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

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

  1. 1. INTERNSHIP REPORT ON PTCLINTERNSHIP REPORT ONPTCL (Pakistan Telecommunication Company Limited)Presented to: Department of Commerce University of Sargodha, SargodhaPresented by: Muhammad Ashraf Roll # 31-ss M. Com (2008-2010) Email: redeyes11@live.com Page | 1University of Sargodha
  2. 2. INTERNSHIP REPORT ON PTCL Page | 2University of Sargodha
  3. 3. INTERNSHIP REPORT ON PTCL IN THE NAME OF ALLAH WHO IS THE MOST BENEFICENT & EVER MERCIFUL PRESIDENT’S MESSAGEI have taken immense pride in assuming the duty as President and CEO of PTCL, which is a greatopportunity for me to execute my responsibilities as a team leader.To me Pakistan and PTCL are synonymous with an opportunity for growth. The potential of thisgrowth is visible to me as it is about the human capital we have in the form of talented andexperienced employees. I can assure you that with the traditional dedication and determination ofPTCL workers we will transform this company into a world class ICT Company.I am proud of my fellow colleagues who have been leading the market so far and have beenadapting to changing technological advancements. After the deregulation in the telecom sector ofPakistan, PTCL is now again ready to face new challenges in a competitive environment.We are poised to retain our leadership position by giving PTCL a new and improved look. Thenew colors of the Logo are in context with every Pakistani’s sense of identity and patriotism;green and white being the colors of purity and honesty, the colors of trustworthiness and integrity,the colors of Pakistan’s flag and the colors of every Pakistani’s passion. Page | 3University of Sargodha
  4. 4. INTERNSHIP REPORT ON PTCLBe assured that PTCL will remain the people’s first choice of communication in the future.Promising you the best of our services, at all times. Preface In fact, for the students of M. Com. The two months internship is a golden chance todevelop the capability and skill of administration and management in the practical environment ofdifferent organizations. In the context, I select the PTCL (PAKISTANTELECOMMUNICATION COMPANY LIMITED). This report shows and will guide thereaders to have an idea about maintain accounts, its operations and the practices followed todayin Pakistan. My reasons for doing the internship program in PTCL is to get first hand knowledgeabout maintain accounts and improve my business life, because PTCL is the best organizationindeed.I tried to remain to the point, in writing the report. Brief history, management, organizationalstructure of PAKISTAN TELECOMMUNICATION COMPANY LIMITED and my work atbranch suggestions, for improvement are also given in it.Moreover, particularly being a student of Finance & Accounts it is necessary for me to getpractical knowledge of the managerial & financial activities of the organization. So I have triedmy best to learn a lot about accounts because it relates with financial activities. I have made allpossible efforts to summaries the broad history and working of the organization. Page | 4University of Sargodha
  5. 5. INTERNSHIP REPORT ON PTCLThis work is a collection of my observations and experience during the internship period andafterward. The sources of my information for the preparation of this report also include thewritten notes, literature on banking, verbal discussion with staff members, senior students and myfellows.Internship Program is a conventional constituent is part of total spectrum of M. Com. Theinformation contained in the report is based on my personal observation, practical working andinterviews with the staff during my internship training. DedicationNo words can adequately express my overriding debt of gratitude to my parents whose supporthelps me in all the way. Above all I shall thank my friends who constantly encouraged andblessed me so enable me to do this work successfully. AcknowledgementsIn the name of Allah, who gave me ability and strength to complete my internship. I oweconsiderable debt to large number of persons who either directly or indirectly helped me duringvarious phases of internship. It was a new experience, exciting but challenging and indeedguidance rather frequently, which was afford very generously. Page | 5University of Sargodha
  6. 6. INTERNSHIP REPORT ON PTCLMy special thanks to Miss Imrana Asad for her guidance and support during my internship reportpreparation.In PTCL I am grateful to all the staff members for providing me an opportunity to work in theorganization at the style and speed of my convenience. I also wish to record my gratitude for thefollowing staff members for transforming my theoretical knowledge in practical understanding,despite their heavy commitments they always found time to answers my questions, resolvequeries and never ran out of patience. Executive SummaryBy the grace of almighty God, I have successfully completed my 8 weeks internship as perrequirement of M.com course. I was appointed at PTCL Headquarter Islamabad Sector G-8/4. Ifeel my self-lucky to have worked with such a cooperative, dedicated, result-oriented team. Theyall helped me in every possible way they can. I was happened to work in INTERCONNECTREVENUE DEPARTMENT.With employee strength of 30,000 and 5.7 million customers, PTCL is the largesttelecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operatorin the country with 0.8 million V-fone customers. The company maintains a leading position inPakistan as an infrastructure provider to other telecom operators and corporate customers of thecountry. It has the potential to be an instrumental agent in Pakistan’s economic growth. PTCLhas laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and localloop 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 historicalbackground, its services and its products offerings. In this report organization structure is Page | 6University of Sargodha
  7. 7. INTERNSHIP REPORT ON PTCLdiscussed as pr the requirement of internship. What is the hierarchy in the organization as well asworking of various departments are concisely discussed.The most important thing the BUSINESS STRAGTEGIES is discussed in such a way that its notdifficult to understand it. Internal and External analysis has the vital importance, which in thisreport is also done. More over the Financial Analysis is also done which is depicting thefinancial position of the org in the market place.Whereas SWOT analysis is done which clearly sows what ar e the strengths, weaknesses,opportunities and threats in the organization. Finally some suggestions and recommendations aregiven to org in this report. Limitation although very few but cant be negligible are discussed. Thusthis report completely depicts the true picture of PTCL in a meaningful way.I have completed my 8 weeks internship successfully in PTCL(Pakistan TelecommunicationLtd.) in Interconnect Revenue Department fromJune 21, 2010 to Aug 23, 2010. Page | 7University of Sargodha
  8. 8. INTERNSHIP REPORT ON PTCL TABLE OF CONTENTS Industry Introduction 10 -- History of Organization 12 a. Vision Statement 18 b. Mission Statement 18 -- Main Features 19 -- projects& activities 23 Products & Services 28 Compatetors 32 Moral Values of Employees 32 Organizational Structure 34 -- Hierarchy Chart 37 -- Number of Employees 37 -- Introduction of all Departments 38 Departments and their Working 41 Page | 8University of Sargodha
  9. 9. INTERNSHIP REPORT ON PTCL Finance system of PTCl 46 Funding of PTCL 48. Work done by Internee 54 Financial Analysis of Organization 56 -- Significance of ratio 56 -- Components of ratios (formulae used ) 606. SWOT Analysis 697. Conclusion 738. Recommendations 789. Limitations 8010. Bibliography 8011. Annexes 81 Page | 9University of Sargodha
  10. 10. INTERNSHIP REPORT ON PTCL INTRODUCTION Pakistan Telecommunication Corporation (PTC) has established in December 1990,taking over operations and functions from Pakistan Telephone and Telegraph Department underPakistan Telecommunication Corporation Act 1991. This coincided with the Governments competitive policy, encouraging private sectorparticipation and resulting in award of licenses for cellular, card-operated payphones, paging and,lately, data communication services. Page | 10University of Sargodha
  11. 11. INTERNSHIP REPORT ON PTCL In 1994, the PTCL becomes the company limited (Pakistan Telecommunication CompanyLimited) by issued six million vouchers exchangeable into 600 million shares of the PTCL in twoseparate placements. Each had a par value of Rs. 10 per share. These vouchers were convertedinto PTCL shares in mid-1996. In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis forPTCL monopoly over basic telecommunication sector in the country. It also paved the way forthe establishment of an independent regulatory regime. The provisions of the Ordinance were lentpermanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The year 2006-07 in the telecom sector was marked by the phenomenal growth in themobile sector in Pakistan, which doubled its subscriber base to 60 million. The teledensityincreased from 26% to 40%, helping to spread the benefits of communication technology acrossthe country. PTCL ’s mobile phone subsidiary Ufone’s subscriber base grew by more than 87%,from 7.49 million to 14 million. The year also witnessed the entry of major telecom companies,most notably China Telecom and Singtel, into market. The privatization of the company was completed in the FY06, following the purchaser of26% ‘B’ class ordinary shares by Etisalat International Pakistan L.L.C. EIP took overmanagement control on 12th on April 2006. In short PTCL has been working vigorously to meet the dual challenge of telecomdevelopment and socio-economic uplift of the country. This is characterized by a clearerappreciation of ongoing telecom scenario wherein convergence of technologies continuouslychanges the shape of the sector. Page | 11University of Sargodha
  12. 12. INTERNSHIP REPORT ON PTCLCENT RAL BACKGROUNDThe telecommunications industry is at the forefront of the information age²delivering voice,data, graphics and video at ever increasing speeds and in an increasing number of ways. Whereaswire line telephone communication was once the primary service of the industry, wirelesscommunication services and cable and satellite program distribution make up an increasing shareof the industry.The largest sector of the telecommunications industry continues to be made up of wiredtelecommunications carriers. Establishments in this sector mainly provide telephone service viawires and cables that connect customers premises to central offices maintained bytelecomm urinations companies. The central offices contain switching equipment that routes1content to its final destination or to another switching center that determines the most efficientroute for the content to take. While voice used to be the main type of data transmitted over thewires, wired telecommunications service now includes the transmission of all types of graphic,video, and electronic data mainly over the Inter net.These new services have been made possible through the use of digital technologies that providemuch more efficient use of the telecommunications networks. One major technology breaksdigital signals into packets during transmission. Networks of computerized switching equipment,called packet switched networks, route the packets. Packets may take separate paths totheir destination and may share the paths with packets from other users. At the destination, thepackets are reassembled, and the transmission is complete. Because packet switching considersalternate routes, and allows multiple transmissions to share the same route, it results in a moreefficient use oftelecommunications capacity as packets are routed along less congested routes. Wirelesstelecommunications carriers, many of which are subsidiaries of the wired carriers, transmitvoice, graphics, data, and Internet access through the transmission of signals over networksof radio towers. The signal is transmitted through an antenna into the wire line network. Page | 12University of Sargodha
  13. 13. INTERNSHIP REPORT ON PTCLOther wireless ser vices include beeper and paging services. Because wireless devices require nowire line connection, they are popular with customers who need to communicate as they travel,residents of areas with inadequate wire line service, and those who simply desire the convenienceof portable communications. Increasing numbers of consumers are choosing to replace theirhome landlines with wireless phones.Wireless telecommunications carriers are deploying several new technologies to allow faster datatransmission and better Internet access that should make them competitive with wire linecarriers. 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 downloadedand played on phones designed for 3G technologies. Wireless carriers are developing the nextgeneration of technologies that will surpass 3G with even faster data transmission.Another technology is called ³fixed wireless service,´ which involves connecting thetelephone and/or Internet wiring system in a home or business to an antenna, instead of atelephone line. The replacement of landlines with cellular service has become increasinglycommon because advances in wireless systems have provided data transmission speedscomparable to broadband landline systems.COMPANY BACKGROUNDPakistan has made steady pr ogress in expanding telecommunication networks and servicesin recent years. In Pakistan this industry had few big giants in the past with PTCL being the Page | 13University of Sargodha
  14. 14. INTERNSHIP REPORT ON PTCLsole provider of landline telephone service in the country. At present the organizationsprincipal activity is to provide telecommunication services all over the country. It offers bothdomestic and international services throughout Pakistan. PTCL also manufacturestelecommunication related equipment.Pakistan Telecommunication Company Limited had exclusive rights to provide basictelecom services in Pakistan till the end of year 2002. With the announcement of DeregulationPolicy by the Government of Pakistan in 2003, PTA has issued licenses for basic telephony to theprivate sector in Pakistan who will be competing PTCL, the incumbent. From the humblebeginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone& Telegraph Department in 1962, to this very day, ours is a story of commitment and vision.PTC set sails for its voyage of glory in December 1990, taking over operations and functionsfrom Pakistan Telephone and Telegraph Department under Pakistan TelecommunicationCorporation Act 1991. This coincided with the Governments competitive policy, encouragingprivate sector participation and resulting in award of licenses for cellular, card-operatedpayphones, paging and, lately, data communication ser vices.Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, andin 1994 issued six million voucher s exchangeable into 600 million shares of the would-be PTCLin two separate placements. Each had a par value of Rs. 10 per share. These vouchers wereconverted into PTCL shares in mid- 1996.In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCLmonopoly over basic telephony in the country. It also paved the way for the establishment of anindependent regulatory regime. The provisions of the Ordinance were lent permanence inOctober 1996 through Pakistan Telecommunication (Reorganization) Act. The same year,Pakistan Telecommunication Company Limited was for med and listed on all stock exchanges ofPakistanSince then, PTCL has been working vigorously to meet the dual challenge of telecomdevelopment and socio-economic uplift of the country. This is characterized by a clearer Page | 14University of Sargodha
  15. 15. INTERNSHIP REPORT ON PTCLappreciation of ongoing telecom scenario wherein convergence of technologies continuouslychanges the shape of the sector. A measure of this understanding is progressive measures such asestablishment of the companys mobile and Internet subsidiaries in 1998.As telecommunication monopolies head towards an imminent end, services and infrastructureprovider s are set to face even bigger challenges. Pakistan also entered post-monopoly era withderegulation of the sector in January 2003. On the Government level, a comprehensiveliberalization policy for telecom sector is in the offing.PTCL is in full awareness of the same, and future policies feature a strong conviction of healthycompetition.The company is in process of enhancing organizational and business proficiency throughvertical integration and horizontal diversification. At the same time, cross-national ownerships,operations and partnerships are being evaluated with a view to developing and diversifying thebusiness.RESTRUCTURING OF PTCLThe governments efforts to restructure and privatize PTCL have been on-again off-againsince1991. It had an offer in the late 1990s for 26 percent equity, reputedly totaling $3 billion,butheld out in negotiations and ultimately missed the unique global market window at that time.Since then, it has had difficulty attracting potential buyers.Investors have been concerned about political risk, and appropriate support from the government Page | 15University of Sargodha
  16. 16. INTERNSHIP REPORT ON PTCLto transform the utility into a commercially-oriented corporation. With fortunes rising in the localtelecom sector, the government hoped to make privatization of the company a landmark deal forbroader reform of the economy. A successful deal would demonstrate the governments increasingsupport for market capitalism and, it was hoped to, boost anemic levels of direct foreigninvestment.PTCL and the government were contemplating different strategic options for restructuring. Planswere vetted for both a geographic and functional split of operations. Analysts believed the mostlikely scenario is a break-up into three new companies, tracking with the firms largest businessunits: local, long distance and mobile. This approach mirrors the policy environment fashionedfor new competitive entrants. From the government perspective, breaking up PTCL prior to asell-off will help curtail the market power of any one single service provider, thereby stimulatingcompetition.Unbundling the sale was also likely to increase revenues for the government. The risk, of course,was that the mobile company, PTML (branded as ³Ufone´), was disproportionately moreattractive than the other businesses. According to AKD Securities, PTMLs contribution toPTCLs total revenues was expected to rise to 12.5% over the next five years í and was assumedto contribute 39% of PTCLs overall revenue growth. Future growth of mobile, both in terms ofsubscribers and net revenues, was considered to almost certainly outstrip demand for fixed lineservices. The target was to sell up to a 26 percent stake in PTCL; the government held 88 percentof $2.6 billion, and then any lowering of bid price in the revised agreement approved by thecabinet in March. The official documents state that the accumulated bidding price in the revisedbid came down to $2.205 billion against the original Etisalat bid of $2.599 billion, said a report inthe Gulf Today.The PTCl privatization agreement with Etisalat allegedly inflicted a further loss of billions ofrupees to the national exchequer besides unprecedented concessions offered in the long term, Page | 16University of Sargodha
  17. 17. INTERNSHIP REPORT ON PTCLindirect conflict with Article 30 of the Public Procurement Rules 2004, it said. By far, thePTCLhas been the highest profit earning state-owned company with real-estate assets worthbillions ofrupees across the country including commercial plazas, residential colonies andexchanges. According to the government documents, the Share Purchase Agreement (SPA) of thePTCLwith Etisalat lapsed in September 2005 after the non-payment of the dues by the winnerbidders. After further negotiations with the Etisalat management, the government agreed toadditional concessions and modifications to the transaction structure offer VISIONTo be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders value. The future is unfolding around us. In times to come, we will be the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom services that bring us closer. Page | 17University of Sargodha
  18. 18. INTERNSHIP REPORT ON PTCL MISSION  An organizational environment that fosters professionalism, motivation and quality  An environment that is cost effective and quality conscious  Services that are based on the most optimum technology  Quality and Time conscious customer service  Sustained growth in earnings and profitabilityCORE VALUES  Professional Integrity  Customer Satisfaction  Teamwork  Company Loyalty FeaturesPakistan Telecommunication Company Limited (PTCL) is the primary provider ofTelecommunication services in Pakistan. The range ofservices include basic telephony, telegraph, fax, telex, Public data, Internet, E-mail,ISDN(Integrated Services Digital Network),Universal Access Numbers(UAN), another value-added services.Pakistan Telecommunication Company Limited is a professionally managed company and hasinitiated measures, with active support of the Federal Government, to inculcate a corporate Page | 18University of Sargodha
  19. 19. INTERNSHIP REPORT ON PTCLculture that benefits company. Pakistan Telecommunication Company Limited believes that it hasan inherent potential that it can exploit to emerge as an important and active business entity.Pakistan Telecommunication Company Limited has some basic strength and the potential thatneeds to be exploited into real business opportunities. The Directors of the Company feel that afirm and unwavering commitment towards provision of a complete range of market driventelecommunication services to its customers using state of the art technology proven products anda customer care approach is essential in a rapidly expanding telecom market. The radical changefrom a monolith state controlled culture to a open market competitive environment. The customeris becoming and more conscious of the value of telecom services in an improving businessenvironment.The advent of digital systems, increasing application of computer technologies and developmentof wide-band systems has generated new customer needs. Innovative products and services suchas cellular mobile, high-speed data, Internet etc are much in demand. The current decade hasproved to be the period of sector restructuring and growth globally. To keep pace with thechanges and to meet the emerging new demands, Pakistan Telecommunication Company Limitedhas adjusted its programs to meet the requirements of the market. Traditional telecom monopolieslike Pakistan Telecommunication Company Limited need to explore new avenues of technologyand financing to accomplish a quantum leap in growth and bridge the gap between demand andsupply, still remaining financially viable. The Company has taken initiatives and achange is gradually becoming visible through expanded capacity and increasing revenue.Pakistan Telecommunication Company Limited has taken decisions to cope with the competitionwithin the next years. The initiatives taken resulted in the establishment of 100% PakistanTelecommunication Company Limited owned subsidiaries like Pak Telecom MobileLimited.Paknet and Pak Telecom Pay Phone services limited. These new entities shall providecellular mobile information technology, Internet, payphone, prepaid calling cards and other rangeof services, Pakistan Telecommunication Company Limited made a conscious decision to enterthe cellular business as it has tremendous potential and an accelerated annual growth of about60%which is likely to continue for many years.Pakistan Telecommunication Company Limited has been successful in obtaining a Cellular Page | 19University of Sargodha
  20. 20. INTERNSHIP REPORT ON PTCLMobile License for its subsidiary and has selected the GSM 900 state -of the²art technology,which is growing at a much faster rate internationally. Pak Telecom Mobile Limited wasincorporated on 18th July 1998 to establish and run this new business independent of PakistanTelecommunication Company Limited with full accounting separation thus creating a levelplaying field for industry competitors.Pakistan Telecommunication Company Limited is following a business-oriented policy toassociate private entrepreneurs in telecom sector development. The options are based oninterconnect and revenue sharing arrangements with license operators and through out-sourcingrevenue sharing with 0 & M contractors as business partners. PTCL has successfully entered intoarrangements with foreign and local telecom companies and has signed three contracts prepaidcalling card service to promote international traffic.The Government of Pakistan has encouraged the growth of the telecom sector to enable Pakistanto keep pace with the rapid technological advancement in the field of telecommunication. Thetariff structure remains under constant review of the government to rationalize from the point ofproviding adequate returns to the telecom operators and to tap the tremendous potential of thegrowth in the demand and market for telecom services. The GOP has reduced the CED ontelecom services, encourages the use of value added services with special emphasis onproliferation of Internet. It has also reduced the import duties on telecom equipment and allowstax exemption.Private sector data and Internet services providers are operating under license and revenue sharearrangements. Internet & information technology services are now very popular in the market andnumbers of new entrants are competing, providing Pakistan Telecommunication CompanyLimited an opportunity lease capacity. Its available IT & Internet infrastructure both for privatesector licensed operators and Pakistan Telecommunication Company Limited own customers.Pakistan Telecommunication Company Limited is launching a three-phased project for IT &Internet to expand the service to take care of 300,000 customers including the needs of privatelicense for infrastructure. Page | 20University of Sargodha
  21. 21. INTERNSHIP REPORT ON PTCLPTCL S CORE OBJECTIVESThe primary objective of Pakistan Telecommunication Company Limited is to providetelecommunication services to the people in the country or in short to satisfy thetelecommunication needs of its customers. Responding to the rapid economic and technologicalgrowth, the company is determined to meet the challenge of expanding needs of telephone anddata communication such as public data network, integrated services digital network and Internetservices.The major focus of attention is to improve and expand the services, minimize the faults andprovide communication facilities to rural areas. It is also one of the major objectives ofmanagement that the company should not improve its performance but also encourage theprivate sector to enter the Tele business. The company has entered the domain of free marketeconomy, 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 toexpand and operate telecommunication services in the country. The main objective of anycompany is to earn the profit and minimize expenses by winning goodwill in the marketThe following are the long-term objectives of the organization.  Provision of Telecom services all over the country.  Plan, establish and maintain telecommunication  Acquire, promote and manage research and development, transfer of technology and software development including manufacturing of telecommunication equipment and plant  Enhance efficiency, improve quality and expand the system to meet customer satisfaction and provide service on demand.  Create congenial climate for binding of human skill and horizon of employees through Page | 21University of Sargodha
  22. 22. INTERNSHIP REPORT ON PTCL training and education.  Convert its cash basis single entry accounting system to accrual basis double entry system meeting the commercial international accounting standards.  To introduce computerized directory assistance and complaint services reform billing o and a revenue collection system.  Strengthen relation with foreign international administration, entities, services o providers, international and regional telecom organizations for better international o communication and technical cooperation in telecommunication business.  Expand customer awareness of all value-added services of PTCL.  To improve the efficiency of Customer Service Centers by deputing qualified persons o who are well aware of public relation techniques.Projects and Activities1. Urgent Training Needs Programme:The Urgent Training Needs which realistically depict the post VSS scenario are being assessedand catered immediately by conducting customized training programs. The involvement of alldepartments, regions and business units for providing their valuable input in the form of TNAresponse is essential for accurate identification of their requirements. Given the transformationstage, the most eminent developmental needs were highlighted and incorporated in this program.2. Customer Care Initiative:To achieve the pinnacle of Excellence in Customer Service envisioned by the President/CEO theTraining and Development department has assumed the responsibility for effectively impartingtraining under the Customer Care Initiative to all PTCL employees.3. HRD Plan for 2009-10: Page | 22University of Sargodha
  23. 23. INTERNSHIP REPORT ON PTCLTraining is one of the tools used for the development of employees and to consolidate change onsustainable ground. In order to address the training needs of all stakeholders of PTCL, EVP(T&D) has directed training region administration to conduct comprehensive Training NeedAssessment of PTCL employees. This exercise of TNA is required for developing an effectiveand need satisfying Human Resource Development Plan for PTCL training centers. The pilot runof this program is expected to commence by the end of April 2009.4. Training Incentive offered to VSS Optees:For the rehabilitation of VSS Optees, PTCL offered a package of post VSS training &development services, out of which the most beneficial and helpful service offers wereVocational and Technical trainings.5. Revamping Project of PTCL Training & Development by Etisalat Academy:PTCL has a huge training infrastructure throughout the country that is geographically widespread. To revamp this wing of PTCL and transform it into a profit center, Etisalat Academy hasbeen engaged for this project with the following main objectives: • Evaluation of existing training infrastructure • Identification of potential and non-potential training institutes • Development plan for proposed training set-up • Comprehensive workforce analysis of existing Human Resources in T&D department • Proposals regarding computerized learning management system • Preparation of Quality Assurance (QA) systems & procedures • Determination of Key Performance Indicators (KPIs)6. Implementation of ERP system in T&D: Page | 23University of Sargodha
  24. 24. INTERNSHIP REPORT ON PTCLThe focus of the project is to set up and maintain the qualifications catalogs, create and evaluateprofiles for a range of objects (for example, persons and positions), evaluate career andsuccession planning scenarios, set up appraisal systems, as well as plan, hold, and evaluateappraisals, create development plans, and work through individual development planningscenarios by customizing the functions of personnel development to meet customer requirements.7. PTCL Academy activities:PTCL Academy has been revitalized with a new vision to be recognized locally and regionally asa center of excellence in the provision of state-of-the-art training and consultancy services intelecommunications and related fields. It will provide a platform for the creation, disseminationand exchange of knowledge and expertise in all areas of telecom and IT to internal and externalstakeholders. Some of the programs on its agenda are:• Ph.D. Programme• MS programme• Post Graduate Diploma• Cisco Regional Academy Programme• Oracle Academy Programme• Joint venture with CISCO and NUST• Seminars / Short Courses / Certificate programmes• Course development for new offerings (technical and management courses)• Testing / Inspection of telecom equipment8. Lineman Training Programme:The declaration to celebrate year 2008-09 as year of Customer Care & Satisfaction by thePresident/CEO of the company, has entrusted upon Training & Development Department agigantic task to transform our line staff who are the real customer care agents of PTCL. Thisinitiative is the part of company’s strategic vision to turn PTCL a leading corporate entity in Page | 24University of Sargodha
  25. 25. INTERNSHIP REPORT ON PTCLhighly competitive business environment of telecom industry. A mega training campaign hasbeen launched for all the Linemen of PTCL. The training module prepared by Training &Development department has tried to address all skill needs most direly required by our Linemento cope with emerging technologies in telecommunication. This training will significantlyimprove both soft and technical competencies of our linemen and we believe that this trainingshall be remembered as a milestone in PTCL’s history.9. Quality Awareness Programme:In order to create quality awareness and skills improvement of PTCL staff, a 3-year QA plan hasbeen made. The project is scheduled from March 2007 to December 2009. Following four typesof programmes are under the work plan:• Installation Quality Standards• Quality Auditor Course• Companywide Quality Awareness• ‘Train the Trainer Programme’ offered to the faculty of PTCL training centers10. Senior Management Development Program:Etisalat Academy being the lead consultants of PTCL’s Training and Development departmenthas proposed a meritorious program for the development of Senior Management Team (SMT) ofPTCL. The workshops, their contents and out comes have been reviewed and have been foundbeneficial for the company. Proposed plan of five workshops is in line with emerging concept ofContinuous Professional Development. CPD is being promoted for conscious updating ofprofessional knowledge and enhancement of professional competence throughout a personsworking life. PTCL Training & Development wing is committed to the pursuit of professional Page | 25University of Sargodha
  26. 26. INTERNSHIP REPORT ON PTCLexcellence with its Senior Management Team. PTCL’s SMT, though possesses matchlessfunctional competencies, will benefit from these workshops.11. Internship Programme:As per existing policy approximately 194 internship offers were made during 2008-09. Currently,we are in the process of invigorating our Internship Policy. During the last couple of yearsInternship Programme at PTCL has received special attention and focus. The overall concept hasevolved from its traditional perspective into a strategic perspective. We look forward to thisprogramme not only as a learning opportunity for the participants but also a prospect for PTCL inits continuous endeavor for talent hunt. It is the process by which we not only contributesignificantly to the development of the best talent in professional and leading universities andschools, but it also aims at creating “PTCL Ambassadors” that spread goodwill of the companyall over the country. This programme is intended to provide students with the opportunity toapply what they are learning in their academic pursuits to real world situations. Through thesuccessful implementation of this programme, PTCL looks forward to rightly identify, recruit,train and develop its most important need of the day i.e. the Human Resource. Products and ServicesPTCL Landline Page | 26University of Sargodha
  27. 27. INTERNSHIP REPORT ON PTCLFor local calls the code used is non-STD. For calls to other cities (e.g. Karachi to Lahore) thecode is called STD. For International calls the code used is ISD.Dialing SystemWhen dialing on landlines, calls made within cities are considered local calls. Calls to other cities(e.g. Karachi to Lahore) are considered long distance calls and are metered according to distance.(e.g. When dialing to Lahore from Karachi you have to dial the code for Lahore then followed bythe number of the destination, therefore you dial 0423-XXX-XXXX ). For local calls, you justdial the local number. For international calls, you dial "00" followed by the country code. (e.g.For calls to the UK from Pakistan you dial 00 - 44 - XXXXXX ).PTCL V-foneIt is a product which is wireless. We can use anywhere in Pakistan.Internet and web browsing is also its feature. It is under CDMAUfoneUfone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced itsoperations on 29th January 2001 as a GSM 900 service provider. Since the outset, it hasexpanded its coverage and customer base at a rapid pace and established itself as one of theleading cellular service providers in Pakistan. Ufone is now considered to be one of the mostactive, aggressive and innovative players in the mobile sector of Pakistan.The growth of the cellular industry is a direct result of the successful implementation of thetelecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications(MOIT&T) and the support, guidance and timely enforcement of regulatory process by thePakistan Telecommunication Authority (PTA). Page | 27University of Sargodha
  28. 28. INTERNSHIP REPORT ON PTCLPrivatizationThe growth of the cellular sector in Pakistan can also be attributable to good governance policiesof the government of Pakistan and the Privatization Commission. In April 2006, EmiratesTelecommunication Corporation, which is commonly known as Etisalat, has assumedmanagement control of Pakistan Telecommunication Corporation Ltd – part of the $2.6bn deal tobuy a 26% stake in PTCL. The successful privatization of PTCL, and consequently Ufone, ishailed as ushering in a new era for telecommunications in Pakistan.Now, under the management of Etisalat, Ufone will concentrate on customer needs and benefitsand is more determined than ever to be the leading cellular player in the market. Ufone has beenknown for providing superb propositions and quality service to its customers. With the newexpected investment, Ufone can now aggressively expand its network coverage.Key AccomplishmentsUfone has always played a pivotal role in the development of the cellular market in Pakistan. Forthe most part, it has been a step ahead in introducing innovative products to the market. Ufonewas a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) inPakistan, and lead the way in introducing GPRS international roaming and prepaid internationalroaming for these services in the Pakistani market.PerformanceAs mobile users in the country have reached over 28 million at a very rapid pace, Ufone hasmaintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers ontoits network. A remarkable achievement indeed, especially considering the fact that two newinternational players also entered into the market in 2005. Subsequently the growth in subscriberbase caused a healthy trend in revenues which have doubled. Page | 28University of Sargodha
  29. 29. INTERNSHIP REPORT ON PTCLBrandWhile keeping its tradition of being the trend setter in the industry, Ufone changed the image ofmobile phones from a luxury only affordable by the elite, to a necessity affordable by thecommon man. Since its inception, Ufone has positioned its brand for masses. In keeping with theupcoming competition and market dynamics, Ufone increased its focus on the youth segment(which comprises 50% of the population), with the Prepay brand. By designing market focusedproducts, Ufone’s brand team launched aggressive campaigns, which further increased the brandequity. The new brand image gained huge popularity amongst the targeted market. A recentmarketing survey conducted by a prominent marketing research company showed that Ufone hasconsiderably increased its brand visibility and image. Ufone’s Prepay brand is now considered tobe one of the most favored brands by the youth market and is followed by other mobile operatorslaunching their respective brands for the youth market.International CoverageUfone provides International Roaming facility with more than 150 international operators across79 countries. Ufone has GPRS roaming agreements with several international operators and alsoprovides prepaid roaming facility to selective destinations.Customer ServiceUfone is proud to have an efficient and friendly customer service through 21 company-ownedSales & Customer Service Centers and nearly 250 franchisees across the country. The outlets areable to service the customers with innovative solutions, and are empowered with Web basedfranchise management systems. Ufone is poised to face the ever increasing challenges of themarket and is confident it will attract new customers. It has the ability to retain its existingcustomer base with a high level of customer satisfaction via optimum network service and a 24hour call center facility. Page | 29University of Sargodha
  30. 30. INTERNSHIP REPORT ON PTCLNetwork CoverageUfone has always believed in a solid commitment to growth, security and reliability. Therefore,Ufone has always balanced its expansion efforts and quality of service. With a total currentinvestment of $400 Million, Ufone has network coverage in more than 260 cities and towns andacross all major highways of the country.Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a companycommitted to excellence. Under the new vision of Etisalat and with the support and collaborationof its employees and vendors, Ufone aspires to be the best in the market by offering customerfocused products and a quality service and sales network.Ufone is a subsidry of PTCL. It works under PTA and it is a GSM featured product. Ufone is aleading GSM service provider in Pakistan now a days.PTCL BroadbandIt is providing high speed internet browsing. DSL is now in top internet speed.Smart ServicesPTCL now a days providing smart TV service in different areas. Over 150 live channels areavailable to see with good picture quality. Page | 30University of Sargodha
  31. 31. INTERNSHIP REPORT ON PTCL Competitors  China Mobiles  Orascom telecom  Telenor  Warid  MobilinkMORAL VALUES OF EMPLOYEESCUSTOMER FOCUSWe treat each of our customer equality & as the most important person while we interact withhim/her. We must ensure that we do everything to meet and exceed the customers expectationswith perfect to times, accuracy & quality services.EMPLOYEE RESPECT & DIGNITYWe treat each of our employees with fairness, which includes giving constructive feedback fortheir development. We celebrate diversity and seek suggestions from all employees forimprovement. We ensure that responsibility & fairness in all our decision-making. Page | 31University of Sargodha
  32. 32. INTERNSHIP REPORT ON PTCLTEAM BASED APPROACHWe work towards achievement of our vision & mission as a combines group. We encourage inter& intra-departmental communications. We treat our colleagues as our internal customers &ensure that the requirements of internal customer focus are always met.Organizational Structure Board of Directors Mr. Naguibullah Mali Chairman PTCL Board Secretary IT & Telecom Division, Ministry of InformationTechnologyGovernmentof Pakistan, Islamabad Page | 32University of Sargodha
  33. 33. INTERNSHIP REPORT ON PTCL Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani Chairman & Chief Executive Officer, Etisalat International Pakistan L.L.C Executive Vice President Contracts & Administration Etisalat, UAE. Mr. Salman Siddique Secretary (Finance), Ministry of Finance Government of Pakistan, Islamabad Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh Chief Human Resources Officer Etisalat, UAE Mr. Mushtaq Ahmad Bhatti Member Telecom Government of Pakistan, Islamabad Mr. Fadhil Mohamed Erhama Al Ansari Executive Vice President Engineering Etisalat, UAE Page | 33University of Sargodha
  34. 34. INTERNSHIP REPORT ON PTCL Mr. Khursheed Ahmed Junejo Ambassador, Embassy of Pakistan Abu Dhabi, UAE Mr. Abdulaziz Hamad Omran Taryam General Manager, Northern Emirates Etisalat, UAE Dr. Ahmed Al Jarwan General Manager Real Estate Etisalat, UAE Ms. Farah Qamar Company Secretary PTCL PTCL Headquarters, IslamabadCorporate Information Page | 34University of Sargodha
  35. 35. INTERNSHIP REPORT ON PTCLManagementWalid IrshaidPresident & Chief Executive OfficerMuhammad Nehmatullah ToorS.E.V.P (Finance) / Chief Financial Officer (C.F.O)Mohammad NasrullahChief Technical Officer (C.T.O)Mr. Javed MushtaqChief Information Officer (C.I.O)Syed Mazhar HussainS.E.V.P (HR / Admin & Procurement)Sikandar NaqiS.E.V.P (Corporate Development)Naveed SaeedS.E.V.P (Commercial)Mr Tariq SalmanS.E.V.P (Business Zone North)Mr Abdullah YousefS.E.V.P Business Zone SouthMr Hamid FarooqS.E.V.P Special ProjectFarah QamarCompany SecretaryLegal AffairsDr. Syed Mohammad Anwar ShahBankersAskari Bank LimitedCitibank N.A.Faysal Bank LimitedHabib Bank LimitedMCB Bank LimitedNational Bank of PakistanRBS (formerly ABN AMRO)Standard Chartered Bank LimitedUnited Bank LimitedRegistered OfficePTCL Headquarters, Page | 35University of Sargodha
  36. 36. INTERNSHIP REPORT ON PTCLBlock-E, Sector G-8/4,Islamabad-44000, Pakistan.Tel: +92-51-2263732 & 34Fax: +92-51-2263733E-mail:company.secretary@ptcl.net.pkWeb: www.ptcl.com.pkAuditorsA.F. Ferguson & Co.Chartered AccountantsErnst & Young Ford Rhodes Sidat Hyder,Chartered AccountantsShare RegistrarM/S FAMCO Associates (Pvt.) LimitedGround Floor,State Life Building 1-AI . I Chundrigar RoadKarachi 74000Tel: +92-21-2422344, 2467406 Organization Hierarchy Chart Page | 36University of Sargodha
  37. 37. INTERNSHIP REPORT ON PTCLNumber of EmployeesNumber of employees in PTCL is more then 30000. Page | 37University of Sargodha
  38. 38. INTERNSHIP REPORT ON PTCLIntroduction of all department o Engineering o Minuteness department o Operation department o Research and development o Marketing o It is concered with the creation of value for the customers o Finance o Accounting department o Revenue department o Taxation department o Human Recourse department o Training and DevelopmentComments on the Organizational Structure Page | 38University of Sargodha
  39. 39. INTERNSHIP REPORT ON PTCLThe structure of the organization is very good in my opinion. Departments and their WorkingThe PTCL Organizational structure needs to be formalized on emergent basis.FINANCE WING STRUCTURE At this level there is one head SEVP (Finance) who controls the functions ofFINANCE, ACCOUNTS, and REVENEU with the assistant of EVP in their respective within theRegion, Director Accounts has Senior Revenue Officers in his area of Finance Jurisdiction onDivision Level. The Senior Revenue Officer, usually the head of Finance Division and RevenueOfficers then supervised on District level.SEVP (Finance) EVP (Finance), (Accounts) & (Revenue) The Director (Finance),(Accounts) & (Revenue) On the Regional Level comprising two or three Divisions. The Senior Revenue Officers on Division Level Page | 39University of Sargodha
  40. 40. INTERNSHIP REPORT ON PTCL The Revenue Officers on District Level In view of the challenging scenario PTCL has to take bold steps regarding its organizational structure in order to demonstrate that PTCL has set-up arms-length relationships among the staff. There should be separation of Finance Wing from the Engineering Wing. Finance Wing should give liberty to take the decision in their favor. Management has to take the strategic decisions, the clear and institutionalized arrangements. Finance Wing Structure SEVP (FINANCE)EVP EVP(Revenue EVP(Finance) ) (Accounts)GM (Finance) GM GM (Revenue) (Accounts)Director(Finance) General Manager of the Region. He will report to the SEVP (OPS) as well as Page | 40 any officer designated by University of Sargodha
  41. 41. INTERNSHIP REPORT ON PTCLDirector(Revenue) Director (Accounts) NUMBER OF EMPLOYEES IN FINANCE SECTION There are about 15987(2006-2007) employees are working in the PTCL, which are being divided into categorically here under Division of Employees according to their Status Regular Daily wager Through T.F Contract *Ad-hoc 12452 1725 956 854 NIL * There is no any employee in PTCL on Ad-hoc basis. This system of recruitment has since been changed into contract basis. FINANCE & ACCOUNTING SYSTEM OF PTCL Page | 41 University of Sargodha
  42. 42. INTERNSHIP REPORT ON PTCLThe PTCL FINANCE & ACCOUNTING system is actually divided into three wings. 1- FINANCE 2- ACCOUNTS 3- REVENUE1) FINANCE The SEVP (FINANCE) is concerned with the makeup of the all type of financialdecisions especially in the context of acquisition, financing and management of all assets withsome goal in mind. The EVP (Finance) with the General Manager (Finance) extend theirexpertise in the decision making process.2) ACCOUNTS Here the SEVP (Finance) is once again concerned by heading the EVP(ACCOUNTS) andGeneral Manager (Accounts) to deal with all Accounts Decision. In PTCL the Finance andAccounting are so correlated but the difference between finance and Accounting is the method ofFunds Recognition and the decision making. In the Accounting the Director Accounts in thePTCL Regions assist the higher management.3) REVENUE Here the SEVP (Finance) is once again concerned by heading the EVP (Revenue) andGeneral Manager (Revenue) to deal with all Revenue matters. One Director Revenue within theRegion assist to implement and control the inflow of Revenue and Reconcile it with the PTCLHeadquarters Islamabad. Page | 42University of Sargodha
  43. 43. INTERNSHIP REPORT ON PTCL The PTCL is actually the Revenue Generation organization. PTCL Collect the Revenuefrom the following modes. Revenue from System Billing of Land Line Numbers. a) Through Line Rent of Land Line Numbers. b) Through National wide dialing from LLN’s (Land Line Numbers) c) International dialing from LLN’s d) Providing Value Added services to customers. Like UAN (Universal Access Numbers), PABX (Private Auto Branch Exchanges),VPN( Virtual Private Network) Bandwidth of ISP’S (Internet service providers) e) PTCL has its three subsidiaries PAKNET (leading ISP in the country), UFONE (unique cellular phone company in Pakistan), TF (Telecom Foundation) the leading foundation for the welfare of employees of Telecom Sector. f) ACCOUNTING SYSTEM OF PTCLIn PTCL the rules contained in the special volume of the PTCL under which the SEVP(FINANCE) is responsible for creating the procedure of Accounting matters.CAPITAL RECEIPTS SIDE.REVENUE FROM BILLING SYSTEM a. Revenue from Usual customer. b. Revenue from DXX System c. Revenue from DSL System d. Revenue from PABX/PBX System e. Revenue from Card Phone Operators f. Revenue from IPOs Internet service providers Page | 43University of Sargodha
  44. 44. INTERNSHIP REPORT ON PTCL g. Revenue from Mobile Phone Operators h. Co-location charges from various companiesREVENUE FROM OTHER a. Revenue from Overseas calls (Incoming) b. Revenue from Premium PRS (0900) calls c. Income from Dismantle Exchanges d. Revenue from MDF used by other companiesCAPITAL EXPENDITURESINSTALLATION OF NEW EXCHANGES Expenses of installation of new Exchanges are the major capital expense of PTCL because PTCL purchases the new telephone exchanges from France, Italy, Germany and China. So heavy cost is to be paid for purchasing process in order to proper margin. Each exchange having different capacity and due which each Engineer should has to be trained accordingly so expenses rises on purchasing of new Telephone Exchanges. This is the main expense of PTCL.EXTENSION OF EXISTING EXCHANGES The extension of the existing exchanges is the dire need as the density of the population isincreasing day by day and in order to fulfill the basic communication and fill the communicationgap PTCL has to extend its normal Telephone Exchanges in accordance with the demand and perpaid connection. So PTCL sustain heavy expenses on the extension of exchanges. Page | 44University of Sargodha
  45. 45. INTERNSHIP REPORT ON PTCLMINOR EXPENDITURESINTERNAL AUDIT AND TECHNICAL INSPECTIONThe PTCL has sustained huge amount in context of internal audit both Accounts and Technicalfrom various agencies. For example M/s Ferguson conduct both internal audit and external auditand payment made to auditors in the expenses of the company.ADMINISTRATION AND CONTROL EXPENSESSome time in the best interest of company, some expenses could be occurred for example if thereis need of induction of a financial analyst in one region or if there is need of an Engineer thentransfer and posting order can be issued and traveling and training expenses could be realized toemployees.SALARIES OF STAFFThe monthly salary of the staff is rest with the approval of PTCL H.Q Islamabad. PTCL isspending lot of amount on the salaries.. FINANCE SYSTEM OF PTCL Page | 45University of Sargodha
  46. 46. INTERNSHIP REPORT ON PTCL PTCL has magnificent finance structure; it is basically Product Oriented organization sohere, the Revenue is the Life Blood as such for any other profit seeking organization. So weshould have isolated the Revenue from Finance side or either we should consider the Finance inthe context of Revenue. Finance activities can be evaluated in terms of PTCL’s basic financial statementsanalyzing throughFinance planning On PTCL HQ Islamabad, SEVP (Finance) is, who with the concurrence with the CEO formaking all the Finance Planning that’s way the PTCL has to inject the money in order to boost upthe business and in order to complete the stiff competition faced in the telecomm sector. Beforetaking any decision regarding financial planning the draft could be presented before the Board ofGovernors. In this section there is need of financing either in the WLL (wireless local loop) sectoror wire-line or mobile operator services.Managing the PTCL’s Asset structure Page | 46University of Sargodha
  47. 47. INTERNSHIP REPORT ON PTCL PTC is very organized organization and it has also its fixed as well with the current asset.So there are many experts in order to keep the eye watch on the PTCL infrastructure, for exampleDirector (Fixed Assets) is responsible for the maintenance and repair of the building andmachinery on the Regional level.Managing the PTCL’s financial structure PTCL financial structure is in the safe hands the basic qualification for the post ofAssistant Accounts Officer is MBA (Finance) and for the SEVP (Finance) the incumbent shouldpossess the degree of MBA with ACMA & CA. Due to such fresh blood the young and energeticfinancial management taking some bold decision the results of which are awaited up till. FUNDING OF PTCL Page | 47University of Sargodha
  48. 48. INTERNSHIP REPORT ON PTCLMOBILIZATION OF FUNDSPTCL mobilized its funds with following ways. 1) Purchase the new imported infrastructure like new Exchanges etc PTCL mobilized its finds mostly in the purchase of new telephone exchanges from abroad (France, Italy & China). There is also purchase of accessories of telephone exchange generators and other equipments. 2) Capital expenditure for the organization. There are various expenses for the PTCL in the context of capital expenditure that has already been mentioned in previous pages. 3) Purchase and acquisition of stores. PTCL store items are very important components i.e Stationery, stand-by Exchanges, generators, barites and other equipments. PTCL spend lot of funds on these items. 4) Loan and advances to others, and re-investment. There are offering of Loan and advances to the employees on various rates according to the length of services on roll. This is the main source of mobilization of funds. 5) Payment of dividend to the stockholders. Payment made to the shareholders in the context of dividend to be paid to the shareholders. PTCL has currently announced the divided of Rs.32/per share. 6) Salaries of the staff all over the country. Obviously services rendered by the staff and in this way PTCL has to pay handsome amount to their staff, those are the main source of generating the revenue. 7) Annual Bonus to employees. PTCL pays annual Bonus of Rs. 12000/- to its employees on the Eid occasion. 8) Security deposits, Transfer of Company’s Land & Building. Page | 48University of Sargodha
  49. 49. INTERNSHIP REPORT ON PTCL Where PTCL does not find any building or land then security deposit may be paid to the private landholders for the installation of PTCL infrastructure. 9) Insurance of the Company PTCL offers the insurance from its own side in case of death and medically unfit of its employees. 10) Pension, graduate, and other fringe benefits. For the pension and gratuity of the retire official PTCL mobilized its funds accordingly. 11) Supply of Furniture and Fixtures to the office buildings. This is the responsibility of the Management to be provided the furniture and fixture to the office buildings accordingly. 12) Renovation, alteration, and rental charges of privately owned buildings. PTCL has to pay the handsome amount for renovation and alteration of existing building and the charges of privately owned builders are being issued accordingly. GENERATION OF FUNDS1. Amount Realized from System Billing.2. Amount Realized from defaulters.3. Revenue from Value-added Services.4. Bandwidth facilities provided to the companies.5. Earning from DXX, PSTN, PABX, VPN, PRI & ISD.6. Media used by cellular and pay-card companies and earn royalty. Page | 49University of Sargodha
  50. 50. INTERNSHIP REPORT ON PTCL7. Earning from subsidiaries PTML, PAKNET & TF.8. Amount realized through co-location charges.9. Basic Rate Interface provided to the subscriber.10. International dialing customers.11. Corporate Billing customers, valued customers.12. Earning from MTR mobile Termination Rate.13. Earning from Incoming Overseas Calls in shape of premium from overseas Page | 50University of Sargodha
  51. 51. INTERNSHIP REPORT ON PTCLSOURCES OF FUNDS OF PTCLCash generated from operations In this context we can say that PTCL usual earning lot much more depends upon the usualearning from Telephone number and payments of the bill thereof, this is the primary source offunds of PTCL.Security deposits Various pay card companies like Dancom, World call, Pearl Tel, Soft tech, deposited hugeamount as the securing deposit in the books of PTCL for the media that is being used by thesecompanies. PTCL is utilizing these security deposits.Return on deposits After payment the dividend to the share holders and having paid the income tax on theprofit the surplus amount is being used in the deposits of various national and multinational banksfrom where ROD is received accordingly.Dividend IncomePTCL some time itself purchases the share from the open market and earn the dividend incomethereof. It is also possibly that PTCL if applicable may detain the shares of different othercompanies and earn the dividend. Page | 51University of Sargodha
  52. 52. INTERNSHIP REPORT ON PTCLSale proceeds of fixed assetsThe defunct and dismantle Telephone exchanges not allowed re-sell to the other underdevelopedcountries and gain profit. PTCL is also not in the process of planning to be used the idle land,which could be used on commercial basis by other parties.Long- Term InvestmentThere are various long-term project of PTCL. BLT is one of them. PTCL is now expanding itsbusiness through the United Arab Emirates by consortium and through the joint venture withother telecom operators. PTCL has also some long-term investment in the AT&T (AmericanTelephone & Telegraph) and ZTE (Zehwing Telecom Engineering Company China).Long-Term Loan to othersPTCL has also offered long term loan agreement to other Telecom provider companies. PTCL isproviding its expertise and Engineers to them and also offering amount to be invested on behalfof PTCL for example PTML Pakistan Telecom Mobile Limited and Paknet the Internet providerscompany.Loans, advances, deposits, prepayments and other receivableIn this context all the referred point and return thereof will be called the receivable. Page | 52University of Sargodha
  53. 53. INTERNSHIP REPORT ON PTCLALLOCATION OF FUNDS Against all purchase orders issued by the PTCL H/Q’s Islamabad payment made afterallocation of Funds which further allocated by the Regional offices. The funds usually allocate inorder to manage the following: -14. Capital expenditure15. Purchase of infrastructure like new exchanges.16. Launching of new Product.17. Human resource development18. Transportation expenses, misc expenses19. Domestic and overseas training of staff20. Bonus to the employees, house/building advances, motor car/motor cycle advances.21. Worker compensation fund, benevolent fund contribution general provident fund22. Maintenance of buildings, vehicles, fixed assets.23. Default situation of subsidiaries.Allocation of Funds for Marketing exploration 19% of net profitAllocation of Funds for Research & development 18% of net profitAllocation of Funds for Human resources & Admn 33% of net profitAllocation of Funds for Corporate affairs 30% of net profit Page | 53University of Sargodha
  54. 54. INTERNSHIP REPORT ON PTCLDepartment worked during internship and specific/leadingcontribution made.In the beginning they gave me a brief introduction of all the aspects related to their fieldof business, their products, changes in products. A general overview of PTCL was given in otherwords. Moreover, I learned how things work in a practical environment, challenges and problemsfaced as I have mentioned.More specifically the project assigned to me during the internship was the sales analysisof PTCL-V Services Packages, a product of PTCL. The major department in which I didinternship was Interconnection Revenue Department. The prices of the PTCL-V devices werereduced during the period which had a positive impact on sales. I was assigned the task ofanalyzing the impact of change in these prices on the overall income and other service packages ofPTCL-V.PTCL V- fone (WLL Ser vice) was a major area of focus for PTCL during the year. Afew prominent measures taken in this area during the year were launching of free homedelivery service. No line rent package was launched in June 2010. In June 2008, 30 seconds billingwas introduced contributing as an effective customer retention tool. PTCL has expanded thenetwork to provide coverage in all large and small cities including over 10,000 villages in ruralareas of Pakistan.Problems IdentifiedPTCL is a well organized company and operates efficiently in this competitive environment so it Page | 54University of Sargodha
  55. 55. INTERNSHIP REPORT ON PTCLwas difficult for me to identify the problem. But nothing is perfect in this world there is always aroom for improvement. According to my limited knowledge following were the problems andchallenges that can directly affect the efficiency and performance of the bank or in other wordsimprovement need be made in the following areas:  There is a lack of balance in incentives given to old and new employees. New employees are paid more which de- motivates the old ones.  Lack of proper computer skills in old employees is another problem.  System problems do arise at times and customers have to wait for the system to work properly.  Some employees misuse the resources of the company.  Employees were not very effective in communication among themselves. They didn’t share the experience with each other and didn’t care about the other employees. Some employees lacked the trust in management.  Ineffective public dealing was another major problem which I experienced during my internship. y Regularity and punctuality shows the character of big and good executives. But this problem is also faced by the overconfident employees.Financial Analysis Page | 55University of Sargodha
  56. 56. INTERNSHIP REPORT ON PTCL Page | 56University of Sargodha
  57. 57. INTERNSHIP REPORT ON PTCL Page | 57University of Sargodha
  58. 58. INTERNSHIP REPORT ON PTCL Operating Highlights Page | 58University of Sargodha
  59. 59. INTERNSHIP REPORT ON PTCL Page | 59University of Sargodha
  60. 60. INTERNSHIP REPORT ON PTCL CURRENT RATIO Current Assets Current LiabilitiesIts shows the firm’s ability to covers it current liabilities with it current assets. Ratio for 2005 = = 1.89 Ratio for 2006 = = 1.66 Ratio for 2007 = 53560840/24447741 = 2.19 Ratio for 2008 =39603406/21913959 = 1.8 Ratio for 2009 =54220241/36086322 = 1.5INTERPRETATION Current Ratio of PTCL was good last five year. In 2006 the current ratio Better then the last year and upcoming years. The last three year slightly Difference between each other. If PTCL increases the assets then current Ratio of PTCL is better. Page | 60University of Sargodha
  61. 61. INTERNSHIP REPORT ON PTCL Cash ratio Cash & cash equivalent Current liability It is the ratio of cash and cash equivalents to current liabilities. It shows that how much cash available to cover the current liabilities. Ratio for 2005= =% Ratio for 2006 = =% Ratio for 2007= =% Ratio for 2008=4545145/21913959 =0.21% Ratio for 2009=11906448/36086322 =0.32% INTERPRETATION In 2009 cash ratio is better then the last year And 2008 the cash ratio is decreases then 2007 ratio and slight increases 2009.DEBT TO EQUITY RATIO Page | 61 University of Sargodha
  62. 62. INTERNSHIP REPORT ON PTCL Total Debt Total EquityThe Ratio shows extend to which the firm is financed by debt. Ratio for 2005 = = 13:87 Ratio for 2006 = = 14:86 Ratio for 2007 = = 14:86 Ratio for 2008 = 13366216/75741890 = 15:85 Ratio for 2009 = 10760974 /56495113= 16:84INTERPRETATION This year is better then previous years. Working capital CA - CLIt shows the net worth of the bank. Ratio for 2005 = Ratio for 2006= Ratio for 2007=53560840-24447741= 29113099 Ratio for 2008 =39603406-21913961 = 17689445 Ratio for 2009 =54220241 -36086322= 18133919 Page | 62University of Sargodha
  63. 63. INTERNSHIP REPORT ON PTCLINTERPRETATION The net worth of the org is strong. Last five year the data shows positive Answer .its mean that the current assets of the bank is more then the current Liability EARNING PER SHARE Net income No of ordinary shares This ratio tells that what the earning per share. Ratio for 2005 = = 5.22 Ratio for 2006 = = 4.07 Ratio for 2007 = = 3.07 Ratio for 2008 = 14705300/3900000000 =(0.55) Ratio for 2009 = 16206485/11100000000 =1.7 INTERPRETATION MCB earning per share of five years is high difference. they are changes In thepoints. NET PROFIT MARGIN RATIO Page | 63University of Sargodha
  64. 64. INTERNSHIP REPORT ON PTCL NET INCOME SalesIt is measure of the firm profitability of sale after taking account of all expense andincome taxes. Ratio for 2005 = =30.46% Ratio for 2006 = =26.16% Ratio for 2007 = = 22.01 Ratio for 2008 = =(4.26)% Ratio for 2009 = =15.45%INTERPRETATION Net profit margin of PTCl has improved, during the current year tremendously.This signal towards higher efficiency and lower administrative cost of the ptcl.RETURN ON EQUITY RATIO Net Profit X 100 Page | 64University of Sargodha
  65. 65. INTERNSHIP REPORT ON PTCL Total EquityThis ratio shows that residual profit as a proportion of the bank value of commonshareholder equity. Ratio for 2005 = = 25.45% Ratio for 2006 = = 20.22 % Ratio for 2007 = = 14.45% Ratio for 2008 = =(2.71)% Ratio for 2009 = =9.28%INTERPRETATION The ROE of PTCL has shown a mix trend. In the 2006 it decreased as compareto year 2005. The increase in ROE is due to improvement in Net Profit Margin. the2005 is better profit then next four year Page | 65University of Sargodha
  66. 66. INTERNSHIP REPORT ON PTCLProfitability PositionLiquidity Position Page | 66University of Sargodha
  67. 67. INTERNSHIP REPORT ON PTCLLeverage Position Page | 67University of Sargodha
  68. 68. INTERNSHIP REPORT ON PTCLActivity PositionsDividends SWOT AnalysisSTRENGTHS Page | 68University of Sargodha
  69. 69. INTERNSHIP REPORT ON PTCL  Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment.  An integrated monopoly.  Market leadership in Local loop, Wireless local loop (WLL) and Fixed telephony.  PTCL (Ufone) is market challenger in GSM segment.  Ufone is performing well though Warid, Telennor, Mobilink and Zong are tough competitor. PTCL , Ufons profitability increased by 49.2 percent to Rs 977 million in 1H/FY07 as compared to rsRs655 million in the corresponding period last.  Competitors still dpend on PTCL network either directly or indirectly.  Experienced Telecom Recourses.Weaknesses  Not been able to nurture its growth around customer services oriented strategy.  Internal organizational and business issues.  Monopolistic culture has further added to complexities.  Paknet, the internet service provider arm of PTCL customers to incur losses due to poor management and lack of network optimization.  Ptcl-v, the fixed wireless phone service is poor.  Over employment & low productivity.  Slow decision making including external interferences.  Corporate culture akin to Government department. Page | 69University of Sargodha
  70. 70. INTERNSHIP REPORT ON PTCLOPPORTUNITIES  Low teledensity of Pakistan.  Have vast infrastructure and real estate which can be leveraged further.  Global connectivity reliability has been improved.  PTCL expanding the long distance and infrastructure side through spreading out two sea- me-we submarine cables.  Partnership with new entrants in deregulated environment.  Scope for efficient cost effective operations.Threats  increased competition in long distance counties to exert pressure.  VOIP use is increasing despite ambiguous and discriminatory policies.  Exposure to market competition.  Migration to cellular network. Page | 70University of Sargodha
  71. 71. INTERNSHIP REPORT ON PTCL  Ability to attract &retain quality professional.  Reduction in international settlement rates. MAIN OFFICES Page | 71University of Sargodha
  72. 72. INTERNSHIP REPORT ON PTCL 1. Southern Telecom Region-I, Hyderabad 2. Southern Telecom Region-II Karachi (STR-II) 3. Southern Telecom Region-III Karachi (STR-III) 4. Lahore Telecom Region (South) , Lahore 5. Lahore Telecom Region (North) Lahore 6. Central Telecom Region (C.T.R) Lahore 7. Faisalabad Telecom Region (FTR) Faisalabad 8. Rawalpindi Telecom Region (RTR) Rawalpindi 9. Hazara Telecom Region, Abbottabad 10.North Telecom Region (NTR-II) Peshawar 11.Western Telecom Region (WTR) QUETTA 12.Multan Telecom Region (MTR) MULTAN Conclusion Page | 72University of Sargodha
  73. 73. INTERNSHIP REPORT ON PTCL With employee strength of 30,000 and 5.7 million customers, PTCL is the largesttelecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operatorin the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider toother telecom operators and corporate customers of the country. It has the potential to be aninstrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fibre Access Network in the major metropolitan centres ofPakistan and local loop services have started to be modernized and upgraded from copper to anoptical network On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cable is being expanded to meet the increasing demand of International traffic. Pakistan Telecommunication Corporation (PTC) has established in December 1990,taking over operations and functions from Pakistan Telephone and Telegraph Department underPakistan Telecommunication Corporation Act 1991. This coincided with the Governments competitive policy, encouraging private sectorparticipation and resulting in award of licenses for cellular, card-operated payphones, paging and,lately, data communication services. In 1994, the PTC becomes the company limited (Pakistan Telecommunication CompanyLimited) by issued six million vouchers exchangeable into 600 million shares of the PTCL in twoseparate placements. Each had a par value of Rs. 10 per share. These vouchers were convertedinto PTCL shares in mid-1996. In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis forPTCL monopoly over basic telecommunication sector in the country. It also paved the way for Page | 73University of Sargodha
  74. 74. INTERNSHIP REPORT ON PTCLthe establishment of an independent regulatory regime. The provisions of the Ordinance were lentpermanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The year 2006-07 in the telecom sector was marked by the phenomenal growth in themobile sector in Pakistan, which doubled its subscriber base to 60 million. The teledensityincreased from 26% to 40%, helping to spread the benefits of communication technology acrossthe country. PTCL ’s mobile mobile phone subsidiary Ufone’s subscriber base grew by more than87%, from 7.49 million to 14 million. The year also witnessed the entry of major telecomcompanies, most notably China Telecom and Singtel, into market. The privatization of the company was completed in the FY06, following the purchaser of26% ‘B’ class ordinary shares by Etisalat International Pakistan L.L.C. EIP took over management control on 12th on April 2006. No doubt P.T.C.L having the monopoly in providing the Land-Line TelephoneConnection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L hasincreases its Revenue quite dramatically and probably that as soon as this organization hasbecome privatized it will flourish its revenue in better manner. PTCL should immediately change its Finance upper level of hierarchy and should streamline in the good manner. PTCL should also encourage the Billing On line system that each and every customershould have to pay his/her bill on line basis. The system of E-PAYMENT which although exist in PTCL finance system but there isneed of improvement this facility. The image of PTCL being leading Telecom Providing is not good in the eyes of commoncustomer especially there are lot of complaints about the including the bogus local calls in the Page | 74University of Sargodha
  75. 75. INTERNSHIP REPORT ON PTCLmonthly bills of various customers. PTCL should also provide the detail of local calls made fromany Land Line Number which would be provided in Micro level to the customer. Faulty Telephone connection should be Fault Free within 24 hours in order to maximizethe Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone. PTCL should make Customer Care Centers in remote areas If I have to express my experience of internship in PTCL I would briefly say: PTCL is a good Organization in the way that anybody can join it for his/ her long-termcareer. Overall working environment is comfortable. Management of branch cares a lot of itsemployees and considers them as the Asset of PTCL. Behavior of senior executive of bank isvery polite and they are caring about the individual’s career and their growth. PTCL needs innovative service offerings — currently it doesn’t even offer bundles or asingle bill. Has been unclear about its IPTV and WiMAX plan and strategy (trials are in progress)Overall PTCL still behaves as a monopoly … it has to change its attitude. At a minimum,avoiding billing errors and providing competent and courteous service to its customers is essentialif PTCL wants to show that it is transforming itself to a competitive company which cares for itscustomers. It is said that the best assets of a company go home to their family in the evening. Can theculture of PTCL be changed to a performance and service-based organization? According to thelatest director’s report from PTCL the “organization is being revamped”. Only time can tell theimpact. However management is very demanding about the targets but good reward at theachievement of assigned targets is awarded. Page | 75University of Sargodha
  76. 76. INTERNSHIP REPORT ON PTCL Employees at PTCL are quite efficient. Its employees have to bring their org among thelist of good. Therefore, they work more than their working hours and it is all according to theirwill. It also shows their loyalty, commitment to organization. Employees are given the benefits like bonus, gratuity funds, loans, increments, andmedical. All the customers are entertained individually. Same kind of behavior and attention isgiven to all the customers. Getting ideas for improvement from customer side is a new idea andthat is working very well in PTCL. All the customers are asked to fill a suggestion form and thestandards of the org are improved through them. Prioritizing its product portfolio in line with its corporate and consumer needs and wantsthe org are committed to develop products that give more value to its customers in both thesectors. In PTCL, all the work is done on computers. All the entries are made in computer.Balance is fed into the computer. This increases efficiency of the org. During my internship training I gathered information regarding how a successful orgoperational aspect decorticated with the practical. I found my internship training at PTCL to be a very rewarding experience. The trainingwas beneficial because it helpful me to aware a real life working environment. So far my learning is concerned; all the employees at branch were quite cooperative. Theyhelped me to understand the activities of a org to possible extent. Their good attitude gave memore confidence to learn more and to ask if I have any query in my mind. Besides there evergoing activities they never get irritant by my questioning. I had made an honest efferent to presentthe working & operation of PTCL in simplest way. Page | 76University of Sargodha
  77. 77. INTERNSHIP REPORT ON PTCL I feel pleasure that I have really gained a lot during 6 weeks & enjoyed working withexperienced cooperative & intelligent staff.Suggestions and Recommendations • No doubt P.T.C.L having the monopoly in providing the Land-Line Telephone Connection in Pakistan and its playing its role magnificently. In current scenario P.T.C.L has increases its Revenue quite dramatically, and probably that as soon as this organization has become privatized it will flourish its revenue in better manner. • PTCL should immediately change its Finance upper level of hierarchy and should stream line in the good manner. • PTCL should also encourage the Billing On line system that each and every customer should have to pay his/her bill on line basis. Page | 77University of Sargodha
  78. 78. INTERNSHIP REPORT ON PTCL • The system of E-PAYMENT which although exist in PTCL finance system but there is need of improvement this facility. • The image of PTCL being leading Telecom Providing is not good in the eyes of common customer especially there are lot of complaints about the including the bogus local calls in the monthly bills of various customers. PTCL should also provide the detail of local calls made from any Land Line Number which would be provided in Micro level to the customer. • Faulty Telephone connection should be Fault Free within 24 hours in order to maximize the Revenue, as Revenue of PTCL should sacrifice at the cost of Faulty Telephone. • PTCL should make Customer Care Centers in remote areas. • The punching system of Billing through automation at CITI Bank Karachi takes so much time to adjust so it should be revived. • The Financial D.D.O powers should be entrusted to the Director Finance rather GM. • PTCL is not utilizing its surplus profit in long-term investment projects which be done. Page | 78University of Sargodha
  79. 79. INTERNSHIP REPORT ON PTCL • PTCL management should give concentration towards the Securities of deposit and it should be on maximum level. • The return on deposit should be checked accordingly. • The cash generated from the operation must be utilized accordingly. • Each Region should allocate the funds at its own level. • PTCL should take the services of highly qualified financial analysts. • The promotion system in the Finance & Revenue wing should be revived in true manner all promotion must be made strictly on merit. • Each Region should maintain Profit & Loss and Balance sheet and the statement of Cash inflow and outflow.LimitationsOrganizations don’t provide their data. They keep secracy fron internee. All the data to preparethis report I have collected my self from different sources.Bibliography 1. www.ptcl.com.pk 2. Annual reports of PTCL. Page | 79University of Sargodha
  80. 80. INTERNSHIP REPORT ON PTCL 3. Staff of the department. 4. Recent business record. 5. Internship reports Company’s website-ptcl.com.pk 6. Magazine Business Economy 7. Google.com 8. Economic Survey of Pakistan 9. Businessrecorder.com 10. Security and Exchange Commission of Pakistan 11. Kse.com 12. Yahoofinance.comReports • Annual Report PTCL 2007, 08 • PTA Reports Page | 80University of Sargodha
  81. 81. INTERNSHIP REPORT ON PTCL Page | 81University of Sargodha
  82. 82. INTERNSHIP REPORT ON PTCL Page | 82University of Sargodha
  83. 83. INTERNSHIP REPORT ON PTCL Page | 83University of Sargodha