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Executive summary

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 Pakistans economic growth. PTCL has laid an Optical Fibre 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.

INTORDUCTUION The telecommunications industry is at the forefront of the information agedelivering 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 telecomm1urinations companies. The central offices contain switching equipment that routes content 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 Internet.

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.

HISTORY OF PTCL
PAKISTAN TELEGRAPH AND TELEPHONE DEPARTMENT (T&T) Pakistan Telegraph and Telephone Department inherited a small telecommunication network consisting of only 12,000 lines in 1947. It was the sole Department responsible for providing telecommunication facilities to whole country. In fact postal services were also included in its responsibilities. The Pakistan Postal Department was separated from Pakistan Telegraph and Telephone Department in the year 1962. Like all other field of newly born nation, there was no established system of telecommunication, available in the country. However the present system, as well as new installations was managed by the T&T quiet efficiently. PAKISTAN POST & TELEGRAPH (P&T) The postal and telecommunication services were performed by a single department known as Pakistan Post & Telegraph (P&T). This department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. This department continued its business up to 1962 PAKISTAN TELECOMMUNICATION CORPORATION (PTC) The erstwhile Telegraph and Telephone (T&T) Department was converted into a Statuary Corporation on 15-12-1990. It has its own legal identity totally separated from Government of Pakistan.

RE-STRUCTURING OF PTC
The P.T.C. was further segregated into four separate units in 1996. 1. P.T.C.L. 2. P.T.A. 3. N.T.C. 4. F.A.B. PAKISTAN TELECOMMUNICATION COMPANY LIMITED (PTCL) PTCL was incorporated on December 31st 1995 and commenced business on January 1st 1996.. All properties, assets, obligations and liabilities of PTC were accordingly transferred to the PTCL on the 01-01-1996. The P.T.C.L. is a prestigious organization and telecom services in the country are getting better and better, since its incorporation. PAKISTAN TELECOM AUTHORITY (PTA) Pakistan Telecom Authority (PTA) was established in 1996. It falls under the preview of Government of Pakistan. It issues licenses to various companies for carry out certain activities. This authority is responsible to monitor the establishment of telecom related firms, companies, the import of telecom equipments etc in the country. It is a regulatory body formed to accomplish rules and regulations relating to the telecommunication matters. NATIONAL TELECOM CORPORATION (NTC) It has been established for installation of telecommunication facilities to the Governmental organizations. A portion of working lines was initially transferred to N.T.C. from the P.T.C.L. but now they have established their network. They are totally independent in providing telephones connections, their look after and generation of revenue there from. FREQUENCY ALLOCATION BOARD (FAB) This organization has been established to allocate Radio and Wireless telecom frequencies to various organizations/companies within the country. The latest development in this regard is that F.A.B. is establishing Monitoring Stations in order to check the validity and legality of the utilization of circuits. PTCL'S SUBSIDIARIES Pak Telecom Mobile Limited (PTML) PTML is a wholly owned subsidiary of PTCL established to operate cellular Telephony under the brand name of UFONE.

The company's performance during the current year has been very encouraging despite the stiff competition in Pakistan's cellular market especially after the emergence of two new international players in the last quarter of the year. Throughout the year, UFONE pursued a growth strategy and managed to almost double its revenue compared to last year. The company successfully increased UFONE's market share from 16% to 22%, a significant achievement. On June 30, 2005 the total number of subscribers of UFONE was 2.6 million versus 0.8 million at the same year.

Vision Statement
To be the leading ICT services provider in the region by achieving customers satisfaction and maximizing shareholders value.

Mission Statement
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

Environmental Analysis Analysis of External Environment

Industrial structure

Market Operations

Market Structure

Regulatory Environment

Analysis of Internal Environment

FINANCIAL ANALYSIS

BUSINESS STRATEGIES

Products and Services

PTCL Landline

PTCL V-Fone

U-Fone

SWOT Analysis
Strengths

Weakness

Opportunities

Threats

TOWS Matrix
Through the following TWOS Matrix, we are suggesting PTCL for the adoption of certain strategies, leading to the best use of their strengths in industrial opportunities and avoidance of unforeseen events happening due to the internal weaknesses, having industrial external negative impacts.

strengths-S
1. Financially strong 2. largest network operational with ict 3. anintegrated monopoly 4. marked leadership in loop wwl and telephone 5. ptcl(ufone) marked challenger in G sim segment 6. ptclufone profitability 42.9% 977 million 7. f y 07b compared to 655 million

weaknessesW
1.monoplistic culture has further added into completion 2.Pak net the internet ervice provder continues looser the poor management and lack optimization 3.Ptcl and fixed warles phon 4. slow deision making 5.carparate culture akin gov department.

opportunities- SO strategies WO O strategies 1. s1,o1 expand


1. low
teledensity of Pakistan. 2. have infrastructures and real estate assets which can be large further 3. Global connectivity and reliability improved. 4. Scup of efficient cast effective operation. 2. s2,o3 increas frachess 3.

1. Can build up exposure


and better brand image through right promotional mix. (W1,O1,O2)

2. Can diversify in Gulf


region. (W1,O2)

threats-T
1. Government regulations
on slots.

ST strategies WT strategies 1. Overcoming


competitors pressure through high quality products. (S2, T2) 2. Resolving Alliance oppositions through Management support of Yunus Group (S1,T3) 1. Reduce general and administrative expenses to coupe with narrow competition. (W3,T2) 2. Should consider employee perks to avoid hassles of labor unions. (W2, T3)

2. Price competition. 3. exposure market


comption. 4. migeration network. cellur

5.

Space Matrix
Financial Strengths
Increase in net sales revenue Continuous increase in stock value (Rs. 130/-) Increased earning per share (Rs. 2.1 per share) TOTAL

Rating
4 6 5 15

Industry Strengths

Rating

Increasing competition in construction 4 sector Increasing domestic demand for 5 cement i.e.: 92% Enhancements in the budget for Annual 5 Development Plan by 34% (Rs. 202 b) Increasing growth rate 3 TOTAL 17

Environmental Stability
Allowance of subsidized cement imports and lesser rebates on export Cut throat competition has created instability Currency rate difference has given much loss Increasing rate of inflation

Rating
-4 -3 -3 -4

Rapid technological change TOTAL

-3 -17

Competitive Advantage
Strong distribution network High quality products Highest export share Market development in Gulf countries Govt projects as DGP Army TOTAL

Rating
-2 -3 -4 -2 -3 -14

Conclusion
Environmental Stability Average Industry Strengths Average is Competitive Advantage Average Financial Strengths Average is Directional Vector Coordinates X axis: (CA + IS) = -2.80 + 4.25 = 1.45 Y axis: (ES + FS) = -3.40 + 5.00 = 1.60 is -17/5= 3.40 +17/4= 4.25 is -14/5= 2.80 +15/3= 5.00

Lucky cement should be in aggressive strategies


FS

ES It implies that ptcl is staying at close UUUto their basic competency. The industry is growing and the

company is financially stable, with profound competitive advantage. They are in Market penetration (through aggressive selling) and market development (new factories being set and exports to Gulf region.

Boston Consulting Group (BCG) Matrix

The ptcl is a STAR organization having a high market share of more than 42.2%.Since the telecom industry is Pakistan is on boom with Government investments. All these signs ensure ptcl to be a STAR organization. We are sagest three type strategies

1. 2. 3. 4.

market penetration market development product development diversification

Quantitative Strategic Planning Matrix (QSPM)


From the result of above 3 Matrixes three strategies Market development, Product Development and diversification can be applied. Key External Factors Economy Political/Legal/Governmental Social/Cultural/Demographic/Environme ntal Technological Competitive Key Internal Factors Management Finance Management Information Systems 5 5 5 3 2 3 1 2 1 5 5 1 1 1 Weight 5 5 5 5 2 2 2 1 1 2 Market Development 3 3 4 Product Development 1 1 1 Diversification 1 1 0

Total

40

19

10

Strategy
By conducting all the analysis, among the three selected strategies (Market Development, Product Development and Diversification) I have selected Market Development the most important for the company at this time. At first company must try to reach in every city of Pakistan after move noethen area The product develop is the second priority after Market development. The ptcl should be improved for this purpose new ideas must be brought in, in order to compete with the competitors.

Conclusion
There are some good opportunities for the company,.The main thread for them are the competitors, especially The main thing that ptcl improve service quality then strata operation out of country. If they want to survive in the market they must open new branches and bring new ideas to compete with competitors.