MARKETING PLAN OF PTCL

Submitted to: Ali Shaikh

Submitted by: Shah Fahad
Date: 11-11-2010

Vision

To be the leading Information and Communication Technology Service Provider in the region by achieving
customer satisfaction and maximizing shareholders' value'.
 The future is unfolding around us. In times to come, we will be the link that allows global communication. We
are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to
shape a future that offers telecom services that bring us closer.

Mission
To achieve our vision by having:
 An organizational environment that fosters professionalism, motivation and quality
 An environment that is cost effective and quality conscious
 Services that are based on the most optimum technology
  "Quality" and "Time" conscious customer service
 Sustained growth in earnings and profitability

Core Values
 Professional Integrity
 Customer Satisfaction
 Teamwork
 Company Loyalty
 

Company Profile
PTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the
productivity frontier to new heights. Today, for millions of people, we demand instant access to new products
and ideas. More importantly we want them for their better living standards with increased values in this ever-
shrinking globe of ours. We are setting free the spirit of innovation.
PTCL is going to be your first choice in the future as well, just as it has been over the past six decades.

PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA
operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan
as an infrastructure provider to other telecom operators and corporate customers of the country. It has the
potential to be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fibre Access
Network in the major metropolitan centres of Pakistan and local loop services have started to be modernized
and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the
capacity of two SEA-ME-WE submarine cable is being expanded to meet the increasing demand of
International traffic[3].
From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone &
Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite
having established a network of enormous size, PTCL workings and policies have attracted regular criticism
from other smaller operators and the civil society of Pakistan.

Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone
and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the
Government's competitive policy, encouraging private sector participation and resulting in award of licenses for
cellular, card-operated pay-phones, paging and, lately, data communication services.

Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTCL, and in 1994
issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate
placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in
mid-1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over
basic telephony in the country. The provisions of the Ordinance were lent permanence in October 1996 through
Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company
Limited was formed and listed on all stock exchanges of Pakistan

PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet
respectively. None of the brands made it to the top slots in the respective competitions. Lately, however, Ufone
had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the
period of time. Recent DSL services launched by PTCL reflects this by the introduction of a new brand name
and operation of the service being directly supervised by PTCL.

As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set
to face even bigger challenges. The post-monopoly era came with Pakistan’s Liberalization in
Telecommunication in January 2003. On the Government level, a comprehensive liberalization policy for
telecoms sector is in the offering.

In 2005 Government of Pakistan decided to sell 26 percent of this company to some private corporation. There
were three participants in the bet for privatization of PTCL. Etisalat, a Dubai based company was able to get the
shares with a large margin in the bet. Government's plan of privatizing the corporation were not welcomed in all
circles; countrywide protests and strikes were help by PTCL workers. They disrupted phone lines of institutions
like Punjab University Lahore along with public sector institutions were also blocked. Military had to take over
the management of all the exchanges in the country. They arrested many workers and put them behind bars.
The contention between Government and employees ended with a 30% increase in the salaries of workers.

In 2009 PTCL launched its new product with the name of EVO

Introduction:
Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in
Pakistan. This company provides telephony services to the nation and still holds the status of backbone for
country's telecommunication infrastructure despite arrival of a dozen other telcos including telecom giants like
Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country
providing largest fixed line network. GSM, CDMA and Internet are other resources of PTCL, making it a gigantic
organization. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006.
The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general
public

ANALYSIS OF EXTERNAL ENVIRONMENT

Pakistan followed a gradual approach to liberalize its telecom market. During 1990s, as a first step, market was

opened for value added services and competition was introduced in cellular mobile sector as four licenses were

issued (Mobilink, PTML, Paktel and Instaphone). The government monopoly was retained in fixed line services,

however, PTCL legal monopoly ended with effective from 31st December2002. The government announced

Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and2004 respectively. The telecom regulatory,

issued new licenses for Long distance International (LDI) and Local Loop Fixed (LL Fixed), Wire Local Loop

(WLL) and Cellular Mobile. With the issuance of new licenses the market is now open for full competition in all

segments of the sector

 Industrial Structure
Pakistan’s telecom sector has finally begun moving and looked set for an era of phenomenal growth. The sector
has witnessed tremendous growth in recent years with Tele density depicting major expansion after
deregulation. The primary purpose of deregulation of the sector was to encourage healthy competition while
providing better quality products and services to customers on lower prices as well providing best technology
available worldwide.
Current Tele density in Pakistan has expanded exponentially from 4.3 percent in 2002-03 to stand at
48.4percent in 2006-07 with currently standing at over 52 percent, with better services and competitive rates.
Also, increasing inflow of foreign investment in the telecomm sector has resulted in the introduction of new cut
throat technologies for provision of various telecom services including cellular, wireless and internet services.
In recent times, the focus has increasingly shifted from Fixed Lines to Cellular and Wireless Fixed Lines (WLL),
with better portability and convenience. WLL has shown an improvement from 0.7 percent to 1.1 percent in
2006- 07 from last year with subscribers of 2 mn.
Cellular segment remained the vital player with increase in total Tele density contributing 48 percent. In the
urban markets introduction of Broadband internet services by various Telecomm giants such as PTCL, WorldCall
and Wateen has further benefited the consumers to access timely information over the internet with
competitive rates. The broadband penetration however has not depicted as much growth as expected growing
with 3.5mn subscribers in 2007 against 2.4mn subscribers in 2006. PTA estimates broadband subscribers to
grow to over 5mn by 2010. World Call has initiated cable television services with PTCL expected to follow suite
by providing IPTV services through its Triple Play services, ensuring diversification of products and services.
Recent conducive environment provide by PTA has resulted in increased FDIs in the sector with investments of
USD2.7 bn during the last five years making it the largest recipient of highest FDI during the past few years. The
future for telephony lies amongst unexplored rural regions of Pakistan with all major telecom operators looking
forward to tap these markets with a major contribution by WLL and Cellular segments due to cheaper
installation costs. With healthy competition instigating lower local and international tariffs and availability of
alternative services has progressively benefited the consumers overall.

Regulatory Environment
The local telecom market has altered significantly since the creation of PTA as an independent regulatory
agency and had enjoyed sizeable success to open up the local market to competing operators. With the
governments deregulation policies, Etisalat, the UAE based telecom player being the highest bidder emerged as
the buyer of the 26 percent share in PTCL in April 2006. PTCL, despite being a giant, had to face many
bottlenecks in its operations with such large network.
PTCL has recently taken an initiative to right size itself by introduction of VSS for its employees whereabouts
28000 employees are accepted under the scheme. Introduction of various diversified products and services to
sustain its market share, Implementation of ERP solutions to provide integration of various departments
through acquisition of SAP software and state of the art billing and customer service software, translates PTCL’s
long term goals of operational effectiveness into practice. The telecom giant PTCL has observed cutthroat
competition from various service providers after the implementation of the deregulation policies by the PTA.
However, through the vast infrastructure and being the carriers’ carrier, PTCL with diversification of its various
services has enjoyed well-built position and posses immense potential for growth, while need for telecom
services is on rise as economy continues to grow on the right track.
The telecom De-regulation and Cellular Mobile Policies announced by the Federal Government place certain
obligations on Pakistan Telecommunication Company Limited (PTCL) to facilitate market liberalization. PTCL is
bound to comply with these obligations within a stipulated time frame. These obligations are of paramount
importance for successful implementation of the policy and failure or any deviation thereof may result in
substantial damage to the deregulation process/liberalization program. Similarly Defense, NTC and SCO also
depend on PTCL for many facilities. Therefore, PTCL has important obligations towards Defense of the country
and other existing operators. In addition, PTCL has-been declared SMP operator. Under the status of SMP also,
PTCL has certain obligations. PTA, as regulator, has to ensure that new management of PTCL fulfils all these
obligations.
SWOT ANALYSIS

Strengths

 Largest operational network and infrastructure within ICT (Information & Communication Technologies)
segment.
 An integrated Monopoly.
 Market leadership in Local loop, Wireless local loop (WLL) and fixed telephony.
 PTCL (Ufone) is market challenger in GSM segment.
 Ufone is performing well though Warid and Telenor are tough competitors. PTCL, Ufone’s profitability
increased by 49.2 percent to Rs 977 million in 1H/FY07 as compared to Rs 655 million in the
corresponding period last.
 Competitors still depend on PTCL network either directly or indirectly.
 Experienced Telecom Resources.

Weakness

 Not been able to nurture its growth around customer services oriented strategy.
 Monopolistic culture has further added to its complexities.
 Paknet, the internet service provider arm of PTCL continues to incur losses due to poor management
and lack of network optimization.
 PTCL-V, the fixed wireless phone service is poor.
 Over employment & low productivity.
 Slow decision making including external interferences.
 Corporate culture akin to government departments.

Opportunities

 Low tele density of Pakistan.

 Have vast infrastructure and real estate assets which can be leveraged further.
 Global connectivity reliability has been improved. PTCL is expanding the long distance and infrastructure
side through spreading out two sea-me-we submarine cables.
 Partnership with new entrants in a deregulated environment.
 Scope for efficient/cost effective operations.
Threats

 Increased competition in long distance continues to exert pressure.

 VOIP use is increasing despite ambiguous and discriminatory policies.
 Exposure to market competition.
 Migration to Cellular Networks.
 Ability to Attract & Retain Quality Professionals.
 Reduction in International Settlement Rates

THANK YOU