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Internship Report of
PAKISTAN TELECOMUNICATION LIMITED
(PTCL)
Submitted To
The Department of Business Administration
University of Gujrat
DEDICATION
At first dedicating this work to Almighty,
Without his mercy and sympathy I was not able to accomplish this work.
I also dedicated this work to my
PREFACE
This report is the practical part of the most vital practice of our MBA program. The
sole objective is to familiarize the student with the practical manipulation of
business Organization. This
report
has
been written
to know
how
big
organizations like PTCL Manage their teams to achieve their common goals.
In the first phase of the report there is the general introduction about the
company and then different terms have been explained, then the mission, vision ,
different services and different strategies of the organization have been explained.
In the next part, management system of the firm have been done by
the help of which it is identified that what are the major authorities under the
hierarchy of the company and who report to whom.
In the third, fourth and fifth part of the report there is a complete description
about the management styles, production facilities and marketing mix of the company.
Part six, seven and eight contributes towards the important aspects of this
report by describing the finance and accounting system of the company in detail and
also the training program under which I have explained the daily activities of my
work as an internee in PTCL.
ACKNOWLEDGEMENT
In the Name of Allah, the Most Beneficent, the Most Merciful. All praise and thanks
to Allah, lord of the universe and all that exists. Prayers and peace is upon His prophet
Mohammed the last messenger for all humankind.
First, I would like to express my sincere gratitude and thanks to ALLAH for his
guidance throughout this work and for all the blessings he has bestowed upon me. My
deep gratefulness to my country Pakistan where I grew up and learned the first lessons
and experiences in my life, and I hope that I can pay it back some day. My thanks are
as well for University of Gujarat, where I learned how to do research.
By the grace of almighty Allah I came into a position to make a report on "Pakistan
Telecommunication Company Limited". Actually this report is also the result of help
& guidance which I received from my teachers and PTCL staff who gave me lot of
information and guidance in making this report.
It would not be a justice in presenting this report without mentioning the people
around me who have been inextricably related with the completion of this report. For
assisting me in all respect and regard to complete this report my heartfelt thanks to my
supervisor Mr. Irshad Hussain who enriched me knowledge with wealth led ideas to
pursue and power of writing this report. It could not have been possible to accomplish
this report without his thoughtful guidance and expertise. It is also a great pleasure to
record honorable regards to all those who helped me a lot in learning and enhancing
my knowledge and ability during the internship. I am also thankful to Mr. Bilal tariq
for guiding me in this internship program.
Many people contributed experience, knowledge and advice, so many in fact that it is
simply not easy to name them all. Therefore, I also wish to thank here the other staff
of PTCL and those who had to endure the most during the preparation of this report,
which took place at add hours of the early mornings, late nights, and weekends. I also
offer heartiest thanks to all the persons who guided me and encouraged to complete
this task successful.
Executive Summary
PTCL is an existing business, which has existed for decades. It went through some
major restructuring eras of which 1996 and 2006 are the most prominent. PTCL was
incorporated in 1996 and the new management took control of PTCL in 2006 by
buying its 26% ordinary shares. Our main focus in this report is to check the working
of finance department of PTCL. PTCL today offers the widest range of services to its
customers. 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.
Pakistan Telecommunication Company Limited (PTCL) is the primary provider of
Telecommunication services in Pakistan. The range of
telephony, telegraph, fax, telex, Public data, Internet, E-mail, ISDN (Integrated
Services Digital Network), Universal Access Numbers
(UAN), and
other value
of marketing mix. I have also done financial analysis of PTCL, its accounting and
finance procedures with the help of trend analysis and ratio analysis. I have also done
a comprehensive analysis of the working of HRM department and details of the
employees their incentive, benefits, and compensation. Find out their weaknesses and
give suggestions for improvements.
followed by the company were seen practically whether the company adopted them
according to the international labor law standards or not.
My Internship report contains all the information about my work experience in PTCL.
As an Intern, I spent good time in learning. I learnt to deal with different situations
and have experiences of the organizations working environment which affects an
employee performance and attitude towards work and had good time in learning and
performing duties as finance Intern. Confidence, on time decision making,
consistency, hard work, team work, seeking success out of dark, innovation, creativity,
organizational survival and customer handing techniques are the key learnings out of
my internship and I would like to say that it will be one of my best skills that would
remain with me and help me in the coming life. I would like to highlight this that my
experience with PTCL was very memorable and full of leanings where I found lot of
positive changes in my attitude learning and behavior. Finally some suggestions and
recommendations are given to organization in this report. A central problem in the
system of PTCL is lack of contact & feedback from & to employees there is a lack
of co-ordination between different departments of the organization as well as into
a specific branch. Another problem is lack of trained staff & political pressure for
transfers/postings etc on middle management. Likewise Lack of automation and
state-of-the-art latest IT technology for correspondence between the contents of the
company causing the delay in work and negatively affecting the overall performance
of the company
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 telecommunications 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.
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 fixed 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
.
for
cellular,
card-operated
payphones,
paging
and,
lately,
data
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 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 providers are set to face even bigger challenges. Pakistan also entered
post-monopoly era with deregulation of the sector in January 2003. On the
Government level, a comprehensive liberalization policy for telecom sector is in the
offing.
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, crossnational ownerships, operations and partnerships are being evaluated with a view to
developing and diversifying the business.
Deregulation policy:
Telecommunication de-regulation policy (Policy) has been
prepared in line with Governments objective to de-regulate and liberalize various
sectors of the economy. The Policy applies to opening up of the fixed-line
telecommunication sector. The exclusive rights of Pakistan Telecommunication
Company Limited PTCL to provide basic telephone services (local, long distance,
international and leased line services), which it enjoyed under The Pakistan
Telecommunication (Re-Organization) Act 1996 (Telecom Act 1996), have expired
since 31 December
2002.
Restructuring of PTCL:
The governments efforts to restructure and privatize PTCL
have been on-again off-again since 1991. It had an offer in the late 1990s for 26
percent equity, reputedly totaling $3 billion, but held 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 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 a sell-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 Ufone), 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 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 shares. Some estimates placed the value of the trance at around $1 billion.
PTCLs net profit for the year ending June 2003 was 23 billion rupees ($400 million).
New buyer would gain management control.
Privatization of PTCL:
PTCL was sold to Escalate at a loss of $394 million with the
share price reduced from the original bid of $1.96 per share to $1.66, according to a
report. The original bid offered in June 2005 by Etisalat priced PTCL at $ 2.599
billion while the revised bid approved by the cabinet in March 2006 valued the
company at $2.205 billion. However, the government denied giving any concessions
to Etisalat. Officials said the price of 26 percent PTCL shares remained the same i.e.
$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, in direct conflict with Article 30 of the Public Procurement
Rules 2004, it said. By far, the PTCL has been the highest profit earning state-owned
company with real-estate assets worth billions of rupees across the country including
commercial plazas, residential colonies and exchanges.
According to the government documents, the Share Purchase Agreement (SPA) of the
PTCL with Etisalat lapsed in September 2005 after the non-payment of the dues by
the winner bidders.
Brief History of PTCL:
1947 Posts & Telegraph Dept established
1961 Pakistan Telegraph & Telephone Dept.
1990-91 Pakistan Telecom Corporation.
1995 about 5% of PTC assets transferred to PTA, FAB & NTC.
1996 PTCL Formed listed on all Stock Exchanges of Pakistan.
1998 Mobile (Ufone) & Internet (PakNet) subsidiaries established.
2000 Telecom Policy Finalized.
2003 Telecom Deregulation Policy Announced.
2006 Etisalat Takes Over PTCL's management.
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
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. 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.
PTCL is currently operating in two basic services
PTCL the incumbent operator still retains virtual monopoly in both fixed and wireless
local loop services. The company has maximum presence across the country for both
wireless and fixed local loop network. PTCL has market of only 3-4 million
subscribers while no major bundle package for the cellular mobile segment was
announced that has market of more than 100 million subscribers. PTCL is offering
array of value added services to the subscribers with connections of both fixed and
wireless including high speed broadband, IPTV, free voice mail service, free email
account, Personal Global Number, WiFi services and many more.
Long Distance International services are an integral part of Pakistans telecom
industry which is responsible for carrying international traffic from Pakistan to abroad
and terminating international traffic in Pakistan. PTCL is also in that business as
well.PTCL has also maximum market share in the broadband market. Today
incumbent is offering broadband services in more than 100 cities of Pakistan. And is
aspiring 3 million subscribers in the next 5 years.
Recently PTCL has also entered into the smart TV market and offering wide coverage
in big cities of Pakistan.
With the emerging technology of 3G and other wireless services PTCL has now set up
strong businesses and offer variety of products.
There is centralized structure in PTCL and most of the decision making authority is
given to the top level of management.
VISION
MISSION:
To achieve our vision by having
An environment that is cost effective and quality conscious services that are based
on the most optimum technology
Core Values
Professional Integrity
Customer Satisfaction
Teamwork
Company Loyalty
Convert its cash basis single entry accounting system to accrual basis double
entry system meeting the commercial international accounting standards.
DON'T DISTURB
CALL WAITING
CO-LOCATION CENTER
CONFERENCE CALL
Consumer Products:
V-phone
V phone postpaid
Broadband
PTCL Smart TV
Kendo SMS
PTCL Direct
Corporate Products:
Business DSL
IP Connect
Co- locations
DXX Connectivity
Call Centers
Audio Conference
V-Connect
International IP Services
PTCL Webhosting
Payphones
1- PTCL landline
In this situation PTCLs counter strategy for landline services, during
the years 2007-08 was aimed to increase ARPU, acquire new subscriber and contain
churn.
To increase operations, PTCL shifted from its conventional duration based charging
system to value based options, like Pakistan Package that offered 5,000 minutes for
on net nationwide calls at RS. 199/month. PTCL also launched International Plus
package to facilitate cost effective International calls at unmatchable rates.
1.00
2- PTCL V-phone:
PTCL also continues to be the largest CDMA operator in the country
with approximately 1.25 million V-phone customers.
It offers fixed wireless telephone for your homes & business. With CDMA2000 1X
technology, ours is the largest WLL network with a capacity of 2.6M, covering over
10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet
access (153.6kbps) and EVDO Broadband.
3- PTCL Broadband services
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan.
Since its launch on 19 May 2007, PTCL has acquired 668,376 Broadband customers
in over 605 cities and towns across Pakistan, leading the proliferation and awareness
of Broadband services across Pakistan
Features
Unlimited download
Free Modem
PTCL will have the following data rates for all its broadband existing and new
customers with effect from July 15th 2010.
1Mbps at Rs 1199
2Mbps at Rs 1499
4Mbps at Rs 1999
6Mbps at Rs 4999
8Mbps at Rs 6999
3- Smart TV services
Using its state of the art Broadband network, PTCL entered the media sector on 14th
August 2008, by launching a digital interactive television service for the first time in
Pakistan. Employing the IPTV (Internet Protocol TV) technology, PTCL brought
Pakistan in the list of a few countries across the globe that offers this state of the art
interactive TV service to its subscribers. Currently PTCL Smart TV offers its viewers
125 live channels and over 500 Movie titles through its Videoon Demand service.
The service is available in 15 cities including Karachi - Lahore - Islamabad Rawalpindi - Gujranwala - Faisalabad - Peshawar - Sialkot - Multan - Sargodha
- Jehlum - Wah Cantt - Taxila - Hyderabad &- Abbotaba however it is planned to
be expanded to all the major cities and towns across Pakistan during the year 2010.
4- Pak Internet Exchange:
It is the only IP enabled network with 40 (number increase) point-of-presences (POP)
in 26 cities.
5- EVO Wireless Broadband:
EVO wireless Broadband is the latest service from PTCL
that offers High speed wireless internet Access and is the lates evolution in internet.
PTCL EVO 3G WirelesBroadbands:
Packages
Package
Price
Volume
Rs.2000
Evo Tab 5 GB
Rs.1500
Evo Tab 2 GB
Rs.1000
2 GB Data Volume
3 Organizational structures
3.1 Main Offices
Registered office
Corporate Headquarters, Blocks-E, G-8/4,
Islamabad-44000, Pakistan
Corporate Customer Centers
Islamabad
PTCL F-8 Exchange
Nazim-Ud-Din Road
F-8/1, Islamabad
Ph: 051- 111 20 20 20
Fax: 051- 111 21 21 21
shahzad.khalil@ptcl.net.pk
Karachi
Ground Floor, EVP Office,
Hatim Alvi Road, Clifton, Karachi,
Ph: 021 111 20 20 20
Fax: 021 111 21 21 21
salman.khan@ptcl.net.pk
Lahore
26A Civic Centre
2009
2010
2011
2012
Account Receivables
109.182207
116.1297
104.0571 99.36392
Inventory
118.332837
122.592219
98.98211
148.4296 117.2128
Cash
103.411165
56.91187
65.82281 31.29509
Total Assets
101.731006
92.43105 143.216
Trade Payable
105.882378
119.579052
93.5741166
Total Liabilities
107.170447
112.7808
91.9577721
138.5099
Liabilities:
281.0143 255.719
Equity:
Total equity
2009
7.46718216
2.53840084
35.4682195
21.7795267
100
2010
8.741452
3.690558
31.51873
13.19226
100
2011
5.055199
2.417957
30.50413
9.847345
100
2012
4.991213
1.958887
24.90715
4.84094
100
100
54.58692
866.0433
24.55854
12.23581
109.6724
111.0729
10.27889
99.95441
99.90021
100
49.1757442
82.010123
23.2626389
11.3802009
112.0889
122.146
10.69794
104.8718
107.9139
100
55.28399
81.16874
22.38244
11.14556
2010
2011
Current ratio
1.81
1.50
Current ratio is measure of the firm ability to pay off obligation.
119.5664
137.7776
11.48177
107.9404
116.058
100
59.48466
82.65649
22.97728
11.78006
100
62.90106
83.16479
22.17061
11.87678
2012
1.51
PTCL Current Ratio in 2010 was 1.81 and it decreased in 2011 and after that slight
increase in 2012. Although current assets increases in 2011, but increase in current
liability results in decrease in current ratio in 2011. PTCL current assets in 2011 was
54 Million to that of 45 Million in 2012; but current liability also decreases and hence
that this ratio has an increasing trend.
Decrease in current ratio in 2011 mean that Company has less ability to pay off
obligation. In 2011, PTCL had to pay for Voluntary separation scheme where as in
2012 onwards PTCL will not have to pay for this liability.
Overall Companys liquidity position is relatively good (1.51) as compared to 2011
since its liabilities are reduced as compared to last year (1.50).
Quick Ratio
Quick Ratio
2010
1.58
2011
1.36
2012
1.37
It is measure of firms ability to pay off short term obligation without relying on the
sale of inventories.
Quick ratio in 2010 was 1.58 and that it decrease in 2011 and then slight increase in
2012.
Current assets increases in 2011, but increase in current liability results in decrease in
quick ratio in 2011. PTCL current assets in 2011 was 54 Million to that of 45 Million
in 2012; but current liability also decreases and hence that this ratio has an increasing
trend. Decrease in quick ratio in 2011 mean that Company has less ability to pay off
obligation. In 2011, PTCL had to pay for Voluntary separation scheme where as in
2012 onwards PTCL will not have to pay for this liability.
Overall current Companys liquidity position is relatively good as compared to 2011
since its liabilities are reduced as compared to last year
Debt Ratio:
Debt ratio
2012
33.87
2011
35.66
2010
27.48
The ratio of total debt to total assets, generally called the debt ratio, measures the
percentage of funds provided by creditors: Debt Ratio of PTCL is increase in 2011
and then reduced from 35.4 to 33.8 in 2012 which indicates that financial position of
the company is good and they have paid off some portion of debt which they were
having in 2011. This is because they had to pay for voluntary separation scheme in
2011.
At the same time the analysis also shows that probably PTCL has used its total assets
to pay off some of its debt.In case PTCL needs some loan in the near future ten
Creditors may be reluctant to lend the firm more money. It also means PTCL is
financed by debt by 33% in 2012 and 35% in 2011.
Creditors prefer low debt ratios because the lower the ratio, the greater the cushion
against creditors losses in the event of liquidation. Stockholders, on the other hand,
may want more leverage because it magnifies expected earnings.
Total Asset Turnover Ratio:
2012
2011
2010
Total Asset Turn Over 0.38
0.384
0.48
Total assets turnover ratio, measures the turnover of the entire firms assets; it is
calculated by dividing sales by total assets. In year 2012 PTCL paid PTA for WLL
license fee. Furthermore PTCL paid Loan to the wholly owned subsidiary PTML
(UFONE) as well. These two entities together was a big expense for PTCL because of
which the cash in 2012 is reduced, which eventually resulted decrease in total assets.
In 2012, PTCL also took more Long term loans and did less short term investments in
comparison to year 2011 because of which total assets in year 2012 are less in from
year 2011
Profit margin on sales:
2012
2011
2010
Profit margin on sales 16.26
15.45
(4.26)
The profit margin on sales, calculated by dividing net income by sales, gives the
profit per dollar of sales. In 2010 net profit margin on sale is negative. But it increase
in 2011 to 15.45 and further increase to 16.26 although its revenue decrease in 2012
from 2011 but that in increase in profit is because in 2011 there was voluntary
separation scheme payable. So net profit increases in 2012 and hence profit margin on
sales increases.
Financial Ratios overview
Ratios
Formulas
2012
2011
1 Current Ratio
1.51
1.50
2 Quick Ratio
1.58
1.37
3 Debt Ratio
(Current
AssetInventory)/Current Liability
Total Liability/Total Asset
33.87
35.66
Sale/Total Asset
0.38
16.26
0.384
15.45
SWOT Analysis
Strengths
One of Pakistans Consistently Profitable Corporations
Large earnings
Market leadership in Local loop, Wireless local loop (WLL) and fixed
telephony.
Labor Unions.
Influence of Government.
Social responsibility
Opportunities
Threats
Government Legislation,
Exchange Rate Risk,
Residential
Corporate
Telephone
Internet
TV
Target market:
PTCL is currently targeting only developed markets where there is large number of
customers. PTCL has launched its outlets in Islamabad, Karachi, Lahore and
Rawalpindi and planning to target customers in small cities and towns in near future.
Positioning:
Because PTCL is only provider of landline and covers almost all cities of Pakistan so
it is market leader in this segment.
It is position itself on the basis of
Innovative
Evolving
Trustworthy
Positioning Statement:
Hello to the Future
The first key word Hello captures the essence of the whole telephony network that
is the backbone of PTCL. Hello is a word which is related to the telecommunication
history and has been used ever since and will be used in future. This word expresses
the welcoming nature of the PTCL brand, its customer oriented approach
and warm environment. Everyday most conversations and relationships start with the
word Hello, hence it portrays the relationship building of PTCL with its
customers.
The second key word Future translates PTCL philosophy in a nutshell to
provide planned and proactive solutions and products to its customers. PTCL is
constantly evolving and taking its customers into the future. The word Future holds
the promise that PTCL is committed to, by providing complete customer
satisfaction through innovative and futuristic services and products.
Promotional Activities:
PTCL is using following components of promotional mix for the
promotion and Publicity of its product/services.
Advertising:
In promotional mix, PTCLs main stress is on advertising in print and
electronic media. PTCL periodically places its advertisements in print media on
services like H/Qs hotline 0800-44544, Caller line identification (CLI), Voice
Messaging Service, Digital Facilities, PTCL Prepaid Calling Cards, Inquiry
17, Complaint 18, phone bill cards prepaid telephone etc. to remind the customers
of these services. Sometimes, corporate ads are also released to print media to mark
special occasions.
Sales Promotion:
PTCL charges 1/3rd rates on national calls from 06:00 pm 07:00 am and
local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom
network. Moreover, PTCL offers special rate packages on special occasions like
Ramadan Package and EID package, which offer customer reduced rates for specific
timings.
Pricing:
Being a government organization, PTCL is not authorized to determine the
prices of its products itself; the Telecom Regulator Authority viz. Pakistan
Telecommunication Authority (PTA) fixes the prices of telecom services. The process
is such that whenever PTCL intends to increase or reduce the rates of its services, it
submits its Proposal to PTA for approval.
Competitors of PTCL:
Although tremendous growth has taken place in the Pakistan
telecom sector but most of it can be attributed to the cellular growth. Fixed line is still
awaiting a takeoff.
There is no meager competitor of PTCL in landline but with the growth of
telecommunication industry of Pakistan competitions increasing specially in mobile
phone sector, PTCL have to face competition as mobile phone sectors is alternative of
landline. In total there are more than 100 million subscribers of mobile phone. There
are 5 big players in mobile phone industry.
It has added over 2000 sites since its launch and the
network cell sites have grown from about 900 to over 3000 today. By the end of 2009,
the cell sites are targeted to grow to over 10,000. Currently it has 6.8% market share
in Pakistan cellular market. It has total 7,453,034 subscribers by the end of 2011 year
World call
Wateen
World Call
Wi-Tribe
Link Dot Net
PTCL achieved unprecedented success as it added over 10,000 customers within the
first 120 days of its launch while historically it had taken four years collectively for
all the other operators to achieve 30,000 customers.
Its success is due to PTCL wide coverage in Pakistan. It is available in almost every
city of Pakistan now at reasonable Price.
PTCL EVO:
Made great impression on their arrival and desperate bandwidth hungry
user gave hem overwhelming response, In no time there thousands of customers under
PTCL evo: service. In very start speed was 2mb+ even in that many of customers
were facing signal issues but after some time coverage got better signal issue resolved
in major cities. The happiness of stable connectivity was not long lasting, with the
issue of Evo Nitro the major difference in speed for normal evo customers happened
and customers in small cities not having nitro version suffered most and thousands
complaints registered and whole internet is flooded with shouting angry ptcl evo
users.
PTCL V Phone:
PTCL also continues to be the largest CDMA operator in the country with
approximately 1.25 million V-phone customers. It is successful due to its
differentiation and low price.
PTCL Land Line:
Since the deregulation of the telecom sector, A large number of
foreign investors opted for licenses in LL. LDI and cellular operations, identifying
Pakistan as an emerging market. Investors entered the market forcefully in the cellular
segment, including heating competition for PTCL. In this situation PTCLs counter
strategy for landline services, during the years 2007-08 was aimed to increase ARPU,
acquire new subscriber and contain churn.
Landline success is mainly due to Broadband success.
PTCL Smart TV:
Using its state of the art Broadband network, PTCL entered the media
sector on 14th August 2008, by launching a digital interactive television service for
the first time in Pakistan. Employing the IPTV (Internet Protocol TV) technology,
PTCL brought Pakistan in the list of a few countries across the globe that offers this
state of the art interactive TV service to its subscribers.
Because it is first time this service is launched in Pakistan. So it is success for PTCL.
Dial Up Internet:
Because of high speed internet available so this product is now becoming less popular.
4.6 Major HR Policies and Practices:
Human resource in PTCL has following functions
Recruitment:
The department first determines the need of employees to be hired
.The post against each vacancy is advertised and then the applications are invited
from the applicants .If there is a post of manager cadre; the SEVP personally is
the interviewer of the interviewees along with his team.
Sources of candidates:
There are internal as well as external sources of candidates for certain jobs in PTCL.
Internal sources of Recruitment:
Internal sources of job applicants involve sons/daughters of the
employees working in PTCL, reference of relatives of employees, etc.
External source of Recruitment:
External sources involve several means which involve newsletters,
questionnaires, interviewing, newspapers, etc
Medical Facilities:
HR in PTCL has also function of giving medical facilities to PTCL
employees. There is specific budget available for that and medicines are available at
no cost
The main elements are engineering, education and enforcement. PTCL is offering
both its own medical facility setup & the private hospitals on its panel. The miner
health problems are dealt by PTCL own medical facility/staff & other in which
patient is to be admitted or operated are forwarded to the panel hospitals.
Benefits to Employees:
Life insurance
Loan funds
Credit unions
Social programs
Traveling allowance
Name
Designation
10053766
M. Saleem
Senior Manager
ACMA
Benefits
(Salary)
RS.
127,000
10065249
Irshad
Hussain
Umer
Hayyat
M. Tariq
Manager
Finance
Assistant
Manager
Data Entry
FCMA
58,000
MBA
(Finance)
Graduation
46,000
Nafees
ahmad
Computer
operator &
Record keeper
Graduation
36000
10076578
10086789
10053690
Qualification
34,000
10075540
Adnal Ali
Cashier
Graduation
37000
10098431
Arshad
Majeed
Assistant
Metric
31,000
Manager Finance):
department.
Mr. Irshad Hussain: (Finance
Manager)
Responsibilities to check all the bills amount and rates and also report to the
SM finance and also to the manger with concerned bills.
Ensure timely disbursement of staff payroll, pay slips and updating of relevant
salary sheet.
All the bills which are initially checked by concerned person in finance are
then checked by him. He then signed those bills after then it is approved by
Senior Manager Finance.
Overall all the main activity in finance department is controlled by Mr. Irshad.
Mr. Umar Hayat: (Assistant Manager Finance):
(Cashier)
He has record of ceiling and non ceiling of budget allotted in the finance
department.
When a cheque is made then he mails to the defined person to collect the
cheques, which is then given to the person after verification. He maintains
monthly record of all the cheques issued.
He is also responsible for tax collection and then submits it to the FBR.
Mr. Tariq:
(Computer operator)
The bills which are approved by the SM and finance manager are proceeded
towards to him. He parks it into the SAP. It generates a unique code after
entering into the SAP.
After entering code of each bill he recorded entry and at the end attach cheque
with the application.
Mr. Nafees:
(Record Keeper)
The bills which are processed are given a specific code which gives a unique
idea to him to keep record and also the amount issued against those bills.
He also has an additional task of travel management. All the bills related to
traveling are checked by him.
Mr. Arshad:
He checks the bills at initial stage. He checks whether rates and amount in bills is
accurate and also it approved by concerned person. He also has record of those bills.
He is currently working on following types of bills and vouchers.
Travelling allowance
Employee training
Stationery expenses
Entertainment
Uniforms
Merit scholarship
Local training
Overtime allowance
Advance salary
PTCL head office Islamabad approves budget for certain region and then
handover it to the RGM for further distribution.
Initially bills, their rates, amounts and signature of the concerned manager of
the cost center are checked by employees in the finance department
Then at the end Finance manager checked those bills and vouchers and then
signed those bills which later on approved by the Senior manager
Then those bills or vouchers are forward to the computer operator who then
parked those bills, transfer funds for those bills and then posted those bills in
SAP.
Cashier first checked those cheques and then signed them from finance
manager and senior manager. He then mails to the concerned person about
those cheques.
Allotment and SAP work is being looked after by finance manager and
assistant manager finance
Assistant manager also mail to concerned cost centre and confirm the receipt
of bills or vouchers
Every bill that is posted has a unique code which is helpful in keeping record
of the data.
Auditor come at the end of fiscal year and checked all the record and bills.
6. Responsibilities as a student
6.1 Duties and Accomplishment
I was not given any specific duty in PTCL. My supervisor gives me different tasks on
daily basis depending on the work available for them.
In PTCL finance department I performed following duties
As assistant of finance manager:
I worked as assistant of finance manager. I helped him in checking bills, vouchers
and other information. There is certain guideline available in finance department. First
I got overview from that guideline and then also from finance manager. Then under
the assistance of finance manager I performed following duties
Checked travelling allowance bills and their rates and ensured that their
rates are in accordance to the standard set by PTCL headquarter.
Arranged all the fuel bills in sequence and checked their amounts and
match them with amounts in the excel sheet before audit.
And check the criteria set by ptcl fuel of motor Bick for 1 month.
I check the medical bills of different employee ptcl set by special polices
Checked all the cheques and arranged them in sequence in accordance with
their unique code number
With others:
I also worked with assistant manager, clerks and other members in the finance
department. Checked bills of Power (electricity, gas), vehicles and employees related
and also checked the approved signature of respective manager
I study the welfare policy for employee like (cycle, motor cycle and car) ect.
However I was nervous at the time of auditing when I have to enter all the bills in
excel sheet. I worked whole day on that but still could not complete that task. But Mr.
Irshad still encouraged me and because of shortage of time he asked others to
complete the tasks.
The other problem is that I could not get overview of all departments in PTCL. Most
of the time I was working on finance department.
I have learnt majority of things in finance department but I was not able to learn
things by doing myself. Because in finance things are critical and minor mistakes can
lead to loss of lots of money. So I was not given specific duty to perform myself with
complete control. I could not get any access to any of the systems in PTCL. I want to
do more things in SAP but as internee I could not able to work on it.
6.5 How internship experience impacts you career
Internship is an integral part of MBA program. It provided me the opportunity to
develop practical knowledge and also develop my concepts which before that were
only in theoretical form.
My internship at PTCL has widened my knowledge about the finance and accounts
operations. I learned the time management, rules and regulation which can be main
part of any organization. This organization is my 1 st practical learning experience and
it will play a role of guide line when I will enter in my professional career.
7. Conclusion
We have completed our internship report for about six weeks. During this period we
have gained a lot of knowledge and practical experience. After a complete research
work we will conclude that decision making power in PTCL is fully centralized. All
the powers lie in the hands of CEO of the company. Main decisions are made by
board of directors. And confirmation of their decision is given by president of the
company. We analyze the organizational structure of PTCL. Organizational structure
of PTCL is fully straight forward. We can conclude that since the HR department of
PTCL has been re-organized in 2005, there is still a long way to go for achieving the
competitive advantage. Although strategies they are adopting are good but they still
need further improvement for the satisfaction of their employees and best utilization
of human resources so in return they would be able to increase their market share.
Because no doubt PTCL is enjoying monopoly but the time is came when competition
will force company to change its policies to become favorite telecom service provider
in the market & keep its current place & customer base.
PTCL offers many innovative products now. 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?
8. Recommendations
HR should hire employee that is related to specific job (job fit). Because in finance department
some persons are not related to finance.
One department that seriously needs attention is PTCL's customer care. There have been
numerous occasions and news regarding the poor performance and troubleshooting when an
instance arises.
There should be a proper flow of communication between top and low level
mangers.
The employees should be sent for the national level training camps so that
they can serve the customers in a better way.
There should be appointed a well educated staff for the better growth of the
organization.
Link the change effort to a common team value in order to help employees
feel they can relate to the change effort at a personal level. This increases the
desire and motivation to change.
Collaborate for solutions with team members so that employees have the
opportunity to identify the driving and restraining forces in the change effort
and identify action steps for implementing steps to implement the change and
overcome the restraining forces.
Constantly monitor the process and the results to ensure that the change effort
is on track.
After getting training the employees should be on the right place for which
they were trained
Staffing will have to be on Merit and Fair rather than on Personnel links and
unfair means.
Before organizing and establishing a plan, the manager has to learn all there is
about employee motivation. Focus on processes that help to enhance the
involvement of employees at the company and inspire feelings of
responsibility for the company's overall success.
The organization has to encourage managers to step to the front lines and
become as pragmatically involved in the day-to-day operations of the
business as possible. Many managers view themselves as being somewhat
better than other employees and this viewpoint can be disastrous during
difficult financial periods.
Managers should use both internal and external motivational factors as it is better to
focus on both rather than assuming that one is dominating.
9. References
Manuals PTCL GTR, 2012
http://www.ptcl.com.pk