be invested on behalf
of PTCL for example PTML Pakistan Telecom Mobile Limited and Paknet the Internet providers
company.

Loans, advances, deposits, prepayments and other receivable

In this context all the referred point and return thereof will be called the receivable.

Page | 52



ALLOCATION OF FUNDS

Against all purchase orders issued by the PTCL H/Q’s Islamabad payment made after
allocation of Funds which further allocated by the Regional offices. The funds usually allocate in
order to manage the following: -

14. Capital expenditure
15. Purchase of infrastructure like new exchanges.
16. Launching of new Product.
17. Human resource development
18. Transportation expenses, misc expenses
19. Domestic and overseas training of staff
20. Bonus to the employees, house/building advances, motor car/motor cycle advances.
21. Worker compensation fund, benevolent fund contribution general provident fund
22. Maintenance of buildings, vehicles, fixed assets.
23. Default situation of subsidiaries.

Allocation of Funds for Marketing exploration 19% of net profit

Allocation of Funds for Research & development 18% of net profit

Allocation of Funds for Human resources & Admn 33% of net profit

Allocation of Funds for Corporate affairs 30% of net profit

Page | 53



Department worked during internship and specific/leading
contribution made.

In the beginning they gave me a brief introduction of all the aspects related to their field
of business, their products, changes in products. A general overview of PTCL was given in other
words. Moreover, I learned how things work in a practical environment, challenges and problems
faced as I have mentioned.

More specifically the project assigned to me during the internship was the sales analysis
of PTCL-V Services Packages, a product of PTCL. The major department in which I did
internship was Interconnection Revenue Department. The prices of the PTCL-V devices were
reduced during the period which had a positive impact on sales. I was assigned the task of
analyzing the impact of change in these prices on the overall income and other service packages of
PTCL-V.

PTCL V- fone (WLL Ser vice) was a major area of focus for PTCL during the year. A
few prominent measures taken in this area during the year were launching of free home
delivery service. No line rent package was launched in June 2010. In June 2008, 30 seconds billing
was introduced contributing as an effective customer retention tool. PTCL has expanded the
network to provide coverage in all large and small cities including over 10,000 villages in rural
areas of Pakistan.

Problems Identified

PTCL is a well organized company and operates efficiently in this competitive environment so it
Page | 54



was difficult for me to identify the problem. But nothing is perfect in this world there is always a
room for improvement. According to my limited knowledge following were the problems and
challenges that can directly affect the efficiency and performance of the bank or in other words
improvement need be made in the following areas:

 There is a lack of balance in incentives given to old and new employees. New employees
are paid more which de- motivates the old ones.

 Lack of proper computer skills in old employees is another problem.

 System problems do arise at times and customers have to wait for the system to
work properly.

 Some employees misuse the resources of the company.

 Employees were not very effective in communication among themselves. They
didn’t share the experience with each other and didn’t care about the other
employees. Some employees lacked the trust in management.

 Ineffective public dealing was another major problem which I experienced during
my internship. y Regularity and punctuality shows the character of big and good
executives. But this problem is also faced by the overconfident employees.

Financial Analysis

Page | 55



Page | 56



Page | 57



Operating Highlights

Page | 58



Page | 59



CURRENT RATIO Current Assets

Current Liabilities

Its shows the firm’s ability to covers it current liabilities with it current assets.

Ratio for 2005 = = 1.89

Ratio for 2006 = = 1.66

Ratio for 2007 = 53560840/24447741 = 2.19

Ratio for 2008 =39603406/21913959 = 1.8

Ratio for 2009 =54220241/36086322 = 1.5

INTERPRETATION
Current Ratio of PTCL was good last five year. In 2006 the current ratio
Better then the last year and upcoming years. The last three year slightly
Difference between each other. If PTCL increases the assets then current
Ratio of PTCL is better.

Page | 60



Cash ratio

Cash & cash equivalent

Current liability

It is the ratio of cash and cash equivalents to current liabilities. It shows that how
much cash available to cover the current liabilities.

Ratio for 2005= =%

Ratio for 2006 = =%

Ratio for 2007= =%

Ratio for 2008=4545145/21913959 =0.21%

Ratio for 2009=11906448/36086322 =0.32%

INTERPRETATION

In 2009 cash ratio is better then the last year

And 2008 the cash ratio is decreases then 2007 ratio and slight increases

2009.

DEBT TO EQUITY RATIO
Page | 61



Total Debt

Total Equity

The Ratio shows extend to which the firm is financed by debt.

Ratio for 2005 = = 13:87

Ratio for 2006 = = 14:86

Ratio for 2007 = = 14:86

Ratio for 2008 = 13366216/75741890 = 15:85

Ratio for 2009 = 10760974 /56495113= 16:84

INTERPRETATION

This year is better then previous years.

Working capital
CA - CL

It shows the net worth of the bank.

Ratio for 2005 =

Ratio for 2006=

Ratio for 2007=53560840-24447741= 29113099

Ratio for 2008 =39603406-21913961 = 17689445

Ratio for 2009 =54220241 -36086322= 18133919
Page | 62



INTERPRETATION

The net worth of the org is strong. Last five year the data shows positive

Answer .its mean that the current assets of the bank is more then the current

Liability

EARNING PER SHARE

Net income

No of ordinary shares

This ratio tells that what the earning per share.

Ratio for 2005 = = 5.22

Ratio for 2006 = = 4.07

Ratio for 2007 = = 3.07

Ratio for 2008 = 14705300/3900000000 =(0.55)

Ratio for 2009 = 16206485/11100000000 =1.7

INTERPRETATION

MCB earning per share of five years is high difference. they are changes In the
points.

NET PROFIT MARGIN RATIO

Page | 63



NET INCOME

Sales

It is measure of the firm profitability of sale after taking account of all expense and
income taxes.

Ratio for 2005 = =30.46%

Ratio for 2006 = =26.16%

Ratio for 2007 = = 22.01

Ratio for 2008 = =(4.26)%

Ratio for 2009 = =15.45%

INTERPRETATION

Net profit margin of PTCl has improved, during the current year tremendously.
This signal towards higher efficiency and lower administrative cost of the ptcl.

RETURN ON EQUITY RATIO

Net Profit X 100

Page | 64



Total Equity

This ratio shows that residual profit as a proportion of the bank value of common
shareholder equity.

Ratio for 2005 = = 25.45%

Ratio for 2006 = = 20.22 %

Ratio for 2007 = = 14.45%

Ratio for 2008 = =(2.71)%

Ratio for 2009 = =9.28%

INTERPRETATION

The ROE of PTCL has shown a mix trend. In the 2006 it decreased as compare
to year 2005. The increase in ROE is due to improvement in Net Profit Margin. the
2005 is better profit then next four year

Page | 65



Profitability Position

Liquidity Position

Page | 66



Leverage Position

Page | 67



Activity Positions

Dividends

SWOT Analysis
STRENGTHS

Page | 68



 Largest operational network and infrastructure within ICT (Information & Communication
Technologies) segment.

 An integrated monopoly.

 Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony.

 PTCL (Ufone) is market challenger in GSM segment.

 Ufone is performing well though Warid, Telennor, Mobilink and Zong are tough
competitor. PTCL , Ufons profitability increased by 49.2 percent to Rs 977 million in
1H/FY07 as compared to rsRs655 million in the corresponding period last.

 Competitors still dpend on PTCL network either directly or indirectly.

 Experienced Telecom Recourses.

Weaknesses

 Not been able to nurture its growth around customer services oriented strategy.

 Internal organizational and business issues.

 Monopolistic culture has further added to complexities.

 Paknet, the internet service provider arm of PTCL customers to incur losses due to poor
management and lack of network optimization.

 Ptcl-v, the fixed wireless phone service is poor.

 Over employment & low productivity.

 Slow decision making including external interferences.

 Corporate culture akin to Government department.

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OPPORTUNITIES

 Low teledensity of Pakistan.

 Have vast infrastructure and real estate which can be leveraged further.

 Global connectivity reliability has been improved.

 PTCL expanding the long distance and infrastructure side through spreading out two sea-
me-we submarine cables.

 Partnership with new entrants in deregulated environment.

 Scope for efficient cost effective operations.

Threats

 increased competition in long distance counties to exert pressure.

 VOIP use is increasing despite ambiguous and discriminatory policies.

 Exposure to market competition.

 Migration to cellular network.
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 Ability to attract &retain quality professional.

 Reduction in international settlement rates.

MAIN OFFICES

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1. Southern Telecom Region-I, Hyderabad
2. Southern Telecom Region-II Karachi (STR-II)
3. Southern Telecom Region-III Karachi (STR-III)
4. Lahore Telecom Region (South) , Lahore
5. Lahore Telecom Region (North) Lahore
6. Central Telecom Region (C.T.R) Lahore
7. Faisalabad Telecom Region (FTR) Faisalabad
8. Rawalpindi Telecom Region (RTR) Rawalpindi
9. Hazara Telecom Region, Abbottabad
10.North Telecom Region (NTR-II) Peshawar
11.Western Telecom Region (WTR) QUETTA
12.Multan Telecom Region (MTR) MULTAN

Conclusion

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With employee strength of 30,000 and 5.7 million customers, PTCL is the largest
telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator
in the country with 0.8 million V-fone customers.

The company maintains a leading position in Pakistan as an infrastructure provider to
other telecom operators and corporate customers of the country. It has the potential to be an
instrumental agent in Pakistan’s economic growth.

PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of
Pakistan and local loop services have started to be modernized and upgraded from copper to an
optical network

On the Long Distance and International infrastructure side, the capacity of two SEA-ME-
WE submarine cable is being expanded to meet the increasing demand of International traffic.

Pakistan Telecommunication Corporation (PTC) has established in December 1990,
taking 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 payphones, paging and,
lately, data communication services.

In 1994, the PTC becomes the company limited (Pakistan Telecommunication Company
Limited) by issued six million vouchers exchangeable into 600 million shares of the PTCL in two
separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted
into PTCL shares in mid-1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for
PTCL monopoly over basic telecommunication sector in the country. It also paved the way for

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the establishment of an independent regulatory regime. The provisions of the Ordinance were lent
permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act.

The year 2006-07 in the telecom sector was marked by the phenomenal growth in the
mobile sector in Pakistan, which doubled its subscriber base to 60 million. The teledensity
increased from 26% to 40%, helping to spread the benefits of communication technology across
the country. PTCL ’s mobile mobile phone subsidiary Ufone’s subscriber base grew by more than
87%, from 7.49 million to 14 million. The year also witnessed the entry of major telecom
companies, most notably China Telecom and Singtel, into market.

The privatization of the company was completed in the FY06, following the purchaser of
26% ‘B’ class ordinary shares by Etisalat International Pakistan L.L.C.

EIP took over management control on 12th on April 2006.

No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone
Connection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L has
increases its Revenue quite dramatically and probably that as soon as this organization has
become privatized it will flourish its revenue in better manner.

PTCL should immediately change its Finance upper level of hierarchy and should stream
line in the good manner.

PTCL should also encourage the Billing On line system that each and every customer
should have to pay his/her bill on line basis.

The system of E-PAYMENT which although exist in PTCL finance system but there is
need of improvement this facility.

The image of PTCL being leading Telecom Providing is not good in the eyes of common
customer especially there are lot of complaints about the including the bogus local calls in the

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monthly bills of various customers. PTCL should also provide the detail of local calls made from
any Land Line Number which would be provided in Micro level to the customer.

Faulty Telephone connection should be Fault Free within 24 hours in order to maximize
the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone.

PTCL should make Customer Care Centers in remote areas

If I have to express my experience of internship in PTCL I would briefly say:

PTCL is a good Organization in the way that anybody can join it for his/ her long-term
career. Overall working environment is comfortable. Management of branch cares a lot of its
employees and considers them as the Asset of PTCL. Behavior of senior executive of bank is
very polite and they are caring about the individual’s career and their growth.

PTCL needs innovative service offerings — currently it doesn’t even offer bundles or a
single bill.

Has been unclear about its IPTV and WiMAX plan and strategy (trials are in progress)
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.

However management is very demanding about the targets but good reward at the
achievement of assigned targets is awarded.
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Employees at PTCL are quite efficient. Its employees have to bring their org among the
list of good. Therefore, they work more than their working hours and it is all according to their
will. It also shows their loyalty, commitment to organization.

Employees are given the benefits like bonus, gratuity funds, loans, increments, and
medical.

All the customers are entertained individually. Same kind of behavior and attention is

given to all the customers. Getting ideas for improvement from customer side is a new idea and

that is working very well in PTCL. All the customers are asked to fill a suggestion form and the

standards of the org are improved through them.

Prioritizing its product portfolio in line with its corporate and consumer needs and wants
the org are committed to develop products that give more value to its customers in both the
sectors.

In PTCL, all the work is done on computers. All the entries are made in computer.
Balance is fed into the computer. This increases efficiency of the org.

During my internship training I gathered information regarding how a successful org
operational aspect decorticated with the practical.

I found my internship training at PTCL to be a very rewarding experience. The training
was beneficial because it helpful me to aware a real life working environment.

So far my learning is concerned; all the employees at branch were quite cooperative. They
helped me to understand the activities of a org to possible extent. Their good attitude gave me
more confidence to learn more and to ask if I have any query in my mind. Besides there ever
going activities they never get irritant by my questioning. I had made an honest efferent to present
the working & operation of PTCL in simplest way.

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I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working with
experienced cooperative & intelligent staff.

Suggestions and Recommendations

• No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone
Connection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L
has increases its Revenue quite dramatically, and probably that as soon as this
organization has become privatized it will flourish its revenue in better manner.

• PTCL should immediately change its Finance upper level of hierarchy and should stream
line in the good manner.

• PTCL should also encourage the Billing On line system that each and every customer
should have to pay his/her bill on line basis.
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• The system of E-PAYMENT which although exist in PTCL finance system but there is
need of improvement this facility.

• The image of PTCL being leading Telecom Providing is not good in the eyes of common
customer especially there are lot of complaints about the including the bogus local calls in
the monthly bills of various customers. PTCL should also provide the detail of local calls
made from any Land Line Number which would be provided in Micro level to the
customer.

• Faulty Telephone connection should be Fault Free within 24 hours in order to maximize
the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone.

• PTCL should make Customer Care Centers in remote areas.

• The punching system of Billing through automation at CITI Bank Karachi takes so much
time to adjust so it should be revived.

• The Financial D.D.O powers should be entrusted to the Director Finance rather GM.

• PTCL is not utilizing its surplus profit in long-term investment projects which be done.

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• PTCL management should give concentration towards the Securities of deposit and it
should be on maximum level.

• The return on deposit should be checked accordingly.

• The cash generated from the operation must be utilized accordingly.

• Each Region should allocate the funds at its own level.

• PTCL should take the services of highly qualified financial analysts.

• The promotion system in the Finance & Revenue wing should be revived in true manner
all promotion must be made strictly on merit.

• Each Region should maintain Profit & Loss and Balance sheet and the statement of Cash
inflow and outflow.

Limitations

Organizations don’t provide their data. They keep secracy fron internee. All the data to prepare
this report I have collected my self from different sources.

Bibliography

1. www.ptcl.com.pk

2. Annual reports of PTCL.

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3. Staff of the department.

4. Recent business record.

5. Internship reports Company’s website-ptcl.com.pk
6. Magazine Business Economy
7. Google.com
8. Economic Survey of Pakistan
9. Businessrecorder.com
10. Security and Exchange Commission of Pakistan
11. Kse.com
12. Yahoofinance.com

Reports
• Annual Report PTCL 2007, 08
• PTA Reports

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Internship Report on PTCL

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