PTCL PROJECT

Introduction
Telecom Sector of Pakistan
History of Telecommunication
Four Bodies of PTCL
Historical Background
Industrial Analysis of PTCL
Mission statement and objectives
Privatization of PTCL
Summary of Events
Subsidiaries







1.1 Introduction
Six years into a year century, the telecom sector of the world finds itself at crossroads, after changing itself almost beyond recognition over the last 20 years. Privatization and competition are the order of the day, with a majority of countries having adopted these policies to advance their telecom sector. The results have been impressive: the industry has grown at an unprecedented pace. Although there has been phenomenal growth in Pakistan, especially in cellular mobile communication and in the internet, yet the tele-density remains almost stagnant.
1.2 Telecom Sector of Pakistan
The telecom sector of Pakistan has also entered into a new era. The monopoly of PTCL is now over and the sector is moving towards liberalization. While liberalization and competition are synonymous, the future scenario also poses some challenges to the market dominance of PTCL. The company is ready to face this challenge and maintain its revenue streams in the face of forthcoming competition.
1.3 History of Telecommunication
From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day here is a story of commitment and vision. The history of telecommunication in the Sub-Continent is as old as the history of our slavery. In the subcontinent, before Independence this sector was under the Indian Post & Telegraph Department and developed as a successful industry.
The role of telecommunication in Pakistan can be broadly divided into four phases: 1.3.1 Pakistan Post & Telegraph (P&T)
This department started its telephone service with only 12346 telephone lines and seven telegraph offices all over Pakistan. All the telephone system at that time was manual. This department continued its business up to 1962. At the time of independence the postal and telecommunication services were performed by a single department known as Pakistan Post & Telegraph (P&T). The Government of Pakistan adopted the Government of India Telegraph act 1885 to control and direct the activities of telecommunication.
1.3.2 Pakistan Telephone & Telegraph (T&T)
Pakistan Post and Pakistan Telephone & Telegraph (PT&T) under the presidential ordinance was the first step towards reforms in the telecommunication sector. It was made in 1962, when the Ayub Khan’s government decided to split up the P&T department into two separate departments. Director General headed this department. The decision making power was concentrated with the post of DG, while the responsibilities were delegated to General Managers and Chief Engineers throughout the organization. The PT&T were in fact a civil service department under the ministerial control. The PT&T organizational structure had 20 Chief Engineers and General Managers reporting directly to the Director General. The centralized structure of PT&T caused inefficiency in operations and long delay in implementing decisions. At the time of inception of PTC the total number of employees working in PT&T was 45686 and the total network comprised of 922,000 telephone lines.
1.3.3 Pakistan Telecommunication Corporation (PTC)
The government of Pakistan pursued the deregulation and liberalization policy in production and service industry during the decade. The major change in this regard was privatization and deregulation of many of the departments of government of Pakistan. The decade of 1990s brought about many changes in the economic structure of Pakistan. The objective was to reduce the burden of the government, minimize the bureaucratic influence and improve the efficiency of these departments.
A major breakthrough in the history of telecommunication in the country occurred with the gradual deregulation and privatization of T&T. At the first stage Pakistan Telephone & Telegraph Department (T&T) was converted into a statutory corporation Pakistan Telecommunication Corporation. On December 15, 1990 the PT&T department was transformed into Pakistan Telecommunication Corporation with a legal identity separate from the Government. This change in the statute, introduced by the Government of Pakistan enabled PTC to move from administrative to contractual relationship with its customers. It provided the opportunity for the development of telecommunication facilities to an unprecedented level and also for an increased customer satisfaction.
1.4 Four Bodies of PTCL
Under the PTC Reorganization Act, 1996 the telecommunication sectors was split up into four bodies.
· Pakistan Telecommunication Company Limited (PTCL)
· Pakistan Telecommunication Authority (PTA)
· National Telecommunication Corporation(NTC)
· Frequency Allocation Board (FAB)
1.4.1Pakistan Telecommunication Company Limited (PTCL)
A company established to undertake the telecommunication business formally carried by Pakistan, is Pakistan Telecommunication Company Limited (PTCL). Pakistan Telecommunication Corporation (PTC) was transformed into Pakistan Telecommunication Company Limited (PTCL) on January 1, 1996 under Pakistan Telecommunication Reorganization Act, 1996 according to which PTCL took over all the properties, assets, rights and obligations of PTC.
1.4.2 Pakistan Telecommunication Authority
Pakistan Telecommunication Authority is a regulatory body responsible for monitoring the telecommunication business in Pakistan. It frames rules and regulations for private telecom companies such as mobile phone companies, Internet service providers, paging companies and pay card phone companies. It also issues licenses to the new companies entering into this business.
1.4.3 National Telecommunication Corporation (NTC)
National Telecommunication Corporation (NTC) is responsible to provide the telecommunication services to the various departments of government and armed services.
1.4.4 Frequency Allocation Board
Pakistan Telecommunication Company Limited is the primary provider of telecom services in Pakistan. The range of its services includes basic telephone, telegraph, fax, telex, E-mail, digital cross connect, Public data network, Internet, ISDN and other digital facilities. The total number of installed telephone lines (ALI) at June 30, 1998 was 35, 19,877 while the total number of actual lines in service (ALIS) was 26, 60,898. The difference between ALI and ALIS is due to pending and potential future demands.
1.5 Historical Background
1947
Posts & Telegraph Dept. established
1962
Pakistan Telegraph & Telephone Deptt.
1990-91
Pakistan Telecom Corporation
ALIS: 850,000Waiting list: 900,000 Expansion Program of 900,000 lines initiated (500,000 lines by Private Sector Participation400,000 lines PTC/GOP own resources).
1995
About 5 % of PTC assets transferred to PTA, FAB & NTC.
1996
PTCL Formed listed on all Stock Exchanges of Pakistan
1998
Mobile & Internet subsidiaries established
2000
Telecom Policy Finalized
2003
Telecom Deregulation Policy Announced

1.6 Industrial Analysis of PTCL
PTCL is the exclusive provider of basic telephony in Pakistan with over 3.2 million telephone lines in service. Besides providing fixed line, value added and other ancillary services, PTCL owns subsidiaries that provide cellular and Internet services. Since its transformation from a public sector corporation into a publicly listed corporate entity in 1996, PTCL has implemented an aggressive restructuring program, the primary aim of which is to improve profitability through increased customer focus and efficiency and to prepare the company for the highly competitive environment envisaged once PTCL's exclusivity on fixed telephony expires in December 2002.
Followings are the main subsidiaries of PTCL;
Paknet
Ufone
TIP
CTI
1.7 Mission Statement
“To be the leading telecom operator in Pakistan, ensuring customer satisfaction using state- of-the -art technology, with a view to improve shareholder’s value”.
To achieve our vision by having:
· 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.
1.7 Vision Statement

To be the leading ICT Service provider in the region by achieving customer’s satisfaction and maximizing shareholder’s value.
1.9. Core Values
· Professional Integrity
· Customer Satisfaction Corporate Culture
· Team Work
· Company Loyalty
· Corporate Culture
1.10. Objectives of the Company
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 objectives can be divided into two phases:
§ Financial Objectives
§ Marketing Objectives
The following are the long-term objectives of the organization.
§ 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 custom’s satisfaction and provide service on demand.
§ Create congenial climate for binding of human skill and horizon of employees through training and education.
§ Convert its cash basis single entry accounting system to accrual basis double entry system meeting the commercial international accounting standards.
§ Launch consumer satisfaction survey.
§ To introduce computerized directory assistance and complaint services reform billing and a revenue collection system.
§ Strengthen relation with foreign international administration, entities, services providers, international and regional telecom organizations for better international 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 who are well aware of public relation techniques.
§ To introduce new services of audio Tex and video conferencing for the business community.
1.11 Brief History of PTCL
Pakistan Telecommunication Company Limited (PTCL) was incorporated in Pakistan on December 31, 1995. It was established to undertake the telecommunication business formerly carried on by the Pakistan telecommunication corporation (PTC), the business was transfer to the Company on January 1, 1996 under the Telecommunication (Reorganization) Act, 1996 at which date PTCL took over the properties, rights, assets obligations and liabilities of PTC except those transfer to National Telecommunication corporation (NTC), Frequently Allocation Board (FAB), Pakistan Telecommunication Authority (PTA), and Pakistan Telecommunication Employees Trust (PTET). The Company also commenced business on January 1, 1996.
1.12 Privatization of PTCL
Saturday, the 18th June 2005 was an important day in the history of PTCL, which witnessed the successful sale of 26% strategic shares to Emirates Telecommunications Corporation “Etisalat” For many, the process of PTCL Privatization might have been a routine government affair, but factually the process has been a long drawn and an arduous one.
1.12.1 The Strategic Scale
The issued share capital of PTCL is PKR 51,000,000,000, dividend into 51,000,000,000 ordinary shares of PKR 10 each, of which approximately 3,774,000,000 are “A” ordinary shares and 1,326,000,000 are “B” ordinary shares. In simple terms each “B” ordinary share carries four votes and each “A” ordinary share carried one vote. In respect of dividends, voting rights on all matters (other than election of directors) and all other rights as shareholders, there is no difference between “A” ordinary shares and “B” ordinary shares. Meaning thereby that the strategic investor after obtaining 26% of shares (all “B” shares) would manage the affairs of the company, but its share in the dividend would remain 26% while approximately 12% would go to the current investors in the market and 62% to government’s kitty.
1.12.2The process: Historical Perspective
The privatization process for the sale of PTCL 26% strategic shares commenced in the year 1998 when a consortium comprising Goldman Sachs. Global Securities Pakistan Limited Analysis, Allen & Overy and Rizvi, ISA & Co (collectively the “Financial Advisory) Consortium” or the “FAC”) were hired by the Government of Pakistan “GOP” for this transaction. However, the transaction was impacted by the sanctions imposed on Pakistan in the after match of nuclear detonation in 1998. In the year 2001, JPMorgan joined the Financial Advisory
Consortium (FAC) and took the lead on marketing and executing the transaction. The years 2001-2003 witnessed the transaction being aggressively marketed. However, the process could not be further progressed because Pakistan was not perceived as an attractive investing destination primarily due to post 9/11 implications. This notwithstanding, preparation for due diligence i.e. Data Room updating and Information Memorandum (IM) were almost completed by August 2003 but the transaction could not proceed ahead as 2 out of 3 pre-qualified bidders did not proceed further. Meanwhile, during November 2003 to May 2004 there were serious discussions and considerations at the Ministry of Information Technology “ MOIT” and Privatization Commission (PC) on PTCL restructuring i.e. unbundling the local loop. After a protracted debate on various options the president of Pakistan decided in November that PTCL should be sold as an integrated entity.

1.12.3 The Bidders
In the final process of bidding. Which was concluded in June 2005, 18 investors submitted Expression of Interests “Eols” out of which did not submit Statement of Qualifications (SoQs)? Out of 12 SoQs, 2 did not meet bidding requirements; hence 10 potential buyers were invited for due diligence process. Out of these, 3 were dropped and 7 bidders came to Pakistan in the months of April and May-05 to take part in the due diligence process. Finally, 3 bidders Singapore
Telecommunications (Sing Tel), China Mobile (Hong Kong) Limited and Etisalat participated in the final bidding process held in Islamabad on June 18, 2005.
1.13 Summary of Chronology of Events
Year Events
1994. Pakistan Telecommunication ordinance, 1994 promulgated to privatize PTC and incorporate (PTCL) and other players in the telecom sector (PTA, NTC, FAB, and PTET)-offer for sale of 100M shares in the form of 1M vouchers locally at a price of Rs.30 per share.
1995. Appointment of Deutsche Morgan Grenfell as the financial advisor. Other consortium members included Coopers & Lybrand, Denton Hall, Muslim commercial Bank limited, Deutsche Bank AG, Abacus Consulting, Asad Ali Khan & Co. and Rizvi, Isa & Kabraji.
1996- Expressions of Interest (EOI) invited for the sale of PTCL strategic shares.
1997-98 Bids invited for appointment of new financial advisors. Agreement was signed with Goldman Sachs international leading a consortium of financial advisors.
1998-2001. Goldman Sachs, Global securities Pakistan limited, Analysis and Allen & Overy and Rizvi isa & Co worked closely with the GoP prepare a robust regulatory regime in the telecom sector.
2001-2003 JPMorgan joined the FAC and took the lead on marketing and executing the transaction. The transaction was aggressively marketed.
Transaction was once again shelved, as 2 out of 3 pre-qualified bidders did not proceed further. This was in the context of heightened country risk in the post September 11 scenario.
2003-2004 Discussions on restructuring PTCL prior to privatization.
President of Pakistan’s formal decision to sell PTCL as an integrated Telecom Operator.
2004-2005 Teaser distributed followed by one-on-one meetings with potential buyers (Singapore, Kuala Lumpur, Beijing and Abu Dhabi). PC Board pre-qualifies 10 potential buyers to conduct due diligence.
Confidentiality Agreement distributed.
Information Memorandum distributed.

Due diligence commences (virtual data room (VCR) opens up); Management presentations to pre-qualified bidders held at the beginning of each due diligence week; three bidders invited each week to attend management meetings and conduct site visits; Completion of due diligence.
Investors, Forum held.
1.14 Emirate Telecommunication Company Etisalat
Founded on 30th August 1976, the Emirates telecommunications Corporation-Eitsalat-provides telecommunication services to the United Arab Emirates, and is one of the leading service providers in the Middle East.Eitsalat is embracing new technologies, new philosophies and new ways of doing business. Their new Corporate Logo and identity is a catalyst for this change.Eitsalat deals in Voice communication, Wireless Communication and Data Communication. Eitsalat was one of the first to introduce mobile telephones in the Middle East in 1982 and launched the GSM Service in September 1994.
Mr. Obaid Saeed Bin Mes’har, Chief Executive officer, Eitsalat says that the new Management will take steps for improving quality, reorganization and extension of PTCL service to more areas, he further added that technical staff might be sent to Africa and other countries after imparting additional training to them. Mr. Obaid aimed at utilizing the expertise the skills of PTCL employees in a proper way and that no PTCL employee would be relieved.
Emirates Telecommunications Corporation (Eitsalat) was the highest bidder for the acquisition of a 26 per cent stake in Pakistan Telecommunication Corporation Limited (PTCL). This latest win reflects the determination of Etisalat to strengthen its position as the leading telecommunications company in the region.
The acquisition of 26 per cent of PTCL provides Eitsalat International access to the management of the company and a pool of experienced professionals.
1.15 Subsidiaries
PTCL has four subsidiaries:
1.15.1 Pakistan Telecommunication Mobile Limited
Ufone aim to provide with wider coverage, superior connectivity, clear signals & voice quality. Covering over 2336 key destinations Ufone is the ultimate means to stay connected and providing the best nationwide coverage.
Ufone, being one of the leading cellular service providers has recently launched its service in many new cities. Keeping up with its pace it is rapidly expanding its network.Ufone keeps on adding new cities with same superior network that continues to expand. Ufone covers all major cities of Pakistan now you can enjoy comprehensive coverage in areas like the GT Road, Super Highway & Motorway etc.
A strong focus will be on increasing usage and revenue streams on Value Added Services, increase top of mind awareness and Market visibility. Ufone a 100% owned subsidiary of PTCL has set marketing trends by becoming the first company to offer 6 months free incoming on prepaid cards, GPRS/MMS and WAP services, as well as the most affordable pricing in the market. Initiatives which have helped define market standards for other commercial cellular services operators to follow. Ufone recorded a Profit after tax of Rs. 775.9 million for the financial year 2003-2004 which represents a 204 % increase over the prior year. The Board of Directors of PTML declared a dividend of Rs. 525 million based on the foregoing results.
· Launched on January 29, 2001. Ufone is a new cellular operator in Pakistan. Ufone services are offered to you by Pak telecom Mobile Limited which is a 100% owned independent subsidiary of Pakistan Telecommunication Corporation limited.
· Ufone phone has been a highly successful venture, touching 100000 subscribers in less than 4 months of operation.
During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 750 cities, towns and across all major highways of the country During the year Ufone successfully completed the network expansion of Phase IV in existing as well as in new cities and towns which amounted to more than US Dollar 170 million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts on the usage trends of subscribers as well as total subscriber base, which has increased from 2,579 k in June 2005 to 7,487 k in June 2006. Ufone currently caters for International Roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 75 Live Operators across 59 countries. The company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and Northern Areas.
Operating Performance
Ufone’s operational performance has been very encouraging. Despite the stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level, due to its aggressive policies and exercising strict control over expenses the Company managed to improve its revenue and after-tax profit by 87% and 54% respectively, as compared to last year.
Future Plans
Keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a potent force in the cellular industry. In order to extend cellular network to new cities, towns and highways and enhance its current installed capacities in existing cities, Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone A strong focus will be on maintaining high quality of service, which is always a benchmark of Ufone, increasing usage and exploring new revenue streams on value added services, market visibility through various market initiatives to fulfill subscribers’ satisfaction and demand and above all to increase the value of investment for the shareholders
1.15.2 Carrier Telephone Industries (CTI)
Carrier Telephone Industries (CTI) is primarily a manufacturer of telecom transmission equipment. The company maintained its business momentum of more than own billion rupees during the year 2003-2004, despite hostile market conditions owning to tough competition among local industries. It registered a sales turnover of Rs. 1.004 billion during the year 2003-2004 as compared to Rs. 1.107 billion last year. Profit after tax declined to Rs. 7.32 million as compared to Rs. 26.12 last year. The company continued to expand its activities in services sector by providing installation services to various private and public sector organizations. Keeping in view the deregulated and aggressively expanding telecom market, a much higher sales target is being pursued for the year 2004-05 including sales of personal computers and providing other related services. Informage software (Private) Limited (ISLP), the 100% owned software Development company of CTI, has successfully completed its third year of business. Revenue earned during the year 2003-2004 was Rs. 16 million as compared to Rs.9 million for the last year.
Year of Establishment: 1974
Shares: PTCL 52.5% ,Siemens 47.5%
Business: Manufactures digital transmission & fiber optic equipment. Provides repair & maintenance.
1.15.3 Paknet Limited
Paknet is a fully owned subsidiary of (PTCL) and is registered as a public limited company with its strength of 371 employees, 40 pops (point of presence), 20% market share, and accessibility from 2000 cities. Locations, it has become the largest ISP in Pakistan. Services of Paknet include Dial up as well as DSL internet, which is a plan to extend to 15 cities. VPN, WAN,/LAN, solutions and value addition services, like web development , web hosting and consultancies. It also provides data communication solutions via VSAT, Frame Relay/VPN and Radio. In additional to this Paknet also provides Digital Switching Equipment.
Paknet posted sales revenue of Rs. 264 million in 2003-04 as compared to Rs.395 million last year. The company suffered loss after tax of Rs.112 million in the year 2003-04.
Year of Establishment: 2000
Shares: PTCL 100%
Business: Operation of Internet/E-mail, Information Technology services

1.15.4 Telephone Industries of Pakistan (TIP)
PTCL owns 70% shares of TIP, in addition to digital switches, which are principally produced in TIP, other products include energy meters, fire alarms, cross connect cabinets, container shells & Drop wires etc. TIP manufactured 200,000 digital ports in the year 2003-2004 for PTCL and NTC. In addition to that 100,000 telephone sets, 50,000 energy meters, 50,000 DP boxes, 1,500 cross connect cabinets and around 20,000 kilometers of drop wire were also produced.
The auditors of TIP have included a crucial matter in their report on significant uncertainty about the company ability to continue as a going concern.
Year of Establishment: 1952
Shares: PTCL 72.6%, Siemens 27.4%


































Finance department
Marketing department
Business Development department
Sales Department
Business Intelligence department
Public Relations
Organization Chart of Communication department
Human Resource Department
Establishment department







There are different departments in PTCL. I have worked in marketing department as an internee. The working of main departments of PTCL is mentioned below:
2.1Finance Department
On the basis of different functions, performed by PTCL’s Finance department, the department is divided into three sub-department:
1. Revenue Department
2. Accounts Department
3. Finance Department
· Revenue Department
The Revenue Department is responsible for setting a target of revenue being achieved during the year, making action to achieve the desired target and collecting of revenue earned. This branch is also concerned with the issue that may affect the revenue in one or the other way.
1. Domestic Revenue
2. International Revenue
3. Corporate Revenue
Ø Domestic Revenue
The first source of domestic revenue is domestic billing that includes line rent and local call charges etc. Secondly domestic revenue is earned through renting and leasing of exchanges.
Ø International Revenue
There are two International Gateway Exchange (I.G.E) of PTCL, one in Rawalpindi and the other in Karachi. An agreement, total Accounting Rate countries and the currency used for this purpose is special Drawing Rights (S.D.R). International revenue is collected in Nostro account of New York (USA) from all over the world.
Ø Corporate Revenue
Other then domestic and international revenue, PTCL is also earning corporate revenue through:
1. PTML-Pakistan telecom Mobile Limited (Ufone)
2. VAS-PTCL calling cards etc.
3. Paknet- Internet Services provider
4. TIP-Telephone Industries of Pakistan
5. CTI-Carrier Telephone Industries
6. Financial Investments are contributing a major role towards corporate revenue.
· Accounts Department
The Accounts department is responsible for all accounting, record of keeping, publication of accounts, audit, employees compensation, inventories recording, fix assets accounting, complete accounting system and internal control, pensions and direct taxation.
· Finance Department
Finance Department is responsible for the budgeting, planning and transaction relating to income and revenue, expenses, pricing control funds and treasury measure and direct taxation.
2.2 Communication Department
The communication department of PTCL is controlled by senior executive vice president, who looks after four different departments:

1. Marketing Department
2. Sales Department
3. Business development Department
4. Public relations
Marketing Department
The Marketing Department adopted a proactive role in introducing marketing techniques for retaining current customers and attracting new ones. Marketing department check that what are the existing products, what are the provisions for new products and the development of these new products?
SEVP (Communication)
Zafar UsmaniHierarchy of marketing department:

EVP (Marketing)
Tariq Qureshi

GM (Consumer products)
Dawaar Mailk


Senior Manager Advertising Miss Zaib Mailk

Product Manager
Usman Ali Khan
Manager Corporate services Mr. Minhaj
Manager marketing research Mr.Raheel
Depty.Manager advertising Mr. Waqar
Depty.Manager marketing Mr. Murad
Manager marketing Mr. Haider
Assistant Manager marketing
Mr. Mushtaq
Marketing Executive Miss Farhana
Data Control Assistant
Miss Kalsoom




Sales Department
Sales department is responsible to increase the sales of different packages. Employees in the sales department check that where sales are possible and how much potential is in the market. Sales person check new places of potential where they can increase their sales. They develop distribution network and use different media vehicles to increase their sales.
Business development Department
Business development department is responsible to develop products for corporate sector. They look for Prospects for new business, making sales presentations and few other tasks. Reporting and analytic support to address business strategies and product development that provide for solid business intelligence solutions environment and infrastructure. They target corporate sector/companies not general public.
Business Intelligence Department
This department checks the trend and traffic in PTCL own services in market and also check what is the effect of competitor action on the services of PTCL. For example, there is need to check the traffic of calls by customers, and at what time there is maximum usage.
Assure that the performance of the data warehouse environment is performing optimally through the use of capacity planning, and systems monitoring.
Lead the effort to analyze business needs and data, subsequently establishing, documenting and implementing a consistent analysis methodology and use of resources across the organization. Ensuring sound requirements definition, specification and scope definition processes are upheld through reporting & analysis processes.
On the behalf of these analyses, management takes the decisions regarding the PTCL services and can response to competitors’ actions. These analysis and data are only available on intranet and for internal management use only.

Public Relations
Like all other departments of PTCL, the role and responsibilities of the Public Relations Department has also taken on a new dimension after the onset of Telecom Sector deregulation. Public Relations Department of PTCL is engaged in the Company’s image building activities through road shows close, circuit television, hoardings & billboards. The public relations department ensures publicity of company’s policies and activities. Press releases, articles, and write ups are published regularly in the print and aired by the electronic media. To enhance the company image and counter negative news item, clarifications and rebuttals are promptly issued by the PR department. The PR officers based in major cities also helped in image building across the country

Organization Chart of Communication Department

Manager
Dept
MGR
Dept
MGR
Dept
MGR
Dept
MGR
Dept
MGR
Dept
MGR
Manager
Dept
MGR
Dept
MGR
Assistant
Executive
Executive
Executive
Assistant
Executive
Executive
Executive
Dept
MGR
Dept
MGR
Manager
Manager
Manager
EVP
(Marketing)
EVP
(Sales)
EVP
(Business Development)
EVP
(Public Relations)
GM
(Consumer products)
GM
(Business Intelligence)
GM
(Sales)
GM
(BD)
GM
(PR)
SEVP (Communication)
























2.3 Human Resource Department
Management of people at work is very important in every organization, because organization goals and objectives are achieved by the co-ordination of people working at the organization. Every organization has personnel function whether or not specific manager has been so designated. Every organization must hire, train, motivate, maintain and ultimately separate employees.
Human resource department is responsible for arranging and managing human capital for PTCL. Their main tasks include recruitment, selection, promotion, performance management, training arrangement for employees etc.
2.4 Establishment Department
It is another important department that works under administration. Its main responsibilities include assigning duties and responsibilities to employees and managing varied issues regarding their jobs and work performance.
This department process and finalize appeal cases against orders of punishment
It is also responsible to process and finalize creation/re-designation/abolition/retention/up-gradation/transfer of posts and various regions, departments, divisions or subdivisions.
It also process and finalize duties and responsibilities of officers.
It is also responsible for process and finalization of provision of posts as per requirement by re-designation of existing staff or creation of a new temporary post if justified.
It may perform modification or fixation of assignment or jurisdiction of every official as per requirement.






















Ratio Analysis
Liquidity Ratio
Leverage ratios
Profitability ratio
Activity Ratio
Market Value ratio










RATIO ANALYSIS
Ratio Analysis is a widely used tool of financial analysis. It is the systematic use of ration to interpret the financial statements so that the strengths and weaknesses of the firm as well as its historical performance and current financial condition can be determined.
Ratios can be classified into following five broad groups.
1- Liquidity Ratio.
2- Leverage Ration.
3- Profitability Ratios
4- Activity Ratios.
5- Market Value Ratio.

1- Liquidity Ratio
Liquidity is a company’s ability to meet its maturing short term obligations. Analysis corporate liquidity is especially important to creditors. If a company has a poor liquidity position, it may be a poor credit risk.
Liquidity Ratios that are discussed for PTCL are.
i. Net working Capital.
ii. Current Ratio.

i- Net Working Capital.
Net working capital is a safety cushion to creditors. A large balance is required when the entity has difficulty borrowing on short notice.
Net working capital =Current Assets-Current Liabilities
The net working capital for PTCL
For year 2006:
NWC=50,168,177-30,275,532=19,892,645


For year 2007:
NWC=54,202,838-24,447,741=29,755,097

Since NWC of year 2007 is more than year 2006, it indicates an improved stage of company.
ii-Current Ratio:
The current ratio is equal to current assets divided by current liabilities. This ratio is used to measure the ability of an enterprise to meet its current liabilities out of current assets.

Current ratio=Current assets
Current liabilities
PTCL’s current ratio.

For year 2006:
Current Ratio= 50,168,177
30,275,532
= 1.657

For year 2007:
Current Ratio= 54,202,838
24,447,741
= 2.217

The increase in the current ratio is a good indicator of PTCL to meet its liabilities earlier then in previous year.
2- Leverage Ratio:
Leverage is a company’s ability to meet its long term obligations as they become due. An analysis of leverage concentrates on the long term financial and operating structure of the business.



Some leverage ratios are.
i- Debt Ratio.
ii- Debt/Equity Ratio.

i- Debt Ratio.

The debt ration compares total liabilities to total assets. It shows the percentage of total funds obtained from creditors.

Debt ratio = Total liabilities
Total assets
PTCL’s Debt ration:
For year 2006:
Debt ratio =Total liabilities
Total assets
=46,764,558
152,240,022
=0.307
For year 2007:
Debt ratio= 41,907,596= 0.274
152,820,860


ii- debt/Equity Ratio:
The debt/equity ratio is a significant measure of solvency since a high degree of debt in the capital structure may make it difficult for the company to meet interest charges and principal payments at maturity.
Debt/equity ratio= total liabilities
Stockholders equity
For year 2006:
Debt/equity ratio= 46,764,558=0.443
105,475,464

For year 2007:
Debt equality ration= 41,907,596= 0.3778
110,913,264

Decrease in debt ratio and debt/equity ratio is an indication of lower degree of debt to total assets.

3- Profitability Ratios:
An indication of good financial health and how effectively the firm is being managed is the company ability to earn a satisfactory profit and return on investment. Some major ratios are:
i- Net Profit Margin.
ii- Return on equity.

i- Net Profit Margin:
Net profit margin = Net income
Sales
For year 2006:
N.P.M. = 20,777,430/69,085,436=0.300
For year 2007:
N.P.M. = 15,638,753/65,277,025=0.239
The decrease in this ration indicates that business is earning less on each sales rupee. So the profitability of PTCL has declined.
ii- Return on Equity:
It measures the rate of return earned on the common stockholders investment.
Return on equity (ROE) = Net Income
Stockholders equity
For year 2006:
ROE = 20,777,430/105,475,464=0.19698
For year 2007:
ROE = 15,638,753/110,913,264= 0.1409
This means that PTCL‘s stockholders return significantly decrease.
4- Activity Ratios:
Activity ratios are used to determine how quickly various accounts are converted into sales or cash.
Various ratios exist to measure the activity of receivable, inventory and total assets. Here activity of receivable with its collection period is discussed.
Accounts Receivable Ratios:
The accounts receivable turnover ratio gives the number of times accounts receivable is collected during the year.

Accounts Receivable turnover = Net Credit sales
Average account receivable
For the year 2006:
A.R.T. =69,085,436/17,862,049= 3.86
For the year 2007:
Account receivable turnover = 65,277,025=5.72
11,411,412

The increase in this ration in 2007 is significant and shows that credit policy of the company is good then in the previous year.
i- Collection Period:
It is the number of days it takes to collect on receivable.
Average collection period = _____365_______________
Accounts receivable turnover
For the year 2006:
Collection period = 365/3.86= 94.559

For the year 2007:
Collection period =365/5.72 =63.8111

With the substantial decrease in collection days in 2007, there is indication that customers balances are collectively.
5- Market Value Ratio:
The final ratio relates the firm’s stock price to its earning per share. Here dividend related ratio is discussed.
Dividend Payout.
Many stockholders are primarily interested in receiving dividend. Let’s see how the dividend payout ratio is signaling to its stockholders.

Dividend Payout = dividend per share
Earning per share
For the year 2005:
Dividend payout = 5 =0.87
5.72
For the year 2006:
Dividend payout = 2 = 0.4914
4.07
It is the indication of dividends from 2005 to 2006 has declined.
By examining the trend in the company’s ratios from 2006 to 2007, it is obvious that overall position of PTCL’s finance is getting down. The profitability is declining and dividend is has also reduced. The EPS for 2006 to 2007 decline from 4.07 to 3.07. So it’s the high time for PTCL to take corrective action in order to avoid the more decline after the privatization of PTCL.
















Marketing department
Product launches & surveys
PTCL Services
Corporate services
Consumer services
Tasks assigned to me
Brand Repositioning
Description of New Logo
Reasons to rebrand
Upcoming projects




4.1Learning
During my internship I learned about the functioning of business intelligence, sales and marketing department and I also got the opportunity to get exposure with an advertising agency "Interflow".
4.2Marketing Department
PTCL realizes its position as a dominant market player and hence successfully played its role in the year 2003-2004 with an aggressive approach towards communication strategy and pricing of products & services. The Marketing Department adopted a proactive role in introducing marketing techniques for retaining current customers and attracting new ones. Marketing department check that what are the existing products, what are the provisions for new products and the development of these new products. Marketing department explore and modify existing products, position these products after modifying, use promotional tools and do advertising of their new products and also do budgeting.
4.2.1 Advertising Agencies
PTCL has following advertising agencies on its panel.

1. Orient
2. Interflow (rebranding of PTCL done by this agency)
3. MPL
4. Evernew
5. Midas
6. Maxim
7. Brand Partnership
4.2.2Tariff Rationalization
An extensive tariff study and analysis of the big telephone operators working in the developed world was conducted by the Marketing Department during 2003-2004. This resulted in significant reductions in both tariffs and charges throughout the year. Installation charges (both rural and Urban), line rent, Nationwide and international call tariffs and Bandwidth rates were resultantly decreased. Massive marketing campaigns, based on strategies recognizing the target audience and application of advertising tools that generate the greatest responses, were launched in both urban and rural areas to attract the maximum number of customers.
4.2.3 Product Launches
During the year 2003-2004 PTCL Prepaid calling card with the advanced features was relaunched. Launch of PTCL Phone Bill card based on IN platform, bill payment facility via ATM Machines and prepaid telephony PTCL Aasan prepaid phone were also launched using various media, along with above and below the line activities. V-wireless and green lifestyle was also launched during 2005- 2006. Currently PTCL is working on blue lifestyle, red lifestyle and yellow lifestyle packages.
4.2.4 Surveys
PTCL marketing team has started gathering customer feedback through extensive surveys. This important task is an ongoing activity being carried out by the most reputable research agencies of the country. Key surveys/research studies are conducted to take customer opinion through DSL market assessment survey, multimedia and cable TV study and customer migration survey.
4.3 PTCL Services (Corporate and Consumer Services)
4.3.1 Wire Line
Voice Telephony: Basic voice telephony service is R2. 210 plus tax charged as monthly rent. Approximately 5.8 million subscribers.
4.3.2 Life Style Packages:
Green Life Style
Weekend Package; Rs. 250 plus taxes, for NWD calls during weekend
Red life Style
For new accusations and special plans
Blue Life Style
For ISD packages
Yellow Life style
For local Call and Internet Package
Almost two years have passed and the numbers of customers for the Life style package are almost 46000.
4.3.3Digital facilities
Theses facilities are available on land line telephony
Call transfer (FOC)
Allows you to forward you land lines number onto a number of your destination or a cell phone
Call Waiting(FOC)
Code Barring(FOC)
Customer can prevent misuse of their telephone with the help of code barring facility. This can be changed by the customer if need arises.
Hot Lines
This service enables customer to be contact just by lifting the hand set & without
dialing the number. System automatically dials a preprogrammed number (after 5
Seconds delay), most appropriate for frequently dialed numbers.
Abbreviated Dialing
Dial a short number (single digit) to get desired number. A maximum of 10 such
Numbers can be registered.
Don’t Disturb
Activating of this facility will stop all incoming calls for a pre determined time
Slot. This will allow customers to be in peace if he does not want to be disturbed
during such time. The caller will get a pre recorded message.

Absent Customer
A Customer with this facility may inform the calling person about his non availability at that time. This calling person will get an announcement or a special tone.
Wake up
Ringing of a customer telephone is initiated at the fixed time. In case Customer
does not answer the ring at the first offering, subsequent rings will follow after 5
minutes.
· CLI
CLI allows you to identify the caller before picking up the phone. The customer can check obnoxious calls and keep the complete record of all incoming/outgoing calls with time and date to take any action.
4.3.4VMS
Voice mail services will be available on land line shortly. Activation shall be free of costs. Charge a local call for messages retrieval. The service will increase call termination on land line network.
4.3.5V-Fone
It is a basic Voice telephony for local, NWD, ISD calls. Wireless phone connection Rs.2000 connection and set call charges same as line. V PTCL is a wireless phone service based on CDMA 2000 as technology. It offers all the services of a tradition land line including short messaging services (SMS), caller line identification (CLI), phone book, call waiting, call transfer and high speed internet facility along with being semi mobile. Daily line rent is of 7Rs.
4.3.6Calling Cards
PTCL launched Rs.100 denomination Prepaid Calling Cards with advanced features. By the end of June 2006, record sale of Rs. 400 billion has been recorded on account of prepaid calling cards.
PTCL 17 Directory
PTCL subscribers List (Data phone number with addresses)
PTCL 18 Complaint
PTCL phone complain service
4.3.7Aasan Prepaid Telephony
“Aasan” phone is a landline prepaid telephony service, launched in May 2004. The prime objective of this service is to facilitate the customer in getting a new connection with minimal documentation. Aasan cards are available in Rs.500. Rs.1000 and Rs.2000 denomination. Daily line rent is of 7Rs.
PTCL Wire-line Payphone
PTCL provides wire-line payphone service to its end users through its Wire-line Payphone Operators. The end user can obtain a Wire-line payphone set from a Wire-line payphone operator.
Security Deposit for each payphone connection Rs.2, 500/-
Local call Rs. 1.20/5 min.
NWD call Rs. 1.20/min.
Line rent Rs. 87 for billing up to Rs. 500
No line rent for billing over Rs. 500
Features
The features of wire-line include:
superior quality voice,
availability of fax service,
no busy network,
no voice disruption,
much cheaper local call as compared to mobile of duration of five minutes,
Reliability.
Starting a PTCL Wire-line Payphone
To start wire-line service, the operator has to obtain payphone license from PTA and sign Payphone Service Agreement with PTCL.
Phone n Net (New)
Phone net is a new service by PTCL whose purpose is to provide the availability of internet any time without prepaid card charge. Here customer need not to charge the prepaid card like in Vfone,rather phone number will be used as username and password and it will be charged to the bill of phone.
PTCL conduct the market survey of internet cards for the launching of phone-net and for Rawalpindi, I was given this task.
Features
Ø Direct internet Access
Ø No scratch card needed
Ø Balance never finishes
Ø No Expiry or forced usage
Ø Don't have to pay up-front
Ø Flat rate of Rs. 0.10/min. (conditions apply)
Ø Code barring to restrict internet access
Ø Available on all landlines. Currently available in Karachi, Lahore, Islamabad.

4.4. Corporate Services
PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suite the needs of the Corporate Customers. The list of Corporate Services is given as under:

Toll Free-800
It is a toll free service starting with 800. A service for corporate clients for establishing domestic and international call centers. This service is available to corporate customers and call centers for their customer’s convenience. The number of subscribers stood approx.700 at the end of financial year showing a significant growth in subscribers from the past year.
Premium rate service -0900
A service for corporate customers they advertise their numbers for which a premier call rate charged. Mainly used by clients conducting live talk shows and are gathering customers feedback. 0900 numbers are used throughout the world to provide information via telephone at a premium rate higher than regular call charges. Five more operators signed agreements with PTCL in the year 2003-2004 bringing the total to thirteen.
Virtual Private Network (VPN)
A corporate service for our corporate clients, having operations in different cities. VPN provides a private telephone network linking their offices in different cities onto one network where cost of communication between the different cities in significantly reduced just like PABX. VPN is an intelligent network in service which allows an organization to private network using its current PTCL lines without requiring the installation of dedicated network resources.
Audio Conferences Service
Another corporate service where our corporate clients can have a conference call amongst their various offices. There are 920 clients by the end of year 2006.
Universal Access Number (UAN)
UAN service is ideal for organization engaged with marketing of products or services. It consists of 6 digits proceeded by 3 digits code of 111, common to all UANs. It can be accessed from other cities from dialing the area code first. There has been a steady increase in the UAN subscribers due to its better quality of service and positive effects on the customers businesses, as well as, user convenience.
For example: 051-50-502020
UAN is easier for customer to contact you by dialing a simple number. Its quick and easy access to make queries and complaints increases customer satisfaction. Customers are increasing aware of the benefits of doing business by phone because it is time saving and both convenient and cost saving.
Universal Internet Number (UIN)
Due to the boom in telecom sector ISPS continue to mushroom all around the country. UIN is a number starting with 131 used for accessing the Internet. The call dialed is charged as one local call irrespective of its duration. Number specifically allocated for ISP operators. 131 numbering schemes for internet service providers represent exclusive code assigned to each ISP. Functioning just like UAN-0800 toll free service, UIN involves allocation of numbers to individual ISPs who are licensed by PTA. The service, function’s under single metering billing system. The benefit of the service goes to the end users, who happen to be any ISP customers. Once subscribed, the service means timeless communication for your customers. Once subscribed, the service means timeless communication for your customers, allowing them to pay for a single call irrespective of its duration.
PTCL Broadband (DSL): (New)
The term "broadband" refers to a communications technique for transmitting multiple simultaneous data channels.
Broadband Internet services (specifically cable modem and DSL) bring high-speed Internet connectivity to homes and small businesses. Millions of people already subscribe to broadband Internet
Telecommunication revolution is taking our world by surprises. While it took global telecom development over100 years to reach 1,000 Million customer marks for fixed line telephony service, it took only about 20 years to reach the first billion mobile users. so fast that second billion signed up in just a matter of three years and the third billion may take even less time.
This is the pace and tempo of growth and telecom landscape change. The new wave of high speed internet, the broadband penetration, is likely to follow similar trends in next 10-years in the world. However, the broadband which will be a powerful tool for economic growth will need much support from the government as policy maker who has to set vision and resources for growth. If, we have look at Mobile telephony, internet and broadband, we find that these are becoming integral part of today's life and especially a life style for the young.
Shift towards Broadband:
The Next Big Thing
The next phase in digital revolution which has already started happening is the swift shift from low-speed internet to real high speed broadband information and data networks that leverage strength from both fixed and wireless transport and access alternative methods.
Broadband internet connection has become one of the most profound communication developments ever the demand for high-speed internet connections is set to continue and future would see a big boom. There are about 250 million fixed broadband users today and by 2010 credible forecast depict the number growth to reach to about 1.2 billion

DSL is a family of related technologies that bring high-speed network access to homes and small businesses over ordinary telephone lines.
PTCL is now the leader in consumer broadband in Pakistan, leading the country into 21st century. There are options of 3 plans to meet bandwidth needs.
DSL-256Kbps Limited Access Rs. 1,199 / month, 2GB Volume
DSL-512Kbps Limited Access Rs. 1,999 / month, 4GB Volume
DSL-1Mbps Unlimited Rs. 4,999 / month, unlimited download, Free Modem
4.5. Other Services
· Bill Payment Facilities
PTCL is in the process of offering convenient bill payment solutions to its customers. Steps taken in this direction so far include:
· Phone Bill Cards.
This convenient mode of bill payment was launched in January 2004. It facilitates customers in making payment of their phone bills through these cards from their own telephones. These are available in denominations of Rs.300, 500,700,1000, and 2000.

· Electronic Bill Payment Facility
Agreements have been signed with Askari Commercial Bank and Muslim Commercial Bank for collection of bills through ATMs. Discussions for similar agreements with other banks are underway. Infrastructure and operational base for services like Free phone, Home Country Direct (HCD) and Televoting has been complete.
· PTCL-Pakistan Post office (PPO) Agreement for Bill Collection
PTCL signed an agreement with PPO so that PTCL customers can pay their phone bills at more than 3000 branches of PPOs and GPOs throughout the country. This facility is in service now and is providing convenience to a large number of people.
Tasks Assigned to me:
On my first day of internship, first of all I gave the joining to Mr. Dawaar GM Marketing. GM Attached me to Product manager Mr.Usman Ali Khan. Mr. Usman gave me to do some work on Excel Sheet which was entries of activation and deactivation of Green Lifestyle Package. In the first week they explained me the working of marketing department and gave me information about different packages. In that first week, I got an opportunity to conduct a market survey fro the upcoming service. PTCL is going to launch a new service to its customers named as" Phone-net" for that service there is need to conduct all Pakistan survey about internet cards. For Rawalpindi, I was given the task to conduct it. After collecting that data, I compiled that data and prepared a summary of data.
During the next two weeks of internship he handed over me to advertising agency "Interflow" which was responsible for rebranding of PTCL where I got a wonderful exposure of advertising agency. For Two weeks I joined them regularly, and fro next two weeks I used to go there after noon after working in PTCL.
After that in 4th week, they assigned me a task to do the data entry of sales. Here I Was attached with the Miss Shama who is responsible of handling sales of FTR region.
In 5th week, I worked in advertising section for a week. Here I was attached with the Mr. Mushtaq Assistant Deputy Manager advertising. I helped him in compiling the work orders for the advertising agencies.

After that in 6th week, they allow me to work in business intelligence department for two weeks.
Mr. Kashif Qureshi and Mr. Hammad were there to guide me. Here in that days Business intelligence department was having the task to make a "dashboard". They assigned this task to me.
What is Dashboard?
Dashboard is basically for telling the trend in the business position of an organization products and services. Dashboards are used to communicate status and to drive action. Dashboard is a way to view data from several different reports with one simple click a dashboard is a user interface that, somewhat resembling an automobile's dashboard, organizes and presents information in a way that is easy to read. However, a computer dashboard is more likely to be interactive than an automobile dashboard (unless it is also computer-based). To some extent, most graphical user interfaces (GUIs) resemble a dashboard
Some products that aim to integrate information from multiple components into a unified display refer to themselves as dashboards. For example, a product might obtain information from the local operating system in a computer, from one or more applications that may be running, and from one or more remote sites on the Web and present it as though it all came from the same source. Hewlett Packard developed the first such product, which began as a tool for customizing Windows desktops. Called Dashboard, the HP product was subsequently acquired by Borland and then a company called Starfish. Microsoft's Digital Dashboard tool incorporates Web-based elements (such as news, stock quotes, and so on) and corporate elements (such as e-mail, applications, and so on) into Outlook. Dashboards may be customized in a multitude of ways and named accordingly, generally, for example as a general corporate or enterprise dashboard, or more specifically, as a CIO or CEO dashboard.
With the assistance of Mr. Kashif and Mr. Hammad I develop simple dashboard but there was still a corner of improvement in it, as Mr. Kashif wanted to have drilled down facility which I remain unable to develop that drill down facility.

Then I rejoined marketing section with Mr. Usman in 8th week, where they allow me to write the creative brief. I learned how we can write a creative brief of a product or service.
In the last week, I got my internship certificate and do some routine tasks of office.
In this way I did my internship and learned how to develop different marketing strategies. This will help me a lot in my future as I am willing to do job in the telecom sector. I learned the steps involved in launching of a new product and how and why an organization change its logo. This will definitely help me in future.
4.8 Brand repositioning
An attempt to change consumer perceptions of a particular brand.
Repositioning is the act of redefining the placement of a company and/or product. Positioning involves:
Placement within a market segment – In which segments does the product/service play?
Placement of the product relative to other products/services categories and application – What are upstream and downstream in the supply chain with respect to the product/service? Is the product/service high value or low value with respect to other product/services used by the customers?
Placement versus competitors' products/services – How well does the product/service satisfy the customers’ needs versus the competition?
Placement of the product/services in terms of features and benefits - Is the product/service high performance or basic in features and benefits? What is the value proposition for the product/service versus the competitors?
Placement in the sales channel – How is the product sold by whom to whom?
Placement in the minds of decision makers and influencers – For those who make the “buy” decision, is the product/service critical or a commodity? Does it represents a major determiner for success and therefore involved in a major part of their daily activities for buyers and influencers?
Some marketing folks may think of "rebranding" as the act of coming up with new logos, name, tag lines, colors, packaging, etc. Or it could mean to some purchasing a product manufactured by someone else and putting your own brand on it. And it's always possible that "rebranding" could mean to someone the same thing as repositioning - taken very loosely.
Repositioning of PTCL
Description of New Logo:
It is based on our traditional national symbols. The Crescent symbolizes Pakistan, the circular core replaces the star, and the multiple crescents symbolize the fact that there is so much more to offer. The dot in the middle is a representation of PTCL's customers’ oriented approach. As a symbol the crescent reflects the purity and integrity of our proud nation.
Just like the crescent's promise of a full moon, we, at PTCL, bring to the customers the promise of new and improved services. The crescent also symbolizes PTCL's passion to shine bright and our quest to keep on rising. The color combination depicts the partnership with Etisalat while the dot that symbolizes the Pakistani customer is the official Pakistan Green.
Top Reasons to Reposition a Brand
Brand repositioning is necessary when one or more of the following conditions exist:
Your brand has a bad, confusing or nonexistent image.
The primary benefit your brand “owns” has evolved from a differentiating benefit to a cost-of-entry benefit.
Your organization is significantly altering its strategic direction.
Your organization is entering new businesses and the current positioning is no longer appropriate.
A new competitor with a superior value proposition enters your industry.
Competition has usurped your brand's position or rendered it ineffectual.
Your organization has acquired a very powerful proprietary advantage that must be worked into the brand positioning.
Corporate culture renewal dictates at least a revision of the brand personality
Reasons of repositioning for PTCL
This decision to change the logo was based on some key findings of the extensive research conducted of the market. As a result certain issues came to light. Firstly the image of PTCL needed to be revamped. A marked shift in the customer paradigm was also required. The company needed to create a tailor-made communication focused on targeted segments to effectively communicate with the corporate sector.
The immediate task at hand has been to change the logo and the theme line. This will be followed by continuous launch of innovative solutions to create perception of change that should trickle down to all sub brands. The tentative launch of Triple play will be the spring board to enhancing image.
At the same time internally we will have to focus on improved customer service and fault management. The New Brand Identity demands new attitude towards business practices from all the employees. This is the only way our customer can 'feel the difference'.

In the age of getting competition more tight, PTCL wants to refresh its image in terms of its services.
To give the more confidence over the company and better image on customers’ mind.
PTCL is improving its services and making the easy availability of services like many online services of PTCL.
4.9 Upcoming Products& Projects
1. ERP:
ERP is a move to next century .ERP to redefine PTCL business processes.
ERP is used for the phrase Enterprise Resource Planning. ERP integrates all data and processes of an organization into a single unified system. A typical ERP system will use multiple components of computer software and hardware to achieve integration. A key ingredient of most ERP systems is the use of a single, unified database to store data for various system modules.
The introduction of an ERP system to information replaces two or more independent delivered applications eliminates the need for external interfaces previously required between systems. ERP is useful from standardization and lower maintenance to easier and greater reporting capabilities, typically kept in one database
The project has been given the. ERP is useful name Project A-SURE, where
A=Agility, S=Security, U=Unity=Reliability, E=Excellence; these are the objectives of this project.

For company, ERP means a system that will hold data across the whole enterprise of PTCL / Paknet / Ufone. All the information will be integrated, making access to good quality information easier. When the ERP system is installed, greater agility in meeting the needs of customers, suppliers and staff should be possible.
In PTCL, Siemens is doing the installation which will use the SAP of Germany the leading supplier of ERP software. The team of PTCL and Siemens working closely and these will be delivered in mid 2008.

“This project will change the way PTCL does its daily operations. Things will run so much smoother after the ERP system is installed.”
Walid Irshaid
President & CEO

2. PTCL one Stop Shop OSS
It’s a project which has approved by the upper management. In OSS all the services of PTCL will be available under one roof.Kiosaks will be available at OSS.From getting new service to payment of bill and all other services will be available at one shop. This will be launched in few large cities of Pakistan then it will be available to other cities of Pakistan.
The purpose of this project is the easy availability of services and saving the maximum time of customers of PTCL.





















Introduction to agency
Functions of Marketing department
Major clients
Tasks assigned to me





INTRODUCTION
Interflow Communications is the largest advertising agency in Pakistan established on July 1, 1983 with a diverse portfolio of clients and an annual turnover of more than Rs.3 billion. Interflow Communications has offices in Karachi (head office), Lahore and Islamabad.
All three Offices are fully functional independent offices, taking care of their respective portfolios independently. However, wherever required, inter-office coordination and cooperation is readily available.
Interflow Communications is not only the largest, but also the fastest growing agency in Pakistan. This unparalleled growth and success is owed to our focus on becoming our clients’ most valued partner in creating profitable growth by designing, building, leveraging, protecting and managing their entire communication efficiently and effectively.
Interflow Communications (Pvt.) Limited is the accredited advertising agency and is the member of Pakistan Advertising Association (PAA) & All Pakistan Newspapers Society (APNS).It is the most reputed Creative and Brand building agency.
Some important features are:
• Established in 1983
• Affiliated with Ogilvy in 1986
• Grew to become the largest advertising agency within 5 years and have maintained leadership position since then
• The most reputed Creative and Brand building agency
• Full service offices in Karachi, Lahore and Islamabad with a staff of over 300
• Interflow Communications (Pvt) Limited is the accredited advertising agency and is the member of Pakistan Advertising Association (PAA) & All Pakistan Newspapers Society (APNS)
• Interflow Communications is not only the largest, but also the fastest growing agency in Pakistan.
• This unparalleled growth and success is owed to our focus on becoming the clients’ most valued partner in creating profitable growth by designing, building, leveraging, protecting and managing their entire communication efficiently and effectively
• Interflow Communications is the only agency to have a separate Public Service Division. In recognition of our division’s commitment to social work Civil Hospital Karachi named its emergency ward after Interflow.
• The first ever marketing of a condom (Saathi) in Pakistan, including packaging design, television campaign, print and point-of-purchase material
• We are the first agency to own a television channel (TV one) & Radio FM Channel
• We are the first and only agency to open an international satellite channel in London called TV Asia.
• Pyramid Production house in Lahore also belonged to Interflow.
Mission
• Interflow Group’s mission is to be its clients’ most valued partner in creating profitable growth by building, leveraging, protecting and managing their brand assets - for both short-term results and long-term success.
• To that end, Interflow Group is committed to bringing together the most powerful combination of marketing and communications disciplines available to meet the specific needs of individual clients and their brands.
A True Brand Partner:
Pepsi 20 years
Unilever 19 years
Nestle 20 years
BAT 09 years
Ufone 06 years
Indus Motors 08 years
Brands –Interflow has built:
Mountain dew, PTCL, Wills, UBL, Pepsi, Ufone, Capstan , Oral-B, Teem ,IBM, NIDO, Ponds, Rio, Duracell, Butter puff, Gold Flake, Embassy, Gillette, Glaxose-D, A1-Karack and many more.

Hierarchy of Interflow Islamabad
Mr. Mohammad Jamal
Regional Director




Chief Accountant
Media Manager
Art Director
Creative Head
Administration Manager

Director Clients Servicing
Group Account Manager
Sr. Client Service Executive
Client Executive
Account Manager
Strategy Planner
Copy writers
Proof readers

Assistant Media Manager
Office boy
Peon
Driver
Front Desk officer
Accounts officer
Recovery officer
Asst. Art Director
Designers
Visualiser
DR
Security guard










How an advertising agency works:
Client service department is the front end of an advertising agency .Client Service gets the client and takes their requirements to form the ad. Then that requirements and specifications are explained to the creative department. Creative department make the concept of ad.
Then a rough sketching of ad is developed .Client service department continuously remain in touch with the client and present the concept to the client. Creative department handed over concepts to the art department where coloring, design of product and about ad is decided. From art to next is the design department which develops the designing of ad using the technical tools.
Then after building the ad client service present to the client if there is any change then that change is implemented. After the approval of client, ad is sent to Media department and media department placed that ad according to the client requirement about media on right time right space and in right shape. For the execution of this phase media department plays very important role.
After that, then bill is sent to client and bill is received by the account department of the agency in which 15% is for agency.
Functions of Marketing Department
Ø Marketing Strategy

1. Client Servicing
Client servicing mean providing the advertising services to the different clients of the agency. Client serving plays a major role in the marketing of an agency. We can say that client servicing departments are the back bone of the advertising agencies.
2. Business Development
Business development means to get the new clients from an open competition. Here it is too important to explain that how the agency can get the clients from an open market.
The company who is required to hire an agency calls the proposals from different advertising agencies by advertising its terms and conditions/requirements in the news papers or through Press Information Department (PID a regulatory authority of Press advertisements).
In response the agencies submit their proposals along with all supporting documents; the agency who meets the client’s requirements gets the clients.
In Interflow each of the marketing members can do the business development by utilizing its experience.
3. BTL (Below the line) activities
BTL is an advertising term, its mean all those activities which would took place on ground to promote or to market a product, brand or services. For example Street theater, float activities, puppet shows and arrangements of concerts.
Interflow communications is one of the biggest groups of advertising and event management in Pakistan; it has all the resources to manage all the above mentioned activities.
4. ATL (Above the line) activities
ATL activities include the advertising on electronic and press media. Interflow communications has very strong relationship with all the media channels and with press media as well. It is basic marketing strategy for the entire advertising agency.
The client can also directly approach to these media but if they go through the agency it is very beneficial for the agency. The agency gets the negotiable rates from there own from the channels.
Ø Product planning, development and management
Interflow is a service provider company. We can say that Interflow Communications basically selling its services as a product. Interflow has very competent employees profile and Management team which make the policies and take actions for its services.
Ø Advertising
Interflow communication is the service product company so being an agency
Its product is the advertising
Advertising on Electronic media
Advertising on Press media
Out door advertising
Workshops
Documentary Production
Concerts
Seminars
Special programs for the clients (Sponsored dramas, Talk Shows, Music Shows on TV etc)
Ø Development of the product
1. Ideas
There is always an idea behind a successful project or campaign. Interflow communication through their creative people creates ideas for its clients keeping in view their goals and objectives.
2. Execution
If the respective client likes that idea or concept of the agency then second step is the execution of that idea. In the execution of that concept / idea agency plays a very vital role.
3. Awareness / Launch through media (ATL /BTL)
After the completion of the execution phase the next and the most important phase is the launch of that idea/ concept/ campaign through ATL of BTL activities (mentioned above). Through the launch and media the clients get the end result that’s why it is the most important phase.
Ø Management of the product
1. Role of Creative department
Creative department plays very important role in management of advertising concepts. Interflow has a very competent creative department who is responsible to manage the product as per the satisfaction of the clients.
2. Role of Art department
Art department is also the key of success of an advertising agency. In interflow communication also play a very vital role in the success of the client advertising.
3. Role of Client servicing / Production department
Client servicing persons are the jack of all trades and they are responsible for the successful execution of the idea / creative concepts.
4. Role of Media department
The last step in the management of advertising is the placement of advertisement in the media department on right time right space and in right shape. For the execution of this phase media department plays very important role.
Ø Pricing strategy
1. 15 % Agency Commission
Advertising agencies are the service provider companies, they sell their services to the clients. As the reward they charge agency commission of 15% of the business cost. In Pakistan each and every advertising agency charge 15% agency commission no agency takes the higher or lower commission from the client.
2. PAA tariff
PAA means Pakistan Advertising Association, this association consists of the senior members of advertising agencies of Pakistan.
An approved tariff from all the authorities of this association has been made for production jobs. Production jobs means production of television commercial, radio commercials, production of posters, banners, streamers, etc.
As per the clients requirement agency would produce that specific job and would take its chargers according to the tariff.
3. Cost of Printed items
In fact printing is not the job of an advertising agency but if it is the requirement of the client then the agency can do this job as well, which most the agencies do for the client because they get the profit margin from the printing as well. Companies take 15% commission minimum from the job of printing.
Ø Distribution Strategy
Allocation of the clients to each client servicing person
As far as the distribution strategy is concerned agency distributes the advertising work of its clients to each client servicing person keeping in view their working experience.
The following are the main distribution channels of Interflow Communications.
Ø Distribution channels
a) TV
The main and one of the popular distribution channels is the television. Almost at every class of people watch the television. So with the help of television commercials on television is very successful and very help full for the promotion of a product or services.
b) Radio
So as radio is one of the main distribution channels of Interflow communication. Interflow makes the radio commercials for their clients and also offers different programs on radio channels.
c) Press
Another main distribution channel is the press advertisement. Interflow communication has very strong relation with the press media people so they offer different sort of services for its client for the advertising on press media.
d) Outdoor
Out door advertising includes hoarding, bill boards, banners, streamers, posters etc.
Interflow can manage all this types of advertising distribution channels with the help of their group companies very smoothly.
e) Magazine
Another very important and very well known advertising distribution channel is the magazine advertising.
f) Concerts / talk shows, Documentary, Corporate branding
There are some other miscellaneous distribution channels like concerts for the client talk shows, documentary production which are very popular distribution channels of Interflow.
Ø Sales force
a. Client servicing.
The main sales force is the client services department. As they are dealing with the client directly on behalf of Interflow. If the dealing of client services person are good it would really help of built the good relation ship and business as well.
b. Media resources
Media plays also very important role as the sales force. Media department is that department through that the client gets its results. Media department is responsible for the media release in right time on right media.
c. Public relations.
Public relation is another key sales force of interflow communication. Public relation is really important because some time agency is required some out of the box favors which they can only achieve from their clients with the help of better public relations.
Ø Promotional Strategy
1. Special discount from media (Electronic and Press Media)
On the basis of better relationship with the media market, agency gets the better negotiated rates from different press and electronic media channels. Each and every media channel or news paper have their own different rates (Tariff Rates), but with better understanding with the people of Media channels agency gets the special discounts for their clients.
2. Free of cost activities
Some time agencies as a special favor for the clients do some free of cost jobs like some designing jobs, some production work etc. it is a promotional toll of the agency which is very much effective.
3. Special teams for some specific clients
It is a very useful tool of an agency to allocate some special team for clients. It shows the impression to the client that agency is take some extra interest for the work of the client.
Major Clients of Islamabad office
Private Clients
Client Name
• United Bank Ltd (UBL)
• Askari Leasing
• Pakistan State Oil (PSO)
• Pak Telecom Mobile Ltd (Ufone)
• DVCOM
• EBM
• FFC
• Beacon House Informatics
• British Petroleum
• Pak Gulf
• PTCL ( Corporate)
• Save The Children
• Pakistan Initiative for Mothers and Newborns (PAIMAN)
Multinational Clients
Client Name
• Pepsi
• Key Social Marketing (KSM)
• Pakistan Tobacco Company
• Indus Motors
• Revlon
• Dupont
• IBM
• Plan International
Government Clients
Client Name
• Ministry of Tourism
• Central Directorate of National Savings (CDNS)
• Ministry of Health
• Ministry of Information
• Ministry of Women Development
• Ministry of Science & Technology
• Special Education Center
• NAB
• CBR
• Pakistan Army
• Pakistan Railway
• Board of Investment

Major competitors
In Islamabad there are almost 27 agencies are running their offices out some of the main names are as follows.
Orient Machain Islamabad.
Manhattan Pakistan (Pvt) Ltd.
Add Group (Pvt) Ltd. Islamabad.
Evernew Concepts (Pvt) Ltd.
Midas (Pvt) Ltd.
Spectrum (Pvt) Ltd.
Tasks Assigned to me
First of all I joined the Client servicing department for a week. I was attached with Mr. Atif Saeed Group account manager. I prepared the presentations fro clients, attend meeting with clients with Mr. Asim Raza assistant account manager. One of the presentation and meeting was with Mr. Safdar Communication head of Plan Pakistan.
Second week, I joined the creative department. I was attached with Miss Fatima creative Group Head. This was a wonderful experience as I did the copywriting fro the ads of National Education Foundation and Ministry of Women Development. (See Annexure)
My copywriting was appreciated by Miss Fatima and Mr.Khurram (Art Group Head).
On 3rd week, I joined the Art department. Here I was attached with Mr. Qaiser Graphic Designer. Here I learned some expertise on Photoshop and then I developed the few designing fro the PTCL rebranding (see annexure).
On 4th week, I did the usual routine work of office which was also done by me during above three weeks other than important tasks which I mentioned above.
Rebranding of PTCL:
As I discussed before about the rebranding of PTCL.Interflow was responsible to complete this task.
The tasks which were assigned to me during the rebranding process, were the designing of PTCL Giveaways and few vehicles which were designed by me on Photoshop under the guidance of Mr.Qaiser (graphic designer) (see Annexure.).













SWOT analysis of PTCL
Conclusion
Recommendations











SWOT Analysis
Strengths
Strong networking of PTCL is its major strength that is of competitive advantage.
High Profit margin of the company, in 2003 it was 34.4% and in 2004 it is 39.4%. The 2005 operating profits are 36,363 millions. Operating revenue75, 972 millions.
· The PTCL, Pakistan’s second-largest listed firm, it earned net profit of Rs8.37 billion in the six months to December 31, 2006, 22.71 per cent lower than Rs10.83 billion in the year-ago period.
(source:http://pakng.wordpress.com/2007/04/10/ptcl-asks-pta-who/)
Strong Research & Development Department.
Efficient chain of command. There is clarity of “who answer to whom”.
Good liquidity ratio.
Strength of PTCL is to offer a round the clock service to its customers to ensure their satisfaction.
PTCL human resource, infrastructure and nation-wide reach have been our strengths throughout and will remain to be. We are already there where no one has gone before. PTCL is practically everywhere in Pakistan even where there no electricity and other communication facilities available. (By SEVP Operations and Corporate Maskoor Hussain)
Weaknesses
Source: http://www.jbic.go.jp/english/oec/post/2006/pdf/project30_full.pdf
Table shows the ROA increases up to 2004 but in 2005/06 it deceases little bit. The liquidity ratio also falls in 05-06. Capital Adequacy ratio also falls in 05-06.
Deregulation of the telecommunication sector is likely to lead to a fall in the revenues of PTCL in the short term. However, the policy makers believe that PTCL would stage a comeback by 2007 in all areas. PTCL may experience some loss of market share to competitors, customers’ dissatisfaction, poor customer services by PTCL, erosion of revenues and then profits in the short to medium term. Various analytical simulations models run by PTCL and the consultants show that the impact can range from marginal to substantial. The government being an 88 percent shareholder of the PTCL may be similarly affected.
There is already uncertainty about the international revenues of PTCL due to continued declining trend of the international “Total Accounting Rates” (TAR) (PTCL’s share of TAR – the settlement rate declined from about 60 percent to 20 percent per minute in the period from 1997 to 2002) resulting in net annual PTCL proceeds declining from about $370 million to $260 million despite substantial increase in international incoming traffic.
Currently, PTCL is under pressure from its bilateral international carrier partners for reduction in settlement rates. As such, PTCL is already facing the prospects of reduction in its profitability even if deregulation does not take place. It is feared that the natural decline in PTCL’s revenue and profitability may not be well understood and the entire impact may be attributed to deregulation.
The no. of employees working in different branches is more than required. We can say that there is over employment in PTCL.
Human Resource Department of PTCL is weak.
Lack of co-ordination.
Growth in fixed line sector is slow as compare to mobile sector.
Political Influence.
Misuse of office fixture.
Absence of technical staff especially broadband DSL.
The implementation of rules and polices are not assure and there is lack of audit control.
Opportunities
Satellite communication.
Etisalat 26% stake in PTCL could lead to fresh investment boost and possible expansion of PTCL network.
Making investment decisions.
Employees training programs.
Hiring of qualified HR Staff.
Exploration of small cities.
Technological advancement.
Overall computerized system.
The revenue can be further generated through better marketing strategy.
Threats
Competitors.
Economic conditions. In strong economic conditions the growth of business is very frequent. The poor economic conditions increase the inflation rate, which is a threatening factor. Political climate in Pakistan in uneasy because of regional tensions, which may have a detrimental effect on potential investment from overseas and consequently network expansion.

Conclusion
PTCL accountings and financial system for planning and controlling the activities are satisfactory. But it needs the strict implementation of its policies.
Privatization of company would improve the working of organization and its overall efficiency. New partnership Eitisalat is trying to enhance PTCL status in the Telecom sector and further strengthened the existing strong bands of friendship between Pakistan and UAE.
To keep the leadership position in the telecom sector, it is important that PTCL continue to set high standards for the others to emulate. PTCL have come a long way and have a long way yet to go but it is committed to” making it possible”, and now trying to give the feelings of “feel the difference
For PTCL, re-branding initiative can only have any sort of meaning if it is aligned with proper rationales and concrete change. An image cannot be purchased, it must be built. Without a constructive attitude, change, PTCL goals will become meaningless.
It is not about making superficial changes, but the need of today is for substantial reform. This change must be followed by superlative services, good customer service, and dedicated people. Otherwise the re- branding initiative will be reduced to meaningless slogans, images and sound bytes. So for authenticity to be deeper than promotional claim, brands cannot solely be the preserve of the marketing department.
PTCL must have to introduce automation in its processes and improve MIS system. In wake of change of corporate orientation from engineering to commercial each employee will have to change his attitude the way he works accordingly. PTCL will have to open up to reality and the changed world outside to grab business share. New challenges require new approach from PTCL. Everyone will have to gear up to achieve better customer satisfaction.

So PTCL has to do is to bring about a positive change in attitude and mindsets of each and every employee. Improved customer services and launch of new products is the only way to survival for PTCL. Every employee of PTCL is its Marketing person and ambassador of the Company. By changing in attitude it can contribute to company in particular and to the society in general.
Recommendations
1. There should be screening of employees because the no. of employees working is more than required.
2. Company should emphasize on after sales services since it is necessary to compete its competitors and to retain its leadership in telecom sector.
3. The HR department of the company is not playing an effective role. Proper arrangement should be made for professionals by issuing detailed job description and job specification to get maximum profit from them.
4. Company should decrease its line rent because in present competitive environment company can retain its customers through this strategy.
5. Overall system should be computerized to save time, money and resources of company. PTCL must have to introduce automation in its processes and improve MIS system
6. The customer services should be improved and must be provided to customer in time. Its take long time to have the PSTN phone. The salaries of line man should be reasonable so that customers can get the phone without any trouble.
7. The technical and installation team for broadband is insufficient; the need is to have more experts to satisfy the customers’ requirements of broadband.
8. There are lots of complaints of Lifestyle package and to handle these complaints no proper person is there, the product manager deals with these complaints. There is very much need to remove the problems faced by these life style packages.
9. Strong emphasis on marketing to compete with competitors. Marketing of cellular companies is much stronger than PTCL. Features provided by the company to its customers should be recognized which is possible only through strong marketing efforts.
10. Exploration of new areas, not having connections, is required. Most of the cellular companies are trying there best to occupy those regions where landline connections are not available. So to increase the number of customers and to avoid the decreasing profitability, to increase the EPS and regain the image in the mind of Consumers Company should emphasis on the exploration of new areas.



References
1. www.ptcl.com.pk
2. http://www.jbic.go.jp/english/oec/post/2006/pdf/project30_full.pdf.
3. http://pakng.wordpress.com/2007/04/10/ptcl-asks-pta-who/
4. TeleNews in-house newsletter of PTCL
5. Quality Ways in-house newsletter of PTCL
Meetings
Mr.Usman Product Manager PTCL
Mr.Haider Manager Marketing Research PTCL
Mr.Farman Finance Officer PTCL
Mr.Asim Account Manager Interflow