Successfully reported this slideshow.
Your SlideShare is downloading. ×

More Related Content

53007224 50262292-37848431-final-internship-report-on-ptcl

  1. 1. 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 Page | 1 University of Sargodha
  2. 2. INTERNSHIP REPORT ON PTCL Page | 2 University of Sargodha
  3. 3. INTERNSHIP REPORT ON PTCL 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. Page | 3 University of Sargodha
  4. 4. INTERNSHIP REPORT ON PTCL 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. Page | 4 University of Sargodha
  5. 5. INTERNSHIP REPORT ON PTCL 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. Page | 5 University of Sargodha
  6. 6. INTERNSHIP REPORT ON PTCL 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 Page | 6 University of Sargodha
  7. 7. INTERNSHIP REPORT ON PTCL 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. Page | 7 University of Sargodha
  8. 8. INTERNSHIP REPORT ON PTCL 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 Page | 8 University of Sargodha
  9. 9. INTERNSHIP REPORT ON PTCL 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 Page | 9 University of Sargodha
  10. 10. INTERNSHIP REPORT ON PTCL 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. Page | 10 University of Sargodha
  11. 11. INTERNSHIP REPORT ON PTCL 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. Page | 11 University of Sargodha
  12. 12. INTERNSHIP REPORT ON PTCL 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. Page | 12 University of Sargodha
  13. 13. INTERNSHIP REPORT ON PTCL 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 Page | 13 University of Sargodha
  14. 14. INTERNSHIP REPORT ON PTCL 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 Page | 14 University of Sargodha
  15. 15. INTERNSHIP REPORT ON PTCL 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 Page | 15 University of Sargodha
  16. 16. INTERNSHIP REPORT ON PTCL 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, Page | 16 University of Sargodha
  17. 17. INTERNSHIP REPORT ON PTCL 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. Page | 17 University of Sargodha
  18. 18. INTERNSHIP REPORT ON PTCL 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 Page | 18 University of Sargodha
  19. 19. INTERNSHIP REPORT ON PTCL 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 Page | 19 University of Sargodha
  20. 20. INTERNSHIP REPORT ON PTCL 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. Page | 20 University of Sargodha
  21. 21. INTERNSHIP REPORT ON PTCL 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 Page | 21 University of Sargodha
  22. 22. INTERNSHIP REPORT ON PTCL 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: Page | 22 University of Sargodha
  23. 23. INTERNSHIP REPORT ON PTCL 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: Page | 23 University of Sargodha
  24. 24. INTERNSHIP REPORT ON PTCL 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 Page | 24 University of Sargodha
  25. 25. INTERNSHIP REPORT ON PTCL 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 Page | 25 University of Sargodha
  26. 26. INTERNSHIP REPORT ON PTCL 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 Page | 26 University of Sargodha
  27. 27. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  28. 28. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  29. 29. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  30. 30. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  31. 31. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  32. 32. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  33. 33. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  34. 34. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  35. 35. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  36. 36. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  37. 37. INTERNSHIP REPORT ON PTCL Number of Employees Number of employees in PTCL is more then 30000. Page | 37 University of Sargodha
  38. 38. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  39. 39. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  40. 40. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  41. 41. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  42. 42. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  43. 43. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  44. 44. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  45. 45. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  46. 46. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  47. 47. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  48. 48. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  49. 49. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  50. 50. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  51. 51. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  52. 52. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  53. 53. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  54. 54. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  55. 55. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  56. 56. INTERNSHIP REPORT ON PTCL Page | 56 University of Sargodha
  57. 57. INTERNSHIP REPORT ON PTCL Page | 57 University of Sargodha
  58. 58. INTERNSHIP REPORT ON PTCL Operating Highlights Page | 58 University of Sargodha
  59. 59. INTERNSHIP REPORT ON PTCL Page | 59 University of Sargodha
  60. 60. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  61. 61. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  62. 62. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  63. 63. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  64. 64. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  65. 65. INTERNSHIP REPORT ON PTCL 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 University of Sargodha
  66. 66. INTERNSHIP REPORT ON PTCL Profitability Position Liquidity Position Page | 66 University of Sargodha
  67. 67. INTERNSHIP REPORT ON PTCL Leverage Position Page | 67 University of Sargodha
  68. 68. INTERNSHIP REPORT ON PTCL Activity Positions Dividends SWOT Analysis STRENGTHS Page | 68 University of Sargodha
  69. 69. INTERNSHIP REPORT ON PTCL  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. Page | 69 University of Sargodha
  70. 70. INTERNSHIP REPORT ON PTCL 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. Page | 70 University of Sargodha
  71. 71. INTERNSHIP REPORT ON PTCL  Ability to attract &retain quality professional.  Reduction in international settlement rates. MAIN OFFICES Page | 71 University of Sargodha
  72. 72. INTERNSHIP REPORT ON PTCL 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 Page | 72 University of Sargodha
  73. 73. INTERNSHIP REPORT ON PTCL 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 Page | 73 University of Sargodha
  74. 74. INTERNSHIP REPORT ON PTCL 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 Page | 74 University of Sargodha
  75. 75. INTERNSHIP REPORT ON PTCL 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. Page | 75 University of Sargodha
  76. 76. INTERNSHIP REPORT ON PTCL 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. Page | 76 University of Sargodha
  77. 77. INTERNSHIP REPORT ON PTCL 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. Page | 77 University of Sargodha
  78. 78. INTERNSHIP REPORT ON PTCL • 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. Page | 78 University of Sargodha
  79. 79. INTERNSHIP REPORT ON PTCL • 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. Page | 79 University of Sargodha
  80. 80. INTERNSHIP REPORT ON PTCL 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 Page | 80 University of Sargodha
  81. 81. INTERNSHIP REPORT ON PTCL Page | 81 University of Sargodha
  82. 82. INTERNSHIP REPORT ON PTCL Page | 82 University of Sargodha
  83. 83. INTERNSHIP REPORT ON PTCL Page | 83 University of Sargodha

×