CHAPTER 1 INTRODUCTION TO THE REPORT
INTRODUCTION TO THE REPORT
At Qurtuba Qurtuba Univers University ity D.I.K D.I.Khan han this is essenti essential al degree degree requirem requirement ent for the stude students nts of MBA MBA to compl complet etee inter internsh nship ip progr program am of eight eight week week in well well-re -reput puted ed organization. Internship writing follows the report, which is the integral part in the fulfillment of the requirements for the degree of MBA. The report encompasses the knowledge of the internee that he obtains during his course of study in the organization, his learning and analysis his experience experience that he has during internship in the light of which recom recomme menda ndati tion on are made. made. Th These ese recom recomme menda ndati tions ons may may benef benefit it the organ organiza izati tion on concerned for further improvements in its performance.
The supervisor assigned to the internee guides the whole process of report writing. After its completion the report is submitted to the Qurtuba University D.I.Khan. The report is properly analyzed by the Qurtuba University on its descriptions will as on the analytical capabilities of its writer, and proper grades assign to the writer.
This internship report has been written on PTCL Northern Telecommunication Region-I1 D.I.Khan
BACKGROUND OF THE STUDY
The Telecommunication sector around the world is going through a process of rapid change in information technology and convergence with focus on mobile Internet and value value added added servi services. ces. In line with with globa globall trend trend and for meeting meeting emergin emerging g
demand, demand,
major initiatives have been taken by PTCL to up grade it network. And also to introduce a range range of new value value added added services services;; develop develop a portfoli portfolio o of informa information tion technology technology,, Internet bandwidth related services and should revise it organization structure to make it more conducive to deal with the change and commercialization process to enhance the revenue potential of the company.
1
Thee socio Th socio econo economi micc growt growth h of a devel developi oping ng countr country y depen depends ds mainl mainly y on the Telecommunication sector and its involvement in information technology; Tele marketing and E-commerce make it an integral organ of the overall development of the country.
PURPOSE OF THE STUDY
To fulfill the requirements for the degree of MBA in Qurtuba University D.I.Khan. To do practical work in the relevant field and apply the knowledge gain during the course of studies in real world. To understand how various operations are carried out in the organization of real world? To perform financial and other analysis of organization. To make possible recommendations in the light of analysis to improve long report writing skills.
SCOPE OF THE STUDY
Stude Student ntss are requir required ed to speci speciali alize ze in only only one one depart departme ment nt or to cover cover the complete organization in case of small organization. As for as I am concerned I have worked worked in Finan Finance ce depart departme ment nt of Pakis Pakistan tan Tele Teleco comm mmuni unicat cation ion Comp Company any at TR-II TR-II (Nort (Norther hern n Telec Telecom ommu munic nicati ation on Regi Regionon-I1) I1) Tele Telepho phone ne house house D.I. D.I.Kh Khan. an. In Fina Finance nce departm department ent I have particul particularl arly y study study the director directorate ate of operati operation on and mainte maintenanc nance, e, directorate of receipts and revenue and directorate of budget and payment. It was not possible for me to go through each and every aspect of the company due to the restriction, which was officially proclaimed for eight weeks, however I have tried my best to cover some of the basic and important aspects of the study.
METHODOLOGY OF STUDY
Thee data Th data coll collect ected ed for the analy analysis sis and revie review w incl include udess both both prima primary ry and and secondary data. The methods used for collecting primary and secondary data are as follow:
2
Primary data:
Data collected for the first time is called primary data. The method used to collect such data includes:
Personal observations
Discussions
Interviews
Secondary data:
Thee data Th data coll collec ecte ted d earl earlie ierr by some some one one else else and and whic which h has has gone gone thro throug ugh h mathema mathematica ticall and statist statistical ical techniqu techniques es after after its collecti collection, on, is called called secondar secondary y data. data. Methods used to collect secondary data include:
PTCL Annual Reports
PTCL Brochures
PTCL Manuals
Circular and Newsletters
Internship Reports on PTCL
Journals and Newspapers
Internet
LIMITATIONS OF THE STUDY
None of the human made things can be considered perfect. Only things created created by
divine are perfect and error free. No matter how carefully a study or research is carri carried ed out it will will not be perfe perfect ct and and comple complete te in all all respe respect cts. s. Th This is study study was was conducted conducted in conformity conformity with the objectives objectives of study; however the study is subject to following limitations.
The study does not include broad explanation of facts and figure due to the following factors: •
The nature of the study.
•
The Telecommunication company official were not willing to explain all the things regarding regarding their organization organization and its operations, making it
3
difficult difficult to gather information information about and understand different technical operations. •
All All the facts facts regard regarding ing compan company y canno cannott be presen presente ted d due to the the problems of secrecy.
•
All the required data was not available because the documents and files area kept confidential.
•
Throu Th rough gh financ financia iall analy analysis sis was was not possi possibl blee due the limi limitat tation ion of information in the company annual reports.
•
Data required for carrying out through HR and SWOT Analysis was not available.
•
The internees internees are not provided provided with opportun opportuniti ities es of doing doing things things them themse selv lves es duri during ng inte intern rnsh ship ip,, maki making ng it diff diffic icul ultt for for them them to understand technical things. This also affects the quality of the study resulting report.
Limited financial and technical resources also affected the analysis.
Limi Limited ted durat duration ion of inter internsh nship ip makes makes the the analy analysis sis restr restric icted ted becaus becausee all all the the
technical operation of the company cannot be understood and analyzed in only two months.
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Appendix “A”
BOARD OF DIRECTORS OF PTCL MR. NAGUIBULLAH MALIK Chairman PTCL Board Secretary IT & Telecom Division, Ministry of Information Technology Government of Pakistan, Islamabad 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
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
5
MS. FARAH QAMAR Company Secretary PTCL PTCL Headquarters, Islamabad
Appendix “B”
DETAIL OF EMPLOYEES IN PTCL S.NO 1 2 3 4 5 6 7 8 9
GRADE M-I M-II M-III B-21 B-20 B-19 B-18 B-17 B-16
10
B-15
11 12 13 14 15 16 17 18 19 20 21 22 23 24
B-14 B-13 B-12 B-11 B-10 B-09 B-08 B-07 B-06 B-05 B-04 B-03 B-02 B-01
JOB DESCRIPTIONS President Senior Executive Vice President Company Secretary Executive Vice President General Managers, Chief Engineers Directors, Dy. Chief Engineers DEs,Sr. Lecturers, SAOs ADEs, Aos, DAOs, A.D. Aes Ess Selection Grade Data Asstt:, Assistant, SAC,
Stenographer Steno typist Selection grade Khateeb Steno typist SAC Technician Selection grade UDC’s Selection grade Telecom. Technicians UDCs,ACs, Tos Drivers Selection grade LDCs,JACs Lineman’s, Drivers. Wireman’s. N/Q.L.C,Chowkidars,etc. N/Q, Chowkidars, sweepers, malietc.
NO’s OF EMPLOYEES 01 05 01 15 70 348 1835 2697 40 4
598 282 221 36 9 2 85 5 14 446 7854 13414 337 2416 13058 2218 637 5620
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Appendix “C”
ACCOUNTING CODE RANGE MAIN CODE
CODE RANGE
10000
1100 110000-11 1199 999 9 13000130 00-139 13999 99 1400 140000-14 1499 999 9 1500 150000-15 1599 999 9 20000
2100 210000-21 2199 999 9 2300 230000-23 2399 999 9 2400 240000-24 2499 999 9 25000 5000--2599 25999 9 40000
4100 410000-41 4199 999 9 4200 420000-42 4299 999 9 4300 430000-43 4399 999 9 4800 480000-48 4899 999 9 49000 9000--4999 49999 9 50000
5100 510000-51 5199 999 9 52000 2000--5299 52999 9 5300 530000-53 5399 999 9 5400 540000-54 5499 999 9 5500 550000-55 5599 999 9 5600 560000-56 5699 999 9 57000 7000--5799 57999 9 5800 580000-58 5899 999 9
DESCRIPTION
EQUITY & LIABILITIES Capit apital al & Rese Reserv rves es Long Lo ng Term Term & Defer Deferre red d Liabi Liabili litie tiess Shor Shortt term term Liab Liabil ilit itie iess Curre urrent nt Liab Liabil ilit itie iess ASSETS Tang Tangib ible le Fixe Fixed d Asse Assets ts Long Lo ng Term Term Inve Invest stme ment ntss Long Lo ng Term Term Lo Loan anss & Adva Advanc nces es Curr urrent ent Ass Assets REVENUE Tele Teleph phon onee Tra Traff ffic ic Reve Revenu nuee Tele Telegr grap aph h Tra Traff ffic ic Reve Revenu nuee Telex elex Tra Traff ffic ic Rev Reven enue ue Misc Miscel ella lane neou ouss Reve Revenu nuee Other Inc Income ome EXPENSES Staf Stafff Sala Salari ries es & Allo Allowa wanc nces es Staff Exp Expenses nses Main Mainte tena nanc ncee & Pet Petty ty.. Wor Works ks Offi Office ce Conti Conting ngen enci cies es Othe Otherr ope opera rati ting ng Ex Expe pens nses es Gene Genera rall Ove Overh rhea eads ds Deprec reciation Fina Financ ncia iall & Othe Otherr Char Charge gess
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CHAPTER 2 REIVIEW OF THE ORGANIZATION
HISTORY OF PTCL Introduction
It is considered considered appropriated now that the history of Pakistan Telecommunicatio Telecommunication n is compiled, from the pre-independence pre-independence period starting from 1853 up 2003. It should end up the the very very brie brieff over overvi view ew of part partic icul ular ar inte intere rest st the the 58-y 58-yea earr peri period od of Paki Pakist stan an Telecommunication from 1947 to 2003.
From the humble beginnings of Posts and Telegraph Department in 1947 and establishment of Pakistan Telephone and Telegraph Department in 1962, to this very day, ours is a story of commitment and vision.
Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory in Decembe Decemberr 1990, 1990, taking taking over operations operations and functio functions ns from Pakistan Pakistan Telepho Telephone ne and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coinci coincided ded with with the the Gover Governm nment ent's 's comp compet etit itive ive polic policy, y, encou encoura ragin ging g privat privatee secto sector r participation and resulting in award of licenses for cellular, card-operated payphones, paging and, lately, data communication services.
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be would-be PTCL PTCL in in two separate placements. placements. Each had a par value of Rs.10 per share. These vouchers were converted into PTCL shares in mid-1996.
In 1995, 1995, Pakista Pakistan n Telecom Telecommuni municati cation on (Reorga (Reorganiza nizatio tion) n) Ordinanc Ordinancee formed formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were were lent lent perm perman anen ence ce in Octo Octobe berr 1996 1996 thro throug ugh h Paki Pakist stan an Tele Teleco comm mmun unic icat atio ion n (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan. Since then, PTCL has been 8
working vigorously to meet the dual challenge of Telecom development and socioeconomic uplift of the country. This is characterized by a clearer appreciation appreciation of ongoing telecom scenario wherein convergence convergence of technologies technologies continuously changes the shape of the sector. A measure of this understanding is progressive measures such as establishment of the company's mobile and Internet subsidiaries in 1998.
As telecommunication monopolies head towards an imminent end, services and infrastructure infrastructure providers are set to face even bigger challenges. Pakistan also entered postmonopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for telecom sector is in the offing.
PTCL is in full awareness of the same, and future policies feature a strong conv convic icti tion on of heal health thy y comp compet etit itio ion. n. Th Thee Comp Compan any y is in proc proces esss of enha enhanc ncin ing g organiza organization tional al and busines businesss profici proficiency ency through through vertical vertical integrat integration ion and horizont horizontal al diversification. diversification. At the same time, cross-national cross-national ownerships, ownerships, operations and partnerships partnerships are being evaluated with a view to developing and diversifying the business.
In this overview, overview, it is proposed to highlight mainly mainly the growth technology, technology, sector structure, organization, the lessons learnt and future trends.
Phases of development:development:-
The compilation compilation of the history has followed a very logical plan and divisions and chronology and major organizational changes in Telecommunication entity. It also covers the period of Government Government of Pakistan Pakistan (GOP) five years plan including, including, the major pats of the middle and the eight (1993 up to 1998) plan progressively. progressively. In addition it also covers a peri period od of an evolv evolving ing restru restruct cturi uring ng of the telec telecom ommu munic nicati ation on sector sector struct structure ure and and organ organiza izatio tion, n, start startin ing g from from a combi combine ne Post Post and Teleg Telegrap raph h (P and T) depart departme ment nt at inde indepe pend nden ence ce to a Tele Telegr grap aph h and and Tele Teleph phon onee (T and and T) in 1962 1962 and and a Paki Pakist stan an Telecommunication Corporation (PTC) in 1990. Telecommunication Act 1996 brought the major reorganization, separating policy, regulation and operation in the ministry of communication, Pakistan Telephone Authority (PTA) and Pakistan Telecommunication Company Limited (PTCL) respectively.
9
It also let to the area of liberalization and increasing the participation of the private private sector sector in telecom telecommun municat ication ion especia especially lly since since 1990 with with the cellu cellular, lar,
card card
pay
phones, data and paging services.
Thee perio Th period d also also cover coverss great great advanc advances es in techn technolo ology gy lead leading ing to the digit digital al revolution revolution and open wire to coaxial to optical fiber transaction. transaction. The international services develop in this period from the unrealizable short- view radio to the high quality service by sub marine cable ble and sat satellite radio dio. In this his hal half century ury, the Pakis kistan Telecommunication sector faced many challenges to set up a viable operational entity, production units and support systems leading to the establishment of an adequate national infrastructure on which the knowledge and the informational super structure can be built.
The Telecommunication Sector 1947-2009
At independence 1947, the Pakistan Telecommunication Telecommunication Sector was organized as a combined P and T (Post and Telegraph) Department Department as it was in India before partition. In September 1965, the minister of railways and communication decided that a detail examination be made of the working of the Pakistan Post and Telegraph department for bring bringing ing about about impro improvem vement ent in the effic efficien iency cy of both both the branch branches, es, the Posta Postall and Telegraph Telegraph Services. There was a realization realization that the nature and needs of both the services would best be served by bifurcation, which was supported by the Organization and Management (O and M) wing of the president’s secretariat.
The cabinet approved this division and a major step was taken in 1962 to create the Pakistan Telephone and Telegraph (T and T) department. However the status of an attac attached hed depar departm tment ent conti continue nued d and did did not provi provide de the the admi admini nistr strati ative ve and fisca fiscall autonomy require for it to function efficiently.
The World World Bank Bank felt reorganiza reorganization tion necessar necessarily ily in 1968 while while consider considering ing a request for an in 1977 and for that purpose appointed consultants for a study. This was also followed in 1969 by a review and a report to the Chief Martial Law Administrator in 1973, 197 3, the cabin cabinet et approv approved ed the setti setting ng up a board board of admini administr strat atee and contro controll the the Telephone Telephone and Telegraph (T and T). After prolonged discussion between the government and World Bank 1973 to 1979, a presidential presidential order was issued on 30th may 1979 (without 10
changing the nature of the Telephone and Telegraph (T and T) as an attached department) which give the Director General Telephone and Telegraph (DG T and T) enhanced administrative and fiscal powers and appointed a full time financial advisor. The new agreement came into force on 1st July 1979.
Altho Although ugh there there are some some impro improvem vement ents, s, but with with the the greate greaterr demand demandss on Telephone Telephone and Telegraph (T and T) for telephone telephone and improvements improvements in services, it was felt that Telecommunication sector was not meeting the needs of the economy. The World Bank also held this view. As a result in after reviews, the government government decided to convert the Telephone and Telegraph (T and T) and into in autonomous corporation that was created created as Pakistan Pakistan Telecommu Telecommunica nication tion Corpora Corporatio tion n (PTC) (PTC) by an ordinanc ordinancee on 15th Decem December ber 199 1990. 0. Th Thee estab establi lishm shment ent of the the corpor corporat ation ion was was in inte interm rmedi ediate ate step step in governm government’ ent’ss strateg strategy, y, which which was to restruct restructure ure the sector-fa sector-facil cilitat itating ing private private sector sector participating participating to meet the phenomenal phenomenal growth, which could not be supported supported in finance by government itself. For this purpose, government obtained the services of a consortium led by Bears Streams United States of America (USA) for the study and recommendation, which result in the promulgation of the Telecommunication ordinance of July 1995 separating separating the policy, regulations and operations in the sector. While policy was reserved for for the the gove govern rnme ment nt,, the the regu regula lati tion on of the the sect sector or was was entr entrus uste ted d to the the Paki Pakist stan an Telecommunicati Telecommunication on Authority Authority (PTA). (PTA). A frequency frequency Allocation Allocation Board (FAB) was created for for the the mana manage geme ment nt of the the Radi Radio o freq freque uenc ncy y spec spectr trum um and and for for gove govern rnm ment’ ent’ss Telecom Telecommuni municati cation on service services, s, Nationa Nationall Telecom Telecommuni municati cation on Corpora Corporation tion (NTC) (NTC) was creat created. ed. Th Thee Pakis Pakista tan n Tele Telecom commu munic nicat atio ion n (PTC (PTC)) was was conve converte rted d to the the Paki Pakista stan n Telecommunication Company limited (PTCL) on december31, 1995.
In
Octo Octobe berr
1996 1996,,
nati nation onal al
asse assem mbly bly
enac enacti tive ve
the the
Telec elecom omm munic unicat atio ion n
reorganization act replacing the ordinances. Although not perfect, the Telecommunication Act 1996 provides a reasonable framework for the sector structure and organization. It was only after the conversion of Telephone and Telegraph (T and T) department into a corporation in December 1990 when serious were made to wipe out the pending demands and to provide the Telephones to applicant in reasonable time. In collaboration with the private sector through Build Lease Transfer (BLT) scheme, 355,981 lines in 1993 and
11
429,023 in 1994 increase the capacity of the telephone exchanges in 2004. The capacity had exceeded 4.5 million lines, in increase of over 3.5 million since 1991.
For long distance telephone services, capacity of circuits was increased increased in 1950’s by reconstruction of open –wire lines and installation of a large number of 3 and 12 channel carrier systems. Carrier Carrier channel mileage increased increased from 8500 in 1948 to 206,873 in 1962. To further increase circuit capacity, coaxial cable systems were installed in 1960’s and in early 1970’s radio relay systems supplemented supplemented these in 1970 and 1980, on both main and subsidiary roots these systems enabled introduction of point -to-point subscriber trunk dialing (STD) in 1962 and Nation wide dialing (NWD) in 1976. By 1981, the telephone subscriber of fifty cities had been provided with NWD facility. In 1990 the NWD stations had increased to 168 and NWD channels to 10,487. In 2006 the NWD stations has increased to 2,252.
Network Expansion and Service Improvement
PTCL maintained steady growth during the year in its network capacity and customer base. Access Line Installed (ALI) and Access Lines in Service (ALIS) (ALIS) stand at 8.33 million and 5.84 million respectively. This includes 0.51 million customers served through the WLL network.
Expansion of switching and transmission networks across the country made it possible to connect 189 new towns on NWD. Enhancement of the Internet Service was achieved by the addition of 180 new stations to the nearest Point of Presence (POP) thus enabling customers to avail internet service via a local call.
Introduction Introduction of two Next Generation Generation Network (NGN) Soft switches switches at Islamabad and Karachi along with 20 Media Gateways in other cities speaks of PTCL’s commitment to serve its customers with leading edge technology. As Telex and Telegraph services became obsolete following the adoption of fax, e-mail and internet technologies, they were ceased during the year.
12
To augme augment nt netwo network rk reli reliabi abilit lity, y, the Comp Compan any y has invest invested ed in Preve Preventi ntive ve Maintenance programs relation to Outside Plant (OSP) of identified cabinet areas and Multi-storey buildings.
Company Board approved a wide array of new projects during the year including the expansion of 2.5GB DWDM system by 4 lambdas and expansion of 10GB DWDM system. In addition 50 Fiber Optic Links were upgraded to STM-4 and STM-16. 3,200 KM Fiber Optic Cable was laid on subsidiary rotes during the year and 200 more cities shall be connected on Fiber Optic Cable during 2006-07. PTCL also launched an Optical Optical Fiber Access Network (OFAN) project which provides 542,000 lines in 13 major cities for which 2,340 KM Fiber Optic Cable was laid in the Access/Junction network. This proje project ct also also provid provides es 100 100,, 00 ADSL ADSL ports ports for Broad Broadban band d Servi Service cess to Corpo Corporat ratee Customers.
The transport additional traffic on trunk routes for interconnection with Mobile, Long Distance International (LDI) and Local Loop Operators, capacities of 8 HCTEs were increased and 5 Universal Media Gateways were commissioned. Existing digital switch interfaces interfaces were expanded by 6,129 EIs and 266,000 new digital lines added to the network at 560 sites during the year. Services to remote areas were improved with the commissi commissionin oning g of 303 Digital Digital Radio Radio System Systems, s, The capacit capacity y of the fixed fixed Intelli Intelligent gent Netw Networ ork k (IN) (IN) platf platform orm was was also also enhan enhance ced d to cater cater for 21 milli million on prepai prepaid d cards cards.. Aggres Aggressiv sivee rollou rolloutt of the the WLL WLL netwo network rk is und underw erway ay and 1,134 1,134 base base stati stations ons were were commissioned to cover 720 new cities, towns and numerous villages. Following the installation of 2.03 million lines during the year PTCL now has the largest WLL network in the country. In addition to several value added services like Intelligent Payphone, SMS, Call Transfer/Forwarding/waiting, Fax, Conference call etc, the WLL network can also provide high speed internet services.
The Pakistan Internet Exchange (PIE) network has undergone a major expansion during the last year with an increase in the number of PoPs from 9 to 34 and the introduction of disaster recovery nodes. PIE is now more resilient and is able to offer enhanced Quality of Service to its customers. International bandwidth sold on PIE has
13
increased from230 MB in August 2004 to over 2,100 MB in August 2006. In addition PIE also offers transport for VoIP migration strategy.
BACKGROUND OF PTCL
Five years into a new century, the telecom sector of the world finds itself at cross roads, roads, after after chang changing ing it self self almo almost st beyo beyond nd recogn recognit itio ion n over over the the last last twen twenty ty year year.. Privatization and competition is the order of the day, with the majority of countries having adopted these policies to advance their telecom sector. The results have been impressive; the industry has grown at in unprecedented pace.
Although there has been phenomenal growth in Pakistan, especially in cellular mobile communication and in the Internet. Yet the tele-density remains always stagnant.
The telecom sector of Pakistan has also entered into a new era. The monopoly of PTCL PTCL is now now over over and and the the sect sector or is now now movi moving ng towa toward rdss libe libera rali liza zati tion on.. Whil Whilee liber liberali alizat zatio ion n and comp competi etiti tion on synon synonym ymous ous,, the the futur futuree scena scenario rio also also poses poses some some challenges to the market dominance of PTCL. The Company is ready; to face this challenge and maintain its dominating position, while guarding its revenue streams in the face of forth coming competition.
Although the sector will embrace full liberalization in the near future, PTCL has alrea already dy exper experie ience nce healt healthy hy compet competit itio ion, n, even even before before the the annou announc ncem ement ent of the the deregulation policy; the mobile telecom operators, data network operators, internet service providers, card payphones operation etc have been operating for quite some time now and PTCL has been in competition for a long time. For the new challenges that is to say an international, national and local fixed line communication. PTCL has already geared up as in the the proce process ss of appro appropr priat iatee corpor corporat atee restr restruct ucturi uring, ng, tarif tariff, f, re-ba re-bala lanci ncing ng and developing cost effective solutions. In addition, it has also been continuously upgrading infrastructure, infrastructure, taking more responsive responsive customer care approaches approaches and taking initiatives initiatives to wards,
Introduction Introduction of new services and technologies, technologies, like Wireless Local Loop (WLL), New Generatio Generation n Network Network (NGN) and Optica Opticall Fiber Fiber Access Access Network Network (OFAN). (OFAN). We 14
understand the need to prepare our selves for the forth –coming competition and realize the importance of marketing and customer care. Retention of customers, especially the corporate customers, will remain the focus of our attention. While the retaining the present customers, we have to compete for the new customers as well, in order to broaden PTCL’s customers base.
The company is therefore viewing the forth-coming competition as an opportunity rather than a threat. We believe that the competition would also bring along with it, greater level of efficiency in our system and procedure. This will come forth with our dedication, commitment and all out efforts to wining customer confidence and altimetry enhancing the shareholder’s value. Historical Background 1947
Post and Telegraph (P and T) department was established.
1962
Pakistan Telegraph and Telephone department was established.
1990-91
Pakistan Telecom Corporation (PTC) was established. Access Line in Service (ALIS): 850,000, Waiting list: 900,000 Expansion Program of 900,000 lines initiated (500 (500,0 ,000 00 line liness by priv privat atee sect sector or of Paki Pakist stan an 400, 400,00 000 0 line liness PTC/GOP Own resources).
1995
About 5 % of Pakistan Telecommunication Corporation (PTC) assets transferred to Pakistan Telecommunication (PTA), Frequency Allocation Board (FAB) and National Telecommunication Corporation (NTC).
1996
PTCL Formed listed on all Stock Exchanges of Pakistan
1998
Mobile and Internet subsidiaries established
2000
Telecom Policy Finalized
2003
Telecom De-regulation Policy Announced
PRIVATIZATION OF PTCL
Pakistan Telecommunication Corporation was established in December 1990 to take take over over the functi function onss of the the Pakis Pakista tan n Tele Telepho phone ne and Teleg Telegrap raph h depar departm tmen ent. t. Its operation was govern by the Pakistan Telecommunication Corporation (PTC) Act 1991 in 1991 Government of Pakistan (GOP) announced its intent to privatize PTC and 15
appointed a financial advisory team led by Bear Streams and Coopers and Lybrand based on whose advice the Government of Pakistan (GOP) decided to sell the 265 stake share capital, with management management rights of PTC by converting into a limited limited company under the provisions of company ordinance 1984.
Later on, Government of Pakistan (GOP) decided decided to sell 11.8% of its share, in the shape vouchers, on Stock Market through domestic and international offering. The sale of 26% stake to strategic investor remains on the agenda. In August 1994 Government of Pakistan (GOP) issued 1,000,000 (one million) PTC vouchers exchangeable into 100 million PTCL shares (with a nominal value of Rs.10/share) in a further 5,000,000 (five million) similar vouchers was issued in September 1994 to international investors. PTC vouchers contributed to the exchequer about US$ 900 million (UK placement) and Rs.3 million domestic issues. The price of the vouchers were listed and traded on the stock exchanges. The price of the vouchers in the first and the second issue was Rs.3000 and Rs. 5500 respectively. Government of Pakistan (GOP) also issued exchangeable notes worth US$ 150 million to international investors in February 1997 through Numura international, UBS and global securities. These notes are exchangeable into fully paid “An” ordinary shares of PTCL about 3.3% of total issued share capital. If the notes are converted into shares it will amount to total 15.06% of Government of Pakistan (GOP) equity divestiture. In August 1997 a deal of securitization of PTCL foreign receivable has been successfully done which fetched US$ 250 million to Government of Pakistan (GOP) and equivalent rupees to PTCL. The concept of securitization of PTCL future receivables from major operations has been opportunity of cheapest possible loan to PTCL.
In 1995, Government of Pakistan (GOP) Privatization Commission appointed a new financial advisor to implement the strategic sale. Morgan Green Fell (UK), Cooper and Lybrand, Denton Hall, Muslim Commercial Bank, Deutsche Bank AG, Abacus Consulting and Rizvi, Isa led the team as member. This new advisory team instantiated work in September 1995 and step taken on their recommendation are summarized in annex-1 the new government government dispensed dispensed the services of the Deutche Morgen Green Fell and in (1998) appointed Goldman Sachs International (GSI) one of the most reputed financial advisors to render advisory services of PTCL
16
M/S Goldman Sachs financial advisor for privatization of PTCL have started the work of due diligence. The company established a data room at PTCL where where comple complete te inform informat ation ion perta pertain ining ing to PTCL PTCL is avail availabl ablee to
headquarter
facil facilita itate te
due
diligence the proposed policy statement from Ministry of Science and Technology (MOS and T). This is ready and can be issued once approved by the government on legal and regulatory regulatory matter major initiatives initiatives have been taken,
Pakistan Telecommunicat Telecommunication ion
Authorit Authority y (PTA) (PTA) has granted granted mobile mobile license license to Pakista Pakistan n Telecom Telecom Mobile Mobile Limite Limited d (PTM (PTML) L) and also also acce accepte pted d the Goldm Goldman an Sach Sachss
Inter Internat natio ional nal
(GSI) (GSI)
propos proposed ed
regulations both on incensing and tariff. Final details on price control are to be agreed. Tari Tariff ff ratio rational naliza izati tion on will will be comp complet leted ed in four four years years as agreed agreed.. Goldm Goldman an Sach Sachss International (GSI) is currently working on staff restructuring policy and information memorandum. memorandum. Once policy related issues are settled, settled, subjects subjects to Government Government of Pakistan (GOP) approval, road
shows, could be start. The present government government has initiated initiated
the de-regulation de-regulation policy and wants to divest its 26% share with the management control. Tell now 14 big international reputed telecom companies have showed expression of interest in PTCL.
PRIVATIZATION COMMISSION
Transaction profile:-
Pakistan Telecommunication Company Ltd. (“PTCL”) is majority owned by the Government of Pakistan (GOP) controlling 88% shareholding in the company with the remaining 12% shares listed on the stock exchanges. The Government Government of Pakistan GOP) is offering up to 26% of the issued share capital of the company to strategic investors. A teaser document for prospective investors is provided on the website.
Regularity Regime:-
Poli Policy cy,, regul regulat ation ion and operat operatio ion n funct function ionss stand stand total totally ly separ separat ated ed for the the telecommunication industry in Pakistan. Policy formulation rests with the Ministry of Science and Technology (MOS and T). The PTA, established in 1996 as an independent and autonom autonomous ous body, body, regulat regulates es the telecom telecommun municat ication ionss sector. sector. Its functio functions ns include include pol polic icy y advi advice ce,, sect sector or moni monito tori ring ng,, lice licens nsin ing g and and tari tariff ff regu regula lati tion on,, arbi arbitr trat atio ion n of interconnection and other disputes, and consumer complaints handling. 17
Sales Process:-
The Privatization Commission has appointed a financial advisory consortium coled by Goldman Sachs International and JPMorgan for pr privatization of PTCL. Nine (9) pre-qualified parties are conducting due diligence.
Decision:-
The Cabinet Committee on Privatization (CCoP) has accepted the Etisalat's bid of $2.6 $2.6 bill billion ion for 26 per cent cent stakes stakes in the the Pakis Pakistan tan Tele Telecom commu munic nicati ation on Comp Compan any y Limited (PTCL). Emirates Telecommunications Corporation (Etisalat) offered $1.96per share for PTCL, even better than the combine offer of the other two bidders. Singapore Telecommunications Limited (Sing Tel) offered just $0.88 per share share (Rs 52.54/share 52.54/share)) and China Mobile Mobile submitt submitted ed $1.0633 $1.0633 per share share (Rs 63.48/share) for the Company, which earned Rs 29.2 billion net profit in 2004. The reserve price of the company approved by the CCoP was just Rs 62 per share.
PRODUCTS LINES AND SERVICES OF PTCL
A product line is a group of products that are closely related because they satisfy a class of needs are used together are sold to the same customer group are distributed through the same type of outlets or fall within a given price range. PTCL has major product lines containing various Telecommunication services. Within each product line is the product item, a specific product as noted by a unique brand, size or price. The third way to look a product is by the product Mix or the number of product lines offered by a company. PTCL however has many lines consisting of following items and services.
New Telephone Connection (NTC): New Telephone Connection provides you a link
with PTCL network for making local, national, and international calls.
ISDN ISDN
BRI/ BRI/PR PRI: I:
(Int (Integ egrrate ated
serv ervice ices
dig digita ital
netwo etworrk,
Basi Basicc
servic vice
Interface/Primary rate Interface) It is a broad band service suitable for house holds and
small/medium sized organizations, offering faster, cleaner voice, fax, data communication and internet on a single phone line. ISDN BRI provides BRI provides two 64kbps user channels plus one16kbps signaling channel. For larger applications and PABXs, PTCL also provides ISDN primary rate interface (PRIs), which give thirty 64kbps user channels and one 18
64kbps signaling channel. The service also carries a cost advantage, is installation charges and monthly line rent are equivalent to twenty PSTN lines.
Mobile Mobi le Phone Phon e service: servi ce: PTCL provides also mobile services. PTML provides the U Fone
network in this field. U fone is the example of PTCL, mobile service which provided to the customers, and going very well in this field.
Pre-Paid Calling card: The launch of pre-paid calling card service in October 2000
resulted an overwhelming customer’s response, yielding sales revenues of (Rs. 7.4 billion up till June 2008.).This necessitate the expansion of existing IN (Intelligent Network) system, and the installation installation of a second IN plate
form facility with edit futures, such
as home home countr country y direc directt in tele telepho phone ne bill bill paym payment ent.. Th Thee syste system m is expect expected ed to be commissi commissioned oned in October October 2003.This 2003.This calling calling card for Rs. 100/-, Rs. 250/-, Rs.500/-, Rs.500/-, Rs.1000/- and Rs. 2000/-easily available through out the country and easy to use from any PTCL Digital phone and fast and easy nation wide and International excess without any line rent and no phone bill.
Toll Free Service (0800): Toll Free Service is another specific solution for corporate
custome customers, rs, running running call call centers centers for greater greater custome customer’s r’s convenie convenience. nce. Business Businesses es and entrepreneurs are benefiting from this service with three different discount packages and the services have generated Rs. 70.29 million in the year 2007-2008.
UAN:-Universal Access Number: UAN is a popular solution for corporate entities,
providing one-number access to customers in different cities. UAN has generated an overwhelming response over the years giving the satisfaction an of better customer care.
ISP spec specif ific ic dial dial up acce access ss numb number er UIN:-Uni UIN:-Univers versal al Interne Internett Number: Number: It is an ISP accessi accessibil bility ity by dialing dialing 131. It connects connects Internet Internet users users and is charged charged as a local local call, call, irrespective of duration and distance.
Premium Rate Service (0900): It allows a service provider to provide useful information
to the callers. Nine private operators have made agreements with PTCL, generating revenue of Rs. 159 million in the year 2007-2008. 19
VPN:- (Virtual Private Number): It is best suited to corporations and businesses with
multi-location offices/branches, because it allows them to have private network using PTCL lines, without having to install dedicated dedicated network resources. It features 25% tariff discount along with facilities, such as abbreviated dialing, private numbering plan origin/time dependent routing etc.
Domestic Leased Lines: A 206-code digital cross connect (DXX) network having a data
speed range of 64 kbps to 2mbpsi now available in all major cities of the country. PTCL offers leased lines connectivity for point to point inter-office connectivity with the same city or between two offices in different cities. A monthly (DXX) charge depends on data rates while media charges are distance based.
offers rs a rang rangee of opti option onss to meet meet the the Inter Internat nation ional al Leased Leased Circu Circuits its:: PTCL: PTCL: offe international connectivity requirements of its customers on satellite and submarine cable. The product range includes:
Clear Clear half circuit circuit Internat Internationa ionall private private leased leased circuit circuit (IPLC) (IPLC) via
satellite.
Clear half circuit International private leased circuit (IPLC) via sub
marine cable.
Full circuit premium Internet backbone connectivity via sub marine
cable. Tariffs are dependent upon the customer’s category and media used.
PTCL provid providing ing co-lo co-locat catio ion n facil faciliti ities es in its its exchan exchanges ges/p /prem remise isess Co-Location: PTCL
to
licensed service providers and O and M partners. Three co-location centers have been established at Islamabad, Lahore and Karachi in the first phase. These purpose built faci facili liti ties es offe offerr Telc Telco o grad gradee spac spacee with with unin uninte terr rrup upte ted d powe powerr supp supply ly (UPS (UPS), ),
airair-
conditioning, fire protection and 24 hours manned security. Customers can either colocated in cabins or in open space available at these locations. Access to back end infrastructure is ready available.
Local Call Offers: PTCL for greater customer facility has doubled the duration of local
calls from five minutes to ten minutes between the hour 2230 to 2400 and 0600 to 0700
20
hours. Besides that local calls made from midnight till 0600 hours have also been made free. Future Services:
PTCL is planning to launch the following IN based services in the near future:
Home Country Direct (HCD)
Pre Payment Telephony (PPT)
Telephone Bill Payment (TBP)
Universal Personal Number (UPN)
Universal Personal Telephony (UPT)
PARTNERSHIP AND COLLABORATION OF PTCL
In order to diversify its service, expand its business and encourage private sector participation, PTCL is continuing to expand collaborative business agreements with other companies/service companies/service providers/operators. providers/operators. These initiatives initiatives include prepaid calling cards (PPCC) (PPCC),, card card payphon payphone, e, Volp Volp project project Asymme Asymmetric tric Digital Digital subscri subscriber ber line (ADSL) (ADSL),, Wireles Wirelesss payphon payphonee service service (WPS), (WPS), global global mobile mobile personal personal commun communicat ication ion system system (GMPCS), (GMPCS), premium rate service (PRS), (PRS), Pakistan Pakistan Education Education Research Research Network ((PERN) and the outsourcing of PTCL customer service centers. PTCL has also outsourced 63 customers’ service centers to the private sector, which has led to an increase in its revenue. During the past one year, the total value of PTCL private sector partnership has gone up by more than 200% from just under Rs. 6 billion to over Rs. 18 billion. This indicates the rapid expansion in the telecom sector in the country post-deregulation.
PTCL’s SUBSIDIARIES Pak Telecom Mobile Limited (PMTL):- PTCL took a strategic decision to enter into the
cellular business in a big way with the launching of its fully owned subsidiary subsidiary PTML (U fone) fone).. PTML PTML is whol wholly ly owned owned subsid subsidiar iary y of PTCL PTCL esta establi blishe shed d to opera operate te cellu cellular lar telephony under the brand name of U fone. Ufone successfully maintains its market share of21% of21% by incre increasi asing ng its its subs subs to 18.1 18.1 bill billion ion.. Duri During ng the year, year, Ufone Ufone succ success essful fully ly completed the launching of sites under Phase V in existing as well as new cities and towns by investing more than US$ 525 million. This has increased the asset base of Ufone rupees 33.5 billion to 55.9 billion. To further enhance the subscriber base and
21
strategically strategically position position the company in the growing telecom market, market, Ufone has finalized a network expansion for Phase VI contact amounting to about US$ 126 million. Ufone currently, has network coverage in more than 3756 locations throughout the country. Ufone operational performance has been very encouraging despite stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level. Ufon Ufonee mana manage ged d to impr improv ovee its its reve revenu nuee and and oper operat atin ing g prof profit it by 35% 35% and and 47% 47% respectively, as compared to the last year through aggressive policies and exercising strict control over expenses.
PakNet Limited: PakNet was incorporate in year 2000 for providing internet related
services in the country is being wound up. However, However, PTCL has developed its own voice, data and video infrastructure and services, Paknet’s operations have been closed and liquidator appointed for completing the formalities involving the company closure. All customers, customers, assets, liabilities and capital stand transferred to PTCL in accordance accordance with the special resolution passed in the General Meetings. The accounts of Paknet have been audited and a final report is required to be submitted to the share holder (PTCL) in the AGM (to be held in October 2008) and on wards to SECP. The company will formally windup after filling the report with SECP.
Telecom Industries of Pakistan (Pvt) Ltd. (TIP): Telephone Industries of Pakistan is
primarily manufacturing units involved in the manufacturing of exchanges, telephone instruments and other Telecom equipment. It is a joint venture of the PTCL and M/S. Semen’s having shares of 70% and 30% respectively.
There are several other products are manufactured like energy meters, fire alarms, cross connect cabinets, containers, drop wires etc.
The company continued continued to perform poorly during during the period up to April 12, 2006 when PTCL withdraw its investment from the company. During the period from July 01, 2005 to April 12, 2006, the company suffered a loss of Rs 114 million on revenues of Rs 1,142 million. PTCL management on its part has completed all formalities pertaining to disinvestment of TIP and transfer of shares to Ministry of IT and T, GOVERNMENT OF PAKISTAN. 22
23
Carrier Telephone T elephone Industries (Pvt) Ltd. (CTI) (C TI):
Carrier Carrier Telephone Telephone Industries Industries primarily primarily a manufacturer manufacturer of Telecom Transmission Equip Eq uipme ment nt.. Th Thee comp company any was was priva privatiz tized ed in Novem November ber 200 2005 5 as part part of the the PTCL PTCL privatization commitment. PTCL’s equity investment of Rs 8 million was sold for Rs 500 million to Siemens AG. The privatization commitment has not yet released the proceeds of this sale to PTCL. The following major equipment was produced by the CTI.
SRAL Digital microwave radios.
SDH Systems.
Computer with peripherals.
RDBX System.
In order to meet the emerging requirements of IT and telecommunication the products like access network and WLL would form part of business plan of the PTCL.
PTCL Customer Segmentation. Segmentation.
PTCL customers are segmented in two Major categories as under. I.
II.
Business Customers. I.
Multinational corporations.
II.
Public Sector corporations.
III.
Private sector companies.
IV.
Small and medium enterprises.
Residential Customers. I.
PCOs users.
II.
High Income class.
III.
Middle and Lower Middle Income class.
CORPORATE SOCIAL RESPONSIBILITY RESPONSIBILITY
PTCL continued to contribute to the social development of the community. PTCL supports a variety of caused primarily focused in the area of sports, environment and cultur cultural al acti activit vities ies in the countr country. y. In the the after afterma math th of last last year’ year’ss earth earthqua quake, ke, PTCL PTCL contributed handsomely to the Government of Pakistan and the affected people.
24
Future Prospects
The new management Etisalat International Pakistan (EIP) is reviewing options to re-struct re-structure ure the organiza organization tion,, improve improve custome customerr care, care, increase increase revenue, revenue, enhance enhance cost control and bring about a paradigm shift in the mind set of the mind set of the employees employees to deliver on expectations of all the stakeholders. The new management is also planning urgent measures towards revenue assurance, timely collection collection of overdue receivables and the effec effecti tive ve utili utiliza zatio tion n of PTCL PTCL asset assetss and and streng strengths ths.. A new new En Ente terpr rprise ise Resou Resourc rcee Planning System along with a new Billing and Customer Care System is also being implemented. Your Board fully supports all the initiatives to improve the productivity and profitability of the Company.
Pakistan Telecommunication company Network
PTCL network consists of 99 percent digital switching system exchanges, Optical Fiber Cable Backhoe, subsidiaries routes, long distance media, digital radio systems, satelli satellite te commun communicat ications ions and alterna alternate te arrangem arrangements ents.. It has internat internationa ionall Gateway Gateway exchan exchanges ges at Karac Karachi hi and Islam Islamaba abad. d. Th Thee PTCL PTCL is provi provider der of infra infrastr struct ucture ure for for connectivity for Internet services Providers (ISP’s), data network operators, software exporters, educational institutions, universities, corporate customers and other users. Its tariffs were reduced by 25 percent on international international calls during 2001-02 and are expected to be reduc reduced ed furth further er in 20022002-03. 03. Tariff Tariff has also also been been reduce reduced d by 60 perce percent nt on international IP bandwidth, 10 to 68 percent on lower than one MB, and 70 percent on domestic lease circuits. For promotion of Information Technology, 1,350 cities/towns/ villages have been provided with Internet facility, up to March 2003, compared to 850 cities/towns/villages in June 2002 showing an increase of 58.8 percent. Promotional traf raffic fic
has
bee been
introduc oduceed
for
ISPs,
Software are
expor xportters
and and
educa ucational onal
institutions/unive institutions/universities rsities working in the country. During 2000–01, the PTCL has launched its domestic domestic and International International Pre-Paid Pre-Paid Calling Calling Card Service
(Intelligent (Intelligent Network) Network)
in the country. Since its commissioning, the intelligent network system at Islamabad, Lahore and Karachi has met with tremendous success. So far 9.73 million cards have been floated in the market. Pakistan Telecommunicatio Telecommunication n network is expanding each year, thus providing telephone access to rural and urban communities in record time. Total telephone lines installed by March 2003 were 4.6 million as against 3.6 million up to June 2002 last year, showing an increase of one million telephone connections or 27.8 percent. 25
A system with a capacity of 110,000 Mail Boxes has been installed at 10 major cities cities like Faisala Faisalabad, bad, Gujranwa Gujranwala, la, Hydera Hyderabad, bad, Islama Islamabad, bad, Karachi Karachi,, Lahore, Lahore, Multan, Multan, Peshawar, Quetta and Sialkot. The Mobile Phone Service (Ufone) has been launched in 60 citie cities/ s/ town townss and and highw highway ays. s. Its Its custom customer er base base is 425 425,9 ,978, 78, whic which h is expec expecte ted d to increase further in future. Paknet, an Internet Service provider (ISP), is a subsidiary of the PTCL. PTCL. The PTCL has install installed ed Internet Internet Exchanges Exchanges (PIE) (PIE) at Rawalp Rawalpindi indi,, Lahore Lahore and Karachi, comprising of high-end routers, multi-services switches, firewalls and proxy services etc.
PTCL Directors’ Report 2008
The directors of PTCL are pleased to present the Annual report and the audited financial statement of the company for the year ended June 30, 2008. The financial year 2 007-08 was a challenging year for PTCL – the largest integrated telecom service provider in Paki Pakista stan. n. Howe However ver,, during during the the year year majo majorr init initiat iative ivess have have been been und undert ertake aken n to accelerate transformation of PTCL from legacy public sector organization to a customer focused, corporate enterprise competing in the de-regulated era. Along with the basic voice voice servic service, e, PTCL PTCL expan expand d its its Broa Broadba dband nd inter internet net offeri offering ng to 14 citi cities es acros acrosss the the country, made the dial up internet available across the entire country and commenced soft launch launch of deliveri delivering ng over 100 Televi Television sion channels channels using using interne internett protocol protocol providin providing g digital quality phone, broadband internet and IPTV services to its customers in Lahore, Karachi and Islamabad, thereby taking PTCL from a basic telephone company to a voice, data and video provisioning enterprise.
Yet Yet anot anothe herr land landma mark rk achi achiev evem emen entt duri during ng the the year year was was the the succ succes essf sful ul implementation and rightsizing through voluntary separation scheme (VSS).
Financial Performance Performance
To thrive in the highly competitive telecom market and to meet the growing challenges, PTCL has taken certain essential steps for organizational transformation like introduc introductio tion n & implem implementa entation tion of Voluntar Voluntary y Separat Separation ion Scheme Scheme (VSS), (VSS), Enterpr Enterprise ise Resource Planning Packages as well as penetrating new innovated services. However, the profitability profitability of the Company for the year ended June 30, 2008 suffered due to absorption absorption of a massive VSS cost amounting to Rs 23.94 billion. 26
Due to this company sustained a loss Rs. 2.8 2 billion (LPS Rs. 0.55) against pervious year’s net profit of Rs. 15.64 billion (EPS Rs. 3.07). Total revenue for the financial year 2007-08 stood at Rs. 61.09 billion. However, revenue streams from overseas calls, value added added servi services ces and and domest domestic ic long long dista distance nce calls calls revea reveale led d impro improve veme ment. nt. Intens Intensee penetration by mobile business and stiff market competition affected subscriber base as well as traffic volumes which ultimately posed negative impact on other revenue steams during the year under review.
Due to enhanced operational controls, the Company managed to minimize its operating costs to Rs.44.7 billion as compared to Rs. 46.6 billion last year. The huge outflow of financial reserves in the shape of VSS expense also affected the Company’s non-operational income but at the same time it helped the Company to realize certain savings in the last quarter against salaries & allowances.
As compared to pr-tax loss of Rs.14.4 billion during the first half, the Company earned a pre-tax profit of Rs.9.9 billion in the second half, thus reducing the pre-tax loss to Rs. 4.5 billion for the year.
Despit Despitee the severe competiti competition on in the Telecom Telecom market market to be forecast forecasted, ed, the Company management is confident that after successful execution of new initiative and implementation of improved strategies, the Company will witness customer confidence on PTCL quality and low cost services due to improvement in the operational efficiency and eventually significant increase in revenue and shareholders value in the years to come.
27
PAKISTAN TELECOMMUNICATION COMPANY LIMITIED Comparative Comparative Balance Sheet 2006-07-08 June 30, Jun June e 30 30, 200 2007 7 June une 30, 30, 20 2008 08 2006 (Rupees in thousand) EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES
Authorized share Capital 11,100,000,000 "A" Class ordinary shares of Rs. 10 each 3,9000,000,000 "B" Class ordinary shares of Rs. 10 each
111,000,00 0 3,900,000 150,000,00 0
Issued, subscribed and paid up capital
150,000,00 0
Insurance Reserve
1,749,047
Inappropriate Inappropriate Profit
30,500,000 22,483,050 105,475,46 4
NON CURRENT LIABILITIES Long Term Loans and other borrowing - secured Liabilities Liabilities against assets subject o finance lease
Payable to PTA against license fee Deferred Taxation Employee retirement benefits and other obligations Deferred Government grant
170,873 1,937,322 11,624,935
111,000,0 00 3,900,0 00 150,000,0 00
111,000,00 0 3,900,00 0 150,000,00 0
150,000,0 00 1,683,0 74 30,500,0 00 18,797,3 45 101,980,4 19
150,000,00 0 1,749,04 7 30,500,00 0 30,966,13 2 114,215,17 9
9,100,9 49
10,348,25 0 2,23 1 1,768,68 1 5,234,57 9 12,378,63 6
1,910,8 58 4,469,8 52 14,307,4 32 95,00 0
-
28
Long Term Security Deposit from customers - non interest bearing Other long term liabilities liabilities
2,755,896 16,489,026
1,468,5 92 25,518,9 42 56,871,6 25
1,587,80 5 4,138,06 3 35,458,24 5
CURRENT LIABILITIES
Current portio of Long term loans and other borrowing - secured Liabilities Liabilities against assets subjects to finance lease
-
Payable to PTA against license fee
-
Employee retirement benefits and other obligations
-
Short term borrowings
3,763,303
Trade and other payables
17,557,092
Interest and markup accrued
12,323
Taxation 30,275,532
1,268,4 49 2,23 1 25,44 0
1,440,03 0 3,63 5 26,96 6 12,77 4 2,536,7 3,674,63 10 0 27,951,2 24,460,64 71 4 238,5 21,49 98 0 182,2 2,709,15 2,725,984 92 7 32,204,9 32,349,32 91 6
CONTINGENCIES AND COMMITMENTS 152,240,02 2
191,057,0 35
182,022,75 0
97,817,9 22 18,603,5 81 4,98 3 3,898,2 49 3,917,3 83 1,174,1 40 125,416,3 25
122,932,92 7 11,716,91 3 98 8 3,754,65 7 3,737,63 4 394,94 3 142,538,06 2
NON CURRENT ASSESTS
Property, Plant and equipment
75,937,780
Capital Work-in-Progress
13,104,320
Assets Subject to finance lease
-
Intangible assets
4,048,876
Long Term Investments
7,118,002
Long term Loans
1,862,867 102,071,84 5
29
CURRENT ASSEST
Stores and spares Stock in Trade
3,435,679 -
Trade Debts
Loans, Advances, Deposits, Prepayments and other receivables Receivable from Government of Pakistan for Voluntary Separation Scheme (VSS) Cash and bank Balances
5,771,664
-
879,2 06 270,4 64 11,543,4 17,862,049 94
4,954,08 5 190,88 3 12,610,26 1
5,654,8 73
7,358,26 1
-
2,164,07 2
22,598,785
35,258,3 85
21,240,74 5
50168177
56606422
48851973
182,022,7 50
191,057,03 5
152,240,02 2
30
PAKISTAN TELECOMMUNICATION COMPANY LIMITIED Profit and Loss Account 2006-07-08 June 30, 2006 June 30, 2007 June 30, 2008 (Rupees in Thousand) Revenue
21,439,584
81,406,709
80,835,886
(13,335,309)
(59,283,989)
(60,455,243)
8,104,275
22,122,720
20,380,643
-
-
(23,937,584)
Non-Operating income
1,070,094
5,478,688
3,720,092
Finance Cost
(421,650)
(1,880,029)
2,661,347
9,596,019
25,721,379
2,498,466
846
4,300
8,752,719
25,722,225
2,502,766
Group
-
8,921,264
468,210
Associate
-
223
204
8,752,719
8,921,487
468,006
3,290,091
16,800,738
2,034,760
1.14
3.29
0.40
Operating Cost Operating Profit Voluntary Separation Scheme
Share of (loss) / Profit of Associate (Loss) / Profit before tax Provision Provision for taxation
(Loss) / Profit after taxation (Loss) / Earnings per share (Rupees)
31
32
Global connectivity
The company commissioned SMW-4, the latest in submarine cable systems, to enhance reliability and availability of international connectivity. This complements the existing SMW-3submarine cable and has increased network capacity by 647,422MIU Km. in addition to carrying the majority of international IP and Voice traffic, SMW-4 provides restoration and diversity for SMW-3. This increased the equipped capacity of SMW-3 from 4.66 million MIU Km to 5.38 million MIU Km to meet the demand of Other Other License Licensed d Operat Operators ors (OLO) (OLO) and other other customer customerss for bandwid bandwidth. th. This This capacit capacity y enhancement puts the company in a better position to carry more voice and data traffic.
A global customer base and the entry of Other Licensed Operators (OLO) have resulted in an increase in traffic to and from Pakistan. To meet this new demand more than 2,500 international circuits were added to PTCL’s network during the year.
Human Resource Development
The transformation from a legacy public sector organization into a responsive and competit competitive ive enterpr enterprise ise in the deregul deregulated ated era could could not have been possible possible without without implementing a forward looking Human Capital development and management strategy. One of the most important objectives objectives of this new strategy was to optimize optimize the workforce workforce which which was was imple impleme mente nted d by offeri offering ng the Volun Voluntar tary y Sche Scheme me (VSS (VSS)) from from PTCL PTCL in exchange for financial compensation. Around 29, 290 employees opted to pursue other opportunities after accepting terms of Voluntary separation from PTCL. The VSS marked the single largest most successful exercise in the history of Pakistan.
The company has implemented implemented changes in organization organization structure to make it more responsive to commercial imperatives and to increase internal efficiencies.
Real Estate
PTCL owns a large number of real estates assets throughout the country. Out a of total 3,276 properties titles of 2,588 have been transferred in the name of PTCL from the now defunc defunctt Tele Telepho phone ne and Tele Telegra graph ph (T and T) depar departm tmen ent. t. Th Thee trans transfer fer of 219 properties is under process. The prime minister of Pakistan has recently constituted a committee to facilitate PTCL in the transfer of titles of the remaining properties to PTCL. 33
Corporate and Regulatory Affairs
The regulatory environment environment throughout throughout the year remained very intense following the many Policy Initiative of the Pakistan Telecommunication Authority (PTA). The company continuous continuous to evaluate all such changes in the regulatory framework framework to ensure a level playing field and also challenged some of the directives issued by the PTA during the year. They have strengthened its regulatory department to better manage regulatory affairs, license obligations obligations and interconnections interconnections functions. In addition to the interconnect agreement with fixed sector licensees, agreement with six Cellular Mobile Operators (CMO) were also signed during the year following the PTA’s approval of the Reference Interconnect Offer (RIO).
The PTA issued determinations on carrier pre-selection on payphones and on bandw bandwidt idth h tari tariffs ffs which which were were set aside aside by the Lahor Lahoree High High Court Court afte afterr these these were were challenged by PTCL.
PTCL signed settlement agreements with National telecommunication corporation (NTC) and the special communication organization (SCO) to resolve long outstanding issues. The company has applied to PEMRA for IPTV license, after obtaining special exemption from the restriction of non-eligibility of companies with foreign management.
Financial Reporting Framework
The company has compiled with all the material requirements of the code of corporate Governance and the Directors are pleased to confirm the following:
The financial statements, statements, prepared by the management of the company present fairly its state of affairs, the result of its operations, its cash flows and its changes in equity.
Proper books of accounts of the company have been maintained.
Appropriate accounting policies have been consistently applied in the preparation preparation of financial financial statements and accounting accounting estimates are based on reasonable and prudent judgment.
34
International accounting standards, as applicable in Pakistan, have been followed in the preparation of financial statements and any departure there from has been adequately disclosed.
Thee syst Th system em of inter internal nal control controlss in sound sound in design design and has has been been effectively implemented and monitored.
There are no significant doubts about the company’s ability to continue as a going concern.
There Th ere has has been been no mate materi rial al depar departur turee from from the the best best practi practice cess of corporate governance, as detailed in the listed regulations.
The Audit and Finance committee has recommended the appointment of M/s A.F. Ferguson& Co and M/S Ford Rhodes Sidat Haider & Co. (Ernest & Young), Charted Accountants as joint auditors of the company for the financial year ending June 30, 208.
Inform Informat atio ion n regard regarding ing outst outstand anding ing taxe taxess and and levie leviess is given given in notes notes to the accounts of the financial statements.
The audited value of Pension Assets as per audited accounts amounted to Rs. 48.4 billion at June 30, 2008.
35
CHAPTER 3 OVERVIEW OF ORGANIZATIONAL
STRUTURE OF PTCL Organizational structure of PTCL
The term term organizatio organization n structure structure describes describes the the organization organizationss formal formal framework framework or system of communication and authority. The PTCL converted from Government sector to Public Sector w.e.f. 15-12-1990. Thus the organization structure prior to 15-12-1990 was centralized and decision making is highly centralized in upper levels of Management. The Director General was act being Chief Executive of the Department and having few Regions just one in each province where act General Manager or Director Director as Regional In charge charge of the the Depar Departm tment ent.. Th Thee human human resou resourc rcee was was also also kept kept in minim minimum um leve levell comparatively now a days. Each Region had some field divisions scattered in far flung Areas.
The Divisional Engineers were performing their duties as Divisional In charge with some Sub. Divisional Officers and Supervisory staff. The unity of command was very simple and it was highly cleared where is the types and amount of authority and responsibility that organizational members hold. The Accountant General PT&T Audit Lahore was the Principal Audit and Accounts office of the department. The Telegraph and Telepho Telephone ne departm department ent restruct restructured ured and renamed renamed Pakista Pakistan n Teleco Telecommu mmunica nication tion Corporation w.e.f. 15-12-1990.
Thee Post Th Post of Dire Directo ctorr Gener General al was was redesi redesigne gned d as Chai Chairm rman an PTC. PTC. Now Now the complexity interred in the organization structure resultantly more division of labor the more vertical levels and more geographically geographically dispersed the organizations organizations units, the more hierarchy, hierarchy, the more difficult it is to coordinate people and their activities. activities. However since 1990 199 0 or becom becoming ing corpo corpora rati tion on the Tele Telecom commu muni nicat catio ion n is play playing ing an incre increasi asingl ngly y significant role as the most important infrastructure of modern economic and societies.
The government of Pakistan now holds more then 62% stake in the company and nominates four (04) directors on the Board of Directors of the Company, while the 36
Etisalat International Pakistan (EIP) has 26% holding in the Company and nominates five (05) Directors on the Board of Directors. All the directors are non-executive directors. The Organizational chart of PTCL Headquarter is shown in Fig 3.1.
The Organizational Structure of PTCL shows that President of PTCL is the head of all the Organization and there is only one Secretary of the Organization. The Etisalat Company has 26% of Shares therefore they can nominate five (05) directors of the Board of Directors. Top Management of the Company includes Senior Executive Vice President and Executive Vice President of the Departments.
Board of Directors of PTCL
After the privatization of PTCL the new management holds the charge of the Company and has formed a Board of Directors consisting upon ten members including a Chair Chairma man n and Chie Chieff Ex Execu ecuti tive ve Offic Officer. er. Th Thee PTCL PTCL is to comply comply with with the the code code of corporate Governance (code) contained in the listing regulations of the Karachi, Lahore and Islamabad stock exchanges for the purpose of establishing a framework of good governance, governance, whereby a listed company is managed in compliance compliance with the best practices of the corporate governance.
The Company has applied the principles contained in the code in the following manner.
Pursuant to privatization of the Company, the government of Pakistan now
holds more then 62% stake in the company and nominates nominates four (04) directors on the Board of Directors of the Company, while the Etisalat International Pakistan (EIP) has 26% holding in the Company and nominates five (05) Directo Directors rs on the Board Board of Directo Directors. rs. All the directo directors rs are non-exec non-executiv utivee directors. The name of members of the Board of Directors as on 30th June 2006 is given in Appendix “A”
The directors of the company have confirmed confirmed that none of them is serving
as a Director in more then ten listed companies, including this Company.
All the resident Directors of the Company are registered as taxpayers and
none of them has defaulted in payment of any loan to a Company, being a
37
member of a stock exchange, has been declared as a defaulter by that stock exchange.
All the vacancies occurring in the Board were filled up by the Directors
within 30 days thereof.
Thee Comp Th Compan any y has has prep prepar ared ed a “Sta “State teme ment nt of Ethi Ethics cs and and Busi Busine ness ss
Practices”, which has been approved by the Directors of the Company and is in the process of being signed off by the Directors and designated employees.
Details of Employees in PTCL Headquarter Headquarter
Organizational restructuring of PTCL is being carried out for making the company more responsive, responsive, compet competitiv itivee and capable capable of facing facing emergin emerging g global global and domesti domesticc challenges. In areas of focus would be marketing and customer care, Human resource management and development, emerging technologies etc. Appropriate changes have also been brought about in Human Resource Management such as completion of census and establishment of Human Resource Management information system. Recruitment process and system has been adequately revamped by adopting appropriate Human Resource pra pract ctic ice. e. Deci Decisi sion on supp suppor ortt syst system em,, thus thus esta establ blis ishe hed, d, will will help help gene genera rate te desi desire red d managem management ent reports. reports. Profess Professiona ionall developm development ent of employ employees, ees, especial especially ly the middle middle management is being ensured. Training sources for employees have been redesigned. A special emphasis is being paid on the inculcation of sense of responsibility and politeness in the minds of PTCL employees, especially the low Management and staff. Total number of employees as categorized below is 61840 as on 30-5-2008. The Details of Employees charts of PTCL are give in Appendix “B”
Departmentation Departmentation of PTCL
PTCL is big organizations which have several departments. These departments are given below. All these departments have a Senior Executive Vice President which contr control olss these these depar departm tment ents. s. Now Now the the scope scope of these these depa depart rtme menta ntall
units units
and
the
complexity of the enterprise give rise of additional organizational units. These types results mainly from such such things as the nature and amount of work to be done, the degree of speci special aliza izati tion on or divisi division on of labor labor pract practic iced, ed, and the the peopl peoplee and the the workp workpla lace ce available for the work.
38
This is specialization or division of labor, which give birth to Departmentation, which again five births to span of control. PTCL’s organizational organizational chart is a full picture of the division of labor. As we can see that the whole organization is “departmentalized” into seven major activities. These are: I.
Corporate Affairs
II .
Operation
I I I.
Finance
IV.
Estate Management
V.
Human Resource and Administration
V I.
Special Projects
VII .
Information Technology
Although specialization is criticized very much but I must say that for a large organization like PTCL, specialization is a pre-requisite. PTCL’s organizational chart shows a vertical expansion in the positions of the organization.
And that’s the reason that in PTCL job requirements and manager (in-case of PTCL and SEVP) specifications are developed and matched to assign personnel. Every manager or SEVP in-case of PTCL has his or her own SEVP administration administration department, who is one of the assisting sub heads to the company, Secretary, GM internal Audit and General Manager Solutions, who again assist the president. The administration SEVP in PTCL is obliged to take care of so many things, for example:
He / she have to handle all the issues related to human resource and planning.
Has to take care of co-ordination among different departments.
Will handle issues related to transport and telecommunication.
And so many other activities like public relations, HR telecommunications etc.
For all these activities, he / she are then supported by eleven more managers who again are the experts in their own fields.
39
Operative Departments of PTCL
The operative functions of the PTCL can be divided into the following operative departments. I.
Policy Formation and Directions.
President, Secretary and Board of PTCL II.
Administration.
General Administration, Rules, Regulation and Recruitment, Transport, Security, Welfare Branches. III. II.
Traini ainin ng Organi ganizzatio ation ns.
TSC, NPGIT, Regional Schools. IV.
Finance and Accounts.
Internal Audit, Pension Cell, Accounts Offices. IV.
Stores an and Wo Workshops.
General Store Depot, Purchase Branch, Telegraph W/shop. V.
Cust ustomer mer Se Servic vices and and Sale ale Pr Promot motion. ion.
Customer Services, Printing & Publications. VI.
Plan lanning ning and and De Develo velopm pmeent. nt.
Development Administration, Planning Branch and Regional Development offices. VIII. VIII. Maint Maintena enanc ncee and Oper Operati ation. on. Regional Offices, Telephone, Telegraphs,
Radio, Wireless Divisions.
40
Fig 3.1
PTCL Organizational Chart and Departmentation
President & C.E.O Company Secretary Board of Directors
Chief Engineers
General Managers
Top Management Executive Vice President
Senior Executive Vice President
SEVP Corporate Affairs
Business Development
SEVP Operations
Administration
Development
SEVP Finance
(Operations) South, Karachi
Business Development
SEVP Estate Management
Procurement
Business Planning & Strategy
SEVP HR & Administration
Development
International Communication
SEVP Special Projects
(Operations) Central, Lahore
Information Technology
SEVP IT
(Operations) Central, Islamabad
Administration Maintenance & Operation
Accounts
Finance
Marketing
Human Resource
IT
Customer Care
Quality Assurance
41
Comments on the Organizational Structure of PTCL
The PTCL is a large organization and its offices are situated all over the country. It has more divis division ion of labor labor,, more more verti vertica call level levelss in the hierar hierarchy chy and the more geogr geograph aphic icall ally y dispe disperse rsed d the the PTCL PTCL units units,, the the more more diffi difficu cult lt
or
comp comple lex x
it
is
to
coordinate people and their activities. However the decision making authority is also divide divided d among among the top manag managem emen entt and Regi Regiona onall Ex Execu ecuti tives ves accor accordin ding g to thei their r responsibilities.
Therefore we can say that decision making is highly centralized in upper level of Management in PTCL. As I analysis that Human Resource wing has been established in PTCL PTCL expli explicit citly ly to impl implem ement ent Huma Human n Resou Resourc rcee strat strategi egies es and to adopt adopt moder modern, n, innovative and best proven policies to make PTCL a responsive and competitive service organization. To strengthen the Human Resource Wing the position of Director General (Administration (Administration)) has been filled and recruitment for other senior position is in process. In new and changed scenario when the new players players in Telecom Telecom Sector have started building their core organizations and likely to cause attrition in PTCL human resources.
The PTCL has given new dimensions to human resource activities. PTCL efforts are being made to development of a competitive competitive workforce through rigorous training training and with program’s to improve the retention of these employees. To deal with the situation PTCL has transformed its human resource department to focus on modern management practic practices. es. With With responsi responsibil bility ity for creatio creation n and diffusio diffusion n of the new human human resource resource culture. More emphasis is being given to the formulation of clear policies the areas of training, recruitment, transfer /postings compensation etc. The on going salient human resource resource activit activities ies are includes includes,, complet completion ion of human human resource resource informa information tion system systems, s, form format atio ion n of new new serv servic icee rule rules, s, new new job job desc descri ript ptio ion n righ rights tsiz izin ing, g, comp compen ensa sati tion on manag managem ement ent,, perfor performa mance nce apprai appraisal sal syste system, m, perfor performa mance nce standa standards rds train training ing and development, development, organizational organizational development. It is obvious that PTCL is being given special attention to building human assets.
42
CHAPTER 4 PRACTICAL OF PTCL NTR-II, D.I.KHAN
ORGANIZATIONAL CHART OF PTCL NTR-2, D.I.Khan
There are two regional offices in KPK which provides telecommunication services to the peoples of KPK. One is the Northern Telecommunication Region-I (NTR-I) and the other is Northern Telecommunication Region-II (NTR-II). NTR-II controls the areas D.I.Khan to Khyber Agency and D.I.Khan to Northern Areas. NTR-II controls the areas D. I. Khan to Peshawar and D. I. Khan to North and South South Waziristan Waziristan Tribals. Both the regi region onss have have thei theirr own own Gene Genera rall Mana Manage gerr whic which h is the the head head of the the regi region ons. s. Th Thee Organizational Chart of PTCL NTR-II, D.I.Khan is shown in Fig 4.1. The chart shows that General Manager NTR-I1, D.I.Khan is the head of all the departments which are under control of NTR-I1, D.I.Khan. There are some other departments which are given in the chart of NTR-I1, D.I.Khan, like Digital Zone, Phone I D.I.Khan, Phone II D.I.Khan, Telegra Telegraph ph D.I.Kh D.I.Khan, an, Telegra Telegraph ph Malakan Malakand, d, Revenue Revenue and Account, Account, etc. Each Each of the department department has their own Director and every Director have their own subordinates subordinates which works under the Director. Each Director responsible to the General Manager NTR-I1, D.I.Khan. Now we explain the Finance department of NTR-I1, D.I.Khan which worked under the control of Budget and Payment department of NTR-I1, D.I.Khan.
43
Fig 4.1
Organizational Organizational Chart OF PTCL NTR-II D.I.Khan
44
DEPARTMENTATION OF PTCL NTR-II, D.I.Khan
Departmentation of the PTCL NTR-II, D.I.Khan is the Sub-Department of Budget and AGM (Finance) is the head of Finance Department and working under the control of Director (Budget and Payment) of PTCL NTR-II. There are two departments which controlled the financial activities of PTCL NTR-I1, D.I.Khan 1.
Budget and Payment of PTCL NTR-II, D.I.Khan (I)
(Finance De Department)
2.
Revenue an and Accounts of of PT PTCL NT NTR-II, D. D.I.Khan
(I)
(Accounting System)
Director NTR-II is the head of each Department and all these departments are cont contro roll lled ed by the the Dire Direct ctor or NTRNTR-II II and and Dire Direct ctor or NTRNTR-II II is work workin ing g unde underr the the administrative control of General Manager NTR-II D.I.Khan.
Budget and Payment Department of PTCL NTR-II D.I.Khan
Thee Budge Th Budgett and Paym Payment ent depar departm tmen entt of PTCL PTCL mana managed ged the bud budget get whic which h provided by the PTCL Headquarter. At the end of Every Financial year Budget are provided by the Headquarter to every Region. After issuing the Budget to the NTR-II, the director Budget and Payment divided the budget into different departments of the NTR-II, D.I.Khan. The whole budget process are done by the main headquarter. In regions only the Budget are divided into the departments.
Function of the Budget and Payment Department of NTR-II
Function of the Budget and Payment department are explained the following. following. All Divisional Divisional Offices prepared budget and submit to their respective regions for compilation and further sending to budget branch of PTCL Headquarters for allocation of budget in relevant head of accounts. The budget must be prepared during February of each year in which funds demanded for the coming financial year.
After receiving the funds from PTCL Headquarter the Regional Office further allocate the funds to their relevant units according to Director payment and budget for the purpose of drawing and disbursement has been posted by the PTCL in each Regional Headquarter. All Divisional units executing the works of capital, Maintenance of Line 45
and wire, A & P and buildings through contractors or quotation basis after obtaining the Finan Financia ciall approv approval al of compet competent ent author authorit ities ies.. Th Thee contra contract ctors ors and and firm firmss who have have complete completed d the targete targeted d work submitted submitted their their claim claim invoice invoicess to Divisio Divisional nal Heads Heads for onward submission to DDO after necessary verification for payment. The DDO apply bank ceiling from ceiling branch of PTCL NTR-II according to available sanctions. Bills and invoices received from Divisional units. On receipt of adequate amount of ceiling from PTCL NTR-II in relevant bank account the drawing and disbursing Officer issued cheque in favor of contractor or supplier through concerned Divisional unit. For this purpo purpose se each each Draw Drawing ing and Disbu Disbursi rsing ng Offi Office ce have have opened opened a joint joint bank bank accoun accountt in National National Bank of Pakistan main branches in the city where their headquarter is exist. The Director Payment and budget must sign on the cheque in addition to one signature of senior senior account accountss Officer Officer or Division Divisional al Account Accountss Officer Officer accordi accordingly ngly.. All units units must remain remain in bud budget getary ary limi limitt and observ observed ed finan financi cial al rules rules and regul regulat ation ion as well well as instructions issued by the Regional and Headquarters authorities time to time in this regard. Regional General Managers have no power to divert the funds from one head to another head without formal approval of the senior Executive Vice President (Finance) PTCL Headquarter.
Finance Department of PTCL NTR-II, D.I.Khan
Finance department of PTCL NTR-II, D.I.Khan consisting upon. I.
Budget branch.
II. II.
Fund Fund dist distri ribu buti tion on bran branch ch
III. III. Bank Bank ceil ceilin ing g bran branch ch Finance department of PTCL is headed by the AGM (Finance) under General Manager NTR-II, D.I.Khan D.I.Khan and coordinating coordinating the activities activities of budget, ceiling and revenue sections. All Divisional Engineers and Directors send their operating and capital budget estimates estimates to Director Director Budget and treasuries treasuries of PTCL NTR-I1, NTR-I1, D.I.Khan. The budget and software branch compiled report on budget from provided data and put up in board meeting for approval.
The funds allocated to Regional heads are to be further allocated to Divisional units working under their control. The DDOs send ceiling demand according to monthly requirement as per requirement of each field unit attached with the concerned DDO. 46
In response to the DDOs demand the ceiling branch issued drawing limits to Zero balance accounts in NBP Branches. The branches make payments to DDO concerned against their cheques or the party the cheque issued in his favour by the DDO. These branches furnish cheques drawn by the DDOs to main branch of NBP main branch D.I.Khan. NBP main branch D.I.Khan debits the all amounts to cheques. To main account of PTCL and credit the concerned bank branch.
Total DDOs in the PTCL all over the country are 45 and have direct access to main main server server in PTCL PTCL Headqua Headquarte rterr Islamab Islamabad ad through through DDO ONLINE ONLINE SYSTEM SYSTEM.. All entries of payment and receipts made by the DDOs directly. This software recently installed and starts its functions. Software has the capabilities to record the all entry accord according ing to the finan financia ciall accoun accounts ts requi requirem rement ents. s. Now we discu discuss ss the Funct Functio ion n of Finance Department of PTCL NTR-II.
Functions of the Finance Department of PTCL NTR-II, D.I.Khan
The Major function of PTCL Finance Department includes obtaining resources from owners and providing them a return on their investment and obtaining resources from creditors and repaying those borrowings. Common examples of cash inflows from financing activities include the issuance of notes, bonds, mortgages and other short or long long term term borro borrowi wings ngs and the the issua issuance nce of comm common on and prefer preferred red stock stock.. Comm Common on example example of cash outflow outflow of Finance Finance Departmen Departmentt of PTCL PTCL from financing financing activities activities include repayment of these borrowings, the payment of cash dividends and the purchase of treasury stock.
Finance system
Finance department of PTCL NTR-II, D.I.Khan is headed by the Director Budget and Payment and coordinating the activities of budget, ceiling and revenue sections. All the Divisional Directors send their operating and capital budget estimates to Director Budget and Payment of PTCL NTR-II, D.I.Khan.
The budget and software branch compiled report on budget from provided data and put up in board meeting for approval.
47
The funds allocated to Regional heads are to be further allocated to Divisional units working under their control. The DDOs send ceiling demand according to monthly requirement as per requirement of each field unit attached with the concerned DDO. In response to the DDOs demand the ceiling branch issued drawing limits to Zero balance accounts in NBP Branches. The branches make payments to DDO concerned against their cheques or the party the cheque issued in his favour by the DDO. These branches furnish cheques drawn by the DDOs to main branch of NBP civic center Islamabad. NBP main branches D.I.Khan debit the all amounts to cheques. To main account of PTCL NTR-II, D.I.Khan and credit the concerned bank branch.
Total DDOs in the PTCL all over the country are 45 and have direct access to main main server server in PTCL PTCL Headqua Headquarte rterr Islamab Islamabad ad through through DDO ONLINE ONLINE SYSTEM SYSTEM.. All entries of payment and receipts made by the DDOs directly. This software recently installed and starts its functions. Software has the capabilities to record the all entry accord according ing to the the financ financial ial accou accounts nts requi requirem rement ents. s. In comp compli lianc ancee with with the the code code of corporate Government the PTCL give the following statements.
Financial statements, prepared by the management of company present fairly its state of affairs, the result of its operations, cash flows and changes in equity.
Proper books of the company have been maintained.
Appropriate Appropriate accounting accounting policies policies have been consistently consistently applied applied in preparation preparation of financial statements and accounting estimates are based on reasonable and prudent judgment.
International Accounting Standards as applicable in Pakistan have been followed in preparation preparation of financial financial statements statements and any departure there
from has been
adequately disclosed.
LOAN AND BORROWING
The Loans and borrowings are recorded at the proceeds received. Finance Finance charges are accounted for or an accrual basis and are either added to the carrying amount of the instrument or included in creditors, accrued and other liabilities to the extend to the amount remaining unpaid. Exchange gains and losses arising in respect of loans or borrowing in foreign currency are added to the carrying amount of the instrument.
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INVESTMENTS
Inves Investm tment entss of PTCL PTCL NTRNTR-II, II, D.I.K D.I.Khan han are init initia ially lly measu measured red at cost. cost. At subsequent reporting dates, the company reviews the carrying amount of the investment to assess whether any indication indication that such investments investments have suffered an important loss is. If any such indication exists the recoverable amount is estimated in order to determine the extent of the impairment loss if any impairment losses are recognized as expense.
Where an impairment loss subsequently reverses, the carrying amount of the investment investment is increased increased to the revised recoverable recoverable amount but limited to the extent of the initial cost of the investment. A reversal of the impairment loss is recognized as income.
Accounts and Revenue Department of PTCL NTR-II, D.I.Khan
Both directors of Finance and Revenue are working under the control of General Manager NTR-II, D.I.Khan. Director Revenue is responsible for smooth creation and collecti collection on of Revenue Revenue.. PTCL PTCL Headqua Headquarte rters rs controls controls all operati operations ons through through Regional Regional General General Managers Managers.. In each Region the Direct Director or Revenue Revenue and Account Accountss and Senior Senior Revenue Officers has been entrusted the responsibilities of revenue collection against services offered to the customers. All Directors working in each Division submitted revenue statements along with supporting documents in Billing and Revenue branch. Accrual Accounts on monthly basis are prepared and submitted to billing and revenue branch in PTCL NTR-II, D.I.Khan.
Reven Revenue ue coll collect ectio ions ns manag manager erss in vari various ous head head of accoun accounts. ts. Th Thee Reven Revenue ue Department performed the main function to realize the billed amount and keeping in proper proper head of account accounts. s. The billing billing collecti collection on function functionss perform performed ed by the differen differentt banks in different accounts named “System Billing Collection“ computerized bills are received in system collection accounts by the concerned banks and PTCL customers service centers centers and amount collected collected transferred transferred in Main system system account. The amount amount collected on account of demand for installation of new telephone connection or for any other services and recovery from defaulters’ subscribers in non system account and all banks transferred their collection in Main non system account Islamabad.
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All Regions send Revenue statements along with source documents provided by the banks to Billing and Revenue branch of PTCL Headquarters Islamabad. Billing and Revenue branch compiled the reports containing different head of accounts and prepared basis for revenue collection for profit and loss accounts. Revenue Department Department of NTR-II basic function is to collect bills from the customers. After collecting these bills the amount are transferred to the PTCL Headquarter Main Branch.
Accounting System of PTCL NTR-II, D.I.Khan
Up to June 1991 the Accounts of PTC were prepared on a cash single entry basis but the June 1992 accounts accounts have been prepared prepared under under the Internatio International nal Accounti Accounting ng Standard (IAS) double entry accrual bases.
All decision making in an organization has an impact on its financial viability. The management decisions are also greatly influenced by the financial information that the accounting process generates. Since becoming PTCL significant progress has been made to over haul the accounting system of PTCL. The Accounting systems of PTCL are prepared by the Director Revenue and Senior Account Officer of Revenue Department. PTCL has not only introduced the mercantile system of double entry based on recognition of accruals but have also computerized the accounting system. It is also heartening to note that has been achieved by relying totally on in house expertise. The PTCL allocated accounts code to each assets, revenue and expenses head. The account codes have been classified into the account heads for balance sheet and profit and loss accounts. All expenditure capital and revenue are coded according to its relevant DDO and function codes.
ACCOUNTING CODE RANGE
PTCL NTR-I1, D.I.Khan has also allocated codes to all regions and the DDOs. These Th ese codes codes are being being used used for all all transa transacti ctions ons whethe whetherr in cash, cash, throu through gh bank bank or accounting for receipts from store. These codes are given in Appendix “C”
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PAYMENT VOUCHER
PTCL NTR-I1, D.I.Khan has designed a payment voucher which based on double entry entry syste system. m. It is also also the sourc sourcee docum document ent for enteri entering ng the trans transac acti tion on into into the accounting accounting software on computers. computers. The step instructions instructions are to be followed by all DDOs for recording the transaction are consists on the following items.
I I I.
I.
Payment voucher No.
II .
Date
Cash/Cheque IV.
Cheque No.
V.
Name of payee.
V I.
Bank Code No.
VII. VII.
Amou Amount nt in Figur igures es/w /wor ords ds,,
V I I I.
Purpose.
IX.
Project code.
X.
DDO Code.
X I.
Function co code.
XII .
Account No.
XIII XIII..
Debi Debitt and and Cred Credit it..
X IV.
Payee No.
RECEIPT VOUCHER.
The PTCL NTR-I1, D.I.Khan has been used a receipt voucher which is prenumbered and contains three pages. The first two pages of the voucher are perforated page -1 is meant to be handed over to the depositor whereas page-2 is use in PTCL NTRNTRI1, D.I.Khan Account. Page three is to be retained by the Cashier making payments. It may be noted noted that voucher voucher is to be used used for actual receipts receipts and not for deducti deduction on from payments being made refund of a temporary advance by an employee is to be routed through receipt voucher but in case temporary advance is recovered from salary of the employee the transaction need not be through the receipt voucher. The filled in receipt voucher shall from the basis for data entry into computer consists on the following items. I.
Book No.
II .
Receipt voucher no.
III. II.
Date, Cas Cash, h, Cheque, que, Amount unt et etc. 51
IV.
Received from.
V.
DDO code no.
V I.
Funct nction co code and acc acco ount unt no. no.
VII .
Debit and Credit.
JOURNAL VOUCHER
Journal voucher are used for accounting transactions that do not involve cash payment or receipt i.e. adjusting entries. The journal voucher is also to be used for transf transfer er of funds funds from from the the colle collect ction ion accou accounts nts to PTCL PTCL NTRNTR-I1, I1, D.I. D.I.Kha Khan n as this this transaction transaction does not change the balance of cash in hand or at bank of the DDO. The main steps are as under:I.
Journal voucher no.
II .
Date.
III. II.
Account ount Code, de, Fun Funct ctiion cod codee.
IV.
Amount of Debit.
V.
Amount of Credit.
V I.
Brief narration.
VII. VII.
Sign Signat atur uree of conc concer erne ned d Off Offic icer er..
SCHEDULES
After all the vouchers have been prepared for the month, the preparation of the schedule scheduless for each head of account account starts. starts. The account accounting ing softwar softwaree for commer commercial cial accounting automatically prepares all the accounts schedule after all the vouchers have been fed into the computer and posting completed at the end of month.
ACE-40
A summa summary ry are to be prepar prepared ed by each each DDO DDO whil whilee prepa prepared red the the accoun accounts ts schedule, the net debit or credit balance appearing against each head of account in the account schedules schedules is posted to on the debit or credit column of the ACE-40 against against the relevant code. The DDOs are submitting the ACE-40 along with the accounts schedules and the supporting vouchers to PTCL Accounts Directorate Lahore so as to reach there on the 6th of the ensuing month for further process.
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CHAPTER 5 SWOT ANALYSIS OF PTCL NTR-II
Thee term Th term SWOT SWOT,, in manag managem ement ent liter literatu ature re stands stands for for stren strength gths, s, weak weaknes nesses ses opportun opportunitie itiess and threats, threats, SWOT SWOT analysis analysis refers refers to analyzi analyzing ng the organiz organizatio ation’ n’ss internal strength and weaknesses as will as external opportunities and threats in order to identify niche that the organizations can exploit. The purpose of such analysis to iden identi tify fy and and deve develo lop p the the comp compan any’ y’ss stre streng ngth th in orde orderr to capi capita tali lize ze on the the opportun opportunitie itiess in the company company environm environments ents and to identify identify correct correct company company’’s weaknesses and formulate strategies to avoid threats confronting the company in its environment. SWOT analysis is based on the assumption that if manager carefully review and analyze the strengths, strengths, weaknesses, opportunities opportunities and threats pertaining to their their organi organizati zations ons they can develop develop useful useful strategi strategies es for curtaili curtailing ng failure failuress and insuring organizational success. SWOT analysis typically includes analysis an organization organization from different different aspects such as managem management, ent, marketi marketing, ng, fiancé, fiancé, product production, ion, human human resource resource,, research research and devel developm opment ent.. Stren Strength gthss and and weakn weakness esses es relat relatee to the inter internal nal enviro environm nment ent of an organ organiza izatio tion, n, where where as opp opport ortuni uniti ties es and threa threats ts are brough broughtt about about by the extern external al environment of the organization. In the following section both internal and external analysis are outlined: In the words of peter and Drunker, any business, manufacturing or any other, is a business owned by it customers. Because any thing you produce or any service you provide his to be produced or provided viewing the customer’s choice and taste. Therefore it is concluded that the customer is the ultimate boss of any business. “This standing of a business in a customer mind is known is the image of that very business”. Image of any business is one of the most important things for any type of business. Whether Whether you want to produce some thing, want to capture a market, penetrate penetrate a market, go globally or want to diversify the product line. Each sand every decision and strategy is taken and formulated keeping in view, how does the business stand in the customers eyes? Or what it is ranking in customer mind? A good quality product of a bad image company or a company with new existence would not sell it all or would not meet the standards or objectives and goals but a poor quality product or produced of fair or 53
Medium Medium woul would d sale sale like like produc productt of super super quali quality ty”” just just becaus becausee of its its image image”. ”. But But customer’s customer’s image of a product or product of a company is not “the whole facts”. Ruther a compa company ny’s ’s own own manag manageme ement nt view view about about its its own own compan company y or busine business ss is also also very very important.
The managemen managementt of accompa accompany, ny, obvious of the facts, where its company company or busin busines esss stands stands in custom customer’ er’ss eye eye could could never never make make its its comp company any pauper pauperiz ized ed in customer’s and could not develop its company’s or business good or sound image. Only when the management would know its standing would they strive for the development of sound image and the business or company would get customer acceptance. How would the management know about its company’s or business standing?
So many methods are adopted for that purpose. One such tool is called “SWOT” Actually SWOT stand for: S-----------------Strengths W---------------Weaknesses O----------------Opportunities T----------------Threats SWOT is a tool, used by the management of a company initially know where does its business stands.
INTERNAL ANALYSIS
An inter internal nal analy analysis sis of an organi organiza zati tion on is the the analy analysi siss of its its stren strength gthss and weaknesses. Unless a firm has internal strengths and controls its weaknesses, it can’t take advantage of opportunities and avoid threats, which the external environment confronting the organization presents. Following are the main strengths and weaknesses of PTCL NTR-II D.I.Khan:-
STRENGTHS
Strengths are positive internal characteristics that the organization can exploit to achieve its strategic performance goal. These are the strengths which are given below.
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Monopoly of PTCL
Due to this factor there is no any organization and company who provide the facility of fixed lines in D.I.Khan city. PTCL is the company who is trusted by the subscribers/users. It has wide range and can easily access to wide and distant local areas in D.I.Khan.
Dependence of Telecommunication Companies on PTCL
All the Telecommunication companies are dependant on PTCL. All the mobile companies have to take permission from PTCL. All the local PCO`s (Public Call Offices) and ISP`s (Internet Service Providers) in the D.I.Khan city are Dependant on PTCL. They cannot cannot start start and expand expand their their busine business ss with without out the perm permiss issio ion n of PTCL PTCL NTRNTR-II, II, D.I.Khan.
Low Turnover Rate
PTCL PTCL NTRNTR-II, II, D.I. D.I.Kh Khan an provid provides es too too many many facil facilit ities ies to its its empl employ oyees ees and workers such as good salaries, medical and home facilities. They also enjoy the facility of free local calls too. So therefore therefore the entire worker doesn’t want to leave the organization. There is low turnover rate and in this way company maintain its value and standard. Employees are satisfied in the beginning of this Organization.
WLL (Wireless Local Loop)
PTCL NTR-II, D.I.Khan has strong financial position; therefore, PTCL can start new Technology of wireless phone in order to reach those areas, where it is difficult to place the network Telephone lines. So by introducing and launching this technology, PTCL can access to the hilly and wide areas of KPK. This helps in generating of more revenue.
STRONG FINANCIAL POSITION
PTCL NTR-II, D.I.Khan has also a strong financial position and it has too many financial resources in order to invest it in new technologies to compete and maintain its position in market. There are a good network of PTCL NTR-II, D.I.Khan in KPK and Northern areas therefore the collection of revenue are very well.
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WEAKNESSES
“Weakne “Weaknesses sses are the internal internal characteri characteristic sticss that that may inhabit inhabit or restrict restrict the organizations”. Or a weakness can be defined, as an area in organization where the organization is not is good doing sometime as its competitors are.
A weak weakne ness ss is some someth thin ing g that that is lack lackin ing g in orga organi niza zati tion on thus thus putt puttin ing g the the organiza organization tion at competi competitive tive disadvan disadvantag tages. es. With With the above above Strengt Strengths hs PTCL PTCL NTR-II, NTR-II, D.I.Khan have also Weaknesses. PTCL NTR-II, D.I.Khan has the following weaknesses.
Change of Management
Although PTCL NTR-II, D.I.Khan is a good Regional office of PTCL but there are some weaknesses which have effected the whole department. Some of the officers are actin acting g as dict dictato ator. r. No bod bodie iess of the the upp upper er manag managem ement ent will will coope coopera rati tion on with with their their employees.
Employee’s dissatisfaction dissatisfaction
Empl Employ oyee eess are are not not sati satisf sfie ied d from from the the uppe upperr mana manage geme ment nt and and the the uppe upper r managem management ent has also dissatisfa dissatisfactio ction n from the top managem management. ent. The other other point point of dissatisfaction is that there are no promotions of qualified staff. During the internship there are so many qualified people which were working on lower position. If the upper manag managem ement ent promo promote te these these emplo employe yees es to their their seats seats than than that that will will be effec effecte ted d the organization organization to positive side. Change of new Management effected the Management and the Employees.
Lack of Qualified Staff
In effective communication communication between the higher and lower staff, this is due to less qualified lower staff. If there will be well qualified staff then no chance of system failure. The staff of PTCL NTR-II, D.I.Khan is not highly qualified and many of them also do not aware about their responsibilities and jobs. Most of the work is done by the irrelevant persons, like the work of clerk is done by the technician and wireman.
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More Telephone lines faults
PTCL NTR-II, D.I.Khan faces too many Telephone line faults as there is no standard in D.I.Khan city, for building roads and sewerage system and building houses. Therefore telephone lines that are placed underground are always affected by the water and due to the constructions.
Lack of Commitment
The staff members are not committed to their jobs and most of the officers show negligence to customer’s complaints and often delay in solving the customer’s problems and needs.
EXTERNAL ANALYSIS
Thee mana Th manage geme ment nt of ever every y orga organi niza zati tion on has has to moni monito torr the the envi enviro ronm nmen entt confronting the organization constantly to identify the factors that may require change. This is necessary to keep up with new developments and changes in the environment. A change in the external environment environment may be either an opportunity opportunity or threat. In either case, the organiz organizatio ation n to properl properly y employ employ it strength strength to capital capitalize ize opportu opportunity nity and avoid avoid minimize a negative effects of threat.
Following are the main opportunities and threat of PTCL NTR-II, D.I.Khan:-
OPPORTUNITIES
“Opportunities are the characteristics of the external environment that have the potential to help the organization to achieve and exceed its strategic goals” These are the opportunities which are given below.
Mobile Technology
As in this new world of mass communication there is a trend shift from fixed line telephone system to the mobile networks as PTCL has strong back bone in fixed line sector it can easily attract this potential market
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Cable Network
PTCL as an open opportunity to grape the internet user on commercial basis by introducing the cable net work system. As it has gain popularity due to its high speed and 24 hours connectivity. Following are the some other opportunities. The revenue can further be generated through better marketing strategies. PTCL NTR-II should take measure to ensure that the entire complaint and customer care center, which will able to serve customers in a better way. PTCL NTR-II still can expand their market by venturing into small cites, which are still unexplored. Private mobile companies are getting license from PTA, which are source of revenue as well. PTCL has also launched its own mobile services. Due to pressure of various governments PTCL NTR-II, D.I.Khan has not been able to collect sufficient amount of its money from its defaulter but present government is very strict to collect the arrears with the help of NAB, PTCL can cover its million of rupees.
THREATS “Threats are characteristics of the external environment that may prevent the
organization from achieving its strategic goals.” There are some threats given below.
Strategy of New Management
With the change of the management, most of the employees are working under pressure. They are disturbed disturbed due to fear and tension created by the new management. As the new management has its first step to remove the unnecessary and unskilled employees from the organiz organizati ation. on. So in this perspectiv perspectivee the performanc performancee and efficiency efficiency of the employees is affected.
Mobile Companies
Many mobile companies such as Mobilink, Warid Telecom, and Telenor are threats for PTCL NTR-II, D.I.Khan. People are increasingly using mobiles and ignoring PTCL NTR-II, D.I.Khan connections, that is why there is a decline in the use of fixed 58
connections of PTCL NTR-II, D.I.Khan. This decrease the revenue of PTCL NTR-II, D.I.Khan.
There are some others threats for PTCL NTR-II, D.I.Khan given the following.
In case PTCL is privatized, there will be a lot of shutting of employee and the work force will be reduced. So there is a threat to may employee of there job being lost and it will effect the Employees of NTR-II, D.I.Khan.
PTCL had the monopoly in telecommunication services till 2003, which is not off. Now all the companies are allowed to enter in the telecom business in the Pakistan. The new competitions are very challenging for PTCL NTR-II, PTCL NTR-II, D.I.Khan. The unstable economic condition of Pakistan is a great threat to
PTCL. In strong economic condition, the growth of business is very frequent. The poor economi economicc conditi condition on increase increasess the inflati inflation on rate, rate, which which is very threatening for PTCL NTR-II, D.I.Khan. The management of PTCL should prepare a training plan for the
staff of each regional centre because these trainings trainings play an important role in the output of employees. The training should be two types’ local training program and foreign training program.
CONCLUSION
PTCL NTR NTR-II -II,, D.I. D.I.Kh Khan an is one of the goo good d Regio Regional nal offic offices es in KPK KPK and performing well but still there is always a room to improve.
NTR-II, D.I.Khan should develop the strategies to encounter the future challenges through its opportunities for those areas where NTR-II, D.I.Khan have no Access. To remain the leader in the telecom sector in Pakistan PTCL has to give importance to customers by offering low charges. PTCL should avails its opportunities and reduce the weaknesses and threats by taking concrete steps.
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CHAPTER 6 FINDINGS AND PROBLEMS
Adoption of New Emerging Technologies
Finding
PTCL is not adopting New Emerging Technologies. This will create problem to cope cope with the cha challenges nges of the moder dern world rld and new deve evelopm opments nts in telecommunication sector.
Suggestion
In order to meet the new world challenges, it is very important for PTCL NTR-II, D.I.Khan D.I.Khan to bring some new changes in the existing existing system. With the implementation implementation of the state of the art technology PTCL NTR-II, D.I.Khan would be able to compete and face the challenges of the new world.
Provision of Training of employees
Finding
There is no provision for training of employees. This will affect the development of the employees and the organization as well.
Suggestion
It is the main responsibility of the PTCL NTR-II, D.I.Khan D.I.Khan upper management to give give prop proper er trai traini ning ng to its its empl employ oyee eess beca becaus usee it will will help help the the empl employ oyee eess in the the implementation of new technologies. The training should be both local and foreign to handle technical operations. Training should also be given in different managerial areas. The need for training each and every employee may be identified and training programs can be designed.
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To adopt Communication among Management
Finding
There is lack of Communication among Management and employees.
Suggestions
PTCL NTR-II, D.I.Khan should communicate changes to its key people (top management and down wards). By sharing information and ensuring its acceptance, there are some other suggestions which should adopted by the management to improve the efficiency.
There should be strong communication between Top management and Lower management. management. When top management provides confidence to lower staff then the relationship will be strong. Lower management will be able to commu communic nicate ate their their new ideas ideas and thei theirr invol involvem vemen entt in work work will will increase.
There There should should also good relation relationship ship between between middle middle manageme management nt and clerical staff. If the middle management and clerical staff cooperate with each other than the strong relationship is possible.
There should be a good working environment in the offices. This is importa important nt as product productivit ivity y is dependen dependentt on healthy healthy working working conditi conditions. ons. This includes both physical and intangible working environment.
No Hot line facility
Finding
No Hot line facility. This can create problem such as for line fault removal.
Suggestion
The PTCL NTR-II should introduce Hot line facility for line fault removal in each and every city of KPK.
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