December 12, 2018

PTCL

“Strategic Planning”

-
 Pakistan Telecommunication Company Limited

Background
Pakistan Telecommunication Company
Limited was established in 1947 by
establishing Posts & Telegraphs &
Telephone Department that has played a
major role in the telecommunication
sector in Pakistan since. It was a state-
owned monopoly company that
dominated the whole market shares in
the telecom industry. In early 2000, the
Government of Pakistan decided to open
the telecom industry to other telecom
companies to improve the services sector
in the telecommunication market. “The above picture shows the headquarters of Etisalat in
Abu Dhabi, The United Arabs Emirates.”
In 2003 The Government of Pakistan
allowed & encouraged foreign companies to invest in the Pakistani Telecom market. So, in 2005
the Pakistan Government decided to privatize PTCL by only selling its 26%. Etisalat International
Pakistan a wholly owned subsidiary of Emirates Telecommunication Corporation purchased
26% stake in PTCL & also took control of the company’s management as well.
(En.wikipedia.org, 2019)

An Emirate based multinational telecommunication corporation, Emirates Telecommunication

Group Co. PJSC; its brand trade name is “Etisalat” which provides telecommunication services
like fixed-line, cellular, data communications, and Internet & satellite communication; to 16
countries across Asia, The Middle East & Africa. Its headquarters is in Abu Dhabi, the United
Arab Emirates. (Khaleej Times, 2012)

Etisalat was ranked the most powerful company in the United Arab Emirates by Forbes Middle
East 2012. Etisalat is also ranked among world Fortune 500 companies. As of 22nd April 2018,
according to the latest report by Brand Finance, Etisalat is now ranked the Middle East most
valuable brand with its brand value surging 40 percent to $7.7 billion. (Forbes, 2018)
Introduction
Pakistan Telecommunication Company Limited, in short for PTCL, is the national
telecommunication company in Pakistan. PTCL is the backbone for the country’s
telecommunication infrastructure nationwide. PTCL still is the only telecom monopoly in the
country despite other international telecommunication enterprises invested in the telecom
industry in most areas. PTCL still the single largest telecommunication provider in Pakistan in
terms of revenue and other measures. Its headquarters is at Islamabad, Pakistan. PTCL’s current
CEO & president is Daniel Ritz till March 1 st, 2019 then Rashid Khan the current CEO of Ufone
will take charge of both PTCL & Ufone management. PTCL’s has different small exchanges &
customer services are provided all over the country & they have hired almost over 18,000+
employees.

PTCL has founded at 1995 it was the only telecom company in Pakistan that dominated the
telecom market solely but in 2000 the Government of Pakistan decided to open its market for
foreign telecom companies to invest in this market. So in 2005, PTCL becomes privatized by
selling it 26% shares to Etisalat. It’s still a state-owned corporation with 62% of its share while
the 12% belongs to the general public.

Today, PTCL is the leading and the only fully integrated telecom operator in Pakistan providing a
vast array of telecommunication services, both voice and data, using its unparalleled network
capabilities of wireline and wireless access, across the length and breadth of the country to all
segments of society be that it be a retail, corporate and business entities or other operators.

In 2013-2019, based on stable economy of Pakistan, the telecom sector grew further. The
catalyst for the growth remained transition from voice to higher-end data services. Hence, the
country-wide tele-density as well as the number of telecom subscribers increased during 2016.
The appetite of data services amongst Pakistan’s telecom users, as such, is an encouraging
phenomenon for PTCL, as with less than 11% households in the country with access to wireline
broadband albeit with improved economic indicators in place, there is ample opportunity for
PTCL to expand its wireline and wireless broadband data services with envious volume and
speed capabilities, using its country-wide presence. (TechJuice, 2017)

PTCL provides these features or specialties in Voice, Broadband, EVO Broadband, Smart TV and
Service Bundles. PTCL has the largest integrated telecommunication infrastructure of telephone
& internet services nationwide & still is the only backbone for the country despite the arrival of
dozen other Telco’s corporate competitions like Mobilink, Qubee, China Mobile, NayaTel,
Telenor & many more. PTCL enjoys its monopoly in fixed-line services all over nationwide by
operating 2000 exchanges. It offers & increases its business in different fields of telecom sect in
Data “Internet facilities” & backbone services such as GSM, HSPA+, CDMA, LTE, Broadband
Internet with DSL & FTTH, IPTV & wholesale.

PTCL’s has association with different companies like TF Pipe Ltd, HikVision, ZTE, Ericsson,
Huawei etc. To helps PTCL to maintain its telecommunication operation all over the country &
internationally as well. PTCL is also associated with the 4 major Submarine communication
cable networks SEA-ME-WE 3, SEA-ME-WE 4 and I-ME-WE and AAE-1 to provide network
connectivity through the optical submarine communication cables across different regions of
the world. (En.wikipedia.org, 2019)

Telecom industry is one of the most dramatic increases during the last 5 years in Pakistan.
Pakistan has become the hub to attractive Telecom market for foreign & local investments.
PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and Pak
Net respectively. Lately, however, Ufone had increased its market share in the cellular sector.
PTCL Group’s generated revenue of US $ 1.1 billion (RS. 117 billion) in 2017 decline by 1% to its
previous year. PTCL Company has about 1.4 million DSL (Fixed-line Broadband) subscribers out
of 1.6 million in the total telecom market said Daniel Ritz in an interview with the Business
Recorder in 2017 & also said that there is only 5% of low penetration in the market of
significant under-penetrated market of 32 million households in Pakistan, as per the recent
census data.

PTCL Group’s revenue in 2018 is growth by 8% that is Rs. 126.2 billion Ufone revenue also
increased by 13% as well as Ubank a microfinance banking subsidiary of PTCL has shown double
growth in over it previous revenue up to 64%. For the first time since 2014 the net profit of
PTCL Company has increased by 0.7% (Rs. 70.1 Billion). PTCL’s flagship fixed broadband services
also experienced revenue growth 6.5% with 51 fully transformed exchanges with 12.4% while
also reducing in the network faults and repeated faults by 36% to 50% along launching new
triple Bundle play up to 100Mbps services for its customers. And conversion of its EVO
customers to CharJi 4G LTE has responded in a positive direction as compare to its previous
year. PTCL to further enrich it product & services portfolio PTCL partnered with the Global OTT
Player “Over the Top” like Netflix, STARZ Play, iFlix etc.

PTCL not just emerged as telecom operator in last few years but it also expand its corporate
business up to significantly 13% growth over the last year like by signing new customers in
Managed services & Cloud Infrastructure Services resulting in 154% and 188% growth in these 2
telecom segments. Also PTCL operating profit this year is lower than last year mainly due to
currency devaluation of Pakistani Currency in 2018. (PTCL 2018 Annual Report, 2019)

To uplift the PTCL’s brand image in 2017 it started key sponsorship initiatives to promote its
role as a national company by supporting the national sports. It partners up with Islamabad
United team in Pakistan Super League & FC Barcelona Football Club. It also sponsored the
Hockey Cup 2018, Pakistani T20 Team in the New Zealand Series & Islamabad United Team in
PSL3. (Ptcl.com, 2018)

PTCL has been recognized by Brand Finance as the “Fastest Growing Brand in Pakistan”. In
2017, a survey report of Brand Finance measured that in the Etisalat brands portfolio, PTCL’s
brand value rise up to USD 86 million with a 37.5% increase in value in just one year, PTCL has
become the fastest growing brand in Pakistan. (Arab News PK, 2017)

Significant growth of Pakistan’s Telecommunication Sector has been recognized at the

international level as well. Now, According to a recent survey on brand ranking, Pakistan’s four
major telecom players gained a place among the world’s top 300 strongest brands in terms of
value. Pakistan’s telecom giant, Pakistan Telecommunication Company Limited (PTCL), was
declared the fastest growing brand in Pakistan by the London-based Brand Finance,
independent brand valuation and strategy consultancy. It stated that PTCL brand price tag is
around $119 million (12.5 billion rupees). So, PTCL ranks 214 among 300 top valued telecoms
operator brands in the world. It’s the second telecom brand in Pakistan to be valued at over
$100 million, improving its ranking by 21 points to be placed at 214 in Brand Finance’s Telecoms
300 2018 League Table. The first one was Pakistan’s Jazz (Mobilink) was the first to achieve a
value in excess of $100 million. (Ptcl.com; Press Release, 2018)

It’s also growing in popularity in social media as well, as of February 2019 PTCL had 1.3M fans
on Facebook, 174K followers on Twitter & 1.2M followers in LinkedIn. This growing popularity
of PTCL; David Haigh is the CEO of Brand Finance as stated that:-

“Pakistan Telecommunication Company Limited (PTCL) is undergoing the fastest change in brand value
at 37.5 percent. This is a testament to the ambitious network transformation project which has resulted
in several fully transformed exchanges, giving PTCL customers speeds of up to 100 Mbps. As the largest
fixed network operator, PTCL is evolving through the current market challenges by investing heavily in
upgrading its high-speed Internet and telephone service offerings; and proving its commitment to
building a digital and connected Pakistan. High profile sporting sponsorships of the national cricket team
in T20 and Islamabad United team in Pakistan Super League (PSL), as well as last month’s PTCL Hockey
Cup 2018 have also contributed to the solid growth in PTCL’s overall brand value.” (Brand Finance, 2018)

& Fariha Tahir Shah, Head of Corporate Communication of PTCL told in an interview to Arab
News that:-

“It is recognition of PTCL’s financial strength as well as its corporate social responsibilities that the
company showed firm determination during the previous year & company’s is not just determination to
pursue the strategical development in improving services to customers but also through its CSR
“Corporate Social Responsibilities” activities. Last year many sponsorship initiatives were taken by PTCL
which includes partnerships with Islamabad United team in Pakistan Super League and FC Barcelona
partnership for Pakistan. She added that as part of its social responsibilities, PTCL conducted a large
blood donation campaign which resulted in donations of 10,500 pints of blood and it also supported the
Breast Cancer Awareness campaign.” (Arab New PK, 2018)

In fact, even before privatization of PTCL, it was one of the leading & strongest telecom players
in Asia because it had a large pool of expert technicians. Within South Asia, PTCL boasted
making Pakistan the first country to switch to Dense Wavelength Division Multiplexing
technology, which is critical for meeting increasing demand in telecom sect. PTCL has an
extensive copper and fiber-optic network all over nationwide & to maintain its world-class
performance, PTCL had to train fresh recruits & existing array of schools employees. (Business
Recorder, 2006)

About PTCL

PTCL Company fully realizes & understands the rapidly changing pattern of consumer
preferences whereby, based upon day-by-day increasing enrichment of contents, the demand
for data services is constantly growing. To keep up to date of the customer’s demand, besides
investing in transformation and upgradation of the network, PTCL also has continuously offer
newer packages with larger data volumes and higher speeds as well as strengthening its existing
products and services, by always keeping in mind the affordability factor.

In 2018, the products portfolio of both wire and wireless encompassing broadband, content
and media, voice, services for corporate and enterprise segments interconnect offerings,
international connectivity, and digital services etc.

Portfolio of PTCL PRODUCTS & SERVICES

The Product & Service Portfolio is classified into three sections Home & Personal Services,
Carrier & Wholesale Service & Corporate Business Services.
Home & Personal Services
PTCL Landline Wireless Mobile Broadband (3G/4G Devices: WiMAX, EVO
PTCL V-FONE not Wingle, CharJi)
available since 2017 Fixed Broadband (DSL, ADSL, HFC, GPON FTTH)
Smart TV Calling Cards
Conference Calls Pakistan Package
VSAT Service

Carrier Services & Wholesale

Telecom Operators Leased Circuits (IPLC, DPLC)
Skylink International IP Services
PTCL Metro Fiber Network
Optical Fiber GPON White Label Services
Network Calling Card & LDI
International Services Payphones
Wavelength Services DOMSAT Satellite Communication
Broadband 3G/4G Services
Network Capacity Services

Corporate Business Services

Voice SMART Service
Audio Conferencing Security Smart Eye & IP Surveillance
Voice Mail Service (VMS) Data Centers Hosting
Fixed Line: ISDN – BRI Electronic Billing
Satellite Phone: IP / IPLC Customer Care
Web Hosting Services Customer Service Centre
Data EVO Wireless
Managed WAN Managed Services
IP & V Connect PTCL Smart Cloud Computing Service
Business DSL Digital Services (SAP software, Afiniti AI Solution)
Business ANALYSIS of PTCL
 PTCL
PAKISTAN TELECOMMUNICATION
COMPANY LIMITED
“Macro Environmental Analysis”

Understand the external environment affecting an organization.

1.1 Explain the importance of external factors affecting an

organization.

1.2 Analyze the major changes taking place in the external

environment that will affect the strategy

1.3 Analyze the needs and expectation of Stakeholders of an

organization.
PTCL COMPANY ANALYSISS
Business analysis models are most useful tools &techniques that can help you understand your
organizational environment. It guides and helps you in thinking more strategically about your
business and for future based plans. Dozens of generic techniques are available, but some come
to the forefront more frequently than others do are PESTEL, SWOT, ANSOFF, PIG Analysis and
Five Force etc.

MACRO-ENVIRONMENTAL ANALYSIS
Macro-environmental analysis, it’s wise to utilize appropriate and accurate tools & techniques
helps can your company in order to build its future strategies by having a complete know how
the external environmental factors on which your company has no control of it and how the
company will adapt itself according to the changed like fashion trends etc. that effects the
company externally. In this case PESTEL Analysis.

PESTEL ANALYSIS
“PESTLE Analysis is a framework or analyzing tool of macro-environmental factors. It is basic
purpose it to use to identify how the future trends might affect & influence on the organization
by the following environmental factors on the organization.”
By Johnson, G. & Scholes, K.

This describes the macro-environmental forces used in strategic management in scanning the
external factors that affect the organization. It’s used to do a comprehensive strategic analysis
by doing thorough market research on the different macro-environmental factors. While it tells
us about the future opportunities & threats that an organization has to face.

“After the PESTEL Analysis is complete, its results are used to mark opportunity & also to make
contingency strategy for threats when planning strategy for the business”
By Cooper
A macro environment factors influences and affects the entire businesses and consumers on a
day-to-day basis and how these factors affect an organization in a healthy way or in a
destructive way. These factors can’t be controlled by firms directly. Yet each factor affects any
and every business, no matter their industry so PESTEL Analysis examines the influences of
Political, Economy, Social, Technology, Environment & Legal factors of a business.
(PestelAnalysis, 2017)
The Pestle Analysis of the entire organization environment of PTCL at external environmental
level; that how these external factors are affecting the company. Pestle analysis basically tells
us that the future opportunities to PTCL for future business growth along with sustainable
profits & threats that it will face and what countermeasure PTCL will take. This Pestle analysis
will help us in indicating the value of various strategic options for the company; basically means
it’s like a guideline for PTCL in its strategic plans for future opportunities & threats.
In 2018, smart devices, data & the internet, are the biggest players in the telecommunication
industry. Customers, companies and the government are divided on how the industry should be
developed similarly to Pakistan Telecommunication Company Limited.

Political Factor Affecting PTCL’s Business

Political factor is basically how any countries runs & stabilize its economy through its policies.
How the government policies intervention creates a high impact on the economy of the nation
such as Taxation, Education, Infrastructure, Policy, Labor Law, Environmental Law, Trade
Barriers, Tariffs & Political Stability.

The growing demand of customers in data & voice has increased significantly as Wi-Fi, mobile
servers, & internet are a part of our daily lives. While the customer wishes the government to
acknowledge the telecom services likes the internet as a basic human right. The government &
people have a very different idea of how the telecom industry should be handled. The Same
case in Pakistan telecom industry where regulatory issues come frequently that affects the
telecom sect business.
PTCL has long enjoyed a monopoly in this sect since it was established. Pakistan
Telecommunication Company Limited has its own long history where it has seen many ups &
downs during its whole life. Pakistan Telecommunication Company Limited, PTCL was
considered as a telecom giant in Asia by 2005 because it was the first telecom company who
had already established fiber optic contents in 1995. In 2006, privatization of PTCL was
completed. Political challenges have continuously haunted PTCL, especially after the
privatization the telecom industry in 2003 by the government because due to lack of
completion local calls were high but even higher in international call rates for example a call to
US charged by PTCL was at $5 per minute (300 PK Rs. per minute) in 1990’s.
To strengthen competitiveness in the market & to the concept of a market driven economy PTA
was established. The primary objective of the PTA was to develop a regulatory framework and
ensure that the rules were followed by all players in the market. The role of the PTA is to ensure
qualitative, efficient, transparent, and competitive telecom services in the country. The PTA also
takes responsibility for promoting fair and sustainable competition. The competition is
expected to foster the best possible services to users of telecom services across Pakistan in
terms of choice, coverage, pricing, and service quality. After the establishment of the PTA
augers in the improvement and performance of telecommunication sector in Pakistan. The role
of the PTA becomes critical to implement competitive safeguards, nurture competition, to
ensure interconnection and guarantee broad and affordable access to necessary services. The
government has endorsed investment and telecommunication policies that present a
progressive vision and offer essential incentives to potential investors.
Before the government privatized the telecom industry to a foreign market; the performance of
PTCL can be measured through its unique role of monopoly that it had no competitor at all, in
terms of landline & data services. The problem of PTCL was the employee’s inefficient, highly
priced, out-of-date behemoth & lots of complaints by the subscriber’s which was blocking the
progress of the telecommunication sector in Pakistan. When Pakistan open its door for the
foreign market for other telecom operators like Mobilink, Telenor etc. in 2003 it intrigued lots
of customers to switch to the cellular network. PTCL launched its mobile and data services
subsidiaries in 2001 by the name of Ufone & Pak Net respectively. None of these brands
subsidiaries made it to the top slots with respect to its competitions in the market. Lately,
however, Ufone had increased its market share in the cellular sector while Pak Net brand has
effectively dissolved over the period of time.
After privatization of its 26% share & giving total management control to Etisalat; the first year
of it privatization it suffers great loss in its revenue like from Rs. 90 billion in 2005 to Rs. 55
billion due to many reasons. Political instability has created uncertainty at PTCL policies
because each government tries to implement their rules & regulation. It was the short sight
policies that failed in the privatization of PTCL like why Emirate airlines, Dubai Ports, China
National Offshore Oil Corporation (CNOOC) are now successful global companies after
privatization. The answer is lack of visionary leadership; infrastructure, best higher education &
training, too much political interference, influence & instability. All these one of the major
threats that effect on any business in Pakistan. Political stability is also quite important for the
operation of any organization. Even in 2017 during the strikes & shutdowns, the organization
remains close & routine work adversely affected the PTCL business as well.
Rapid change in regulation also causes instabilities for a business to grow. There are some
employment rules & regulation law enforced on the employees by the government if Pakistan.
PTCL must follow these rules for any treatment regarding to its employees.
PTCL is greatly affected by the political factors since its 62% share still own by the government
of Pakistan. The taxation policies implemented by the current government will have direct
effects the PTCL policies such political issues are bound to affect its revenue. This means bigger
the tax less will be profit for the company & it will affect the quality of the services. The current
government has made some harsh changes in its tax policies means to increase its tax rates on
all exported devices by 40% that can directly affect the PTCL policies & cost. The current
government has also increased in taxes of PTCL services such as service tax had jumped to Rs.
235 from mere Rs. 35 in 2017 by imposing services tax 19.5%; while in 2018 it has doubled.
These political decisions do affect the services offered by PTCL in terms of as compared to the
rates charged by PTCL to its services provided. Right now, the company has already lost a big
chunk of its reputation due to lack of customer support, disruption in its services & the inability
to have a no alternative or backup plan if in case of the situation goes wrong such as ‘getting
their underwater cables damaged’.
Since the increase in services tax for internet services, telecom companies are also expected to
increase the rates on their internet subscriptions. Now the increase in taxes also has effects
PTCL directly in loss of customer where they have a variety of choice to choose any other
telecom operator with the lower price or better in quality services. PTCL is one the largest tax
paying company in the nation to the Federal Board of Revenue aka FBR. PTCL is registered in
the FBR & paying taxes & they are charged for tax ratio on supply is 10% while for services is
4.5%.
The regulation is now very high and to gain into new business or technology is now quite
difficult to acquire just because of PTA fear of influence by the NAB inquires. It has made the
existing companies & new ones difficult to do business but stills load of companies is acquiring
for licensing to enter into a market because they do see a great potential of investment in the
telecom industry of Pakistan.

Major Economic Change Through Pakistan Political Polices

How these major Economic Changes globally & in Pakistan through political polices like CPEC,
Saudi, Turkey or Malaysia and many more investment have impact PTCL in providing an
opportunity for its business growth and expansion or it’s posing a serious threat and how the
current government policies are affecting PTCL business.

The shortsighted policies of the current government have led to the price inflation of dollar $ to
reach so high & decreased the value of Rs. i.e. 1$ is equal to Rs. 136/- due to which PTCL
operating profit in 2018 if lower by 9% in comparison to 2017 mainly due to increase in
operating cost on the account of currency devaluation & higher subscribers acquisition cost.
Further non-operating cost income has also decline due to reduce in funds by the current
government budgeting schemes as compare to last year. So the Net Profit of this year is
reduced to 11% lower (Rs. 7.4 Billion) as compared to 2017 which was 8%.
After 2010 the nation has gone through a lot; I would say in a forward way due to political
stability & better sensible policies have made the whole world look at Pakistan in a different
way. In this span of 9 to 10 years has brought many foreign investors like CPEC, Saudi
Investment, in a new positive relationship with Russia after so many years of hostility, Qatar &
UAE good relations, Turkey increase in their relationship all these political decisions have
impacts on boosting the economy of the country. But still it ranks the lowest among all the
South Asian countries. The World Economic Forum’s Global Competitiveness Index 2017-2018
report highlights that Pakistan is quite far behind from even its South Asian counterparts. In
terms of education, institutional, agricultural sector and infrastructure development plus
stability Pakistan still has a lot of work to do to catch up with South Asian countries and the rest
of the world as well.
The first part of CPEC is an almost complete layout of connecting the one road belt from China
to Pakistan Gwadar Port & extension of its branches network all over the nation. Now the rest
phase of CPEC is to bring industrial, agricultural and services sector wise improvement in the
economy of country. In April 2018, the Ministry of Information technology &
telecommunication has assured that IT industry of Pakistan is expected to grow due to China
Pakistan Economic Corridor “CPEC” projects like construction of cross border international
connectivity of voice/data traffic between China & Pakistan. CPEC, which is part of China's One
Belt, One Road (OBOR) project, it is bringing in US$46 billion investments & thus it not just
provide connectivity between cities but also services the unserved areas which will be much
needed in boosting dose to the economy & also brings benefits & boost to the local IT &
telecom industry. In my opinion, CPEC can bring opportunities as new investments, alliances &
threats of potential entrants in telecom sect to PTCL’s Business.
Since PTCL is the member of the 4 major Submarine communications cable networks SEA-ME-
WE 3, SEA-ME-WE 4 and I-ME-WE and AAE-1 to provide network connectivity through the
optical submarine communication cables across different regions of the world to provide an
international connection with Pakistan. CPEC that is connected to Gwadar Port
The 5G technology which is the latest trend that which among the leading country will launch
it’s first & wants to become the first leader of 5G Technology in the market. Pakistan is also
planning to introduce 5G telecom service within the next year or so in 2020 said by Minister for
Information Technology & Telecommunication of Pakistan. This initiative was also hoped to
bring it in the country by the previous government as well. In an interview by the IT Minister
Khalid Maqbool Siddiqui expressed his hope that the introduction of these services will be able
to bring in more foreign investment in Pakistan. As he quoted:-
“We need to introduce more innovative services in mobile broadband not only to facilitate
consumers but also to attract foreign investment and meet modern-day requirements. The
world is changing rapidly and to compete with other nations we need to adopt new
technologies.” (techjuice.com, 2018)
Global Political factors also affect the economy & business scale of Pakistan. ZTE is China’s
largest public telecom equipment manufacturer and a well-known Chinese company in
operating in carrier networks, terminal & telecom internally. ZTE also has invested at large scale
in Pakistan telecom industry. The ban on ZTE Products & Services by the US has also affected
many telecom companies all over the world. This Ban on ZTE has impacted directly its major
Pakistani telco’s clients like Telenor, Jazz Zong and PTCL. As of now Pakistan Telecom providers
are on their own for the network management either they are out sourcing their network to
the third parties it definitely has disrupted the process of Telco’s process.
ZTE most crucial Project of CPEC at Gwadar with PTCL in terms of fiber optics lines & 5G
technology were ZTE was considered to be 5G Champion Products is vague right now since its
stop its services to Pakistan as well due to its global ban.
Since Iran has good &brotherly relationship with Pakistan it has increased the PTCL
opportunities to expand its market in fiber footprint to Gwadar and then to the Iran birder
through coastal highway.

Economic Factors Important to PTCL’s

Economic features are of major importance for any business whether its market is local,
regional, national or international. This factor greatly affects how a business operates &
decisions are made depending on the economic factors such as economic growth rate, interest
rate, exchange rate & inflation rate. Different countries have a different level of developments.
The Economy of countries differs everywhere.

The economic growth affects the buying power of the customers. The ideal scenario for any
organization to invest in a business is the economy of a nation to be a strong economy while
weak economy of the country leads to low income which results in low usage rate of the
product/services. The inflation & deflation rate of currency do impacts the organization directly.
Economy of Pakistan is a semi-industrialized with its hub of growth is along the Indus River like
from Gwadar to the harsh rough high mountains of Himalayas & Karakoram Mountains
connects to the China border in Khunjerab Pass & from Middle East to the Arabian Sea. Pakistan
is a developing country so the economy of Pakistan is continuously growing. Pakistan is the 5 th
largest nation in term of population in the world, 23th largest in the world in term of
purchasing power parity (PPP) aka means ratio of currencies equal conversions, 38th largest in
terms of nominal gross domestic product means the market value of a nation all over the globe.

According to the World Economic Forum’s Global Competitiveness Index 2017-2018, Pakistan is
at the 115th spot in a list which ranks countries based on how strong their economies are.
Pakistan has come up seven places spot at the 122nd place from its last year’s spot; it still ranks
lowest among all the South Asian countries. The economy of Pakistan has suffered in the past
from internal political disputes & instability, a fast-growing population, mixed levels of foreign
investment & victimization of terrorism. It had also played the most crucial role in hurdle in the
growing in the overall economy of Pakistan & its image in the world which effected it’s all
sectors including telecommunication sector and it’s had greatly affected the most business in
Pakistan including PTCL till 2015 after aggressive action against such threats. Pakistan whole
economy is currently undergoing a process of economic liberalization and it’s aimed to attract
foreign investment and decrease budget deficit. In 2016, a very renowned Report “BMI
Research” named Pakistan as one of the emerging 10 economies with a particular focus on its
manufacturing & services sector a hub.

Pakistan’s economy in 2016-2017 continues to grow. GDP “Gross domestic Product” Growth
rate was 5.3% with its Rate of inflation remained at 4.15 % while the Market value of Pakistan
economy surpassed by $300 billion & its fiscal deficit decreases to 4.2% then its previous year
4.6% but it’s much better then 2012-2013 was Fiscal deficit decreases to 8.2% . The economy
of Pakistan in 2017-2018 also expands in its growth. GDP growth rate expanded to 5.79% in
fiscal year 2017/18, ending in June 2018 & in December 2018 with the new government the
GDP almost remain the same as 5.79% with its Market value of 309.681 billion USD which is a
little better than the previous year. In 2018 the inflation rate decreased to 3.93% & its decrease
in its exchange rate of 1 USD to 138 PKR as of recorded in December 2018 due poor decision of
the current government. Now by the current government policies Central Exchequer (State
Bank of Pakistan) was given more freedom to float rupees exchange rate as per market demand
and supply beside with the ongoing projects of CPEC (China Pakistan Economic Corridor) and
other Investment from Saudi Arabia, UAE, Malaysia and China in Oil city near Gwadar port will
continue to add in country's annual growth rate.
The sectors that benefits for this growth rate in 2016-2017 are the agriculture sector (19% of
GDP) increased by 3.5%, industrial sector (20.91% of GDP) grew by 5.0% & enhancement in
services sector (60% of GDP) was 5.9%. As a result, the size of the economy surpassed USD 300
billion mainly supported by the favorable global economic environment, CPEC related
investments and an expansionary fiscal and monetary policy. In 2017-2018 let’s see the growth
in industry sector GDP is 21% & services sector GDP is 61%.
The World Bank & International Finance Corporation's flagship Report “Ease of Doing Business
Index 2019” ranked Pakistan 136 among 190 countries around the globe, indicating a positive
and continuous improvement in its economy a jump from 147 last year. Based on the
macroeconomic stability, the average inflation during 2017-2018 year was at 3.8% a positive
decrease on 4.2% and accordingly the State Bank of Pakistan kept the policy rate of 5.75%
unchanged during the period. In the foreign exchange market, PKR remained largely stable
maintaining PKR-USD parity; however, in 2018 December 17 a deflation of 5% and then to 10%
was witnessed amid mounting external concerns.

Pakistan’s is a vibrant in its telecom market with major macroeconomic indicators remains
strong. During this year, the telecom sector maintained growth trajectory largely driven by
ever-rising demand for high speed data. With realization of the growth potential in the telecom
market many telecom operators continued to make capital investments through technological
modernization and infrastructure to deliver higher bandwidth to the subscriber base.
Directly after the deregulation and privatization of telecom market rapid expansion in network
coverage and subscriber base of cellular industry growth boomed this did affected PTCL
business. PTCL had to bring subsidiary Products and services to compete in the cellular segment
although it helped the economy of Country towards technological advancement like its
neighboring countries. In the last 10 or so years, Pakistan is ranked as most promising country
for telecom growth according to Business Monitor International (BMI) in 2018.
Despite ongoing economic challenges faced by the country, Pakistan is experiencing a
phenomenal growth of Broadband Internet, Cellular Network & Wireless Services. In 21st
century, technology, data & information has become an integral part of a nation. According to
SMEDA & Economic survey reports Telecommunication is of the Pakistan's largest corporations
& in this industry PTCL is rank 11th Position with its revenue of 1,326 Million $ in Pakistan.
Despite the fact that per capita GDP is not a perfect measure of the welfare of the society, it
still serves as the foremost and simplest measure of prosperity of a country in telecom sector.
With higher levels of real GDP per capita, the people are in a better position to afford and pay
for telephone calls & other services. At the same time, telecommunication improves the real
GDP per capita through increased sectoral contributions. A large market size is a significant
determinant of high demand for telecom services that benefits PTCL the most. With a large and
growing population, the demand for both the fixed, broadband, IPTV and cellular network
connections is bound to increase. The majority of people in Pakistan tend to reside across rural
areas where access to fixed networks is limited. However, access to cellular networks is easy
and cheaper than the fixed networks.

A liberal and open investment environment & climate has always been favorable and attraction
to foreign firms across all the sectors. Pakistan allows foreign investment on a friendly basis
and foreign investors are allowed to own a 100% stake in the telecommunications industry.
These developments have resulted in the attraction of foreign direct investment (FDI) in the
market & collaboration with PTCL as well. Openness in developing countries like Pakistan to
foreign companies becomes essential in such nation with tighter financial constraints and lack
of technology.

It quite crucial to maintain the attractiveness of Pakistan’s telecom sector to foreign companies
so that the Pakistan could benefit from the most recent technological developments and may
perhaps attract essential finance requirement for development of the country’s economy.
Likewise, the existing population segment is attractive in terms of its large market size which is
beneficial to both the incumbent for fixed networks and the cellular companies. The population
needs to be served across both the rural as well as urban areas so that the potential problem of
digital divide could be avoided. The international investors also have directly contributed
towards the economy as a result of which further horizons for exploring and improving the
broadband market & other markets as well have emerged.

The telecommunication industry has been one of the fastest growing industries in Pakistan,
during the 21st century. After the privatization of the telecom industry the sectors in this
industry has seen an exponential growth. PTCL has emerged as a PTCL has emerged as a
successful Forbes 2000 company with over US $3.4 billion in revenues in 2017. When a country
macroeconomic is strong & steady then there is a positive effect on the market, in here the
case is of telecom market which has progressive effect on it despite Pakistan economic
conditions that has gone through a rough ride. Now the telecom market in Pakistan has very
different situation oddly in a positive way when even the nation economy up & down but at
macroeconomic level it’s strong for telecom industry okay but it differentially boomed after
2010. The largest key player in this ocean was & is PTCL. The macroeconomic level decision in
updating the telecom infrastructure made huge boost in this sector. As a result their where
huge investment done in this sector & in return it profited more, so many companies invested
more & more in this telecom market. Thus in 2003 the openness of the telecom sector to
foreign firms & the size of population led to an improvement in efficiency to fixed, cellular
network advancement. All though this decision did effect in PTCL for a short period of time but
for long run it was the right one.

Now PTCL continues to enjoy leading market position in most business segments that it
operates. PTCL market share in the documented broadband segment is 80%, around 90% in the
fixed line voice segment and around 30% in the wireless data segment. PTCL’s share in the IP
Bandwidth market stands at around 60% with respect to its the other major player in the
market. PTCL in latest segment of IPTV “PTCL Smart TV” has increases over 1 Million Broadband
customers which is a first ever in the country’s history.

PTCL vision is also to develop Pakistan economy by sponsoring through different initiatives like
in Education Sector by Management Associate Program, Summit Program, Sponsorship of Child
Education, the ILM Program, the Click2Learn Program, Rehabilitation of Schools in Chitral and
Swat. It is also providing opportunities for development of functional skills at the PTCL Academy
which has the status of being CISCO Certified with 12 affiliated local academies. The company
also prides itself in its medical services. It operates over 32 dispensaries spread across different
geographical regions. The dispensaries are actively involved in providing healthcare assistance
to PTCL employees, their families and the community at large. In 2017, 201 medical camps
were set up in outreach communities for underprivileged persons.

Major Economic Changes in Pakistan’s Economy

How these major Economic Changes globally & in Pakistan like CPEC, Saudi, Turkey or Malaysia
and many more investment have impact on the economy of Pakistan and how its impact and
importance to PTCL in future strategies. The Economical condition of Pakistan in term rate of
inflation rose up in 2019 to 7.19% , interest rate is high by 6.0 %, competition demand is high,
employment level is too high, income level of average Pakistani is mediocre thus it also effected
PTCL Business as well but not that much that it cost PTCL to lose it market share & position.
The biggest factor is the present era is of globalization which is a prevailing reality. Globalization
has affected major sectors directly or indirectly in developed or developing economies in the
world. Pakistan economy is one of the fast growing economies among developing countries.
The globalization trend did affect the telecom industry. Globalization is depend on the country’s
economic indicators like it GDP, Poverty Rate, Education Rate& Exchange Rate. Due to
Telecommunication has made the world a Global Village & the telecom sector of Pakistan is
considered to be one of the most flourishing & developing. It boom in the 21st century due to
the necessity of technically devices from smart phone, information & entertainment access led
to increase in the competitive market were the consumer desire to enjoy the goods & services
of great quality & lows cost products. PTCL was the first largest integrated corporate company
that benefits over all from the hit of globalization in Pakistan.
It though end monopolistic regime in the telecom sector in Pakistan that was PTCL & increased
the competition to many folds. So for PTCL long term survival depended on by adopting
competiveness nature rather than monopoly in the telecom market to compete with world
developing telecom industry. This privatization just didn’t benefit PTCL in terms of latest
technology advancement, developing & introducing new innovative products & services in the
market to attract & retain its consumer base but it also help in developing & attracting essential
financial need for developing the country’s economy. The Telecom industry is further now
divided into different segments where companies invest in one of these segments or all. PTCL
however is diverse into all these segments and economical benefiting the country as well.
In the 21st century Telecom Sector has been one of the fastest growing industries in the
Pakistan with an estimate of its total revenue around Rs. 465billion while the basic telephone
system network has been declined from 5.2 Million subscribers in 2005-2006 to 3 Million
subscribers in 2018 & the other telecom market segments like cellular (GSM), 3G/4G (Wireless),
Broadband, IPTV has exploded by many fold since 2006. In a decade or so mobile market or
cellular network have seen through a tremendous growth in its subscription & penetration in
the market 35 Million subscribers in 2006 to 160 Million subscribers with its tele density of
73.58%. In 2001 only 1.3% (1.9 Million) of the total population used internet, that too, through
dial-up connections which were provided by various small sized Pakistani companies and
international subsidiaries like World Call, Cybernet and Paknet etc. These dial-up connections
were supported by the landline provider (PTCL) but now in 2018 the broadband has increased
to 31% penetration in the Market share with 64 Million subscribers & after advancement in
3G/4G in 2014 lots of people shifted to this technology with 13 Million user in around
2014/2015 Mid & its growth was phenomenal that at the end of 2015 it jump to 20 Million & it
tripled its No in 2018 with 62 Million with grabbing the market share up to 29.55% which is
very close to the market share of broadband services. In the last 5 or so years TV households
23 Million & the IPTV have penetrated the market of 73% has also increasing in the demand of
better quality entertainment. In most all the segments except in cellular and 3G/4G technology
PTCL still in the leading position then its rivals.
The advancement & opportunities in telecom sector of Pakistan has made it telecom market
looks like a Global market for potential & foreign investment in this market which has increased
potential competitors for PTCL Company. Investment in Pakistan's economy is considered to
possess covert potential which has led to many foreign investors to enter the country’s market.
Recent progress numbers have been strong & since Pakistan has position its self as a strategic
location with the motivation in terms of high profitability. Many investor invest were labor
force is less. In Pakistan in comparison to its neighbor countries is lower. Pakistan telecom
market is like pool of opportunities waiting to be explored. Telecom market in Pakistan has
opened vast domain of opportunities for investors all over the world to come up and invest
after liberation of Telecom sector in Pakistan. It has affected PTCL business in tele-density
reduced, but increase in broadband, 3G/4G technology, SMART TV etc. while the openness of
sector still facilitates the investors by different substitute’s products and services are only
available for big cities, the rural areas is still untouched. Even though the economic conditions
of Pakistan remained unstable and threatened; the telecommunication market is still full of
customers with high and demanding requirement from telco-services with the only limited and
low involvement of regulatory authority and to meet its defined progress indicator. The
proliferation of the industry hasn’t over flowed the potential of new investment but is
consistently increasing the demands and thus by given birth to new opportunities for
investment.
In rural area it’s expensive to build towers and resources for telecom sector like in metropolitan
region. Till now the potential customers who don’t lived in big cities didn’t had any choices to
choose from the exiting market already available but now many companies are provide
different substitutes to these rural areas & invading in this potential market segment is high.
The current government policies are to provide such necessaries to small towns & rural areas as
well. It’s quite a good opportunities for PTCL & others to penetrate its serves to this new
potential market. Like in FATA “Federally Administered Tribal Areas”; PTCL & the Special
Communications Organization (SCO) are partnering up to deploy the 600km of fiber-optic
infrastructure. The deployment is part of the government’s universal service program that aims
at facilitating access to basic telephone and data services in the area.
As we know that after Pakistan market liberalization and increase in popularity of Telecom
sectors much young generation are now educate themselves in this line of field which has
benefit PTCL is recruiting & selecting new talented, skilled experienced employees that helps
PTCL by 100 folds in comparison to its workforce before privatization. PTCL employees are
considered a great asset not only for the company but also for the country. In this way PTCL is
helping the economy of Pakistan in education, job creation segments. PTCL yearly picks top
graduates around 3,600 overall (PTCL Group) at its Internship Program since 2013.
Ubank “U Microfinance Bank Limited” is a wholly owned subsidiary of Pakistan
Telecommunication Company Limited (PTCL) of Etisalat Company operates as a public limited
company offering services of digital commerce and branchless banking. Ubank is proud to be at
the front line of fighting poverty in Pakistan. Ubank is determined to play its critical part in the
carrying out of its Strategical Plan “National Financial Inclusion Strategy 2020” that aims to
bring 50% of Pakistan’s adult population into banking net. Ubank, it strongly believe
significantly towards building a more inclusive society leading to bringing the underserved
population into banking net through the entrance to microfinance services sector and it will
also help in documenting the informal economy.
As we know that all the factors of economic indicators affect the telecommunication industry so
it definitely has direct impact on PTCL polices & strategic decisions as well. This also effects on
the customers by when expenses of PTCL affect the pricing plan offered by the company. As
increases in population growth then the need of telecommunication resources also increase.
This drive the prices for PTCL in a plus revenue but totally depends on the location, the amount
of consumers in an area wise & the need for these services mostly depends on the economic
condition of the people.
Pakistan wants to become the first nation in South Asia to use modern technology. China has
been investing a great number of dollars in Pakistan under the China Pakistan Economic
Corridor (CPEC) package. It will give a great boost to driver-less car technology industry and will
help to fulfill a dream of shifting scattered cities into smart cities. CPEC one initiative is of land-
based connectivity through optical fiber cable to link between two countries. Pakistan
Government is hoping for other invests as well. The Chinese company may lead Pakistan to its
first ever 5G technology. The 5G technology how it helps the building the economy of this
country is because at the center of this new technology lies the promise of the Internet of
Things (IoT) basically making the cities & its devices into smart cities. This concept of Smart
building will gain in more popular in the retail business & entertainment industries. PTCL is
already a leading player in retail business & entertainments like Smart TV, Netflix, iFlix, Tapmad
etc. it need to collaborate with Chinese or other companies that are providing 5G technology.
Since liberalization, over the past four years the Pakistani telecom sector has attracted more
Foreign Direct Investment (FDI) & about more than 40% of the country's total foreign direct
investment is done in telecommunication sector. Like; In mobile network operators the 4 top
major player are Mobilink Jazz Pakistan (Parent: VEON, Netherland), Ufone (Parent: PTCL
(Etisalat), Pakistan/UAE) , Telenor (Parent: Telenor Group, Norway) & Zong (Parent: China
Mobile, China) in the market with Mobilink Jazz stood at the top with the most Market share of
37% with 55 Million users , Telenor 29% market share with 43 Million subscriber grab the
second highest position in the market while Zong stood with third position with almost 21%
market penetration with 1 Million users & Ufone grab the 4th position in telecom market with
14% & the no. of subscriber is 20 Million by PTA 2018 surveying of 3G/4G technology for both
voice and data services.
Zong & Telenor might be the first companies to introduce 5G technology to their services. Up to
a point, Zong also introduced 4G service in Pakistan before any other company & its alliance it’s
self with Huawei co. with testing the 5G technology already. It is imperative that PTCL should
remain proactive in ensuring itself for the market readiness for the next wave of mobile
communications i.e. 5G which would open a new market and arena for smart devices and
ensure employment and investment opportunities in Pakistan during coming years.

Social Factors Influencing PTCL’s Business Environment

There is no doubt about that society is continuously changing. The tastes & fashions are the
great examples of this change. One of the most significant differences is the growing popularity
to adaptation to new & latest technology & inventions. Off course it’s the 21 st century the
current generation prefers the digital technology then the tradition methods. The effects of
changing society factors such as demographic & cultural aspects, population growth rate, age
distribution, education, career attitudes etc. often takes toll on business which directly affects
the customers wants & also determines the market size. Changes in the social factors can
impact a firm in many different ways, means it can go either way.

The importance of the social factors can be understood from the facts that how the thoughts &
beliefs of the customers influence the business operations for long & short term both. Apart
from it, changing preferences and tastes also affect sales of particular products/services.
Lifestyle factors are also importantly related to the sales of premium products.

In this technology & information era they have become a necessity for people to live by in their
daily usage. As it was quoted by United Nations Economic and Social Commission for Asia and
the Pacific, 2002:-

“Pakistan's communication system is also reliable. This has now fully graduated into the email,
Internet and IT culture parse. The country is fast exploring the brave new world of information
technology and keenly assimilating the requirements of e-government and e-commerce.
Information technology has opened a new business frontier for Pakistan. The government is
assigning high priority to information technology both in terms of policy limelight and resource
allocation.”

Telecommunications horizontal growth is limited. Specifically, it’s difficult & expensive to

expand in the rural regions. Customers are left with less than a handful of options when it
comes to buying internet, mobile & television packages. Both political and economic factors
have hit the PTCL business in some ways. However, given PTCL still the most used service in can
make changes to its pricing scheme; it could again gain robust sales. It has already focused on
addressing the environmental challenge as well. However, competition in the market there is
high possibility that it will bother PTCL in the coming years.

The economic & political factors have a direct influence over the society’s way of living. Now in
Pakistan the political & economic features do have aggressive influence on the people’s lives in
term of health, education, training & development, infrastructure etc. The unemployed rate is
quite high & the education sector with training & development in not up to the mark. Necessity
is the mother of invention. With the passage of time the mediums of communications have
been modified. With the development of new technologies communications have become easy
and fast. Telecommunication sector is now considered a fast way of communication locally and
internationally. No country can progress without the information and implementation of
telecommunication. All of the developed countries are familiar and enriched with the
telecommunication network.

Now that world has changed into a global village and this is due to prompt, easy and accessible
communication. Telecommunication is a basic need of any country. Telecom industry has
changed the shape of communication everywhere in the world and this is a hot issue in
Pakistan now a days. It has improved many social factors of a society by many folds & created
as necessity instead of luxury. Telecom sector has emerged as one of the fast growing industry
during past few years with 20% & 60 % increase in the industry and services sector and now
due to this Pakistan is promising as one of the most progressive country.

Before the PTCL privatization its charges the people on local, domestic were very high &
international calls were extraordinary high & internet services was not good & up to the mark
with respect to its neighboring countries like PTCL’S “Pak Net” provide 2kbps speed which was
very slow but the customer did had any hand of option other than PTCL but after the
privatization of telecom industry & PTCL. It bring revolutionary changes in PTCL in terms more
products & services in its portfolio by bring better & more services with economical prices in
order to compete in the market. During privatization of PTCL it had to let go of its unqualified
employees from 65,000 + which was already a dead weight on the company due unqualified,
unskilled & about 50% employees were under graduate. After privatization the new
management realized that company spent huge amount on unwanted employees so PTCL need
to layoff these unskilled employees to reduce the operational cost of the company to make it
more effective and profitable; up to 18,000+ employees who have revamp by the new PTCL
management into an effective employees in terms of qualified, trained & developed. PTCL has
launched a scheme called VSS (Voluntarily separated scheme). Under this scheme PTCL has to
pay a lump sum amount to the employee who is willing to leave PTCL. It cost PTCL Rs. 34.94
billion. So the rise of new Corporate Culture of PTCL by becoming Equal opportunity employer,
inducting fresh blood from the market, improving the way PTCL runs and reducing the number
of employees having outdated skill set. The Training & Development program in technical and
managerial fields to enhance soft skills & technical skills as well. PTCL employees are considered
a great asset not only for the company but also for the country as well. In this way PTCL is
helping the economy & society of Pakistan in term education, development and job creation
segments.
 Successful telecom giants like Orascom, Etisalat, Telenor, China Mobile and SingTel vindicate
this perception the potential growth in telecom service sector is exceptional so they invested
hugely high in Pakistan telecom market. Due to swift advancement in Mobile and telecom
technologies, the lifecycle of personal communication is changing. The concept of using devices
for convenience, anywhere by any network is rising. More and more advance then GSM, 3G/4G
technology and internet enabled devices and other smart phone devices will be used during the
next 10 years as well. According to PTA ‘‘Vision 2020’’, the competitiveness in Telecom sector
would be measured by improved Quality of Service (QoS) in the Telecom industry.

The culture, life, style, norms & values forces PTCL to deliver the specific product to the right
segment it’s & to PTCL environmental culture as well which is their moot also. PTCL services are
provide to most all part of Pakistan if we are talking about the fixed lines the PTCL still
dominating the market with 90% in it while there are other competitors like NCL, Fiber Storm,
NayaTel & SCOM that mostly operated in Giligit Baltistan with providing fixed, voice & data to
the Northern region. In 2018 PTA survey that 64 Million user where broadband services (DSL)
have penetrated not just limited to home facilities but different small or big corporate business
as well like retail business, shopping malls etc. & of course the increase in cellular (GSM) which
is still the largest market position as a substitute to Fixed line Network System.

For entertainment business many digital operators, cables & PTCL services such as TV services
over IP providers, or OTT players like Netflix, iFlix etc. The Smart TV is a product PTCL provide to
its customer to watch local channels in real life time & international channels with good &
better quality then the local cable operators.

With the social demand increase in speed, reliability of internet services PTCL is now offering it
was the first one to established fiber optics infrastructure in their backend exchanges & now
Fiber to the Home (FTTH) depended on the population rate, the potential customers & targets
those market portions where income rate is high. In the Major cities of Pakistan like Lahore,
Islamabad, Karachi Peshawar etc. all the services the PTCL provides are available to everyone
due to competitions is more in such regions then the rural regions. PTCL so far has considered
the social perspective very well. The company has well understand the concept that consumers
changing attitude has immense importance. People are now very much prone to fast life style.
PTCL has made a good reputation of understanding & evaluating the consumer’s behavior and
the related dynamics in their services accordingly.

Since there are many competitors competitive to get more consumers PTCL need to satisfy the
customers need, listen to its problems & solve them as quickly as possible, & services quality
need to better & reliable to stop them from brand switching. These are all the social factors
that are affects the customer’s life & need. Since PTCL is the leading position in broadband
services in this 21st century which is the fast, speed, reliable information era where customer
wants to have these factors to be provide to them at low or economical prices plus with better
customer care services also. PTCL is getting lots of complaints is some regions in the big cities
regrading customer care, speed & network connectivity issues that has led more PTCL
customers to switch to other telecom operators.

PTCL has been an integral part of the country's infrastructure since beginning. It is a socially
responsible organization that has been contributing to economic development of the country as
well as society while improving the quality of life of its workforce and their families as well as of
the local community and society.

PTCL, as one of Pakistan's premier companies, has made big strides in its role as a responsible
corporate citizen. It works for the welfare of society and builds healthy and long-term
relationships with its customers.

PTCL is responsible for fulfill its social responsibilities, the products & services should be
planned, produced & delivered according to the safety laws & measures. To promotes its image
as brand corporation PTCL CSR initiatives in 2017, such as Razakaar Employee Volunteer
Program, Box of Happiness, Relief efforts whenever the country has been struck by natural
disasters and calamities, Blood Donation drive, easier access for disabled persons at office
premises & cricket tournaments for them to increase in their confidence & self-esteem, mobile
medical health units & health awareness sessions for outreach communities and collaboration
with Pink Ribbon Foundation for Breast Cancer Awareness. PTCL also received the ‘EFP Award
for Excellence in Women Empowerment 2017’ in recognition of its progressive gender policies
and best practices for empowering women at work in Ubank from its total workforce 9% of its
employees are women.

PTCL believes in promoting social inclusiveness at all levels and aims to enhance the quality of
life of the less-privileged, especially people with disabilities. PTCL hope that their modest
support will bring happiness to their lives.

For its workforce PTCL has taken steps to improve its security and health policies; including
safety plans by providing safety kits, manuals and trainings for the field staff. Quality medical
facilities including number of health centers and mobile medical units are functional for its
18,000+ plus workforce.

The company has committed all available resources to build a sustainable employee base with
enhanced skills to survive in the future socio-economic environment. PTCL sees its way forward
on the CSR front through partnerships with educational institutions, investments in building
future skills for employability, enhancing organizational behavior, developing professional skills
and offering various training programs. It will commit its resources for capacity building,
enabling and empowering youth through digitalization, investing in building future skills for
employability and working on a partnership with the Technical Education and Vocational
Training Authority (TEVTA) to provide hands-on experience to diploma-holders. In this way, it
will develop a skilled workforce in the long-term to drive economic growth and reduce poverty
& improve the society living life.

Thus it creates loyal, motivated, qualified workforce to work in the betterment of the
company’s goals & objective as well as creates a good image in public & promote its brand
image as well in gaining more customer through positive feed backs about the company.

PTCL in 2019 has collaborated with Careem to offer discounts on the ride service to its
customers like exclusive discount promo codes will be delivered to PTCL customers through
PTCL monthly bill, SMS & emails services.

Major Socioeconomics Changes in Pakistan’s Society

How these major Socioeconomic Changes around the world have affect the Pakistan society
and trends like it norms, life style etc. and how PTCL is influencing these changes into our
society.
Due to globalization phenomena the change in society due to telecommunication has change
quite drastically and making the people’s lifestyle into a Digit Life style where the technology
and telecommunication is no longer a luxury but now has become a necessity in people day to
day living actions and operations. Now the investments and Foreign aid in Telecom sector is
increasing to its growing market where people are ready to buy these services from telecom
companies. So like China is investing in improvement of Pakistani social life style through it
Project CPEC in education, telecom, services and infrastructure for Pakistan community.

PTCL vision is also to develop Pakistan socioeconomically by providing a Digital Life Style
through Digitally Connected Home through Freedom “Broadband Internet” one connection of
PTCL unlimited internet connects the whole family with endless possibilities. Browse,
download, upload or stream as much as you want with the truly unlimited internet connection
and Reliability “Landline” connectivity throughout Pakistan, with crystal clear voice quality, you
can always stay connected with your loved ones as it works even when other networks don’t
work and Happiness though PTCL Smart TV entertainment services desire and other services
like OTT player by PTCL and also Emotion PTCL’s wireless internet, CharJi 4G LTE keeps you
connected no matter where you are with your work and family. Not only that, you can be the
friend in need by sharing internet with your friends using CharJi device. All these services have
digitized the lifestyle of Pakistan society.

PTCL is also providing its social responsibilities as by sponsoring through different initiatives like
in Education Sector by Management Associate Program, Summit Program, Sponsorship of Child
Education, the ILM Program, the Click2Learn Program, Rehabilitation of Schools in Chitral and
Swat. It is also providing opportunities for development of functional skills at the PTCL Academy
which has the status of being CISCO Certified with 12 affiliated local academies. The company
also prides itself in its medical services. It operates over 32 dispensaries spread across different
geographical regions. The dispensaries are actively involved in providing healthcare assistance
to PTCL employees, their families and the community at large. In 2017, 201 medical camps
were set up in outreach communities for underprivileged persons. Relevant to the health
sector, PTCL collaborated with the Pink Ribbon Foundation and conducted an insightful session
on Breast Cancer Awareness for all its female employees. The PTCL Headquarters building in
Islamabad was illuminated in pink in support of the national cause and all employees wore a
pink ribbon as their pledge for early detection through self-examination.

Technological Factors in PTCL’s Business

The technological factor in any sector of IT world technology gives many opportunities for
development of new products or improvement of the existing ones. It includes the
technological aspects like Research & Development (R&D) activities, innovations, technology
incentives & the rate of technological change. These can either create barriers or opportunities,
like entry into a new domain of the market, production level etc. The technological shifts would
affect cost; quality & it lead towards innovation. The growth of ICT world is quite fast than any
other sector of any business in the world. The technology advancement has made the whole
world a digital global village. Current generation life style is quite fast pace & thus they want
the same things around their surrounding as well. This is the world of E-commerce & digital
communications. They want information & data at a quite high speed to utilize its time
effectively.

Telecommunication sector has proved to be a vibrant industry across the world with a high
growth rate during the past few years. The on-going process of deregulation, privatization, and
market liberalization has caused basic changes in the market structure of telecommunications
from monopoly to that of a competitive one. These developments have resulted in the
establishment of regulators in most countries. The administrative regulators of nations are
faced with the challenge on how to developing a competitive environment in the industry;
providing a level-playing field to incumbents and to new entrants in the sector. Historically, in
Pakistan telecommunications industry has been subject to extensive restrictions. Most of the
restrictions were purely based upon the political justification that states could run the business
efficiently. The dominance of such an ideology resulted in entry restrictions on both local and
foreign firms in the sector all over the world not just in Pakistan. Hence, the degree of
government intervention in the telecom sector remained steep among both developed and
developing countries. Pakistan’s telecom sector has been gearing up to secure its place in this
fast developing era of new technologies and innovation. The drive towards competition
widened the scope for private and foreign ownership further through the deregulation policy
announced in July 2001.

Telecommunication Industry its products & services have rapidly grown in the entire world in
the last 3 decade or so. The major development in the internet (Broadband) & Mobile Phone
System (GSM Network), 3G/4G technology (Wireless Network), Satellite communication, Cloud
computing is growing very fast & will do even more so in the future. The technological
advancement & ground breaking innovation in this industry has not just provided better
communication facilities to the society across the world but have also influenced the economic
progression & social life style also influenced in many countries like Europe, Asia, so that
market liberalization in Pakistan by 2010 it increased even more and enter into a whole new era
of telecom market in Pakistan which create lots of opportunities for many telecom companies.
PTCL has increases & advance technology in its products & service portfolio with respect to
growing change of technology all over the world. PTCL is always up to date in its devices &
latest services in Broadband (DSL), Fiber Optics to Home (FTTH), cellular (GSM), Wireless Local
Loop “WLL” Vfone services, Security Purpose, CharJi dongles that uses 4G LTE services, Satellite
services, Digital Services & other services such as carrier and wholesale.

Pakistan has been pursuing an aggressive IT policy, aimed at boosting its drive for economic
modernization and creating an exportable software industry. Keeping this objective in view, the
industry saw some major overhauling during the first decade of the 21st century. There was a
huge influx of FDI through PTCL’s privatization and the entrance international players like
Telenor, Zong, and Mobilink etc.

Since PTCL was well established and had vast infrastructure and experience as their main
strengths, they enjoy market leadership and quite a successful era of being Telecom service
provider. This was due to their technical reach to far flung areas of Pakistan and lack of proper
competition, both, in fixed broadband and wireless connectivity till 2016.

Since PTCL is member of the 4 major Submarine communications cable networks SEA-ME-WE 3,
SEA-ME-WE 4 and I-ME-WE and AAE-1 to provide network connectivity though the optical
submarine communication cables across different regions of the world to provide international
connection with Pakistan it provide International Gateway to access the World Wide Web
“www” and international calling services.

Broadband Internet has become a household product. However, this amazing growth of
Broadband in the last more than one decade is an outstanding national success story. High-
speed Internet streaming is revolutionizing the way people learn, communicate, work and do
business. Broadband Internet has emerged as backbone services in corporate level and even
small businesses. According to Pakistan Telecommunication Authority (PTA) data, the number
of Broadband Internet subscribers in Pakistan increased from less than 1.9 Million in 2001 rose
up to more than 14 million “10.0%” in 2012, which is no small feat. PTA data further reveals
that Broadband Internet put up an impressive growth rate of 11% from 2013 surpassing
broadband 0f 31% in 2018 which means more than 35 Million people surf internet and Pakistan
is now the 10th most internet using country in the world (by number), surpassing France and
Germany.

With the launch of 3G/4G in Pakistan in 2014, the market was set to develop in a more
qualitative form with expected changes in consumption patterns and behavior. Expectations
from ISP’s (Internet service providers) were higher than ever due to the heavy influence of
western applications and media (Netflix etc.)

Since then, PTCL has been working vigorously to meet the dual challenge of telecom sectors
development and advancement plus socio-economic uplift of the country. This is characterized
by a clearer rise of ongoing telecom scenario wherein convergence of technologies
continuously changes the shape of the sector. This depends on a company how progressive
measures it has taken to counter mobile and Internet subsidiaries and others as well.

Digital subscriber line (DSL) was first introduced in Pakistan by Micronet Broadband in 2001, but
considering the minute size of the company and high connection rates it could not make it to
bigger platform. With the formal entrance of Digital subscriber line (DSL) in Pakistan by PTCL,
the country was finally all set to experience the transformation of the way Internet was
perceived in the country with economical rates.

After 2013 survey, however, the company has exercised sustainable growth and continues to
enjoy the leading position as national broadband provider of the country where data services
now constitute more than 40% of its total revenue. To combat competition from other
international players, PTCL focused on innovation and providing the latest technology and best
offers as its core competitive strategy. Therefore, PTCL Company has successfully widened its
product portfolio over the years which encompasses broadband, contents and media, voice,
services for corporate, enterprise & public segments with interconnect offerings, packages to
national level & international connectivity as well. Today, PTCL stands as the only fully
integrated telecom service provider in the country which serves all telecom service segments to
its customers ranging from households to enterprises to cellular to data, multimedia to
wholesale, voice to radio, satellite to submarine cables while its rivals like Mobilink, Warid,
Zong, NayaTel, Wateen, StormFiber, FiberLink, Qubee and many others are only integrated in
some or one telecom service segments like NayaTel, StormFiber etc. are Internet service
telecom operators providing only with voice “Telephone Services”, data “fixed Broadband” &
Multimedia while Mobilink, Zong etc. mobile service telecom operators offers 3G/4G services
for SMS, calling etc. as well as they also offers wireless mobile broadband services like dongle or
Wingle devices.

As advancing technology PTCL both needs & requirements for telecom services must be up to
date where the demand is high & the potential to grab more market share for example
telephone companies are now installing fiber wire in their builds over copper ones to get high
speed connectivity, no call drop, no Nosie ratio etc. PTCL is updating its previous infrastructure
in big cities due to customers’ demands & competition like NayaTel, StormFiber, Qubee & many
more in the metropolitan regions like Lahore, Karachi, Peshawar, and Faisalabad etc. and
already updated it 51% exchanges across the Pakistan. DSL dominates the fixed broadband
market. Its market share has been declining over the past 2 years whereas HFC and FTTH each
constitute for a very low market share overall fixed broadband market but its rising due to
customers’ demands for high speed data.

In the face of rapidly increasing demand for affordable Broadband services and to fill the void of
quality service provision, Pakistan Telecommunication Company Limited (PTCL) entered the
country’s retail Broadband market in 2006 by giving up its monopoly, the country’s largest and
oldest telecom company strategically re-positioned itself in a fiercely competitive market while
carrying its complicated but proud legacy.

The impact of this strategic move surpassed all expectations. PTCL’s entry in the Broadband
market had a major impact and the retail tariff was rationalized significantly. PTCL’s Fixed
Broadband services are accessible to every nook and corner of the country. PTCL dominance
can be shown by that when it launched it services more than 10,000 customers were achieved
within the first 120 days of PTCL Broadband Pakistan’s launch, where for all the other market
players it took almost four years collectively to reach 30,000 customers mark.

Cognizant of the demand of high speed data and the fact that is less than 11% households in
the country have access to wireline broadband, PTCL Group is leading the residential
broadband market evolution through its on-going network transformation project. PTCL has
transformed exchanges have not only contributed to a seamless experience for its customers,
but have also been instrumental increasing in average broadband speeds in Pakistan. As a
result, the fixed wireless broadband market has been growing steadfastly but now it’s
increasing rapidly due to demand of Internet access to home directly FTTH services.

Increased smartphone adoption, internet penetration, and digital awareness due to adoption of
3G & 4G services are drivers for personal & E-commerce adoption. PTCL telecom service
operators have been deploying new latest cutting edge technologies since 2014 such as EVDO,
WiMAX, Optical Fiber Cable, FTTH and HFC for access provision to capture market share in the
broadband sector.
The cellular market remained highly competitive with penetration reaching 71% by December,
2018. Data remained the foremost driver for growth in service sector business after mobile
voice service business stagnation. In the wake of aggressive 3G/4G rollout of cellular operators
accompanied with launch of dongles, the wireless operators are quickly shifting focus from
traditional voice services to data and digital services. Expanding access infrastructure and
exploding data demand would require equally comprehensive improvements in international
bandwidth and backhaul connectivity through fiberization of towers. PTCL is aligning its
infrastructure and business model to capitalize on this emerging opportunity as well. As a result
of aggressive engagement with telecom operators, PTCL is now market leader in carrier
services.

As businesses and commercial entities continuously move forward towards modernization its
requirement for any telecom company to offer its products and service up to date with
changing times. The PTCL Group has enhance its corporate product & services portfolio with
changing tides, like the latest market trend in technology is Cloud computing. So, PTCL has
become the the largest cloud service provider launched in 2017.

Business Segments of PTCL (Pakistan Telecommunication Company Limited) is the leading

integrated Information Communication Technology (ICT) service provider in the country. The
Company offers a wide array of services including Wireline Broadband and IPTV, Voice, Wireless
broadband data (EVO and Charji LTE), Digital (End-to-End solutions to corporate clients), Carrier
& Wholesale and Digital services.

Pakistan Telecommunication Company Limited is the largest telecom & entertainment service
provider in Pakistan, touching millions of lives through its broadband & digital television
services. Always striving to achieve customer satisfaction, PTCL has entered the collaboration
with foreign digital entertainment network providers to provide its customers with high quality
streaming content.

The pioneer of IPTV (internet protocol television) service of Pakistan is PTCL by Smart TV offers
hundreds of TV channels and entertainment content in 150 cities of Pakistan. PTCL Smart TV
provides DVD quality TV programs to households via a broadband connection and needs a
subscription and a set-top box plus extraordinary features such as recording, pausing,
rewinding, parental lock, search, etc.

PTCL’s Smart TV Mobile Application was nominated for the GSMA Global Mobile Awards
(GLOMO) 2016 in the ‘Best Mobile App (Media, Film, TV or Video)’ category.

PTCL has partnered up with icFlix to offer high-quality entertainment on PTCL Smart TV in
Pakistan was launched in 2014, IcFlix is a Middle Eastern and North African (MENA) streaming
and video-on-demand (VoD) platform and PTCL through it SMART Service App provides access
to unlimited movies, documentaries, series and animated cartoons from Hollywood, Bollywood
and Jazwood (Arabic). The users can enjoy the content with PTCL subscribers 2 Mbps & above.

IFlix Malaysian-based Netflix’s competitor also partnered with PTCL in 2017. PTCL customers
will be able to enjoy superior viewing experience on their Smart TV for 1 year free with Triple
bundle offer by PTCL above 25Mbps.

More and more entertainment OTT service providers are finding their ways into Pakistan’s
markets. Digital entertainment is the key priority of PTCL and their partnership with Netflix is
another step in a whole new direction in the telecom market. In 2018, PTCL has become the
first telecom service operator in Pakistan to a sign a partnership agreement with Netflix. Netflix
is the world’s leading OTT player and it based on Internet television network with 86 Million+
members in over 190 countries enjoying more than 125 million hours of TV shows and movies
per day, including original series, documentaries and feature films, for the Pakistani market.
Netflix members enjoys it services like they can watch as much as they want, anytime,
anywhere, on nearly any Internet-connected screen and they can play, pause and resume
watching, all without commercials or commitments. PTCL is now the only provider in Pakistan
with advanced caching servers and technical pairing with Netflix without commercials, high
quality streaming content offer a superior viewing experience to Pakistani Customers through
in broadband services since Netflix’s global launch in January 2016.

Pakistan Telecommunications Company Limited (PTCL) is the leading telecom and ICT services
provider in Pakistan have signed a partnership agreement with Afiniti in the mid of 2017. Afiniti
is a US based applied AI “Artificial Intelligence” Company that transforms the way humans
interacts and communicates. While Afiniti works with customers in Americas & Europe, PTCL
becomes the first company to “Go-Live” at scale, not only in Pakistan, but also in Asia. The
partnership brought new innovations to the customer services and contact center operations of
PTCL.

After test phase Afiniti’s technology resulted in substantial improvements in PTCL’s contact
center operations through intelligent pairing of agents and callers. It is currently live across
PTCL’s services section with more than 1000 agents on 24/7 available for different queries and
complaints plus other operational services like sales platform, optimizing merits for new
customers etc. With the new artificial intelligence based system of Afiniti, PTCL is able to
connect the callers on its contact center intelligently with relevant and suitable agents thus, by
improving the quality & speed of service offered to its customers.

Pakistan ranked among the top few nations to have registered high growth in Broadband
Internet penetration in recent years. According to global Broadband tracker, Point Topic’s 2011
report, Pakistan stood at fourth place in Asia with 46.2% growth in subscriber base; whereas, Sri
Lanka and India were placed at 11 and 14, respectively. This mammoth growth has fueled a
Broadband revolution, resulting in an increase in customer base and also helping wireless
Broadband technologies to expand setting the economic wheel in motion. PTCL has achieved
this unprecedented success through an innovative customer approach, elimination of the
traditional barriers, such as the upfront costs of installation and customer premises equipment.
It has fueled the rise of businesses, jobs and opportunities.

PTCL is a tech giant & so it’s bound to be affected by technologies. The past decade has seen
raid technological changes which have greatly altered the market dynamics. The rise in
competitors due many foreign investments many other companies are providing the matching
technologies at lower prices & the quality of their services had greatly affected the PTCL profit
& revenue most in big cities like NayaTel, StormFiber etc. PTCL rivals have brought competing
products and services that can provide the same advantages at lower costs.

PTCL has its own Research & Development department now & continuous improvement
process, in those areas where innovation & improvement are needed. PTCL is continuously
changing & upgrading its old cable infrastructure with the new ones like from cable to fiber
optics. Technology factor takes time to grow, but once the wheel is set in motion the effect is
viral.

PTCL is a strong case in point for the Broadband sector. Its success can be set as an industry
model. In 2012 Banking on its previous success and believing in the strength of Pakistan’s
economy and growing awareness of the people, PTCL had made a commitment to invest Rs.100
billion in the Broadband sector in the next five years also. PTCL believed in the potential and
promise of this dynamic market. PTCL know that it’s not just about economy; it’s about
capability!

Major Technological Advancement in Pakistan

Telecom industry is one of the fastest growing industries but for a last couple of year its growth
is very slow and due to saturated market is biggest hurdle in its path. It has also affected
Pakistani telecom industry as companies will compete intensely for market share in already a
saturated market. The consumers have become more tech-savvy and companies need to
innovate in order to come up to their expectations.
The year 2020 is considered to be the entrance to new and gigantic tech world for
telecommunication & information Communication Business. This new technology is bring more
unique and fascinating projects that are not just for exchange of information but also converts
the global village into a ‘Digital Global Village’. These technologies will also change the culture,
society and economy of any nation. From 2019 - 2022 it’s said that these 8 Game Changing
Technology and innovation will change the telecommunication & service industry trends. Since
telecom are essential for our society & its development like the current already connects us
from one end to another. But the near future is on Artificial Intelligence & Machine Learning,
Augmented Learning, Virtual Reality, 5G technology & Cross Industry alliances.
Telecoms must have an efficient and effective business model with their partners as well to gain
substantial benefits from China-Pakistan Economic Corridor (CPEC) as greater reliance on
technology will be a key parameter. It is important to for telco’s to bear in mind that large,
capital-intensive business can resist major change. Technological advancement & innovation in
the mobile business sector have brought telecom operators to a critical juncture. Now, as never
before, they need to have access to sophisticated and cutting edge network equipment, rich
data on customers and operations, analytical power and organizational performance. As a
result, telecom service operators have an extraordinary opportunity to improve itself by many
folds in terms of performance to cash-flow conversion to customer satisfaction.
The China Pakistan Economic Corridor (CPEC) and other investments will further provide
greater opportunities for Telecom. Like mega projects such as the 'Safe Cities' initiative will
continue to grow. Telecoms must have an efficient and effective business model with their
partners to gain substantial benefits from these accomplishments. PTCL is already providing
many small or corporate businesses in any economic sector or the general public with goods &
services like Biometrics system, Security surveillance System that help in the keeping the city
safe.
In 2018, those that move boldly to transform themselves with these new capabilities stand to
cut their costs and increase their revenues significantly, while building decisive advantages over
their less ambitious competitors.
The fifth generation “5G” technology is already expected to be launched by this year or 2020-
2022 making Pakistan among the first countries alongside China, UK, US, and South Korea to get
this technology. This is the next generation wireless network which will further boost into our
tech industry and will improve the national and international connectivity in Pakistan. 5G
technology will swap for the home Wi-Fi networks system by giving a better network coverage
and fast speed. This awareness regards to 5G, especially with the current government also
hinting at the possible of 5G launch in Pakistan by 2019 or next year. At the center of this new
technology lies the promise of the Internet of Things (IoT). Already present of 4G services in the
form of ‘connected’ TVs, house appliances and cars, the introduction of live 5G services has
taken the IoT to the next level with. Smart cities are latest trend for economic and social
growth, especially in the wake of climate change and ‘green’ sustainability will be looked at as
tangible solutions. However, 5G is more expensive than 4G. Therefore, the current telecom
service operators need to be ready for next evolutions of 5G Technology which will offer
attractive data rates and fast speed than ever. China Mobile Company “Zong” have already
launched the ‘Zong 4G Smart Car’ solution in Islamabad.
And Artificial Intelligence & Machine Learning provide better services to its customers in
telecom service segment Like PTCL using Afiniti AI Solution for Management Services to its
Customers like mainly now it’s only helping in automation & better management at back office
operation but trivial in customer interaction but in future it has vast service traffic classification,
network optimization & orchestration & even interaction digitally with customers. Now
Augment Reality & Virtual Reality will be ground breaking in the telecom service market for
telecom operators by significantly help them in their services and performance and satisfying in
customers care services like imagine telecom lineman can easily find the broken FO link within
the bunch of cables by simply holding a smartphone or opening a specific application from its
exchanges will end up in reducing significantly in trouble shooting, finding problems etc. and
the overall result will be in customer satisfaction.

Environmental Factors Affecting PTCL

Environmental Factors include the ecological & environmental aspect such as global warming,
integration of technology in the ecosystem of this planet and how it affects the business
industries. After the analyzing of these factors how the affect the company’s operations & the
product & services they offer. Focus on environmental issues will benefits a business to its
brand image & popularity in global markets.

Climates dynamic change & global warming can also affect how telecommunication products
reach customers. A product comes & goes, often replaced by something ‘better’ (depending on
who is asked, customer or company). The previous version becomes redundant or unnecessary.
In the 21 century, today the world is more aware and conscious to have a clean environment.
The modern world is well aware with the fact that the climate change has emerged as the most
common and widespread threat on the planet Earth. The major force to stop the climate
change is greenhouse technology effect. Technology is essential for human prosperity and
development problems around the globe. Unfortunately, the footprint of latest environmental
technological adoptions in Pakistan is still not near to the rest of the world. But in future
telecom services will have great opportunity for new potential market to expand itself. It’s also
important for giant telecom companies like PTCL to start thinking about investing in this kind of
new market potential for the future generations to come. If we start planning now its will get
maximum benefits in the future.

There are very few environment protecting agencies in Pakistan which implement projects for
safeguarding the environment with the help of technology. The trend is getting popular & due
to awareness its wide spreading day by day but still needs some time to circulate all over
Pakistan. It will be like a breath of fresh air for all of us living across Pakistan in a healthier
environment we have to make sure that our everyday activities must be environment friendly.
Pakistan has witness grave environmental issues over the years that embrace temperature
change, deforestation, land degradation, wearing away, pollution, natural disasters etc. Though
these all problems are interlinked with each other but these all do have significant effects on
every living thing & business which are enough to make us realize how defenseless we are at
dealing with our environment.

These factors given above have cost serious damaged to PTCL due to natural disasters like
Flood, Earthquake, Heavy storm & rain have damage & destroyed the cable infrastructure
network of PTCL’s. PTCL organized Eco-Hike and Tree plantation in the Margalla Hills to raise
awareness about preservation and protection of environment with more than 230 hikers
including PTCL employees & university level students like from IQRA, FAST etc. take part in the
CSR initiative, the hike started from the base of Margalla Hills. The event was held as part of
PTCL’s ‘Go Green’ vision, which is a manifestation of the company’s corporate social
responsibility policy, aimed at preserving the environment in a sustainable manner. The
initiative highlights the importance of keeping our surroundings clean picking up litter along
the way & at the same time raise awareness in our community about environmental issues.

National Forum for Environment and Health (NFEH) an NGO affiliated with the United Nations
Environmental Program (UNEP) and supported by Pakistan’s Ministry of Environment has
selected Pakistan Telecommunication Company Limited (PTCL) for its 8th Annual Environment
Excellence Award 2011. PTCL has been selected on the basis of its contribution to improved
environmental quality and the progress the company has made compared to its historic trend.
PTCL has bring change in its approach towards environmental related causes, which led to
development of a long term mission and strategy through implementation of policies that are
environmental friendly and positive contributions towards improvement in society in general
and environment issues in specific.

PTCL worked towards creating better work environment for its employees specifically and
public at large generally. It focused on decreasing adverse environmental impact as well.
Respect for the environment is considered and advocated within the workplace through
frequent eco-drives like lush green lawns, favorable workings conditions, well organized
Cafeterias; cleanliness and a number of other facilities are testimony for the uplift of
environment conscious policies within the organization. Annual tree plantation drive run by
PTCL and provision of clean drinking water to the local community water filtration plants that
benefit about 10,000 people every day are the projects that are for community at large. PTCL is
among the eight companies of all participating companies that have a formal written Health
Security and Environment Policy.
Major Environmental Changes in Pakistan Affected by Telecom
In our daily life, we have become quite acquainted with technology most of our work using
different gadgets devices. At one aspect technology is creating our life easier however on the
opposite hand it's additionally a reason behind some serious environmental problems i.e. global
warming, noise, radiation & pollution. Keeping in mind the impacts of deteriorating
environmental conditions, many developed countries are adopting a way to build up such
technology that does not harm the environment and reduce pollution, termed as Green
Technology also known as ‘Environmental Technology’ or ‘Clean Technology’

Telecom sector is one in all the foremost progressive industries round the world; the mobile
subscription is on rise, having an outsized range of towers and intense great deal of energy and
emits radiation that is harmful for our environment as well as our lives. As per a study
conducted by GSMA Intelligence in 2018, there are 8.4 billion active mobile phone connections
in the world. Pakistan has been at forefront of this growth having over 139.76 million active
subscribers. The surge in demand for telecommunication services has increased the sector’s
energy needs, making it one of the largest consumers of diesel and consequently, one of the
biggest contributors to carbon emissions in the world. This growth has been supported by a
sturdy telecommunication infrastructure comprising uncountable towers leading to the
requirement for growing in Green technology within the telecommunication sector. Efficient
power management, infrastructure sharing, use of eco-friendly renewable energy sources and
thinning out carbon emission over the entire length of the merchandise lifecycle are
underneath intense thought by telecom industry all over the world. There are a number of
ways through which telecom operators can achieve in Green Networks, Manufacturing, Offices
and Towers & Waste Disposal.

Green technology is that the sort of technology that is environmental friendly. Such technology
is developed and employed in how that doesn't inherit conflict with the surroundings and
doesn't destroy natural resources. Increasing public demand for company social responsibility
and a real need to bring positive amendment within the setting are leading telecommunication
service suppliers and their suppliers to cut back their carbon footprint

In the past decade the mobile business has grown up apace, not only in Pakistan but
worldwide. Although this increased demand for telecom and IT services has made ICT industry
the biggest contributor to environmental pollution. But at the same time, ICT also has the
potential to put all the other industries in the right direction through its latest innovations and
revolutions.

The developments in IoT and sensible cities trust ICT business so, it is very important to first
implement the environmental friendly solutions in ICT industry itself so that its growth doesn’t
face any hurdles. In order to strengthen the development of green technology, the government
needs to motivate and facilitate mobile, broadband, IPTV operators to go for green technology.
Green Technology ought to integrate itself as a crucial part in telecommunication industry.

Legal Factors that Limits PTCL

Legal factors involve the legal environment of a company and its influence on the operation to
meet the demand and minimize the cost of the product or services provide by the
organizations. Laws and regulations are a major challenge before any business not just product
related laws or taxes, there are labors and environmental laws too that require attention.
Intellectual property laws and patent related regulations can also be a challenge for the major
tech players.

The telecommunication trade is commonly wedged by legislation problems PTCL has no such
issues. PTA is like authorities body that helps & allows any telecom operator who & how to
operate, by giving permission & licenses to do so through regulation & legal procedures. PTA
serves as a proxy for competitive forces and aims at creating effective competition by holding
back the incumbent to behave as if it were in a competitive market & nurturing healthy
competition.

Major Changes in Pakistan Legal Implications

There is no such major legal implication of Pakistan Government on the telecom industry in
Employment laws, Consumers protection laws, investments laws and Health & Safety laws.
These laws are all applied and practiced by all the organization in Pakistan including PTCL.

However the legal implication of Trade war between US and China has led to ban and under
investigation of ZTE & Huawei co. did have direct impact on Pakistan legal industry policies. Like
for the time being neither any client of ZTE’s Pakistani telco’s are buying any supply’s from
them and they are also no longer serving to Pakistan Telecom companies followed by US ban.
So, all the projects of ZTE are either canceled or on hold for an unknown period of time.
The current government policies has increased it tariffs on purchasing on import stuffs thus it
also includes all the telecom equipment’s that are bought by telco’s like PTCL , Zong etc. have
directly impact on their operational cost and directly it affects its customers in terms of price.
 PESTEL Analysis of PTCL Political Factor for PTCL is favorable then other
companies but Political instability & not well planned
policies do effects PTCL business. Political Projects like
CPEC, FDI from Saudi, UAE & other investment at
Legal Factor has no such limited on PTCL growth or on its Gwadar port provides opportunities for PTCL.
business like expanding itself in banking sector as well. So
Legal are more or likely favorable to PTCL.
Economical Factor in
Political Factor
Only the legal implications of global political factors did effect Pakistan is important for
in Environmental
terms of ZTE supply stopinserving to PTCL & other Telco’s
Factor PTCL as well in terms of
Pakistan right now have through Pakistan
no such impact on PTCL economy in
Economic unpredictable but growth
expect that due to Legal Factor
Factor in the telecom services
climate change in
temperature or floods or industry increase
provides many
heavy
damaged
rainfalls only
PTCL PESTEL opportunities for PTCL
growth.
transmission lines but
nothing like Factor
Technological in other
ANALYSI
in Pakistan is favorable for PTCL has new
Social Factor in Pakistan is favorable for
PTCL as it changing and influencing the
countries. But PTCL is also
innovation & technology is happening around the world has change
contributing
the market trends its & increase
CSR
S
in consumers demands in data, voice &
lifestyle of Pakistani toward Digi Life.
PTCL is now fully contribution its
towards environmental
entertainment made telecom companies likes PTCL to expand their services as
Social Factor Corporate Social
issues as well.
portfolio in their products and Envirnomental
services like 4G, FTTH, OTT players like Responsibilities & create a brand image
Netflix. Factor
and loyalty in its customers.
A PESTEL analysis is a useful technique for reviewing the external forces that impact on PTCL
Company Limited. The technique offers a structured basis for reviewing the organization’s
strategic direction and for considering future Technological
priorities. It also gives highlights the threats the
PTCL is facing or going to face in the near future. Factor
 “PESTEL ANALYSIS OF PTCL COMPANY”
OPPORTUNITIES THREATS
Growth In Telecommunication Market Political Instability

More Aware and technology understanding Rapid changes in Regulatory policies

Market open for more number of products Exposure to market competition.

Introduce High Value Added Products Customer Switching Cost

Time to establish brand loyalty Taxes & Service Tax Increase

Customers are more aware & adaptive to new Lack of Leadership & Effective Management
technological changes

Can introduce new innovative products & Potential New Entrants in every Segment in the
services. Telecom sector against PTCL

Low tele-density of PTCL Efficiency of financial market is not so Good

Can upgrade its infrastructure more Ability to attract & retain quality professional.

Global connectivity reliability has been improved. Destroying Cultural norms

Ability to achieve economies cost efficiency Licensing & Permission by PTA

because of its vast reach.

Foreign Direct Investment Migration to Wireless network i.e. 3G/4G, LTE &
WLL

Population is increasing Rapidly

Life style becomes Easy & entertained

Introducing to New Technology like 5G, Li-Fi , AI

Solution, Green Technology, AI & AR etc.
STAKEHOLDER ANALYSIS
“Stakeholders are organizations, people or teams that are involved concerning the activities
of a business.”
Appealing and engaging with the stakeholder on essential issues & tackles them in such a way
that they don’t create problems for the company. Stakeholder lays at the heart of the PTCL
Company that how they do business. Stakeholders can be internal or external & each group has
a different interest in the company where people engage with daily regularly operations to
those in public positions who influence the activities of PTCL. Mostly in all organizations
stakeholders are some of what similar with other like employees, consumers, suppliers,
communities, governments, non-governmental organizations, shareholders, trade associations
and academia etc.

Stakeholder Analysis is a tool & technique used to identify and assess the influence of
importance key individual, groups of people, or organizations that may considerably impact the
success of your activity or project by (Friedman & Miles 2006).

PTCL’S Stakeholder Groups

Internal & external stakeholder network of PTCL is quite vast, ranging from day to day
operations to those public positions that influence our activities. PTCL identities the following
groups are essentially important for PTCL business to grow.

A. Shareholders (Government, Etisalat, Board of Directors etc. & others)

B. Public Authority Bodies (Government, PTA & others)
C. Associated Companies (Etisalat, Skylink, DVCOM Data Private Limited & others)
D. Top Management
E. Employees
F. Competitors
G. Customer
H. Banks & insurance Companies (State Bank Of Pakistan, Ubank)
I. Trade & Labor Union
J. Suppliers (ZTE, Z T Company, Huawei, Ericsson etc.)

Importance PTCL’s Stakeholders

The stakeholder analysis can be broken into two categories: internal stakeholders & external
stakeholders. The internal stakeholders are people who work the corporate presently and
influence the direction the corporate takes. The external stakeholders are establishments,
customers, and suppliers that have a say concerning the businesses motives.
 INTERNAL STAKEHOLDERS
Internal stakeholders are those individuals or groups within a business such as employees,
owners, shareholders & management who have an interest in the company. The internal
stakeholders are the top Management, employees, associated companies (Etisalat) that
currently working at PTCL. They influence the culture and selections that the corporate makes,
and work as a community to assist the corporate prosper. Daniel Ritz is the current CEO of
PTCL. His goal is to create long term growth for the company, as well as please the board of
directors & will always be concerned about whether the business will continue to operate,
advancement opportunities for the company. There are many other internal stakeholders that
influence the environment as well.

Associated Companies

Etisalat: After PTCL privatization now Etisalat is the parent company based & has the total
control of management of PTCL. It has direct influence how the culture & environment of the
company will be. It makes all the important decisions like expansion of telecommunication
services provide by the PTCL for example, satellite communication etc. Etisalat owns
approximately 30 % share in PTCL. As a shareholder they are definitely interest in the financial
profitability & more increase popularity in its brand image.

TF Pipes Ltd: TF Pipes Limited manufactures top quality pressure and non-pressure PVC pipes,
bends and sockets, with high chemical resistance, excellent mechanical and hydro mechanical
performance and excellent water tightness. PTCL has 40 % equity in the company while TF owns
60%.

SMART Sky Ltd: Smart Sky is also 100% owned subsidiary of PTCL in 2015 with the objective to
provide Direct-to-Home (DTH) television services throughout Pakistan under PEMRA. Smart Sky
has not started its commercial operations.

SKYLINK Ltd: PTCL offers SKYLINK satellite communication services for domestic & international
communication applications for corporate customers. PTCL has 100% equity of Skylink limited.
Being in this field the oldest & most experienced telecom operator in the satellite
communication domain and have extensive ground support, operations and implementation
infrastructure to serve a variety of satellite communication applications like “DOMSAT”.
DVCOM Data Ltd: DVCOM Data Private Limited also operates as 100% full subsidiary of PTCL
now along with PTCL acquired 5 MHz spectrum in 1900 MHz band licensed. It also provides
Wireless Local Loop (WLL) operations after fulfilling all the regulatory requirements in nine
telecom regions. Objective of the said acquisition is to supplement the EVDO and now 4G LTE
wireless broadband services of PTCL through collaborations within the PTCL Group companies.
A formal commercial arrangement has been in place between PTCL & DVCOM Data. This
Broadband wireless service is used for a variety of people, business people, travelers, and
students.
PTML: Pakistan Telecommunication Mobile Limited “PTML”; its brand trade name is “Ufone”
which is also wholly owned subsidiary of PTCL with market share in terms of cellular
subscribers. PTML & PTCL also enjoy synergy benefits given the integration of a number of
critical departments and collaboration through initiatives like Joint shops as well. Ufone had
enjoying its increase around 2006-2008 in the telecom market of cellular network with
aggressive campaigning & creating a brand image was at 2 nd largest mobile service provider
after Mobilink. Through many ups and downs Ufone has retained its position among the top 4
telecom mobile companies at 4th place with 14 % market share total no of subscribers increase
to 21.6 Million.
U Bank: U Microfinance Bank Limited; its brand trade names is U Bank. PTCL acquired 100%
shareholding in U Bank in 2012. PTCL operates as a public limited company offering services of
digital commerce and branchless banking like in post change in senior management team and
revision in business strategy and investment in this sector. U Bank has witnessed significant
growth in loan and revenues. U Bank’s also offers services under the banner of U Paisa in
collaboration with Ufone.
Top Management
The top management is important who the think tanks of this company are. They are
responsible for the strategic long term planning for the PTCL growth & better performances
with a competitive edge then their competitors are. They are also important to create a proper
culture & friendly environment to create a positive image for the investors, customers &
employees. This group is also responsible for handling a lot of the day-to-day operations of the
company and overseeing various departments. Management mostly includes the owners,
president of the company, vice-presidents, board of directors, division managers, the corporate
operating committee, investors & others. These folks direct the strategy & development of the
organization.
Employees
Employees are one in every of a company's most vital assets. A committed workforce helps a
business to realize its objectives and goals. Employees bring skills like ability and downside
finding. So they are the most important stakeholder because they can affect the business in one
way or another & depends upon the decision made by the top management. “Always remember
when making a business decision, always consider your actions in light of their effect on some of
your most important stakeholders -- your employees.” By Jared Lewis

Employees as stakeholder are mostly affected by the economic well-being, job security, job
satisfaction & loyalty, sense of belonging etc. decision taken by the top management can serve
as a source of motivation and can inspire innovation among employees. Employees of PTCL can
be categorized in different ways; like managers, 24/7 customer services provider, maintenance
guy, Even more so than managers, this group is in the trenches with daily business operations,
and work directly with managers. According to the National Business analysis Institute, the
highest four challenges workers face within the work are an absence of communication, unfair
pay, job security & under appreciation. These are challenges managers and top owners have to
be compelled to address.

Shareholders

Shareholders buy shares in a company so they are somewhat part-owners of the business.
Shareholders usually don’t get involved in the day-to-day decisions, operations of a
corporation. However, shareholders have the right to vote at every company's annual general
meeting. Shareholders are very vital stake the company because they have invested in the
business. They contribute capital to the business and expect to share within the company's
profits. The funds given by the shareholders help in support for the organization to grow its
business. The organization therefore must maintain close & good relations with its major
shareholders. PTCL major shareholders are the Etisalat Company, Government of Pakistan &
others.
Government
The government is obviously a stakeholder in any business or organization in the country
because it generates tax for the government to collect which helps the government in
developing the economy of the country like they funds on important stuffs like education,
health care, road maintenance, infrastructure etc. Let suppose the business doesn’t make
much profit then the government support will be less in many things & vice versa. PTCL must
comply with rules and regulations set by the Governments of Pakistan and industry regulators.
It directly affects PTCL in several ways. Like PTCL can have the issue with licenses to expand its
operation in the telecommunications sector to the rural areas. Without these licenses, PTCL
would have no business in the rural areas. Although government itself is a public authority body
but still it owns 62% share in PTCL. It’s the major shareholder of PTCL Company limited.

General Public

Typically the overall general public is contrasted with some cluster to which special
characteristics apply. For example, a corporation's shareowner meeting are going to be
hospitable & open to all of the corporation's shareholders, however is closed to the general
public.

EXTERNAL STAKEHOLDERS
External Stakeholders are groups, individuals, organization outside the company such as
customers (those individual who purchase the goods & services), creditors (individual or groups
to whom the company owns money), the government or public authority & regulatory body,
suppliers (companies form whom the business purchases its product) or society in general.

The external stakeholders normally consist of a large variety of people. The most influential
stakeholders are the institutions that own a significant stake in the company. Of course, as
many shareholders, the goal of these stakeholders is to support the company in any way that
will increase the bottom line of an organization, so some case in PTCL. In addition to such
institutions other external stakeholders include financial aid companies, regulatory, customers
& suppliers. Even though they may not own a percent of the company but these are the people
that give an organization but in this case; PTCL an idea of what direction to take and what the
public is currently demanding from it.

Public Authority

Just like the government which is the top public figure authority that regulate polices of the
country’s economy & other decision as well. There are other regulatory bodies created by the
Government of Pakistan to control, manage effectivity in their own domains like Environmental,
PEMRA, PTA etc. such authority bodies concern is the impact of the business on the
environment, people’s life, resources etc. Sometimes they don’t have any say in it what an
organization business should be conducted but if it’s don’t comply with laws then they come
into action.
Pakistan Telecommunication Authority (PTA): is a state closely held enterprise responsible for
the institution, operation and maintenance of telecommunications in Pakistan. It is essential
that the PTA gives investment guarantees & license to new telecom companies to invest.

Competitors

According to Marian Bark Wood:-

“Always remember, the best competitors are thinking about how your firm will react to its new
products and channel moves--ideally, looking ahead two or three moves to achieve goals such
as growing sales and share to overtake the market leader.”
Yes, competitors are stakeholders because every company can directly or indirectly affect the
performance of its competitors. It’s smart for an organization to make their competitors as
stakeholders because it helps in better understanding how their competitors act & reacts.
What will be the next move an organization has to take against it? For PTCL the most
competitors are in the metropolitan cities like NayaTel, StormFiber, Mobile 3G/4G Internet
services like Mobilink, Telenor etc.

Customers
Customers are stakeholders too, especially if they rely heavily upon product/services or
business to purchase items that they use regularly. Focus on customers is at the heart of
everything an organization does. To attract and keep its customers, any organization seeks to
offer the products and services demanded by businesses and consumers. This requires
continuous investment in new services. So this the same case in PTCL services. PTCL is investing
$2.5 billion on creating wider Superfast Broadband access across the country by upgrading it
old system into fiber optics. It has also introducing Family Protection service, which enables
parents to supervise their children’s access to content on the internet & upgradation to security
systems of homes.

Through its research and development work, PTCL is able to offer more environmentally
efficient solutions to its customers. For example, the latest wireless broadband PTCL is
providing home hub router uses almost 40% less energy and contains 25% less plastic than
earlier versions. So when customers purchase product or services from PTCL, they of course
expect it to be of high quality & it should represent good value to their money. They also
increased in its services through feedbacks from the customers to watch & record live
streaming channels like rewind, pause etc. or have the disposal of latest HD quality movie
available to one at their home sets etc. PTCL customers are divided into different segments like
consumers, corporate consumers, retailer, wholesaler & operators.

Creditors or Financial Aid Institutions

Banks & other financial institutes should be considered & managed as a key stakeholder for any
business in the world. Managing the bank as a stakeholder requires an organization to maintain
regular contact, similar to key customers or suppliers of an organization. Long term relationship
with such institutes helps an organization for future investments. They are only interested in a
company ability to make profit & ability to pay its debts back to banks or insurance companies.
Most businesses present a good picture to their bank when they need to increase or extend
their facilities due to business expansion, or when a loan matures.

Suppliers

An organization or individuals providers something needs in products and services used in the
end product for the customer. PTCL has both global & local supply chain. Inputs (cables, wires,
wave frequency bandwidth etc.) TIP from Haripur, internal inputs also from Siemens, Ericsson,
and Huawei out door, and Optical fiber system from Z-T china company including DSL facilities
as well, Alcatel, NEC, J.S telecom, ZTE and Alibaba.com etc. It requires suppliers that can deliver
the materials, components, products and services that will enable PTCL to achieve a technical
and competitive advantage. Cost and quality are important considerations.
 Stakeholders Analysis Grid

The Power/Interest Grid also known as the Power/Interest Matrix, is a simple & valuable tool
that helps an organization in categorize & prioritizing stakeholders according to increasing
power & interest in the organization. This tool helps an organization in focusing on the key
stakeholders who will provide opportunities & threats to an organization. It doesn’t waste time
serving those who have little power in a situation while those with all the power are left
waiting.
Power Interest Grid consists of 4 coordinates & it helps PTCL to identify who are their
stakeholders are & what are their power and interest of various types of the stakeholders. It
helps PTCL in timing management & utilizing their resources effectively when they want to
expand in the unknown markets, to bring new products or services to the customers; it helps
the company in facing challenges & resolves them. Each stakeholder holds different level of
power & interest that affects PTCL business directly. This analytical tool helps PTCL to gain more
understanding on the level of power and interest and the importance of the different
stakeholder in terms of future strategical Planning.

Stakeholder Analysis Grid

MONITOR This group is considered that an organization should be least concerned with. While don’t ignore them
completely but watch them from time to time. The fact that they have both low power and a low level of
interest means that they are naturally at the bottom of the organization list. At the similar time, it
wouldn’t be smart for you to pay excessive amount of time in communicating with them since they hold
little power over you or the project itself. The best approach this is ‘monitoring’. Keep a fixed eye on the
members of this cluster or group; interacted with them when necessary, however don’t all them take up
an excessive amount of your time. Employee in here we are talking about the bottom line workforce of
PTCL that provides 24/7 service information to the general public, maintaining the network system in the
IT department, etc. they simply perform their duties as instructed by their supervisors. PTCL has
launched different initiatives in order to motivate them like rewards, employee of month compensation
etc., so, that they perform their task perfectly.
KEEP Anyone with high power within the organization deserves attention & time, even if they aren’t specifically
SATISFIED interested in the business of an organization at the moment. This can be a tricky group to deal with
because an organization wants to ensure that they are ‘in the loop’ while not getting tired of hearing from
or annoyed by updates on one thing that simply doesn’t concern them at this time. Customers are the best
example for such a group mostly in every sect of a business community and Public authorities “PTA” or
Trade & Labor Unions & the General Public.
KEEP In here stakeholder that wants to be kept well informed and involved in the project however simply they
INFORMED doesn’t have the power to be a top priority of a firm. An organization certainly doesn’t want to ignore
such group because their level of interest is high could make them of use to an organization at some point
along the way. However, an organization shouldn’t be spending so much time catering to this group that
the organization would neglect the Key Players group. Competitors are the most suitable example for
such groups & Banks and Financial support institutes “Ubank”.
MANAGE This is obviously the group that is going to occupy the most time & attention of an organization. Make
CLOSELY sure every stakeholder in this part of the grid is getting exactly what they need to remain happy with the
progress that an organization is making. If the people that fall into the High Interest / High Power
category are not happy, it is unlikely that an organization will be considered a success no matter what the
stakeholders within the alternative elements of in this grid aren’t satisfied. In this group the peoples fall
are the Top management, Shareholders, Associated companies, Investors, Banks and Suppliers etc.
 PTCL STAKEHOLDERS LIST

STAKEHOLDERS Stakeholder
Pakistan Telecommunication Company Importance Stakeholder
Limited “PTCL” InterestList
Stakeholder In PTCL
It the Parent company of PTCL & Generate more profits & High Sales &
Etisalat Co. have full management control of to promote its Brand image in Global
PTCL with 26 % of share it holds. vise
PTCL was a state-owned company To get more tax and also economic
Government with its 62% with the government. development plus social improvement
Of Helps in providing better Economic and competing with other countries in
INTERNAL
Pakistan Polices to get more benefits to the telecom sector.
STAKEHOLDER
telecommunication industry.
Corporate Level Management & Strategic Position of PTCL in the future,
Top Decision making like CEO, President growth, performance, Profit, High Sales,
Management & the Vice President, Board of Brand Image, High Revenue & invest,
Directors etc. Qualified, Skilled Employees & Loyalty.
Most important Assets of an Economic well-being, job security Job
Employees organization. satisfaction & Sense of belonging

Focus of every business at heart are Availability of different Products &

Customer its customers services like broad band, FTTH, GSM,
3G/4G services, Smart TV services,
Netflix etc.
It’s like a guide way towards To know what they are doing to
Competitors achieving to an organization vision perform in the market & in
& objection corresponds to that what will be the
strategic move of the company
Trade To hold an organization on its To provide Telecom services to
& illegal movement against its customers & its work force should be
Labor Union employees or potential one. satisfy with the company
Provides raw materials & Agreement between the suppliers &
EXTERNAL resources. The Global & local their providers like cables, Router,
Suppliers
STAKEHOLDER supply chain Relationship is good. Frequency spectrum & other telecom
devices
Banks Financial Aid, Loans & future The ability to Pay back & innovative
& Investment. idea that it will benefit as a financial aid
Insurance to start it up.
Companies
Public PTA was established to provide fair PTCL can make direct or launched new
Authority & justice opportunities for new technologies by acquiring licensing &
Bodies potential entrant in the market. permissions.
Ordinary people are also able to Products & services to of economical
General provide ideas to the company & it cost & packages provided by the
Public holds 12% share of PTCL. company
POWER INTEREST GRID (PIG)

Various researchers describe stakeholders’ analysis as a process of systematically gathering and

analyzing qualitative information in other to determine whose interest should be taken into
consideration that affects the organization whole.
PTCL STAKEHOLDER LIST
A. Shareholders

 N B.
C.
Etisalat
PTA
D. Employees
E. Foreign Direct Investment
F. Competitors
G. Customer
H. Government
I. Banks
J. Trade & Labor Union
K. Suppliers
L. Top Management
M. Board of Directors
N. Associated Companies
 PTCL
PAKISTAN TELECOMMUNICATION
COMPANY LIMITED
“Micro Environmental Analysis”

Be able to review existing business plans & strategies of an

organization.

2.1 Use appropriate tools to analyze the effects of current business

plan.

2.2 Review the position of an organization in its current market

2.3 Evaluate the competitive strengths and weaknesses of

organization current business strategies.
MICRO ENVIRONMENTAL ANALYSIS
Micro-environment analysis tool is used to known your companies capabilities in order to
identify SWOT “Strength, Weakness, Opportunities & Threat” of an organization for strategic
planning. In this technique help an organization to understand how all the micro factors affect
the business or company’s future strategies, decision making and overall performance of the
organization. Its essential for your business success before any strategic decision making
process start first and foremost conduct a macro level environment & then micro level
environment analysis.

Analytical tools
Micro-environment analysis is a very powerful tool to help in guiding your company to make
appropriate decisions, create advantage and increase your effectiveness.
All the micro factors that affect PTCL Company like Competitors, Customers, Suppliers, and
Employee & Media are identified through different analytical tools like Competitors Analysis,
Porter’s Five Force, Value Chain Model, and Boston Analysis and overall all these
analysis/model’s will help in identifying the SWOT of your Company in this case PTCL.

COMPETITORS ANALYSIS & MARKET POSTION

In this informative era of 21st century, in the whole wide world technology is changing quite
swiftly & dynamically. Due to the advancement in the technologically very quickly & increase in
information and communication age has transformed the whole world in a Digital Global Village
& the phenomena of globalization has done a great deal of influence in every sector & field
while the most significant unlimited impact by globalization has done on Telecom & Service
Industry.
The Telecom market in Pakistan is also greatly affected in a positive manner and with advancing
dramatically in Pakistan marketplace across the nation. Telecom industry is continuously rising
and creating more opportunities for the local, regional, national & international operators to
invest in it.

The telecom industry market in Pakistan is very intense as there are many competitors are
competing in the marketplace after the liberalization of Pakistan Telecom market. Telecom
industry is quite large at scale in terms or products & services. I have categorized certain
products & services having similar characteristics into a single field or segment. It would help
us in better understanding & easier to differentiate between the products or services are
provided by any Telecom operator operating on. It also gives a crystal clear bigger picture that
what customer or niche there are targeting.
The different telecom segments are Landline, Cellular Networks (GSM) and Broadband (DSL,
Optical Fiber, Satellite), Wireless Broadband, 3G/4G Technology Services, DigitalTV and
Multimedia Service, Public Cloud, Carrier & Wholesaler.

Few key major businesses in competition to PTCL are Jazz Mobilink, China Mobile (Zong),
Telenor, Warid while for these mostly they are competing with each other in Mobile Network
Services to compete with them PTCL’s a wholly-owned subsidiary Pakistan Telecom Mobile Ltd
(PTML) - Ufone operates a Cellular Network (GSM) service provider while the rest competitors
are NayaTel, StormFiber, Fiber net, Optix, World Call, Wateen & Wi-Tribe have expanded in are
other segments of Telecom market in some or all.

PTCL, in addition to its other competitors enjoys the leading position in market with quite
innovative products & services portfolio that gives an additional advantage of their brand
recognition in the market. The products & services offered by PTCL in detail way is explained
below and from this we can conclude that how different competitors are giving tough time to
PTCL & in which segments they are expanding their business in.

Todays, PTCL “Pakistan Telecommunication Company Limited” is the leading telco in the
Telecom Sector and the only one fully integrated telecom operator in Pakistan providing a vast
array of telecommunication & ICT services, both voice and data, using its unparalleled network
capabilities of wireline and wireless access, across the length and breadth of the country to all
segments of society; be it be in retail, corporate and business entities or other operators.

PTCL still has monopoly in this market segment where fixed-line telephones infrastructure
across all over the nation. PTCL was 1st one in South Asia to lay such complex copper wire &
optical connection in the country. PTCL Landline is further divided into Fixed Local Loop (FLL) &
Wireless Local Loop (WLL) services providers. PTCL’s FLL provides Domestic Call & International
Calls. Domestic Calls Tariff On-net Local & National Wide location charges have been revised to
Rs. 1.30/minute i.e., Landline to Landline/Vfone, Landline to Mobile Rs. 2.5/min. & Landline to
other Networks Rs. /2min like WLL etc. & for International Calls Tariffs depends on the zonal
region to call range start from Rs. 3.6/min to 200/min. For local calls the code used is non-STD.
For calls to other cities (e.g. Karachi to Lahore) the code is called STD. For International calls the
code used is ISD. While only NTC National Telephone Corporation that provide telephonic
services to only government sector offices which holds the 2 nd position after PTCL but NayaTel
has grab the remaining share in the Landline telecom market with almost 60 thousand
subscribers since StormFiber is new in this area of services still hasn’t grab enough market
share to be even consider it in the top 4 companies. StormFiber provides VoIP “Voice over IP”
to provide HD Voice Qualities over Fiber optics cable.
PTCL also provides services discount packages on International “international Calling Add-ons:
with economical rates” & Mobile Packages “Mobile Bucket Add-on mobile minutes on calling
from landline to any mobile network”. PTCL Smart Link services which is a free download app
that gives freedom of making and receiving landline calls, video chats, mms etc. from your
mobile by using an Internet connection. PTCL also provides Freedom Plus package service to
their customer that gives unlimited calls along with a range of value added services (VAS) and
international min & Freedom Unlimited Packages gives to their customers the liberty to make
unlimited On-Net calls & unlimited VAS.

PTCL is the largest internet service provider in Pakistan and is by far the most accessible and
most used one in the list. The semi-privatized company has a strong fiber backbone including its
own undersea cables. The company relies on its dated copper network to provide one of the
fastest internet connections in the country but now its converting into GPON FTTH network
were the demand is quite high and competition.

PTCL has many new & existing potential competitors that are competing with PTCL in mostly
urban or metropolitan regions. Big cites customers are targeted because the usage of internet
rate in high in these areas so like student, universities, colleges, small business like retail,
corporate sectors & residential areas (household). The demand of Broadband is still very high in
this market segment due to unlimited download & uploads with stable speeds are need to
access the data in fast, reliable way & satisfy the customers need.

PTCL Broadband is an Unlimited Internet provides rapid download & upload for demanding
Internet applications across Pakistan to its customer needs & demands. It depend on the
customer whether they use broadband for video, online gaming or data processing, High Speed
Broadband provides unlimited data at a higher level of performance. It relies on multiple lines
but is able to offer speeds of up to 100Mbps to the average consumer with an Unlimited
Bandwidth.

Customer gets choose from 20mbps, 30mbps, 50mbps and 100mbps and the latest offer is up
to 250Mbps in 2019 for a price between Rs. 6,000 to Rs. 20,000 plus taxes. PTCL either use
GPON fiber optic connectivity, VDSL or ADSL for providing internet services to its customers.

PTCL Broadband service is available in more than 2000 cities & towns across the country. High
speed broadband rate is currently more cost-effective than ever before. Installation charges of
a new internet connection over existing Landline cost is Rs. 2,499 inclusive of Tax or Installation
charges of a new Double Play (Landline + Internet) or Triple Play (Landline + Internet + Smart
TV) cost is now Rs. 5,000 inclusive of Tax while for GPON Installation Charges that is the New
Fiber to the Home (FTTH) GPON connection installation charges upfront are Rs. 15,000/-
although GPON is only available in selected areas in Pakistan like Islamabad, Karachi etc. while
conversion charges for Existing Copper connection to GPON upfront cost are Rs. 7,500/- .
PTCL also providing some packages for DSL/VDSL after their revamping form its previous
package. By default Freedom Unlimited default package is availed unless other package is
selected. Same as StormFiber and Optix ISP telco’s provide Unlimited Bandwidth to choose
from different speed packages like for StormFiber(10 Mbps, 20 Mbps and 30 Mbps) and for
Optix(2Mbps, 4Mbps, 10Mbps up to 60Mbps)
While NayaTel & FiberLink don’t provide Unlimited Bandwidth but Limited Bandwidth ranges
from with an advantage of increase to some extend or doubled at Night from 6:00 PM to 6:00
AM from 75GM up to 100GB along with addition services along with its download and upload
speed starts from 10Mbps, 15Mbps, 20Mbps and 30Mbps provided by NayaTel while FiberLink
provide the same limited bandwidth as NayaTel but its download and uploads speed starts from
16Mbps,25Mbps, 50Mbps, 100Mbps, 250Mbps and 500Mbps.
Pakistan Telecom industry has entered into a new era in digital Entrainment Services provides
by the telecom operators but PTCL is the one leading in it. It’s quite easy that they are targeting
old & mostly young generations to have access to the latest movies, series, sports, shows, news
all in HD and better quality then the Digital Cable operators. PTCL are pioneers of introducing
IPTV services in Pakistan Telecom Market. PTCL Smart TV offers viewers in prime quality TV
services with a spread of exciting options designed to tell and entertain. The service they offer
currently is 100+ Live TV channels mean Rewind, Record TV. Through Smart TV app they
provide Video on Demand (VOD) services with its price ranges from Rs.25 up to Rs. 300 / per
movie for 48 Hours, free unlimited on-net calls and access to its multimedia repository upon
acquiring any broadband services. PTCL SMART TV services are available in 150+ cities across
Pakistan. While NayaTel also provide Basic Cable to Digital HD channels through its Joy Box and
StormFiber provides crystal clear HDTV service redefined on Fiber optics GPON with a very
Smart User Interface 200+ Local & international TV channels.
A new era of entertainment business has shown a threat to theaters & cinemas is the
subscribed based entertainment service platform where one gets the latest Movies, Series,
Dramas and Informative etc. just sitting at Home Screens. PTCL brings major OTT Players iFlix,
Netflix & icFlix video on demand so that people don’t bother with long lines & crowded
theaters, just grab their family, friends and some popcorn and have a private screening.
PTCL customer’s experience All-In-One when they stream or downloading movies, TV shows &
music files and to have access to rich HD multimedia resources over the internet as well. Access
to free movies, music, classical Pakistani plays, cricket matches, academic & non secular
contents solely for PTCL broadband customers. PTCL also provide Wi-Fi modem (Smart Spot)
included on all new connections.
Today’s global socio-economical needs around whole world had become a borderless unified
wireless platform. The world is shrinking and made it the impossible possible that peoples
around at different corners of the world to conduct business & communicate across the world
due the evolution in mobile phone technology & they are everywhere, to image life without
them either for entertainment, educational or business purpose in our daily life’s. Today,
customers’ needs equivalent broadband experience they get at the workplace or reception or
at home, in spite of their locations. They want easy access and use, high speed and low latency,
better security & privacy, and seamless, global mobility with rich multimedia contents like high
quality in sound and video. People’s today’s generation just want to do more than simply
consume information. They want to create things & share them. They also want to do it
anytime, anywhere through blogs, social networks and similar applications they use with fixed-
line or fixed-wireless Internet connections. The growth rate of Pakistan’s telecommunication
industry has been quite a significant change during the last five or so years. Information
Technology and Telecommunication has contributed a lot by bringing Mobile services &
Wireless Mobile Broadband Services – GSM, 3G, 4G, LTE, to the country. Pakistan has been
working with firm determination for these years and working hard day & night for the
development of its telecom sector so do PTCL.
Telecom Service Market in Pakistan where further market segmentation is classified for
organization to decide where they want to do business; either by target a niche in the telecom
market or few segments or the whole telecom service market. The Telecom market
segmentation is described in here which respect to its segment market share in the whole
telecom market in Pakistan. Cellular Telecom Segment is the biggest portion in the telecom
service market then its Broadband follow up by Fixed Landline Telecom Segment Mobile after
other segments like Multimedia Broadcast Telecom Service Segment “Digital Entertainment like
IPTV or OTT Player still new in the market”, Wireless Mobile Broadband Market “3G/4G
Technology Service” and Satellite Communication Services.
PTCL contribution in Mobile Network Services “Cellular network system where GSM technology
& now 3G/4G or LTE technology” is used for telecommunication purposes by a PTCL wholly
owned subsidiary Pakistan Telecommunication Mobile Limited “PTML “or aka Ufone is used to
grab more Market Share in this segments also. It was introduced in 2001 & with the passage of
time it loses its grip from 2nd highest position in the market to 4th position in the market with
only 14% Market share & No of subscribers are 21 Million Ufone subscribers. While Ufone only
use 3G services for voice and data to its mobile user subscriber to access the internet facilities
but with even only providing 3G services to its customers it has increased in its subscriber base
then last year 2017 it had only 18 Million subscribers. While Mobilink is rank at 1 st place by
grabbing most of the subscriber in GSM services as well as in 4G wireless Broadband Services
and Zong is definitely catching up to Mobilink in service by providing better services then them
in its GSM and Wireless Broadband 3G/4G Services & now its alliance with Huawei co. to be the
first one to launch 5G technology in Pakistan which is a Thread for PTCL and other Telco’
3G and 4G technology have revolutionized the mobile services sectors in term of not just call
rate and SMS rate but also in higher data. and video services in quality and speed. With
advancing technology mostly all of telecom companies are also providing wireless mobile
broadband devices like dongle or Wingle either USB or Wireless WiMAX devices that support
3G/4G services.
While PTCL has also expanded itself in this market also by providing different products &
services on wireless broadband Technology a well. Pakistan Telecom Industry is differently
expanding in mobile wireless broadband technology although 3G whose vision was to develop
& allow true global roaming with high-speed data and high-quality voice services and 4G
technology to complement 3G and Accessing information anywhere, anytime, with a seamless
connection to a wide range of information and services, and receiving a large volume of
information, data, pictures, video, and so on, are the key features of the 4G infrastructure.
Based on the developing trends of mobile communications service 4G have broader bandwidth
then 3G technology similarly it has higher data rate and smoother and quicker handoff and will
focus on ensuring seamless service across a multitude of wireless systems and networks plus
also the application adaptability and high dynamism features has bring new revolution to
technology in the daily lives like the users’ traffic, air interfaces, radio environment and quality
of service not just will it be bound to entertainment or information like the concept of Internet
of things (IoT).
PTCL has also invest in Mobile Broadband Technologies by providing 3G/4G technology
networks to user whose main features IP solutions that deliver voice, data, and multimedia
content to mobile users anytime & almost anywhere. Faster wireless broadband connections
modify wireless carriers devices to support even additional higher-level data internet services,
including business applications, streamed audio and video, video messaging, video telephony,
mobile TV, and gaming. 3G/4G Consumers demands to communicate, conduct business, and
move around the globe as easily and seamlessly. 3G/4G mobile broadband technologies will
allow wireless carriers to take advantage of greater download and upload speeds to increase
the amount and types of content made available through mobile devices.
3G EVO Wingle is Pakistan's first Wi-Fi enabled USB that connects multiple WIFI devices
simultaneously by PTCL. It connects 3G EVO Wingle to laptops, desktop, to vehicular like car
USB port, cigarette lighter or ignitor, charger or any power socket in households or workplace
and receives hyper speeds of up to 9.3Mbps with limited bandwidth in 200+ cities nationwide.
PTCL has provide with the next generation of wireless broadband device called “CharJi EVO”
with a superior browsing & rapid downloads and it connected the customers to online world in
seconds with no wait or lag, no buffer time it’s truly a seamless connectivity experience form
customers.
Its Internet speeds is now five times quicker and faster than 3G networks therefore, enabling
fast & quick download and uploads, real time gaming, extremely fast movie downloads &
speeds that literally make you stream like in a dream. From surfing the web to watching
movies, from getting social with friends to sharing pics or playing games; Charji EVO gives the
customer the power to do it all instantly on the country’s fastest wireless network. It’s mostly
available in 40+ cities & towns in both urban & rural regions. It’s also a good option for users as
they come with theoretical speeds of up to 36mbps and unlimited bandwidth.
What makes PTCL so different from its competitors is that it has root into different segments
services to its corporation and business (retail) level is quite different then its common
consumers by providing more add on value to this segment like video conference calls, cloud
computing services, and data at very competitive prices.

PTCL also provide its existing transmission network lines either in fiber, copper, satellite
submarine cables, bandwidth spectrum to other telecom operators either they are in mobile or
internet services providing segment to its customers.

PTCL in its Digital Services to its corporate customer base with innovate ICT products and
services. As the growing market needs and is headed towards digitalization, to help them with
this situation PTCL provides new enterprise customers in diversified business verticals and its
contribution towards higher business growth is done through Smart Cloud, Data Center
Hosting, IT System Integration Projects, Managed Services, Managed Wi-Fi, IP Surveillance &
TDD (Time Division Duplex) LTE Connectivity for enterprise customers and many more other
services as well.

PTCL has laid its footprint in Microfinance banking sector to provide services of digital
commerce and branchless banking to its customers through Ubank “U Microfinance Banking”.
U Bank has witnessed significant growth in loan and revenues. As a part of group synergy
initiative, the bank also plans to open new branches in collaboration with PTCL with equity
injection of Rs. 1Billion in this year

U Bank’s branchless banking also offers services under the banner of U Paisa in collaboration
with Ufone (Pak Telecom Mobile Limited). The service is offered at nearly 45,000 agent
locations across Pakistan.

U Microfinance Bank is proud to be at the front line of fighting poverty in Pakistan and is
dedicated to play its critical part in the implementation of National Financial Inclusion Strategy
2020 that aims to bring 50% of Pakistan’s adult population into banking net.

At U Microfinance Bank, it firmly believe that access to microfinance services contribute

significantly towards building a more inclusive society leading to bringing the underserved
population into banking net as well as help document the informal economy. The product
portfolio is designed to continuously create livelihoods for the underserved population of
Pakistan and bring betterment to their lives
Telecom Companies like NayaTel, World Call, StormFiber, Optix and FiberLink have not invested
in mobile wireless broadband networks segment in the telecom industry while Giant Telecom
Companies like Mobilink, Zong and Telenor in Pakistan industry have not invested in the other
segments of Telecom industry in Pakistan telecom market yet. PTCL is the one leading telecom
company that has invested & has deep roots in all the current segments of Telecom industry &
possibly will invest in future telecom segments as well like the unlimited possibilities of 5G
technology or Artificial Intelligence or in Hologram Technology.

Major Competitors of PTCL & Ufone in Pakistan Telecom Market brand logo are shown below.
 The table below highlights the competitive differences between the competitors of PTCL’s.

PTCL Competitors Analysis

Competitors Analysis
Competitors Portfolio Products & Technological Features & Services Services
Services Features Operation

PTCL PTCL PTCL: PTCL Landline: Local to PTCL is Group company

PTCL Landline : Voice Voice: Local Loop (LL) & Domestic to Wireless Local Loop that is it’s an all
PTCL PTCL Broadband : Wireless Wireless Local Loop (WLL) to International Calls integrated telecom
Fixed and Mobile Broadband Data: GSM, HSPA+,CDMA & LTE Broadband: Unlimited service corporate
Parent Company DOMSAT: Satellite Broadband: SMART TV: Apps Services & company like mobile
Communication Fixed: DSL, HFC , FTTH & 3G/4G Rewind, Record, Stop , Play services, internet services
Etisalat PTCL SMART TV & APP: Digital Technology Transmission Line wholesale as & Digital Entertainment
Entertainment with Digital Entertainment: IPTV (POPs): PTCL’s Wavelength services telecom
Subsidiary OTT Player: Netflix, iFlix, OTT Player: online Streaming Service LightWAVE, radio, operator that operates in
StarzPlay, icFlix multimedia contents Satellite, Submarine Cables, Voice, Cellular, Data
as
3G/4G Device: PTCL EVO 3G Wireless Mobile Broadband : 3G Optical Fiber Network etc. to “Broadband Fixed &
Cellular Mobile Wingle 9.3 no longer used and 4G services Internet Static IP, E-Billing, Email, Wireless”, Multimedia,
Operator PTML; since 2017 & CharJi 4GLTE Ufone IP Surveillance : iSentry, Satellite communication
its brand trade Vfone :WLL no longer available Voice, SMS, internet Services Extreme Sports Thrill, Pakistan plus PTCL is a Member in
since 2016 3G Technology Service & No Gaming Lounge, PTCL Careem 4 Submarine Cable & also
name is “Ufone “ Ufone Services through Wireless Discount Codes & Video operates as a Retailer,
Cellular Mobile Network : mobile Broadband Conference Services Carrier & Wholesale &
Voice & Data Ufone: Prepaid & postpaid offers, Corporate Company
packages, Mobile internet, &Banking Service
international services & other “Ubank”
value added services.
Mobilink “Jazz” Cellular Mobile Network: Voice Cellular Services Voice, SMS Prepaid and postpaid offers, Mobile service operators
& Data Services and only 4G along with Internet Services packages, Mobile internet, Voice & Wireless Mobile
Parent Company Devices: 4G WiFi & Wingle 2G,3G & 4G Technology Service international services & other Broadband Services
VEON value added services.
Zong Voice & Data in Cellular Network Voice, SMS, Internet Services Postpaid, prepaid, LTE, GLOW, Mobile service operators
& 3G/4G Devices: Super3G 3G, 4G & LTE Technology Mobile paisa, Mobile internet, Voice & Wireless Mobile
Parent Company Dongle & Wingle Services International roaming & other Broadband Services
China Mobile 4G Bolt+ WiFi & 4G Bolt Dongle value added services.
Telenor Cellular Network Voice & Data Voice, SMS, Internet Services Along with its cellular services it’s Mobile service operators
and 3G/4G Device: 3G Wingle, 3G/4G Technology Services also provides in mobile banking, Voice & wireless mobile
Parent Company 4G MiFi Cost & 4G Wingle Cost 3G and 4G internet service, call broadband Services
VEON and SMS packages
NayaTel Landline : Voice Voice: VoIP, Broadband: Fiber Voice: NTL Phone line Internet Service provider
Broadband : Wireless Fixed To The Home & over Dark Fiber Broadband: Limited Voice, Data & digital
Broadband and Multimedia : Basic Cable & Timing w.r.t to day & Night Entertainment Services
Digital Entertainment Digital TV & Job Service & online Packages, Bandwidth on
streaming NMX is an online Demand , Parental control
subscription Kaspersky Total Security
Optimus Online Gaming
Nwatch an HD IP Security though
eView
StormFiber Landline : Voice Broadband: Fiber To The Home Internet Static IP Internet Service operator
Broadband : Wireless Fixed “FTTH”, Voice : HD Voice over Parental Control Voice, Data & digital
Parent Company Broadband Fiber optical cables, DigitalTV: Crystal clear HDTV Entertainment Services
Cybernet DigitalTV: HD & SD channels StormFiber’s HDTV Smart User Interface
Optix Landline : Voice Broadband Ultrafast Fiber To The Internet Static IP Internet Service operator
Broadband : Wireless Fixed Home “FTTH” Technology, Voice, Data &
Broadband Optix Phone Line and multimedia Entertainment Services
Entertainment: Digital Cable contents Digital Cable
FiberLink Fixed Broadband Services FTTH Dark Fiber Broadband: Limited Only Internet Service
Overhead Fiber GPON. operator
 Competitors Analysis
Competitors Distribution Channel MARKET SIZE Marketing
& &
Coverage Area No. of Subscribers

PTCL PTCL Distribution Channel PTCL Group PTCL:

Direct & indirect Distribution Channel (Outlets, In Landline service PTCL hold almost 95% Television, Advertisement
Parent Company Online, Franchising , Call & Services Center, Market share with 2.5 Million users Newspaper, Internet Ads,
Etisalat Agent ,Wholesale & Retail although NTC is at 2nd place with 1.1 Million Billboards, Website, Social
Subsidiary users. It also dominate WLL through Vfone Media Platform, Self-Services
PTCL & Ufone till 2017 after complete decline of WLL
as Available more than 2000+ cities & towns while its market while in Broadband and
& Promotional techniques
like; discounts, special
Cellular Mobile GPON FTTH only available to few cities like entertainment service Market share in DSL packages, sponsoring events
Operator PTML; Islamabad, Karachi, Gujranwala, Lahore, Multan, total user are 3 Million PTCL holds almost Ufone:
Okara, and Sheikhupura & Sahiwal. 96% in DSL Broadband services while its
its brand trade competing at tough spot in FTTH new
Same but Mostly its Strategic
Marketing Tactic is through
name is “Ufone “ Market with its rivals in this field of services aggressive Commercial TV
since it’s an emerging since 2014 till 2018 Ads plus also provide quality
its increase is dynamic with 1 Million services not quantity.
subscribers PTCL still lacks behind in
wireless mobile broadband service in
3G/4G devices then its competitors like
Zong, Mobilink, Telenor then PTCL
Ufone
It grabs 4th position in cellular telecom
market with 14% & the No. of subscriber is
21 Million. Ufone only services 3G services
to its 8 Million subscribers.
Mobilink “Jazz” Mobilink Distribution Channel Top position in Cellular Telecom Market 56 Mostly Commercial TV Ads,
Wholesale & Retail Shops million user & capturing 37% Market Share Newspaper, Internet Ads,
Parent Company Coverage Area & Towers While Mobilink Jazz 3G/4G combine Billboards & Promotional
VEON Services available in many areas of Pakistan subscriber is 2.2 Million techniques
Zong Zong Distribution Channel Zong stood at third position with almost Mostly Commercial TV Ads,
Wholesale & Retail Shops 21% market penetration with 32 Million Newspaper, Internet Ads,
Parent Company Coverage Area & Towers users Billboards & Promotional
VEON Services available in many areas of Pakistan While Zong 3G/4G combine subscriber is techniques
1.9 Million
Telenor Zong Distribution Channel 2nd Position in cellular Telecom Market with Mostly Commercial TV Ads,
Wholesale & Retail Shops 29% Market share with 43 Million user Newspaper, Internet Ads,
Parent Company Coverage Area While Zong 3G/4G combine subscriber is Billboards & Promotional
Telenor Group Telenor is the only international cellular provider 1.3 Million techniques
with its operations in 13 markers all over Europe
&Asia.
NayaTel NTL Distribution Channel NTL is in 3rd position hold around 60 Flyers, Internet & TV Ads,
Indirect Distribution channels Online & Call Centers, thousand user only & at FTTH market is a Website Promotional
Outlets, Franchising & services Center growing sector with only total 1 Million techniques like special
Coverage Area & Exchanges user of FTTH Services. offers
Islamabad, Rawalpindi, Faisalabad & Peshawar.
StormFiber StormFiber Distribution Channel StormFiber is newest in Voice, Broadband Flyers, Internet & TV Ads,
Indirect Distribution channels Online $ Service Call & IPTV services Market although it might Website, Social Media
Parent Company Centers, Outlets, Franchising giving tough competition at FTTH to its Platform & Promotional
Cybernet Coverage Area & Exchanges rivals techniques
Hyderabad, Faisalabad, Karachi, Peshawar, Multan,
Lahore & Quetta.
Optix Optix Distribution Channel Newest in the Market Website & Promotional
Indirect Distribution channels Online & Call Centers techniques like special
Coverage Area & Exchanges packages
Karachi, Lahore & Rawalpindi.
FiberLink FL Distribution Channel Newest in the Market Website, Internet Ads,
Indirect Distribution channels Online & Call Centers Flyers Promotional
Coverage Area & Exchanges techniques like special
Karachi, Lahore, Hyderabad, Faisalabad & Rawalpindi offers
 Competitors Analysis
Competitors Employees Revenue Subsidiaries Parent Market Share
Net Income Company

PTCL 18000+ Growth Revenue in Pak Telecom Broadband Sector :

2017 Mobile Limited Fixed Market Share
PTCL Group Revenue (PTML) – Etisalat, 80%
Rs. 117 Billion. /- “Ufone” Pakistan Wireless %30
U Bank – U /UAE Landline Telecom
PTCL Revenue of Rs. Microfinance Sector: Market
Rs. 69.8 Billion /- Bank Limited Share 90% even
Smart Sky though WLL is not
Full Growth Revenue (Private) available right now
all Year in 2018 Limited but it also was
PTCL Group Revenue DVCOM Data dominated by
Rs. 126.2 Billion /- (Private) PTCL.
Limited Market Share of
PTCL Revenue of Telephone Ufone in Cellular
Rs. 70.1 Billion /- Industries of Telecom Sector
Pakistan “TIP” with 14%
Maskatiya
Communicatio
ns (Pvt)
Limited
Mobilink “Jazz” 2300 Rs. 40.49 Billion /- Deodar Private VEON, Market Share in
Limited Netherla Cellular Telecom
nd Sector with 37%
Zong Not Given Rs. 65.95 Billion /- None China Market Share in
Mobile, Cellular Telecom
China Sector with 21%
Telenor 35,121 Rs. 28.066 Billion /- None Telenor Market Share in
Group, Cellular Telecom
Norway Sector with 29%
NayaTel 1300 Rs. 1.2 Billion /- Metrotel No New
(Private)
Limited, Super
Dialogue
(Private)
Limited
StormFiber Not Given Not given None Cybernet New
Optix Not Given Not given None No New
FiberLink Not given Not given None No New
PORTER’S COMPETITIVE POSITION ANALYSIS
In 1980 Michael Porter's described a business analyzing model that helps an organization or
industries are capable to sustain in different levels of profitability. This model is mostly widely
used at the business or corporate level to analyze the industry structure of an organization as
well as its corporate strategy. Porter identified 5 irrefutable forces that play a part in shaping
every market & industry in the world. The forces are often used to measure competition
intensity, attractiveness and profitability of an industry or market. (Porter, 2004)
Porter’s Five Force Analysis is defined as:-
“A business model that identifies the main factors contributing to a company’s competitive edge
over its competitors & forecast the company’s future positioning strength” – By Michael Porter
(Investopedia, 2019)
This analytical tool or model is broadly used in business community & helps an organization to
understand where its business influence & powers lies in terms of current competitiveness &
future positioning forte in the business world is.
The five force that Porter described in its model that how can a company can analyze the
competitive environment in which a product or company works & how these 5 important
factors that drives a company’s competitive position within an industry.
It forces an organization to analyze the bargaining power of suppliers and customers, the
threats to new entrants and substitutes, and competitive rivalry in the marketplace. Using this
tool helps a company understand the balance of power and to identify areas of potential
profitability.

According to Porter, this model should be used at the line of business level means that it not
just for identifying & analyzing the five competitive forces that form every industry but it also
helps in determining an industry's strengths & weakness. It also frequently used to identify an
industry's structure to determine corporate strategy; Porter's model can be applied to any
segment of the economy to search for profitability and attractiveness.

The Five Forces Analysis of the environment is a framework that acts on a product or service,
brand & company to look at the strength of a company’s five important factors that affect
competition in the industry, potential entrants, existing competitors, buyers, suppliers and
alternative products & services. Using this model, a firm can build a strategy to keep ahead of
these influences.

In my opinion, Porter's Five Forces model provides suggested certain factors under each
heading, by which an organization can develop a broad & sophisticated analysis of the
company’s competitive position in the market, & it’s used in when creating the future strategy,
plans or making investment decisions about a business or organization.
 1. Competitive Rivalry
2. New Market Entrants
3. Threat Of Substitution
4. Supplier Power
5. Buyer Power
Porter's Five Forces model provides a broad and sophisticated analysis of competitive position
of PTCL in the Telecom Industry of Pakistan, in order to create the future strategy, plans or
investment decisions according to how the competitors influence the business of PTCL. This
tool helps PTCL to identify its where its strengths & as well weakness lies to which its
competitors affects the business and it also helps in determining in setting its corporate
strategies for the future.

New Market Entrants

Potential entry to the market is always a threat to the industries because a company's
influencing power is affected by the force of new entrants into its market. It also depends on
the company as well like how to take the threat of new entrants and mold it into positive
reinforcement.

The threat of new entrants is always depends on the barriers put by the state on the industries.
If the barriers to entry into an industry are high then it’s highly difficult for new small business
to enter into the market place mainly reason due to high cost & strong competition. Highly
concentrated industries usually high entry barriers due to the products of such industries are
not homogeneous and such companies can sustain a favorable position to claim high
competitive edge over each other like automobile or the health insurance companies etc. On
the other hand with barriers to industries like telecom sector are usually low so that new
businesses can take advantages of with its key technology & economic scale.

The ideal market would be for industries with strong barriers to entry are an attractive feature
for many organizations because they prefer to do business in blue ocean market then in a low
barrier red ocean market. Then again it depends on the nature of the company.

POTENTIAL MARKET ENTRANTS IN TELECOM INDUSTRY

Potential market entrants is threat that affected by entry barriers put by the policies of a state.
These new market entrants have directly or indirectly affect in the economy of a country, their
capital investments & also increases in economic scale of a state since, Pakistan is a developing
country with regional & has a geopolitical significance in South Asia. In the last 3 or so decades
there has been massive investment & development by the government of Pakistan itself &
many other investors in the Telecom sector after the market privatization.
As the government of Pakistan has showed liberalism in the telecom sector & opened its
policies to award new licensees to new business like data, voice or satellite service providers
has increased the threat of potential entry from low to high. Generally entry into the business
market in Pakistan is comparatively easier in comparison to other Asian countries. The low
capital investment & low level entry barriers captured many investors in the telecom sect after
the announcement of deregulation policies and made the telecom sector an open market for
competition in July 2003. As Pakistan is among one of the few countries whose economy shook
by the row of terrorism & prejudiced behavior of big powers in the country as far as business is
concerned so the threat of entry of new entry was very low at that point. Over the years lots of
local & foreign direct or indirect investment was done in the telecom sect. From a decade or so
the current telecom industry is rapidly increasing in term of competition and so the
requirement for new business to invest in this market has very high & rigid barriers due to
external interference, higher cost & capital investment involves in introduction to new products
or services & sustaining the business cost is quite high in the telecom sect due which has caused
new potential entrants are now reluctant to enter into the market but there are companies
who are working to achieve licenses & approaching PTA to know terms & condition for it so the
threat entry of new potential entrants is high.

The whole image of Pakistan is changed due to continuous stability in the region & many big
projects like CPEC have a decade or so the unaccepted growth in the telecom sect due to
stability in the region & many big projects like CPEC have changed the whole prospective of
investment opportunities in Pakistan.

As porter describes his competitive strategy that distinguishes between factors that
characterize the nature of competition in the market like these competitive forces has definitely
influence the state of competition of the potential industry as whole in the market & has threat
to some degree to the PTCL profit is certain important region.

In telecom industry the entry to barriers depends on which sectors new entrant’s desires to
penetrate. In case of Internet service providers (Broadband) there is no such barrier to entry in
this industry so many new small businesses have setup their business in the telecom market like
Cybernet and NayaTel. However, in case of to enter into the telecom industry of voice service
like mobile phone services (GSM) has very high barrier & requires high investments.

Economies of Scale have high fixed cost that depends on the large volume of sales in a
company, PTCL has already achieved its target in Pakistan and it has become a giant company
leading the telecom industry in Pakistan. To beat PTCL is quite difficult just because there is
high potential entrant in the market its alarming threat though but not that much. PTCL is
already making large volumes of sales in the telecommunication industry in Pakistan & its level
of distribution channel is all over the nation and deeply connected its root in the telecom
market. So, the barrier of capital investment required in Telecom industry in Pakistan is high
for the new entrant, they need to be financially strong to compete in this telecom market. To
be the leading position in the market PTCL capital requirement & investment into its products
and services should always be in huge amount so it has an edge over it competitors. Another
high & important one barriers for PTCL competitors in the market like NayaTel, StormFiber, Wi-
Tribe, Qubee etc. & private net cable providers is the access of distribution channels across the
county while PTCL has already a number of exchanges all over Pakistan. Parental control on the
existing product or services provided by the PTCL had given these rights to parents was the first
one to introduced in the Pakistan telecom industry but currently more or less other telecom
operators also providing such services as well. Threat of potential entrants to PTCL in terms of
switching cost is high due to many reasons one is that the cost of installation is very high with
respect to its competitors.

PTCL as whole don’t have a huge threat from the new entrance because its competitors are
facing difficulty in accessing distribution channels by the PTA and other external influence also
they need huge amount of capital & obtaining the necessary materials, skilled people or
supplies is quite difficult in such a competitive market. It will take a lot of time to grab the
market as PTCL have.

Power of Buyers
This force specifically deals with the ability of a buyer or customers to drive the prices/cost of
the product or services down & dictates the business terms. It symbolizes the extent to which
the buyers can influence the prices of the goods or services in the market world.

Bargaining power of buyers affects the company’s power & performance in of price setting.
When there are a huge number of buyers or customers, the costs of switching to competition &
customer loyalty are both low. Buyers can go with the business that meets their needs at the
lowest cost. When the number of buyers is trivial, the company can push the prices/cost of the
goods or services down because the business cannot easily find new customers & the lesser and
more powerful a client base, the more power it holds.

CUSTOMERS BUYING POWER

Power of buyers is high in telecommunication sector all over the world. In Pakistan Telecom
sectors the bargaining power of customers is high. About a decade or so people didn’t have
any better choices when it came to internet (data) or voice service providers?

However, that is not the case now because now there are a lot of alternatives available in terms
of services, products & brands for the customers at low price with the same products/ services
that are almost homogenous with comparatively to PTCL have low cost switching from one
product to another or supplier to another.
Customers are enjoying the power to full extend by bargaining with good & reliable quality
products at less price this mainly the reason the loyalty base of customer or buyers for any
telecom operator or its products or services is very hard to come by in the Pakistan telecom
industry. So the people have a lot of choice after many new players have entered in the market
and they are offering the different package at different prices to attract customers towards
them which has led to a situation of price war among the competitors. Customers have a power
to buy any package which is suited to them because in fact the existence of brand loyalty in
telecom industry is nearly zilch. Charge of switching from one company package to alternative
company package is low. Hence power of customer is high. It has affected PTCL because the
switching cost of PTCL is so high that it not a good omen for PTCL.

Only corporate class business or small business practices to stick to one operator for
consistency which is very few in the marketplace in Pakistan in comparison to other customer
base.

Power of Suppliers
Porters five force addresses how effortlessly suppliers can initiate the price of goods & services
up or down. The bargaining power of suppliers is significant to what extent suppliers can have
power of influence the industries in term of prices. The business is affected by the number of
suppliers, the most important key aspects for suppliers is any good or service uniqueness and
how much it would cost a company to switch from one supplier to another.

A lot of suppliers mean they don’t have bargaining power to influence the company in price or
exercise control in the industry so it becomes easily switch to the competitor suppliers. In the
other hand the fewer the number of suppliers means power is in their favor in terms of price &
cost of switching is prohibited because the company depends more upon a supplier thus it
makes the supplier more powerful.

SUPPLIER POWERS
Monopolistic conditions have always favors suppliers to be able to control & manipulate prices
in the market world therefore it gains power and strongly bargain when key suppliers are less
or scarce in numbers thus product is monopolized. The power of suppliers is low in case of
telecommunication sector industries because this industry is stack with too many competitors
competing with each other in this bloody red ocean. In fact if the numbers of suppliers are few
in the market but they are competing in the telecom market to make as many agreements with
telecom companies.

Same is the case in Pakistan Telecom industry due to a strong number of few suppliers includes
companies like Siemens, Ericsson, Optical fiber system by Z-T China Company plus including DSL
facilities, Skylink provide Satellite Communication, J.S telecom, Huawei, ZTE, NEC and
Alibaba.com “online services to telco’s operators” & local manufacturing companies in Haripur
“TIP from Haripur,” or TF Pipes manufacturer which provides input to its major telco’s clients
like PTCL, Mobilink, Warid, Ufone, China Mobile (Zong), Telenor etc. which all have same similar
products/services and competition is quite stiff which results in good amount of supply of
products ensured by all suppliers at low cost. So in fact is that numbers of suppliers are few in
the market and they are competing in the huge market of telecom operators to make
agreements with them.

With the ban of supplier companies like ZTE by global political factors do create increase in
other supplier demands but most the telecom companies who didn’t rely on the other third
party rather they managed their network in house means on their own.

Competitive Rivalry
Porter describes that all the other forces come together to produce this force so that the
company could asses how intense their competitors actions & strategy is towards gain more
market share & how the company can take countermeasure to counter its competition actions
through utilizing all the resources at the company’s disposal.

In this highly competitive, dynamic & adaptive market the increase in number of competitors &
their ability has threaten many company in the same sect of industry. If in highly competitive
industries the larger the number of competitors competing to get a large chunk of market
shares; they try to provide more equivalent products & services the company offers then it
competitors which makes the company lesser in power in the business community. So the
organization is able to exercise no control or little on the prices of the goods & services they
provide. Suppliers & customers pursue out a company's competition if they are unable to
receive a suitable deal.

In contrast to this when competitive rivalry is low; organization has greater power to do what it
wants to do to achieve higher sales & profits. So these organizations or industries have
monopoly or monopolistic competition in the market such business fully enjoy its doctrine,
control in the market in term of prices of good & services and also they become the leading
company in the industry.

COMPETITION IN THE INDUSTRY

The key driver is the increase in the numbers; capability & potential of competitors in the
market reduce the market attractiveness due the reason that many competitors offering of
undifferentiated products & services. Same is the case in Pakistan Telecommunication Industry.
Competitive rivalry within Telecom Industry is quite high in Pakistan since 2000 it opens its
market to foreign telecom sects to invest in it. Although it had some bumps along the way due
to political, economical & security wise situation but still this industry has gain the most benefit
even during the toughest time Pakistan was facing terrorism.

Telecommunication Industry its products & services have rapidly grown in the entire world in
the last 3 decade or so. The major development in the internet (Broadband) & Mobile Phone
System (GSM Network), Satellite communication is growing very fast & will do even more so in
the future. The technological advancement & ground breaking innovation in this industry has
not just provided better communication facilities to the society across the world but have also
influenced the economic progression in many countries like Europe, Asia, so that market
liberalization in Pakistan by 2010 has created a pool of potential competitors in marketplace so
the competitive rivalry is quite visible at all levels of telecommunication industry. So PTCL has
strong rivalry among the competing firms in the telecom industry which has led to the ongoing
war between these major players on price, quality & reliability to get the larger portion of
market share.

Significant player to cellular network market (GSM) are that are competing with the PTCL
(Ufone) are for example; Orascom co. (Mobilink), Telenor, Warid, China Mobile co. (Zong),
Warid & many more. While the major market layer in Broadband market are that competing for
the market share are China Mobile co. (Zong), Telenor, Wateen, Link Dot Net, Mobilink Infinity,
Qubee, World Call, Micronet ,Dancom, Paknet, Maxcom, Wi-Tribe, NayaTel or Cybernet
(StormFiber) and many more in the future as well. This competition exists mostly in
metropolitan areas as there are many businesses which provide services in such regional areas
e.g., NayaTel operates in Islamabad, Wi-Tribe in Lahore, Islamabad, and Karachi etc.,
StormFiber in Peshawar etc. & giving a tough competition to PTCL. While PTCL still enjoys
monopoly over mostly all over the country where these companies haven’t penetrated the
regions such as considered being rural areas.

In this saturated market with same product line & service and mostly similar strategy is pushing
telecom operators companies in very narrow corners including PTCL. The competition among
PTCL & other companies has caused in quite economical prices & good quality of product &
services giving advantageous benefits to the customers.

Now let focus on the newer market niche in Pakistan telecom sector with the emergence of
Media sector has boomed the satellite communicate phenomena in Pakistan. There are many
companies already investing in this market. Satellite services & technology has enhanced the
existing mobile service providers & help in overcoming challenges of large geographical areas &
insurmountable terrains like Thuraya co. They are also used by many telecom operators for just
media services as well. So PTCL has introduced its “Skylink” satellite communication services for
commercial customers but other companies such as NetSAT, Paksat etc. are also investing in
this market pool.
Currently there are many potential market competitors but in future they might be increased as
well & the existing competitors might also in be increased in terms of popularity &
performance. Thus the intensity of competitive rivalry within an industry will affect the
profitability of the PTCL in terms of price competitions, distribution channel, advertisement &
sale promotion campaigns, introducing new products for the market, providing guarantees or
warranties and improving it sales services by levelly it up constantly. Intensive and aggressive
competition can decrease the demand of PTCL and its profits.

Threat of Substitutes
In this competitive world many companies are competing in the same market ocean they
substitute to the consumer homogenous products or services in the same sect of industries like
from daily life examples; Tea for Coffee, email for fax etc. such business has a great impact on
the industry. Competitor substitutes always pose a threat to a company's products or services.
Also, the rapid change in technology has increased the threat of substituted products &
services.

Now when a customer has a lot of choice between different company’s substituted products or
services it weakened the company’s power. The impact of this on the businesses is who will be
the price takers, i.e., buyers determine the prices so company has to take their consideration
into account for price setting. On the contrary, when a company or business follows product
differentiation strategy it’s determines the ability of buyers switching towards it competitors.

SUBSTITUTE AVAILABILITY IN THE MARKET

After the privatization of Pakistan Telecom industry the threat of available substitute in
Products/Services is very high & growing in very fast pace due to technological changes &
advancement. It also depends on the customers depends as well.

There is very little brand loyalty exist in this industry & the performance factors in terms of
services, customer care in generally hurt many customer then comparison to the price.
Switching cost is so low that so there is no strong relationship mechanism with the telecom
companies in the industry which could differentiates one to other. All these are liabilities that
have given liberty to customer for opting substitutes available in the market. They pose a threat
to telecom operators like PTCL. It’s not very effective way in retaining customers forever
through low pricing strategy or high quality services. While in my opinion in Pakistan telecom
industry branding positioning of a company & product differentiation will create strong
relationship with buyers. Competitors are always a threat to substitute of products or services
available in the industry like to PTCL because they try to provide as much alternates as its
competitors. So the threat of substitution is very high for PTCL.
 PTCL provides many products & services in the market from satellite communication to PTCL
landline all over the country. Some competitors either they provide all or some alternative to
PTCL products or services. In case of fixed broadband “DSL” substitutes are available in the form
of 3G or 4G services provided by its competitors like Warid, Telenor, Zong, Mobilink etc.
through dongle device although these services are limited for use like they come in packages
e.g.,2GB for Rs/-500 etc.

This table illustrates how Porter five forces generally define each force applied on PTCL
Company and shows the current & future position of PTCL in the telecom market.

PTCL’S COMPETITIVE POSITION IN THE MARKET

POTENTIAL MARKET CUSTOMERS SUPPLIER COMPETITION AVAILABILITY OF

ENTRANTS POWER POWERS SUBSTITUTE
Threat of Potential new Customer Suppliers Overall Competition Threat of substitution for PTCL
entrants is high Number is High power is Low is High is High
Barrier entry for Demand is High Number & size Landline segment Number of substitute
Broadband is Low while in of suppliers is No Competition. products/services available in
GSM is High. Low. the market for metropolitan
region is High
Economies of Scale is High Price Sensitivity Competitive Broadband & Voice Buyer propensity to Substitute
is High Market is High & Cable High is High
Competition.
Brand loyalty is Low Buyers ability to High Diversity of Relative price performance of
substitutes is Substitution of Competitors is High substitute is Low
High Product &
Services
Capital Requirement is Brand Loyalty High Industry Product Differentiation is Low
High of PTCL is Low concentration
Cumulative Experience is Switching Cost Industry Growth Brand Loyalty is No
High is High High
Government polices & Customer Care Quality Differences Switching cost is Low
influences is High in PTCL is Low is High
Access to Distribution Brand Loyalty is
Channel is High Low
Switching Cost is Low Switching Cost for
PTCL is High
Barriers to exit for
PTCL is High

PTCL’S COMPETITIVE POSITION

FIVE FORCE MODEL

INTERNAL ENVIRONMENT ANALYSIS
By applying value chain analysis tool on PTCL; which is a strategy tool used to analyze internal
activities of company or organization in this case PTCL. Its goal is to recognize and identify those
activities are the foremost valuable i.e. which activities are the source of cost or have a
differentiation advantage for PTCL & which ones could be improved to provide competitive
advantage to the company. In other simple words, by looking into internal activities of PTCL,
this analytical tool reveals PTCL’S competitive advantages or disadvantages are & how PTCL is
competing through a differentiation advantage which helps PTCL to perform its activities better
than competitors do or would do in the future.

This Business Management concept/model was introduced by M. Porter in 1985. Value chain
model represents all the internal business activities a firm engages in to produce goods &
services. These Business Activities or processes are further classified into Primary Activities &
Secondary Activities of an organization. Value chain analysis (VCA) is a process to identify the
PTCL primary activities that add value to the final product directly and support activities that
add value indirectly & then analyze how these activities to reduce/increase costs in
product/services of PTCL or increase differentiation in PTCL products and services.

PTCL’S Value Chain is a small part in the larger telecom industry's Value Chain. The more
activities a company undertakes compared to industry's Value Chain, the more vertically
integrated it is. One of the few reasons for me to choose PTCL Company is to get a better grasp
at understanding a segment in the telecom business. For one, the telecom industry is not just
rapidly increasing but is huge, complex and generating huge amounts of revenue as well as
influencing the life style of Pakistan peoples all over the nation, it is also very likely to become
even more important in the future of Pakistan Telecom and it economy. As this Chain Analysis
projects the future oriented of shaping the company for futures use as well as it industry. Their
only fuzzy borderline between telecom industry and PTCL because it is the largest
telecommunication infrastructure in Pakistan and every telecom company use it infrastructure
as a basic infrastructure, whether that is mobile company or internet services telco’s , PTCL
provides its services as the largest fiber, copper, Microwave & Satellite Network.

PTCL Company Internal Environment Analysis

The Pakistan Telecommunication Communication Limited it’s abbreviated for PTCL is the
national telecommunication company in Pakistan. It journey began with the independence of
Pakistan in the year 1949 as just a “Posts & Telegraph Department” to become one of the most
recognized brands in the Telecom company in the Pakistan Telecom Market. PTCL mission is,
per its website, “to be the partner of choice for our customers, to develop our people and to
deliver value to our shareholders.”
PTCL being a trendsetter of Information Communication Technology (ICT) services through
emerging and cutting-edge technologies in Pakistan Telecom Market Sector like from the
largest complex, operational network & infrastructure of fixed fiber and copper to microwave
to Satellite Network. Either it was CDMA, HSPA+, LTE, IPTV, Wavelength Carrier or Broadband
fixed or wireless Internet though DSL, HFC, GPON FTTH technology PTCL is the first one set this
trend in Pakistan Telecom Industry. Also it was the first one to laid optical fiber in the main
cities “like Islamabad” and important areas of the country but now PTCL has start upgrade its
technology by moving from copper to fiber. Ptcl is only one who has invested a long time a ago
in the long distance international infrastructure through the SEA-ME-WE submarine cables
basically it is to increase to meet high demand of international and internet traffic and Satellite
communication via its DOMSAT Satellite to provide communication to rural areas like Sakurdu,
Gilgit, Islamabad, to Gwadar.

PRIMARY ACTIVITIES

PTCL’s Primary Activity involves in the company’s supply chain management which is the
process of managing and movement of its materials from its origin to the consumer so there
are various features of middleman between from origin “Manufacturing” to the consumer. The
movements of these materials are in this flow raw materials to the supplier then to the
manufacture to the distributor and then to the wholesaler/retailer from where the end
consumer buys those materials. This process is also the movement of the logistics.

Inbound Logistics

The inbound logistics for PTCL’s referred to company’s purchase & manages everything related
to all the input resources that the company needs to produce its goods & services. PTCL’s needs
different telecom equipment’s, products, testing & link maintenance with international Quality
Service (QoS) to product the end product/service of Telecommunication & ICT services to its
end consumers. So for this function PTCL needs to have in contacts with external companies
such as suppliers. All these activities for PTCL includes how it handles and manages supplier’s
relationships, are accessing to the raw materials are easy or difficult; its prices rates and
negotiating terms with the suppliers & it transportation method for example is arranging
quicker delivery by the suppliers.

PTCL Company performance do depends on the quality and reliability of telecom products like
cables, optical fibers, routers, switches, terminal, network carriers, instruments, PVP pipes etc.
& better transmission medium means the range of wavelength spectrum in which information
or data in any form is send though any kind of network either through fiber, copper, microwave
or satellite from its suppliers either locally available or internationally.
PTCL has good relationship with its suppliers local “TIP Haripur, TF Pipes Ltd & LTE” and
international suppliers companies like Siemens, Ericsson, Huawei, ZT China Company, Alcatel,
NEC, J.S Telecom & ZTE “No longer suppling due its global ban” and the latest one is
Alibaba.com.

PTCL locally or internationally suppliers companies are either purely manufacturing

telecommunication companies or they have their own separate as a business unit
manufacturing factories like ZT, Huawei, and LTE etc. that provides all the core
telecommunication or information communication equipment’s, instruments and products
tested, designed and also provides maintenance, managed services such as NOC “Network
operation Centers” and Network solutions to PTCL. All these suppliers either they some kind of
Joint ventures or Partnership or MOU Memorandum or associated with PTCL. Like TF Pipe Ltd.
Company where PTCL owns 40% equity in the company, Huawei, ZT China Company, ZTE had a
partnership kind of relationship with each other, or have MOU with Alcatel Company. All these
are logistic companies where it supplies the products from the manufacturing to storing to
testing to its clients, PTCL.

TF Pipe Ltd. Company, TIP Haripur to LTE helps PTCL in manufacturing telephonic equipment’s,
PVC Pipes “communication in network”, high tech service in data communication, laying,
jointing, drop wires, copper, coaxial and fiber cables etc., and test, designing and maintenance
of these products according to international quality standard.

While Siemens provides internal inputs systems from routers to air conditioner; Cisco, Ericsson,
Nokia and Huawei helps PTCL in outdoor services like Network Solution like growing demand
for internal based real time video services PTCL has committed to provide high bandwidth &
bring new better experience to its customer’s so these companies helps PTCL how can it reuse
its existing network infrastructure which are its assets or resource of the company but make
them cost efficient and convert at the same time into modernize network. For example
FTTC/FTTH solution to provide higher bandwidth with better experience based on existing
copper line resources and new fiber lines like VDSL2, Super Vector, G. Fast and GPON; and its
helps PTCL in 4G LTE Solution for its deployments as well. J.S Telecom, Z-T China Company &
ZTE have strategic alliance up with Joint venture as it provides for both voice and data
transmission in carrier network, terminals, and optical fiber system, including DSL facilities &
network solutions, telecommunication STE for Smart TV, digital audio & video broadcasting
system, core wireless products, exchanges access, optical transmission, Spectrum management
systems, HF Transmitter & antenna Farm system, mobile and fixed coaster radar system etc.
and Alibaba.com provides online services in terms of telecom equipment’s sell by different
company vendors in one platform. They are then sent to distribution centers, in which a few
owned by the company & some of which are operated by other logistic companies.
All these activities associated with inbound logistics are receiving, storing and disseminating
inputs to the services provide by PTCL. PTCL handles all materials purchased from its suppliers
and its physical telecom equipment’s are stored in its PTCL headquarter warehouse, vehicle
scheduling and returns to suppliers if there are defects telecom equipment’s or devices etc.
PTCL also has an inventory control real time data to keep the records of the suppliers,
equipment’s like cables, modems, routers , antennas, locations of its distribution facilities, no
of subscribers w.r.t geo section area sector wise for examples how much they have and how
much they need to fulfill its customers satisfaction level. As we can see that in telecom industry
such supply chain management just looks quite complicated and difficult to understand to be
keep up with its process. So PTCL has MOU memorandum of understanding with an IT Company
Alcatel that provide Hardware & software support to PTCL such as SAP Software that allows
PTCL businesses to track all the business interaction to its end customer.

Operations

PTCL operates in more 2000+ cities and towns across the Pakistan and along with its services to
its public consumers; it also provides carrier services as a wholesale/retail services to other
operator companies in providing either its bandwidth spectrum or transmission line fiber,
copper, microwave or Satellite network. Example like PTCL & Telenor Pakistan, for the third
consecutive year, have entered into a fiber leasing agreement, under which PTCL will deliver
fiber footprint to Telenor Pakistan for 2018.

Once all the required materials and input resources have been collected by the PTCL, its
operations policy convert the inputs in the desired services that its then promoted to its
customers so that they come and purchase its Services from PTCL. In this phase is PTCL typically
associated itself with those activities with operations in transforming inputs into the final
product form “Services”; like in equipment maintenance, testing, printing and facility
operations.

The company does outsource its procurement, ensuring high quality standards right from the
point of selection of the basic telecom equipment to bandwidth spectrum.

PTCL has a business Partnership with Multi Tech System which is a Research & Development
Organization in several features like GSM via backhauling, Delivering installation &
commissioning of Data modems and optimizers, upgrading of DOMSATS & delivering and
testing of Fiber Splicing modem FSM 62S+.

Unfortunately PTCL doesn’t have its own R&D department so it also outsources these services
from external companies like Multi Tech System co., ZTE & J.S Telecom co. and others.
PTCL also access its Real-Time Sales & Inventory System through SAP Software the helps PTCL
Managers to keep being updated and records of all the operation and its cost so that the
manager produce an annual report of all the actions, operations are performed by the
company. M. Porter describes in here that some companies produce this report on the
monthly, yearly bases but in case of PTCL it generates in report on quarterly bases and then a
final annual report to keep them being update how much they have achieved toward it goals
and objectives. So, the Fiscal Year Report 2018 was generated on 14 February 2019 of PTCL is
given below in which it is shows whether PTCL has able to increase its revenue or net profit
with respect to its previous fiscal Report or not.

According to its annual report, the PTCL Group Company generated is Rs. 126.2 Billion by 8% of
its total net revenue during fiscal year 2018 where its net profit 22% higher than its previous
years its total revenue was Rs. 117 Billion. PTCL Revenue of Rs. 70.1 Billion this year 0.7% higher
than last year 2017. This kind of acceleration of growth 3.4% YOY is shown for the first time
since 2014.

PTCL flagship fixed Broad band services revenue growth is 6.5% over its previous year due to
Network Transformation project which fully transformed 51 exchanges by 12.4% also by
reducing network faults 36% and repeated faults up to 50% along with launching up to
100Mbps and 250Mbps with Triple Play Bundle Package offers services to its customers. To
further enrich its product & services portfolio, PTCL has partnered up with the global OTT
players like Netflix, STARZ Play, icFlix, etc. Brand Finance has recognized PTCL as the ‘Fastest
Growing Brand in Pakistan’.

Its Corporate Business continuously performing strongly this year as well with significate
growth of 13% over last year by also signing new customers in it’s this year launched Managed
services & Cloud Infrastructure Services to its corporate consumers resulting in 154% & 188%
growth respectively in these 2 segments.

Conversion of EVO Customers to CharJi 4GLTE have yielded a positive result with YOY growth by
double digits and its customer base increased to 66% then previous year. There is a
continuously decline in domestic and international calls so it’s a great decline impact in voice
revenue due to conversion of subscriber to OTT Players like Facebook Messengers, WhatsApp,
Skype, Viber etc. and cellular services.

PTCL Operating profit compare to 2017 is lower by 9% mainly due to increase in operating cost
on account of currency devaluation and higher subscribers acquisition cost. Further its non-
operating cost also decline due to reduce in funds as compared to last year. While Net Profit of
this year is Rs. 7.4 Billion which is lower 11% then in comparison to last year which was Rs. 8.4
Billion. While if adjusted for one offs then its net profit is 8% decline driven by lower operating
profits & lower non-operating incomes.

In 2018, PTCL financial strength was recognized through an independent rating exercise; as a
result, JCR-VIS has assigned PTCL in its strategic rating of AAA which is able to enhance all the
stakeholders’ confidence in the long term sustainability of the company.

This year yet again PTCL has inducted top 350 young engineers and business graduates under
Summit Program 2018 from top universities and institutions across Pakistan, which would help
in building future leadership. Due to PTCL’s sustained high growth in U Microfinance bank
“Ubank” has produced more than 650 new positions during 2018, increasing its employee’s
base from 1,321 to 1,980 where 9% of the total workforce comprises of women.

To reduce its operational overhead cost in terms of unwanted, unskilled, underqualified

employees have been terminated from 35,000 employees to 18000+ with skilled, young and
fresh talented to improve its performance and efficiency.

Outbound Logistics

A business has to go to various stages in the outbound process. The first step is that all the
purchase goods or services from its suppliers/clients are first input in the sale department of
PTCL. Then the sales department checks the inventory availability to ensure that they can now
fulfilling its role in provides its products and services to its customers.

As M. Porter describes in its Value chain model after the final product is finished it still needs its
ways to find it towards the customer. All these activities like finished goods warehousing,
material handling, delivery vehicle operations, order processing and scheduling are all under
lays in outbound logistics and physically distribution of the products/services to its buyers
“customers”, while in case of PTCL its telecommunication services like Telephone, Internet,
Digital Television.

PTCL has various features in as intermediaries in product/services selling to its customers while
it depends on which type of customers. PTCL customers are further classified into three
categories public consumers, corporate & international consumer and operators. PTCL sells its
products/services directly via its exchanges units “ISP’s” in the particular region or area for its
public & corporate consumers while PTCL act as wholesaler/retailers to other telecom company
operators where it to supply its services to other companies like Telenor, StormFiber.

As we already know that outbound logistics is the process of storing, transporting and
distributing goods to customers/consumers. To make this process run smoothly, PTCL must pick
the right distribution channels, maintain a sensible inventory stocking system and optimize
delivery options.

Channels of Distribution

In lieu of working directly with the consumer, many businesses use different channels of
distribution in same case so do PTCL. The channels of distribution are the final way how the
products/Services of company are delivered to the final consumer. PTCL Company provides is
telecom services in its distribution channel which are its ISPs or Exchanges Services and Retail
shop located across all over the nation depending on the Regional and Area Sector wise. For
Example in Regional wise all the ISPs are located where every Regional ISPs are interconnected
with each and to the Telecom Service Company “PTCL” while different Exchanges or Local ISPs
are within a Region with respect to its area sector selected by the company are directly
connected to its customers “End User”. There is also One Stop shop of PTCL is available and
mostly in large populated cities like Lahore, Karachi, Peshawar, Faisalabad, Quetta etc. in all the
provinces of Pakistan. PTCLs customers can reach them by visiting PTCL Smart Shops. Smart
Shops are strategically located to ease the reach of their valued customers by offering window
operation of PTCL to its potential or existing customers. This Smart Shop provides PTCL Smart
Shop Services like Order Booking (Telephone, Broadband and PTCL Smart TV), Sales (Wireless
Local Loop ‘Vfone no longer available since 2017’ & Wireless Mobile Broadband CharJi 4G LTE &
3G EVO Wingle 9.3 no longer available from this year ), Billing Services and Information
Services.

M. Porter describes that outbound logistics in choosing the best opt channel will maximize the
firm’s revenue. This means choosing distributors that promote the product or services in line
with branding it’s the corporate image as well, it can sell the services or products to the
customers or other telco’ companies as well by have good logistic system themselves and well
managed supply chain management or process to cater to the right type of customers. In the
case of PTCL there are no intermediates, PTCL itself is the distributor or wholesaler/Retailer.

Inventory Systems

In order to make the outbound process of PTCL to run smoothly, it has SAP ERP “Enterprise
Resource Planning” Software by a Germany Company SAP SE that performs the functions of
inventory system quieted efficiently and effectively. This Inventory system perform all the
business that includes Operations; Sales & Distribution, Materials Management, Production
Planning, Logistics Execution, Suppliers and Customer Info Data & Quality Management, Human
Resource Management “HRM”; Recruiting & Selection Process, Training & Development,
Motivation Programs & Payroll; while in Financials Management; Financial Accounting,
Management Accounting, Financial Supply Chain Management and in its Corporate Services;
Travel Management, Environment, Health and Safety & Real-Estate Management. Let’s suppose
an organization overstocks its inventory, from products that may be antiquated or obsolete or if
doesn’t have enough stocks in its inventory then it run risk of losing its customers but similar
case with PTCL if let’s consider a scenario where PTCL is providing its services to a number of
customer in area1 if its stock in its inventory are not to the mark of its required need then it will
lose it images in the eyes of the customers. In here the discussion is only about the
requirements that are tangible like cables, the latest modems or WiFi Routers etc. So to avoid
such mishap PTCL uses the software program SAP ERP to already tell the manager in detail what
is available and in what quantity and quality. PTCL also use its past data for Future Project
Demands & Future needs.

Delivery Optimization

An organization need to know that outbound logistics is quite vital important for any business
because this processes involves in the movement and storage of products and related
information flows from the top of the production line to the firm’s customer. An organization
needs to know that outbound logistics is quite vital important for any business because this
process involves in the movement and storage of products and related information flows from
the end of the production line to the firm’s clients.

A crucial component in outbound logistics is optimizing & delivery or simply transportation

section of an organization is far the most occupied and complex part in this activity of an
organization. Without transport, there simply is no logistics.

Therefore, it is essential to maneuver the product from one location to another with in the
most convenient and efficient way possible. Transportation is a variable constraint; with time it
fluctuates, some factors such as a reliable transport team, delays, and change in fuel costs need
to be taken into account in order to cover all possible scenarios that would otherwise
jeopardize efficient movement of products & goods.

Optimization of shipping and delivery is another very vital part of outbound logistics. The use of
system barcode scanning comes in handy when it involves in inventory tracking, helping update
the client on the status of the order.

Any business usually has a variety of shipping options to choose from, including how to deliver
the product itself. Businesses must choose the shipping option that is cost efficient, ensures the
goods aren't damaged in transit and can deliver within the allotted time frame.
Marketing & Sales

In fact, when a product or services are produced doesn’t it automatically means that the people
“customers” are willing to buy them for you. So the first things after the production of products
or services are the marketing and sales come into place. It the job of the marketer and sales
agent to make sure that its existing and potential customer must be aware of the products or
services they are selling and they should seriously consider in purchasing them. All activities
associated with marketing & sales is all about providing the means by which a customer can is
induced by the firm in order to purchase the product/service from them through advertising,
sales force, promotion, channel selection, channel relations & the most important is pricing.

Marketing Mix which is 4P’s or 7P’s marketing tool to structure the entire marketing process
which is the selling a product or services and the process of creating, communicating, delivering
and exchanging offerings that have value in the eyes of the customers, clients, partners &
society at large.

In PTCL its Marketing & Sales Department is very responsible and a proactive role in introducing
new marketing techniques to increase in its sales & subscribers. This whole process is done for
retaining its current customer and attracting new ones.

In PTCL, Marketing is all about the existing products/services and the new product/services
being developed needs to promote it in the market and make sure that your existing/potential
customers must be aware of it so that you can induce them into buying it when launches. While
the Sales is all about the sales department checks regularly what is the status of your current
sales and how much possible potential sales is in the market. Since marketplace is dynamic is
changing its trend in secs so the Sales agents or managers need to keep checking new places of
potential where they can even increase more in their sales. They develop distribution network
and use different media platforms to increase their sales.

So in PTCL Market Communication play a very vital & effective role as it establish PTCL image as
innovative and technologically superior catering to all the telecommunication and networking
requirements of its diversified customer base. During this year, PTCL maintained noteworthy
presence in both electronic and print media promoting and creating awareness about the
brands and its products and services at competitive rates. As a result, a dynamic corporate
image of the Company is constantly being portrayed.

Efforts are still underway to leverage more popularity in social/digital media platforms for
proactive engagement with target audiences like PTCL has 1.3M fans on Facebook, 174K
followers on Twitter & 1.2M followers in LinkedIn, as of February 2019; PTCL also enhance the
content quality of your Company’s public website (www.ptcl.com.pk) and internal web portal,
and Smart Services “One Stop Shop”

PTCL has revolution it marketing strategy for the past 3 or 4 years or so in the marketing mix
process. Its promoting not just its products or services like it used to do so till 2012, it also sells
it brand positioning as a superior telecom company with a diverse portfolio and emerge as a
Corporate Social Responsible Company. PTCL overall strategic marketing position is that to be
leading company in Information & Communication Technology Service Provider by recreating
itself as a giant brand company in the market by grabbing customer loyalty and to move
towards mobilizing the world for the future. PTCL has a very creative strategic marketing mix
will defining it Products & Pricing strategy; it keeps the market perspective and trends and the
most important one is its customers’ needs in further defining the a products attributes like
pricing strategy depends on product or services itself plus more VAS “Value Added Service” in
it, Product/Service diversified Portfolio Strategy and Digital & Smart Services Strategy; Creative
and innovation by add more of sociocultural related contents with its products and services in
Placement Strategy & Promotional Strategies using different media channels like Billboard,
Newspaper, Electronic Media, Social Media Platform etc., and since its already have a deep
infrastructure across Pakistan so very little distribution strategy is used in terms of physical like
to also promote its distribution channels to rural areas as well but as conceptual distribution
strategy PTCL still needs to work on it while in Process Strategy of PTCL follows easy process for
any added value services or on its subscribed new packages. Of course without People a
business can’t survive like PTCL target from individual to youth to households to corporate
business peoples while Physical Evidence of a business presence in the marketplace its image as
brand perceived by the consumer, like PTCL “One Stop Shop”.

During 2018, numerous 360-degree products marketing & commercial campaigns covering all
aspects of PTCL products and services to create a footprint in the market e.g. Broadband Triple
Offer, as 2 Mbps Starter Package up to 250Mbps and various 4GLTE CharJi offers were
launched. Plus other CSR initiatives & sponsoring in sports, natural relief funds and many more
campaigns has led PTCL increase in its overall growth position as the fastest growing brand in
Pakistan.

The world’s largest & leading independent brand evaluation & strategy consultancy is Brand
Finance & its headquartered is in London. PTCL in Pakistan has been declared as the fastest
growing brand with its brand value of USD 119 million (More than 12.5 billion Rupees); in 2018,
March 01. In 2017, Brand Finance also estimated the Etisalat brands portfolio where PTCL’s
brand value stood at USD 86 million. With a 37.5% increase in its value in just one year span,
the PTCL brand has become the fastest growing brand in Pakistan. PTCL is now the second
telecom brand in Pakistan to have its valued over $100M, which improves its ranking by 21
points to be placed at 214 in Brand Finance’s Telecoms 300 2018 league table.

Now due to its strategic marketing tactics for the third consecutive years, PTCL was rated
among the top two companies in the print and electronic media by Aurora, a Dawn Media
Group Publication on Ideas and marketing Approaches, based on data provided by Gallup,
Pakistan in 2018.

Services

PTCL aims at building customer loyalty through its Customer Care Service. The objective of PTCL
is, as it says in its annual report, “to be the leading company in telecom industry & the most
admired ICT service provider all over Pakistan and to foster, establish & maintain its
telecommunication position in the market along with learning environment & professionalism,
motivation & quality and services based optimum technology to help our customer’s
satisfaction to reach their full potential also, to deliver maximize shareholder value & sustained
growth in earnings and profitability with a competitive edge.”

In today’s 21st centuries economy, where information floats everywhere due to Digitize Global
Village Additional Services provided by the company after - sales service is just as important as
promotional activities. Like Complaints from unsatisfied customers are easily spread and shared
due to the internet and popularity of using any Social Media Platform like Facebook, Twitter by
the young generation mostly and it has direr consequences on the company’s reputation might
be very vast.

Therefore, it’s very crucial to have the right customer service practices in the first place. The
activities associated in value chain model helps in adding value to its product or services and it
also enhances or maintains of the product/service even after being delivered to the end user or
customer by the organization. PTCL provides installation, repair, and parts supply and product
adjustment. It also provides 24/7 Customer Care services to its customers in listing and listening
complaints of its customers by live agents 24/7 via Afiniti AI Solution that has transformed the
way humans interact. This has brought a new innovative way for customer services and contact
center operations of PTCL through an intelligent pairing of agents and callers. Afiniti is now live
across PTCL’s sales platform, since April 2017 within optimizing metrics such as new customers,
cross-sales, upgrades and downgrades for queues of about 1000 agents over three months.
Thus, by improving the quality & speed of service offered to its customers by PTCL Company.
This Afiniti AI Algorithm analyzes and predicts the behavior of incoming callers in PTCL contact
centers in order to pair them with agents who will deliver the best results. The company
operates throughout around the world & has driven hundreds of millions of dollars in
incremental revenue globally.
PTCL is also very proud of the fact that it has become the first customer of Afiniti’s artificial
intelligence solution in Asia. PTCL also becomes the first Cloud Computing data center with SAP
SE Germany Company alliance by pushing forward the Digital Pakistan Agenda. PTCL has
introduced new innovative services to its customers on Cyber Threat Intelligence (CTI)
customers by leveraging Etisalat-Telefonica CTI capabilities.

To bring more customer loyalty card option PTCL is expanding its corporate image through CSR
initiatives like sponsoring the united Islamabad in PSL3 2019, initiating clean environment
events project to bring awareness in the general public, also doing lots of events in Health &
Safety, gender discrimination, Youth education programs etc. It’s promoting its image through
these services as its corporate social responsibility towards Pakistan prosperity.

All the 5 primary activities are essential & important for adding a value to its product or services
and creating a competitive edge over its rivals. Companies can harness a competitive edge from
any one of the five primary activities in the value chain. Mostly outbound logistics are the one
that are highly efficient, for example, reduces a company's shipping costs and allows it to either
more profits or pass the savings to the consumer by way of lower prices. Primary activities in
the value chain are facilitated for its efficiency by the support activities. Increase in the
efficiency of any of the four support activities increases the benefit to at least one of the five
primary activities.

SECONDARY ACTIVITIES

Support Activities is aim to coordinate & support its primary functions as best as possible and
with each other as well by providing purchased inputs, technology, human resources and
various firm wide managing functions. It’s normally denoted as overhead costs on a company's
income statement. The support activities can therefore be divided into 4 activities.

 Procurement: is the method of finding and agreeing to the terms with outside external
supply sort of provider or third parties usually via a tendering or competitive bidding
process for the acquisition of goods, services or works
 Technology Development (R&D): apply to the core equipment’s, hardware & software,
procedures and technical knowledge & skill are brought to bear in an organization’s
transformation of inputs into outputs.
 Human Resource Management: HRM consists of all activities involved in recruiting, hiring,
training, developing, compensating and (if necessary) dismissing or laying off personnel.
 Firm Infrastructure: An organization internal infrastructure consists of different activities
such as accounting, legal, finance, control, public relations, quality assurance and general
strategic management.

PTCL’S primary activities add value directly to its products/services but now in the 21st century
PTCL has realized they are not necessarily more important than its support activities like human
resource management has played the most vital part in increases PTCL’s performance.
Nowadays in Telecom industry, competitive advantage mainly derives from technological
improvements or innovations in business models or processes. Therefore, in PTCL its support
function such as its Firms and Network Infrastructure, Human Resource Management,
Information Technology “IT”, Governance and Quality Assurance, Regulatory Affairs, Customer
Care, Marketing and Communication and General Management are usually the most important
source of differentiation advantage as Porter describes while on the other hand he describes
the primary activities are usually the source of cost advantage, where costs can be easily
identified for each activity and can be properly managed.

Procurement

Procurement refers to the process of purchasing inputs used by the firm’s in the value chain,
not the purchased inputs themselves. Purchased inputs are required for every value activity,
including in support activities. These purchased inputs include raw materials, supplies, and
other useable & consumable items as well as other assets such as machinery, laboratory
equipment, office equipment, plants, and buildings. Procurement is therefore compulsory to
assist multiple value chain activities, not just inbound logistics.

PTCL has dynamic procurement contract specialist in managing sourcing and purchase
operations, with leading Telecom companies. It also formulate in sourcing strategies such as
vendor identification and development, supply chain management and analytical assessment
for various grades of material. With the transition from voice-centric to data-oriented products
and services as well as reducing prices in the wake of competition, PTCL successfully met the
challenge in a cost-effective manner through timely diversification within its network
infrastructure and making the products and services based mostly upon latest technology
without any delay available to its customers at affordable prices.

For this purpose, PTCL Company has developed an efficient structure encompassing all the
operational areas throughout the country. Major elements of this structure are stores located
in all the regions, establishment of data-bases comprising of information relating to latest
network and products and automated processes facilitating timely availability of needed inputs
in line with the company’s commercial and operational requirements. Further, synergies have
been developed with other group companies to keep abreast of the latest trends and
accordingly making procurement at optimum costs.

PTCL has established strategic relationship and partnership with its supplier which is built up
good communication about the company standards like selecting and negotiating with suppliers
on the basis of quality, timely supply and credit terms etc., and also implement cost saving
measures to achieve reduction in terms of raw material, procurement costs and logistics cost.
Technology Development

Every value activity in a firm embodies technology, be it a skill, procedures or technology come
to life in process equipment. The array of technology utilized in most companies is incredibly
broad. PTCL in Technology development activities are classified its efforts to boost the
product/services and the process for examples telecommunication technology & its basic core
equipment’s, accounting automation software, product/service design research, inventory and
customer servicing procedures.

PTCL is very well-known for use of its technology, not only for its information communication
service processes but to ensure consistency in reliability and quality along with cost savings and
also to connect to its customers.

PTCL Technological development is always base on its IT capabilities on leading cutting edge &
integrated technology. PTCL continuously try to provide up dated solutions for better customer
experience management through further enhancement in its operational efficiencies.

The Technological development happed in PTCL from 2017 - 2018 taken from their annual
reports that projects like in consolidation with the IBM, Oracle & various IT platforms such as),
ESS (Enterprise Support Systems), BSS (Business Support Systems) & OSS (Operational Support
Systems in a single platform based upon the latest technology along with improving efficiency
these critical system mentioned above significantly, with the advancement the operating cost
considerably were optimized as well.

Technology Development in PTCL IT transformation consist of CRM revamp, service desk,

convergent billing, inventory management and NOC (Network Operation Center) upgradation
plus Enterprise-wide Private Cloud with Backup Solution, Wi-Fi Cloud, Information Security
Gateway, SD-WAN (Software-Defined Wide Area Network) and also upgrade Disaster Recovery
capabilities, innovative solutions for operations management by reporting with E-mail / SMS
alerts., core installation of GPON FTTH broadband up to 250Mbps, international gateways and
100G transmission layer were selected for IT revamping.

PTCL main objective in the development in the wake of increasing demand of data services so
to provide better and satisfactory services to its customers; PTCL improved and optimize its
capabilities on these sites to ease and enlarge the traffic flow.

PTCL further, in order to provide advanced routing intelligence, analysis of traffic patterns and
to prioritize higher revenue routes for the best quality of services “QOS”. PTCL also
implemented interconnect settlement & Whole sale Billing Phase-I project through Telarix.
PTCL additionally, induce Mediation & Data Refinery software products to capture and refine
mediation and billing data in real-time. This data refinery handles massive data loads and
manages complex event processing also.

PTCL is proud to be the first one in Affinity AI (Artificial Intelligence) Solution that has
transformed the way humans interacts and communicates. Afiniti’s technology resulted in
substantial improvements in PTCL’s contact center operations through intelligent pairing of
agents and callers plus other operational services like sales platform, optimizing merits for new
customers etc. With the new artificial intelligence based system of Afiniti, PTCL is able to
connect the callers on its contact center intelligently with relevant and suitable agents thus, by
improving the quality & speed of service offered to its customers.

PTCL is the first and currently among very few organizations in the Pakistan to provide public
cloud services of Infrastructure as a Service (IaaS) to corporate and non-corporate customer.
Now, PTCL’s Cloud Computing Infrastructure is designed to enable customers to create service -
oriented infrastructure by combining a set of products, technologies and offerings with best
practices.

In PTCL Cloud Computing Services already built with custom solutions that include Virtual Data
Centers, Virtual Private Servers and Business Continuity. PTCL Smart Cloud is helping
organizations to revolutionize their business practices and help them realize their growth
potential.

Also, as part of the digitization world and in order to facilitate all PTCL employees for self-
service, PTCL Vibe (Employee Self Service) App was developed and launched. Through this App,
staff will work with ease using mobile handsets.

Human Resource Management

Human Resource Management (HRM) consists of activities such as Recruiting & Selection
Process, Hiring & Termination Process, Training & Development and Compensation & Rewards
of all types of personnel. Human resource management affects more on competitive advantage
in any firm through its role in determining the skills and motivation of employees at the cost of
hiring & training them than its primary activities or other support activities.

Companies especially in technological & service industry like PTCL which is telecommunication
and information communication service industry must rely so much on talented, skilled
employees, so PTCL has an entirely devoted Talent Management department within HRM to
recruit and train the best of best university graduates.
The committed workforce is considered a key attribute in PTCL company’s success and growth
over the last 3 years when David Ritz took control of PTCLs Management. He emphasizes on
management advancement more, according to international standard point of view, than its
predecessors. PTCL employees are motivated through generous benefits and incentives. The
company is known for taking care of its workforce, a key reason for a low turnover of PTCL
employees, which indicates great human resource management. There are many training
programs in conducting by PTCL management for its employees in a setting of a work culture
environment which keeps its staff motivated and efficient.

To satisfy the growing needs & requirements for fresh young talent, PTCL injected young blood
in the organization by onboarding over 350 aspiring fresh graduates as part of PTCL Summit
Program. So the Recruitment & Selection of PTCL is done thoroughly to get skilled, talented
people. PTCL has very focused oriented program in training and development of six month
program.

To meet the challenges created by the changing & competitive landscape, Daniel Ritz strong
leadership provided a great storm hold in its adaptive environment. During the consecutive 2
years the company has invested also in developing leadership capabilities through various
programs such as Future Leader (FueL) for high potential young PTCL employee, Management
Development Programs (MDP) & Executive MBA from LUMS for the top-tier & mid-level
managers respectively. PTCL has also relaunched the online training Harvard Manage Mentor
(HMM) for its PTCL staffs to promote learning in a convenient and cost effective ways.
Additionally, leadership withdrawals were conducted for the top tier of various functions to
enhance strategic alignment and collaboration.

All employees in any frim need a safe and pleasant, friendly working environment in order to
enjoy a fulfilling work experience. In this regard, PTCL has conducted certain programs in the
rehabilitation of transformed exchanges were launched to create a conducive & friendly
environment for its employees so that they can effectively deliver customer services and
achieve business objectives at the same time. PTCL focused has always been on innovation and
engagement, which was depicted by the launch of the ‘PTCL Ideas Olympiad’ platform, where
all its employees were made part of an Ideas competition. It conducted various events &
employee engagement initiatives including 70th Independence Day celebrations, Wall of Fame,
PTCL Fiesta 2017 & 2018, Women’s Day, exclusive theatrical plays, Sports Gala, Recognition
Ceremonies like employees of the weak/month/year, rewards ceremonies etc. & Eid
celebrations/festive at the Headquarters and across all zones and regions.

PTCL has carried out certain exercises for leadership tier such as talent review & assessment of
employees across the company workshop were conducted for its senior leadership on
‘Coaching for High Performance’. It further enhances its company’s talent base through various
training interventions were undertaken in 2018 by PTCL such as “Back to Basic”. It includes site
session for the first level managers & filed staff employees, functional skill up gradation &
customer orientation and X factor training programs for Assistant Managers across the
organization. Moreover, PTCL has carried out customized programs on leadership such as ‘The 7
Habits of Highly Effective People’ in Islamabad, Lahore, Karachi and Peshawar and special
sessions on ‘Stepping up our Service Culture’ by a renowned consultant were additionally
organized across major cities of Pakistan.

For staff & employee’s safety, PTCL took initiatives such as Emergency Evacuation and Safety
drills, HSE (Health, Safety and Environment) and First Aid Trainings for CSRs (Customer Services
Representatives) and CPEIs (Customer Premises Equipment Installers) across the organization
were implemented. Furthermore, PTCL added benefits like Life Insurance, Paternity Leave,
Evening Clinics, Maternity leaves; a Medical Helpline, Hajj Scheme and free PTCL services were
also introduced 2nd consecutive year to enrich the employee experience and motivate them and
most importantly create loyalty towards PTCL. PTCL is recognized amongst the first in the
telecom industry to be authorized as a ‘Training Organization outside Practice’ in association
with the Institute of Chartered Accountants of Pakistan (ICAP).

Consecutively, both in 2017 - 2018, PTCL has received the ‘EFP Award on Best HRM Practices
2017-2018’ in recognition of its human resource management practices. PTCL also won 2 nd
position in EFP Award for Excellence in Women Empowerment 2017 at the International
Women’s Day Conference organized by Employers Federation of Pakistan. PTCL is also ranked
amongst the top companies in Etisalat’s HR Excellence Program. PTCL has won the award for
the “Best Asian Operator” held in the United Arab Emirates (UAE) at the Telecom Review
Excellence Awards (TREA) 2018.

Infrastructure

Firm infrastructure of an organization consists of a number of activities includes its general

strategic management, planning, finance, accounting, legal, government affairs & quality
management. According to M. Porter Infrastructure usually supports the entire value chain and
not just individual activities. In accounting, many organization infrastructure actions & activities
are often collectively indicated as ‘overhead’ costs. However, these activities shouldn’t be taken
too lightly since they could be one of the most powerful sources of competitive advantage.
After all, strategic management is time and again the starting point from which all smaller
decisions in the firm are being based on. The wrong strategy will make it extra hard for people
on the work floor to perform well.

PTCL Company’s infrastructure is divided into two sections:-

 Firm Infrastructure
Network Infrastructure

PTCL firm infrastructure activities consist of its General Management, Finance, Legal,
Governance & Quality Assurance, Customer Care, regulatory Affairs, Marketing &
Communication, Human Resource & Information Technology (IT) which are required to keep
the company’s telecom services operational and since its Information & telecommunication
Service Company that provides services like data, voice, content & media, Carrier & Wholesale
Services, International Business & Digital Services through its various network infrastructure
consists of copper, fiber, radio, microwave, submarine gateway & satellite and it provides the
largest complex various networks across the nation.

With the awareness of the ever and dynamically increasing demand of higher speed & larger
volumes of data services from all facets of its valued customers comprising of retails, corporate
and wholesale segments, PTCL is continuously expanding & modernizing its network with
innovative technologies and smart solutions in a synchronized manner.

Service delivery platforms and network elements are being transformed with high throughput
devices to enhance & improve PTCL customer experience. The foremost current initiative of
PTCL in this regard is the Network Transformation Project (NTP) which encompasses
fiberization and copper renovation of wireline access network connected to the top 100
exchanges; country-wide almost 51 exchanges are now fully transformed and PTCL has now
launched its new services with higher speed and volume capacity of data to its to end-customer
by enhancing its data products up to 100Mbps & recently in 2019 up to 250 Mbps speed with
better quality of experience.

Lots of old technology are been replaced with latest ones to, not only reduce the network faults
but also enhance quality of service, along with the option for higher-end data packages for its
customers. Furthermore, formation of new fiber access rings and rehabilitation of allied copper
network are also implemented.

As part of the PTCL strategy to upgrade its 3G wireless broadband service to Charji (4G LTE),
PTCL has upgraded its existing 3G EVDO network in AJK, NTR-II, Rawalpindi and Quetta telecom
regions to LTE to provide higher throughput data service up to 75Mbps in these areas as
compared to 9.3Mbps available with EVDO based 3G solution. At the same time, PTCL also
started its LTE services in targeted these telecom market regions of Faisalabad, Gujranwala and
Multan cities.

Since in whole world the future traffic growth and technology trends is increasing dynamically
in information communication, to meet this demand PTCL & Ufone has initiated a core network
unification project by consolidating the Packet Switched (PS) core node & network carries 2G,
3G services of Ufone and 4G services of PTCL with geographical redundancy. Additionally, PTCL
has shutdown wireless voice service provide to its customers through Vfone services.

Moreover, recently deployment of CDNs (Content Delivery Network) not only conserves the
international bandwidth requirements but also provide speedier and seamless content delivery
to our valued internet customers. New Google, Facebook and IFlix, Netflix CDNs were added in
the network. To ensure higher data rate broadband services, end to end bandwidth capacity is
being enhanced up to 250 Mbps. To expand its footprint in fiber networking across the country,
PTCL has already deployed more than 1,900 KMs optical fiber in long-haul and metro networks
since the year 2017.

PTCL has its own Domestic Satellite Earth station (DOMSAT) for communications to remote
inaccessible areas of Gilgit, Sakurdu, Rawalpindi/Islamabad and Gwadar by using the INTELSAT
Satellite for data, voice and entertainment purposes.

Submarine Cables system

All these networks maintenance and implementation are supported by its other departments
PTCL’s General Management, Finance, Legal, Governance & Quality Assurance, Customer Care,
Marketing & Communication, Human Resource Management & Information Technology (IT)

In order to ensure good, quality and smooth services accessible able to its wired or wireless
service to its customer all technical aspects of its networks are quality tested before going
online by itself and with third party joint ventures. PTCL has now established a small laboratory
for quality testing and certification of all wired and wireless Equipment’s (Customer Premises
Equipment’s in short for CPEs) are test by KPIs benchmarking & line parameters before
installation. PTCL now has also secured ISO certification for various customers’ centric points
like NOC (Network Operation Centre), Smart Shops, Contact Center & Quality Assurance &
Training Centers. PTCL also has aligned its organizational business process with the
international best practices through BPM with an objective of improving its governance,
compliance, productivity and efficiency across the organization.

For its Customer Care PTCL has implemented various initiatives to further increase and enhance
its customer overall experience. Latest technologies have improved the processes and people
development through Afiniti’s Artificial intelligence Solution at the contact centers. The tool
analyzes & predicts the behavior of incoming callers by pairing them with agents who can
deliver the optimum results through an algorithm that use Enterprise Behavioral Pairing and
many more customer care initiatives are taken by PTCL to help and retaining their existing
customers.
PTCL has good relation with its Regulatory affairs in order to take up licensing for new
technology and by renovating licensing of its existing services from its regulator bodies like for
upon expiry of the IPTV license in November 2016 on revalidating for another 10 years its
extended by revalidated by PEMRA (Pakistan Electronic Media Regulatory Authority) during
2017 or in order to ensure seamless migration of wireless broadband services of EVDO to CharJi
LTE in selected regions and cities to provide higher speed data services to our valued customers
and for its technical requirement PTCL also managed to grab an additional spectrum of 5 MHz
on an Ad-Hoc Network in collaboration with the PTA (Pakistan Telecommunication Authority)
and the FAB (Frequency Allocation Board) and also it got approval from MoITT (Ministry of
Information Technology & Telecommunication) to launch LTE/CharJi service in AJK & GB.

PTCL financially succeeded in securing a refund on account of earlier payments for its R&D Fund
at higher rates from the regulators and also secure funding from USF (Universal Service Fund)
for its subsidies. In this regard, total subsidies of Rs. 263.6 Million were received during 2017

PTCL INTERNAL ANALYSIS

PTCL is mega corporate telecom company with the largest & experienced Information
Communication telecommunication service provider in Pakistan. Its firm activities consist of
General Management, Finance, Legal, Governance & Quality Assurance, Customer Care,
Regulatory Affairs, Marketing & Communication, & Information Technology (IT). The all
activities regarding these departments in terms of resources/assets or human capital and
management is depended upon PTCLs HRM where it plays a strategic role in managing people,
resources and the workplace culture and environment. PTCL HRM follows the Best Practice
Approach in order to increase is performance and core competencies and capability to its
highest level. It also plays a major role in the promoting and sales in its marketing sales tactics
to bring awareness to its existing and potential customers. PTCL HRM also provides better
services as a socially responsible organization which has been contributing positively to the lives
of Pakistani people since its inception through its CSR initiatives.

Since its telecom & ICT company to makes its HRM more efficient it depends on various IT
based software solution to enhance its performance and management through latest and
cutting edge Business oriented Digital & Smart Services Programs like Afiniti AI Solutions, online
Harvard Manage Mentor (HMM), Support System in Enterprises, Business and operational
purposes to its employees and for customers though customer care services and call centers.

Since PTCL fully integrated Telecom Service Company with providing a vast range of telecom
services both in voice and data using its unparalleled network capabilities in wired and wireless
across all over the country and society with IT capabilities in leading cutting edge & integrated
technology for its customer better experience and satisfaction.
PTCL has strategic & partnership relationship with its outsourcing entities that provides all the
telecom basic equipment to bandwidth spectrum to high tech data communication from them
and also provides Network Solution & management from its external alliance companies either
international and local telecom suppliers like Siemens, Ericsson, Z-T China Company, Skylink
provide Satellite Communication, J.S telecom, Huawei, ZTE (No more), NEC, TIP Haripur & TF
Pipe co.

All the telecom basic to integrated equipment’s like telephonic wires to PVC Pipes to optical
fiber to HF transmission to Antenna Farm systems to broadcast equipment’s or instruments all
are supplied outside from various telecoms suppliers like purely telecom manufactured based
companies like TF Pipes co. in which PTCL has 40% equity in it, TIP Haripur, Z-T China co. & J.S
Telecom industry etc. and from companies like Fixed access solution providers like Huawei,
Ericsson, Siemens etc. along with telecom equipment’s like routers, system, switches etc. are
provided all the finished products like telecom products & services from the supplier to the firm
PTCL co. were it stores in it Headquarter warehouse & from there is distributes all across
Pakistan through Exchanges in operational form to serve its products & services like data, voice,
contents & multimedia PTCL distributes it services to all segments of society be it as retail,
corporate and business entities or other operators & commercial as will in the market for
promoting its brand value and increasing in its potential customers & loyalty in exiting customer
through different marketing tactics like One Stop Shop is like POS, Social media Platform,
Internet Ads on its latest offers and packages plus creative & innovative poster ideas through
Billboards etc. which helps in increase the sales of its products & services. Plus, PTCL digital and
smart services like E billing, E-mail/SMS alerts update services provided by PTCL.

PTCL enjoys its competitive advantage over its rivals is that it’s fully an integrated telecom
company with a diversified and assorted products & services portfolio along with the leading &
trend setting positon in telecom market with respect to its competitive companies like
Mobilink, Zong, NayaTel or StormFiber and others. PTCL has retained and continuously
increasing in its multiple services and as well increasing its image not just as Telecom operators
that provides telecom services to its customers but as well as a mega corporate company with
social innovation and intervention in improving the lifestyle of peoples of Pakistan by attracting
towards them through such initiations.

PTCL enjoying its competitive advantage & competitive monopoly within the telecom industry
by having the largest subscriber base and latest cutting edge telecom facilities and can cope
now with its national and international competitors through its valuable resources.

PTCL Group revenue in 2018 is Rs. 126.2 Billion and net profit 22% higher than last year. PTCL
Revenue of in the year of 2018 is Rs. 70.1 Billion. This kind of acceleration of continuously
growth in its annual quarterly report in 2018 by PTCL Group & revenue growth in all its
segments throughout this year has shown for the first time since 2014. So it’s Net Profits or
margin of PTCL is 70.1 Billion Rs. /- As PTCL is declared the “Best Asian Operator” in 2018 by
TERA.
 PTCL Value Chain Analysis
Primary Activities Primary Activities: Inbound Logistic, Operation
Inbound Logistics Operations Outbound LogisticsLogistic,Marketing
Outbound Marketing& Sales& Sales Services
and
Strategic Effective integration of Integrated Networking Reliance on aggressive Digital & Smart
Relationship with Telecom & ICT Services.
Channel Distribution marketing since 2016 through Services
Suppliers Distribution Channel over Local and Regional ISPs. social media platforms, Internet Email/SMS
Supply Telecom 2000+ across Pakistan for To PTCLSupport Activities: Procurement,
Ads, website, Billboard. Technology
alerts, E-billing
Equipment’s & operational purposes and Inventory System Smart services sales increases etc.
services commercial footprint SAP ERFDevelopment, Humanthrough Resource
various offers management
and &
Effective Supply “One Stop Shop” in major Frim
Delivery Infrastructure
Optimization packages through market Value added
Management cities and it provides POS PTCL Headquarter segmentation: Individual, Youth, Services
PTCL Headquarter by selling info. , devices Warehouse Households & Corporate Like its Triple A
Warehouse and Billing services. LINKAGE BETWEEN
Transportation THE ACTIVITIES SHOWN
Business BY: etc.
package
Inventory System Annual Fiscal 2018 Report Effective supply CSRs initiatives - Customer
management Services Representatives Corporate Social
Customer Call Centers AI Responsible
Solution though Afiniti Initiatives.
Secondary Activities
Procurement Technological Development Human Resource Management Infrastructure
Purchase of Use of latest cutting edge Fresh, Skilled & Talented Employee A set of support activities
assets and technology to improve in recruitment through PTCL Summit like management, planning,
resources efficiency and performance Like Program, Training & Development with X finance, governance &
outsourcing. NOC, Inventory Management, Factor into its employees from top to assurance, customer care,
Strategic Relation GPON FTTN, VSAT, IaaS PTCL bottom in FueL, MDP, HMM, Engage staff Regulatory Affairs ,
with its suppliers. SMART Cloud and PTCL Vibe through belonging &social events like Marketing Communication,
(Employee Self Services) PTCL Idea Olympiad Platform, 70 th HR, Legal, & IT to its services
Independent Day Celebration, Wall Of provided to its end user
Fame, Fiesta, Women’s Day, Sport Gala through Radio, fiber, copper,
etc. & Safety & Health plus other facilities microwave & satellite
company culture & environment friendly. Network Infrastructure.
Links between activities
1. Local supplier & association cluster of suppliers reduces purchasing cost & distribution cost in little telecom equipment.
2. Partnership & Strategic Relationship with international Suppliers like Huawei, ZT China co. etc. allows negation in operation cost.
3. HRM Best Practice Approach its overall performance increase
4. A good Year in terms of revenue generated though Technological Development in its Telecom Network and other services like
Pakistan first Telecom Industry IaaS Cloud Computing Services etc.
5. Marketing tactics in footprint in Social Media Platform increase in its customer base and loyalty.
6. Operational Cost Economical Factor Effected like Currency devaluation.
Competitive Edge & Increase More Opportunities
 PTCL fully integrated telecom & ICT mage corporate company with a diversified products & services portfolio.
 Trend setting & leading position in the telecom market almost in all of its telecom services segment market
 PTCL as a social corporate responsibility company emerges since 2017 through aggressive CSR initiatives.
 PTCL Corporate by having the largest no of subscribers combined from all its Groups.
 PTCL can provide latest telecom facilities at a reasonable rate with quality standard of international level.
 Should involve new components to its core business of Telecom Operations like 5G, Augment Reality & Virtual Reality, and AI
Solution & Machine Learning etc.
 Should Adapt according to market trend & changes globally & Customer Base oriented Strategy
Profit Margin of 2018
PTCL Group revenue in 2018 is Rs. 126.2 Billion and net profit 22% higher than last year. PTCL Revenue of in the year of 2018 is Rs.
70.1 Billion. This kind of acceleration of continuously growth in its annual quarterly report in 2018 by PTCL Group & revenue
growth in all its segments throughout this year has shown for the first time since 2014. So it’s Net Profits or margin of PTCL is 70.1
Billion Rs. /- As PTCL is declared the “Best Asian Operator” in 2018 by TERA.
 PTCL

VALUE CHAIN MODEL

BOSTON ANALYSIS
Boston Consulting Group created a comparative analysis for any business model to provide
which products or services currently profitable or which ones are burden on the company
operational cost in the future. How PTCL is going to identify which products and services will
profitable or burden in future and of course the current moneymaker is definitely easy to
identity but for future strategies PTCL has made is quite tricky. So, BCG matrix also known as
the Boston or growth share Market matrix is the best tool for providing a framework for
analyzing products and service according to growth and market share relative to its
competitors.

According to Growth Share Market Analysis for PTCL’S reveals some interesting perspectives.
Growth-share matrix is a strategic business tool, which uses comparative market share &
industry growth rate factors to estimate the potential of corporate business brands portfolio &
suggest future investment or initiative strategy. A global multinational in the
Telecommunication and services industry, PTCL Company is the 127th highest revenue
producer in the world. Even the Telecom Market of Pakistan is increasing quite rapid and
unexpectedly. Many telecom market segment or services of telecom industry fall under the
umbrella of this company. This chart will help PTCL company to analyze their different business
units or product lines or services and which resources to allocate or investment are most
appropriate in future strategic decisions. BCG analysis also helps PTCL in brand marketing of the
company, in product management, strategic management and it’s basically an overall portfolio
analysis of the company’s products & services.

PTCL market share in Fixed Line “Telephone” holds 95% in the market while for others like
Broadband, Smart TV, Wireless local loop sector it hold close to 37% of market share and Ufone
holds 14% in the market share according to PTCL annual Report 2013. PTCL higher corporate’s
market share results in higher cash returns from each sectors. While the market growth rate of
telecom industry has directly related to PTCL growth as well it means that if market growth rate
is high it means higher earnings & profits but it requires more investment to stimulate further
growth because to make a company grow it consumes lots of cash. Therefore, business units
that operate in rapid growth industries are cash users and are worth investing in only when
they are expected to grow or maintain market share in the future. There are 4 segments into
which PTCL brand has classified it products and services.

Star
Broadband Services of PTCL is Star that it operates in high growth in the telecom industry and
have maintained high market share. Broadband is both cash generators and cash users in the
telecom market with 90% of market share in the telecommunication services market segment.
As time pass by the main focus of any business should be to invest into its Star products or
service because they are expected to become cash cows and generate positive cash flow for
example in case of PTCL is the Fixed lines “Telephone” which once had monopoly over the
entire telecom industry until rapidly change in the overall telecom industry experienced, where
new innovative products and services were introduced by new technological advancements, by
outcompeting with it old technology or the availability of substitute products and services like
GSM and mobile phone advancement made Telephone services into becoming a cash cow. PTCL
Broadband services were the first one entered in the telecom market in Pakistan so basically,
PTCL still has monopolized the telecom market segment. However, because of their high
growth rate, they consume large amounts of cash. This generally results in a huge amount of
money coming in that it invests. PTCL has invested more in Broadband like converting old VDSL
Broadband services into FTTH “Fiber to the Home” Service. Different strategic choices for
broadband service of PTCL “VDSL or FTTH” could either be market penetration in rural regions
or market development or product development.

Cash Cows
PTCL Fixed line or telephone voice services are still the market leaders in the telecom
marketplace with the most market share more than 95% share than any other competitors.
They generate more cash then they consume because PTCL has the largest and oldest backbone
transmission line across the nation where still either in business community or general home &
personal business it still relevant though. PTCL Fixed lines are cash cows because they generate
more cash than they consume. PTCL Landline products have a high market share but low
growth prospects.

Ufone is also comes in the category of Cash cows still the most profitable brand and it still
milked to provide as much cash as possible and PTCL is also investing into it to induce more
growth by providing new innovative services or offers which may make it become into a new
star.

PTCL Company is investing into fixed landlines to maintain the current level of productivity by
converting its old copper wire infrastructure into latest technology of fiber optical cables.

Both Products of PTCL lies in the low growth markets with high market share with these
different strategic choices are made like the product development, diversification, divestiture
or retrenchment. These products/services help a company in its administrative cost, fund
researches and development, service the corporate debt, and pay dividends to shareholders.

Question Mark
There is a bunch of Product lines and Services that have high growth prospects but a low
market share like PTCL Smart TV, Online Streaming Services and CharJi 4GLTE. They consume a
lot of cash but bring little in return due to many reasons like new products launched so
relatively its market share is new or small, to keep investing into this products or services if they
have a great potential for growth in them.

However, since these products/ services are growing rapidly and they have huge potential to
turn into stars. PTCL is investing in these products line that has great potential for growth in it.

Question marks do not always succeed and even after a large number of investments they
struggle to gain market share and eventually become dogs instead of Star and eventually cash
cows. Therefore, it requires very close consideration in regard to market trends, customer view
about such products or services and to decide if they are worth investing in or not.

Dogs
The usual marketing advice for any business is that to aim to remove any dogs from your
product portfolio as if they are a drain on resources. Dogs hold low market share compared to
competitors/rivals and operate exceedingly in a slowly growing market. In general, they are not
worth investing in it because as a result they generate very low or negative cash returns. But
this is not always the truth. Some dogs are profitable for long amount of time; they may
provide synergies for other brands or SBUs or simply act as a defense to counter competitor’s
moves.

Therefore, it is always important to perform deeper analysis of each brand or SBU to make sure
they are not worth investing in or have to be divested and strategic choices would be
Retrenchment, divestiture, liquidation. In case of PTCL is Vfone & 3G EVO Wingle 9.3
The Growth Market Share Analysis

PTCL PRODUCTS & SERVICES PORTFOLIO

DATA VOICE ENTERTAINMENT

DSL Broadband Landline PTCL Smart TV

BCG Matrix CharJi 4GLTE Ufone Netflix
EVO 3G Vfone iFlix
GPON FTTH Video on Demand
(VOD)
SWOT ANALYSIS
A SWOT analysis is a powerful tool in order to appraise PTCL Company’s health by looking at its
resource strengths and weaknesses concerning the quality of how it sends and receives data
and information across the nation and internationally over its transmission lines either its
infrastructure is over copper cables or fiber-optic cables, Broadband Networks, Cellular
Communication, 3G/4G wireless broadband technology and other communications ways. The
analysis also identifies external opportunities and threats that may help or hurt the PTCL
Company Limited in the future. This analysis will help PTCL in discovering new opportunities,
manage and eliminating threats by knowing the internal strengths and weakness in its
company. How PTCL will overcome its weakness in a positive and healthy way.

STRENGTH
PTCL is the largest operational network & infrastructure within ICT “Information &
Communication Technologies” telecom sector. It provides all the telecom market segment
products & services like voice, data, GSM, 3G/4G and IPTV. It’s still an integrated monopoly in
the telecom market of different segments.

PTCL has largest infrastructure of copper transmission line in more than 2000 cities and town all
over the country and now they are being upgraded to fiber optics transmission line across the
country. They do have government of Pakistan support since it’s still a state owned company
with 62% share with the government. PTCL is the only one to have its own under sea submarine
cables to connect with outside world means international communication & communication
takes place in sending and receiving data. PTCL is also the only State Of Art at providing
international Gateway Exchange, in simple words the access to the WEB (World Wide Web
“www”) and international calls. PTCL has its own Domestic Satellite Earth station (DOMSAT) for
communications to remote inaccessible areas of Gilgit, Sakurdu and Gwadar by using the
INTELSAT Satellite for data, voice and entertainment purposes.

Competitor still depends on PTCL transmission network either directly or indirectly like
StormFiber borrows the bandwidth wavelength services from PTCL or Zong has a partnership
with PTCL in borrowing its fiber optics transmission line or like NayaTel is accessing PTCL under
submarine cable for international communication. PTCL still the market leadership in Voice
(Fixed Telephony Networks), Transmission Lines that connects the company to its subscribers
physically (Local loop) like DSL, Internet Access through Broadband (Wireless local loop) fixed
like coaxial cable or optical fiber or wireless (3G/4G Technology) and Satellite communication
for remote areas.

When Daniel Ritz became the CEO and the President of the Company he has put more focus in
to enhance its internal environment; a friendly environment and good working condition for its
employees work efficiently. Through various programs practices like training and development,
rewards system etc. PTCL has boost in the concept of Team Work, cooperation of employees,
motivation, satisfaction, developed their communication skills, good relation with their
managers and many more. PTCL has maintained a good financial position with 11% increase in
overall growth in revenue this year. PTCL has a strong distribution channel across the nation.

PTCL is now providing & upgrading to cutting-edge fiber-optics technology over its old network
infrastructure in most cities; with high-performing cable equipment as well. It has a respected
brand name and has the most experienced Telecom Resources. Its customer base is more than
4+ Million. Due to its spread in lots of market segments it generates larger earnings from each
segment. No discrimination.

PTCL (Ufone) is market challenger in GSM segment. Ufone is performing well though Mobilink,
Zong and Telenor are tough competitors. PTCL, Ufone’s profitability increased by 49.2 % to
Rs.977/- million in 1 year as compared to Rs 655million with respect to its pervious last by
grabbing 14% of market share & increase in its subscriber user up to 20 Million.

These strengths of PTCL attributes have enhanced the company's competitive advantage over
the years.

WEAKNESS
PTCL is very vague in its strategy where it wants it company’s direction to be and have
sustainable competitive edge over it competitors. Corroded cable lines, slow service and
lackluster sales are three weaknesses that is hurting PTCL reputation and has placed the
company at a disadvantage position in the marketplace where pool of competitors are
available. PTCL has a very slow services in term of customers complaints and not been able to
minimize them. PTCL is not showing any good strategies in terms of expanding its brand image
& loyalty in the customers. It’s internal organizational for the employees working environment
still needs improvement furthermore up to its grass root.

If rusted cable lines aren't replaced due adequate & slow service continues, for example, angry
customers or potential consumer will switch to PTCL rival telecommunications company that
offers better services. PTCL has not been able to nurture its growth around customer services
oriented strategy. PTCL still has many Internal organizational and business processes issues like
the matter of its transforming share to Etisalat between the Government of Pakistan & Etisalat.
Monopolistic culture has further added to its complexities. Slow decision making including
external interferences. PTCL has lack of Aggressive Marketing in the telecom market. It has a
weak customer Services and lack of customer focus. PTCL is also weak in corporate culture
influenced by governmental departments. PTCL’S Management style is quite unclear. There is
no proper maintenance of the network as well as installing connection due to the most bottom
layer of employees like technicians is still uneducated staff and untrained as well. There are
some grey areas where gaps in knowledge of employees are high.

PTCL still has no great innovation in the telecom industry. They’re a lot of gaps in knowledge of
employees in some areas. Work burdens on PTCL employees is quite high due cut down in
employees to reduce its operational cost head. There are some Issues with employee’s
promotions & unsecure job of contractual employee. PTCL market image is that their uses
outdate people and technology.

OPPORTUNITIES
Opportunities for any Telecom Business it’s created by new technologies & innovation ideas to
serve in demands of its customers, increasing consumer interest and a decrease in competition
are just a few external opportunities that can facilitate a telecommunications company within
the long term. Opportunities have very much beneficial, outside events that a company uses to
boost and spice things up as its existing strengths.

PTCL is very keen on rapidly adopting new technologies, for example, would highly benefit from
immediately investing in 5G technology, Artificial Intelligence Solution to Network Service and
Maintenance, or that it has already invested in fiber optics by upgrading its exchange services
and providing GPON Fiber To The Home “FTTH” to the customers in rural areas as well through
CPEC investment. Pakistan low tele density has different opportunities to avail from it. PTCL
have vast infrastructure and real estate which can be leveraged further. Global connectivity
reliability of Different user has been improved through PTCL is still expanding the long distance
and infrastructure side through spreading out 4 Sea-Me-We submarine cables for increase in
international call. Growing of telecommunication market in Pakistan creates more
opportunities for PTCL.

The population is responsive and adaptive to new technological changes. Ability to achieve
economies cost efficiency because of its vast reach. Market is open for more number of
products and services in telecom service segment. Introducing higher value added features in
its products and services. It time for PTCL to establish brand loyalty in the market. No local
competitors. Telecom Market is a massive marketplace for more opportunities to avail from it.
Due to increase in Telecom industry there has been quite an increase in education in this field
in the last 2 decades so fresh local graduates are tends to be more patriots. New innovative
products and service bring changes also. In Pakistan in telecommunication industry is growing
increasing day by day. Since 21st century people are more ware and technology understanding
has increased. Gain more efficiency through business process analysis. Increase in employee’s
skill benefits an organization overall performance.
THREATS
Pakistan’s sluggish economy, increasing competition level and exaggerated government laws &
regulations against the telecommunications service sector. Every external threats of an
organization limit any telecommunications company's future success. Threats are external
events and influences that create future hurdles for a company.

In case for PTCL new rivals like NayaTel, StormFiber, FiberLink and many more ISP telecom
providers that offer customers fast service and cutting-edge technology with new feature in
voice, data and digital entertainment. In mobile telecom companies are aggressively competing
in way getting new technology and bring new better services and offers for consumers which
are giving a tough competition to PTCL (Ufone). Telecom market of Pakistan has been exposure
to new potential competition. Indirect competition and migration to cellular networks in
Pakistan telecom industry is a threat to PTCL. PTCL has to improve its corporate culture in order
to attract &retain quality professional employees. PTCL is not used to operating in a
competitive environment. Potential customers are loosed due to no proper installation
procedures of new connections. PTCL miss management is quite a threat for company’s long
survival. High Government legislation brings threat to PTCL. International ban on business
companies like ZTE or Huawei co. which provides supplies to PTCL in order to provide its
services to the customer in Pakistan. Telecom sector in Pakistan the competitors are bring new
innovative and better packages or offers to its customer.
SWOT MATRIX
SWOT MATRIX
PTCL Market Position
Any business or organization prosperity in the business
world is highly depended on the country’s economic
growth rate & the potential value of the market. Business
Industry Sector
houses expand vastly in their industry and explore new Service Sector Market Share
Market Share
projects in their respective sectors. Acceleration in 20.91%
60.23%
Pakistan economic growth and political has made
‘Pakistan Business Landscape’ for investment from all over
the world are investing either in the form of CPEC, Saudi , Economy Sector
Market Share
Iran & many other FDIs since Pakistan in Asia has much 18.86%%
geographical importance because of its Strategic Position
& Location.

Pakistan is a developing country with an emerging economy and has great potential to become
one of the largest 25 economies in the World. The economy of Pakistan is 38th largest economy
in the world with its Market Value surpassed by 309.681 billion USD in 2018 which is little
better than previous year. Due to this stability and growth in Pakistan have benefits in its
sectors.

Pakistan sectors that benefits for economic growth rate estimated in 2018 are 18.86% pf GDP in
agriculture sector increased by 3.5%, industrial sector (20.91% of GDP) grew by 5.0% &
enhancement in services sector (60.23% of GDP) increased by 5.9%. As a result, the size of the
economy surpassed USD 309.681 billion mainly supported by the favorable global economic
environment, CPEC related investments and an expansionary fiscal and monetary policy.

Pakistan largest corporations in industry sector are mostly involved in utilities like oil, gas and
telecommunication. The Telecom sector is considered to be highly potent lending resilience to
the economy & PTCL is ranked at the 11 th Position among the top 20 companies in industry
sectors. In Telecom Market cellular dominates this market followed by fixed broadband “DSL”
then wireless Mobile Broadband 3G/4G, to Digital Broadcast multimedia content, to landline
Services even in Wireless Local Loop is no longer used due growing popularity of OTT Players
like Messengers, WhatsApp, Skype to Satellite communication.

Pakistan Telecom Sector is one of the world fastest growing telecommunication and
information Communication & Technology ICT market with dramatic improvement to its
infrastructure due heavy investment from foreign and domestic investments into fixed line &
mobile transmission network including fiber system are being laid all over Pakistan to aid in the
network growth. According to PTA in Cellular Sector has the largest chunk of Telecom Sector
Market Share with its Total No of Subscriber is 155 Million and its Tele density is 74.48% after
 this it dominated by Fixed Broadband including DSL, FTTH, HFC and other No of user are
increase to 65 Million by Market penetration is 31.19% followed by dramatic increase in
wireless broadband Services due 3G/4G Technology since 2013 has increased its market share
by 30.21% with 63 Million users and the decline of Fixed (Landline) & Wireless (WLL) Voice
service has reduce to 1.3% with Basic Telephone subscribers 3 Million only and now even PTCL
has liquidated its Vfone service (WLL) and Broadcast of Multimedia contents in IPTV services
with its market share approx. up to 29.09% and with popularity growing in OTT Players in online
streaming is the latest market penetration in Pakistan up to 8.79% & others like satellite
communication.
OTT MARKET SHARE
Player
Netflix, Microwave Sector "25%" OF
iFlix TELECOM MARKET SECTORS
"9%"
Cellular Mobile Sector
Fixed Broadband Sector
Wireless Mobile Broadband Sector
“3G/4G Broadband Sector”
Broad Landline Sector
cast Cellular Mobile Sector
Mul- "74.48%" “Local Loop & Wireless Local Loop”
time-
dia Broadcast Multimedia Contents
Con-
tents Microwave Sector
IPTV “Satellite Communication”
"29%"
OTT “Over the Top” Internet Player
3G/4G Wirless For example like in Netflix, iFlix,
Broadband icFlix etc.
Sector
"30.21%" Fixed Broadband Sector e.g, DSL,
GPON FTTH, HFC, & other"31.19%"
Landline Sec-
tor 1.30%

Now PTCL continues to enjoy leading market position in mostly all Telecom Services Segment
that it operates. PTCL market share in the documented broadband segment is 80%, around 90%
in the fixed line voice segment and around 30% in the wireless data segment. PTCL’s share in
the IP Bandwidth market stands at around 60% with respect to its the other major player in the
market. PTCL in latest segment of IPTV “PTCL Smart TV” has increases over 1 Million Broadband
customers which is a first ever in the country’s history. It also has increase in its 3G/4G
Wireless Broadband service after conversion of its 3G EVO Wingle into CharJi 4GLTE is shown by
66% increase in its subscriber then previous year. Although wireless broadband is Limited
volume broadband services but while FTTH services through same package.

While in cellular sector PTCL front is PTML subsidiary aka “Ufone” is in the top 5 Companies at
4th position with 22 Million subscribers and Market Share is 13.89% while in here it also
includes it 3G services have grab only 8.4 Million users .

PTCL has also grab market share in Micro banking sector as well Ubank as well which is
generating & its growth rate is double to its previous year which gives a lot options from which
it generates its revenue from these groups in order to maximize it growth as a mega
corporation telecom service company.

Since most IPTV services & OTT like Netflix, iFlix are also include into PTCL Broadband services
so the below figure describes all the triple play service. In here its illustrated the no of subscribe
by Broadband Sector by Technology (Fixed Broadband & Wireless Broadband also included like
DSL, FTTH, HFC, WiMAX, EVDO, Mobile BB) according to PTA, where PTCL dominates this sector
by 80% and the rest 20% is share among many Internet Service Provider like NayaTel,
StormFiber, World Call, Qubee, Fiber Link, Optix and many more ISP Telco’ for competing in
FTTH Broadband Technology including PTCL while inhere it’s also in the lead due to its already
infrastructure laid down in most metropolitan areas. With Broadband Service it also includes
Digital Broadcast multimedia contents like SMART TV, SMART TV App, Netflix, iFlix & Telephone
service as well so do some of popular ISP provide these services as well like NayaTel, StormFiber
etc.
While in Cellular Mobile Market Share Mobilink Jazz stood at the top with the most Market
share of 37% with 55 Million users, Telenor 29% market share with 43 Million subscriber grab
the second highest position in the market while Zong stood with third position with almost 21%
market penetration with 1 Million users & Ufone grab the 4th position in telecom market with
14% & the no. of subscriber is 20 Million & Warid at 5 th Position with only 11 Million and market
share in the cellular Telecom Market has remained 8.32% since the mid of 2016 by PTA 2018
surveying of 3G/4G technology for both voice and data services.

Fixed Local Line (FLL) or Wireless Local Line (WLL) in Telecom Market Segment where basic
Telephone or Landline services are provided to its customers. PTCL has monopoly in this sector
since 1995. Fixed Local Line was used for domestic local, regional and to other network calls
while Wireless Local Loop line was used mostly for
International call through PTCL product that is no Top 3 Telco’s
longer available in the market since 2017 “Vfone”. IN
Fixed Local Line subscribers & Tele density
1ST POSITION
PTCL: Market Share: 94.11%
No of Subscriber: 2.5 Million
2ND POSITION
While Landline is still dominated by PTCL with 94.11% with it no of subcribers have been
decline to 2.5 M while NTC has grab 2nd Postion with 1.16K user the market pentration is only at
3.87% which is quite very low. Simiallry NayaTel also provide its phone services with its data
service has grab the third postion with only 60K and its market share is 2.02%. While
StormFiber is new as a Telecom Service Provider in the telecom market it also provides
telephone services over fiber optics. Since it stll new to themarket to grab the VoIP and in order
to recognize it in the Telecom Telephone market share it need to have its no of subscriber
above 10K.

While in WLL (Wireless Local Loop) is mostly used international connectivity with regards to its better
offers and economical packages were given to its customers through PTCL Vfone …Vfone lets you
connect wirelessly to the whole world. It’s easy to use and economical too! Its features were to enjoy
wireless connectivity and freedom of movement within your premises. It also uses to connect to the
internet and enjoy a world of information and entertainment.

Although PTCL has stopped its coverage since 31 st March 2015 but its till used to grab the customers
attention of 2.6Million user by covering over 10,000 urban, suburban and rural villages. The network is
already enabled for Voice, Dialup-Internet access and EVO Broadband. While PTCL dominated this
market sector to its height at 2011-2012 with 1.4 Million and still is in 2018 with 1.06 K subscriber are
available.

Through this all it show PTCL basically is the trend setter in the Telecom Market through various
strategic Planning in the future market trends are etc. PTCL Market Position is quite strong and is the
market leader in the telecom service sector.
PTCL Competitive Strength & Weakness
The analysis of the PTCL Company’s at macro-environmental & micro-environmental level
demonstrations that the business environment for PTCL is already expanded across the nation
& its current strategies that are implementing in the year 2017 & 2018.

To explorer new markets although PTCL has deep root across the nation but with exception like
far away regions for example rural areas, mountains terrains which have harsh, unpredictable
climate environment and were difficult to maintain services there. PTCL still has explored in this
market region by providing limited services by providing substitution landline & broadband
service into a totally different network infrastructure that is satellite communication is used to
provide data & voice services. In PTCL Satellite Communication, it owns a Domestic Satellite
Earth station (DOMSAT) for communications purpose to provide data and voice in these remote
inaccessible areas, it already available to some areas of Islamabad, Gilgit, Sakurdu and Gwadar.

PTCL has good terms with the government so there is no specific hurdles in form of any legal
requirement till the current date. As economic and political factors do have very deep impact
on the telecom industry because they help Pakistan in developing in its economy like the other
industry for example oil, agriculture etc. and vice versa so, it do pose a threat when one these
two factor or both are instable. And also due to foreign investment are coming to Pakistan in
the form of either CPEC, Saudi-UAE-Malaysia-Qatar-Russia investment in different fields
Pakistan can’t afford instable situation at such crucial time because it will have a huge impact in
a negative way if situation is worse including on PTCL Company as well.

PTCL has many current and future projects that are totally dependent on political & economic
factors plus so the growing trend of emerging new technology & information era affects its
current and future business strategies in these areas if instability environment grow in Pakistan
as well as globally. Current the global political factors like trade war between China & USA has
even led to ban on its Chinese Company ZTE which was a long term strategic supplier to many
telco’s in Pakistan including PTCL.
In telecom industry their also very important factor that the external business decision around
the globe on Telecom industry also has massive impacts on PTCL company as well like the ban
on ZTE products by USA has also stop its products to Pakistan as well where ZTE company is one
of the supplier company that PTCL purchase it products in its communication operation in
Pakistan. Like PTCL & ZTE project of Smart Cities with launch of 5G technology at Gwadar is now
ambiguous or in cancelling stage.

The Economical factor of Global World is not look so good with the IMFs “International
Monetary fund” by its MD Christine Lagarde’s fear & warning to the government to gear up in
the impending global economic ‘storm’ as growth level of global economic is more slow then it
anticipated and its forecast for this year 2019 is down to 3.5% from 3.7% previous year, due
many reason like USA & CHINA Trade War, Brexit, slowdown in China’s Economy, financial
tightening, Increase in tariff & trade barriers and totally unpredictable situation too many
clouds to start a storm & they have no idea how it will pan out but the only thing they know is
its already beginning to effect on trades, on confidence and on market as well that what the
Managing Director of IMF said to the Worlds Governments Summit 2019.

Pakistan has also experienced economic & political instability stimulated by the current
government itself with its much-trumpeted flawed economic policies and its mini relief budget
which is not friendly in terms of for business community. These all factors do have impact on
PTCL business future strategical plans and current as well.

Through Market Growth Share matrix clearly shows that it will be favorable for the PTCL
Company to focus on the business growth in the market to provide better services, be the first
one to bring new technology, innovative & differentiated products or service before its
competitors if PTCL wants to retain its market position as a leader. Since PTCL is the market
trendsetter in Pakistan Telecom Market not just in broadband service but also in IPTV (TV over
Internet Protocol) , VoIP (Voice Over Internet Protocol) , Submarine Cable consortium System,
Satellite Communication, OTT Players like iFlix in 2017, 2018 it partnering up with Netflix as
well, AI Solution services to its customer complaint box, IaaS Infrastructure to Cloud
Commuting as Smart Cloud PTCL is the first one to launch the latest trend of Cloud Computing
technology to its portfolio. And also Network Transformation of 100 Exchanges till 2019 were
only 51 fully exchanges are already transformer to its latest technology trend for high speed
and volume in GPON FTTH up to 250Mbps in a Triple package deal. Also to enhance and
improve its customer base service PTCL is using latest technology such as AI Solution as
discussed above plays a crucial role in connecting the callers on its contact to PTCL center,
Afiniti AI base system intelligently with connects the caller to its relevant and suitable agents
thus, by improving the quality & speed of service offered to its customers. All these strategies
of PTCL has a positive impact on its growth rate and generated revenue of Rs. 126.2 Billion in
PTCL Group and PTCL Net Profit was Rs. 70.1 Billion during all the 4 quarterly years Report is
shown.

PTCL recently signed AAE-I in July 2017 which act as a gateway for Pakistan to the information
Superhighway-I to its international cable consortium systems SMW3, SMW4, IMEWE that it will
help PTCL is providing connectivity to any business projects happens in Gwadar which is now
the hub of International Free Trade route to the shortest maritime access to Europe, Africa and
the Middle East for other countries to do business with Pakistan.

PTCL’s diversified portfolio in its products & services than any other ISP or mobile telecom
companies. Its expansion in its services to further to those areas with the Government backing
like FATA, urban and rural area like Chitral and Giligit towns, villages will as increase in its
subscriber base.

All of its social interaction in any form like sponsoring to United Islamabad Teams, Blood
donation or Flood reliefs or cleaning environment or provide education services in backwards
areas helps in building PTCL image and create loyal customers through influencing the
consumer from its employees to the general public. These all strategies have strengthened the
company even further.

With liberalization of Pakistan telecom market competitor’s threat has increase for PTCL mostly
in broadband segment and PTCL Group Company still need improvement its Ufone services in
term of technology advancement and quantity services to its customers.

It will pose a great threat if competitors make an alliance against PTCL like Zong alliance with
Huawei on launching 5G technology and the longstanding issues between the Government of
Pakistan and Etisalat Management needs to be dissolved as soon as possible.

PTCL has very slow services in term of customer’s complaints and not been able to minimize
them due to lack of training and development plus management solution to its grass root like
lineman services, are very slow in fixing the problems with in the 48 hours sometimes it take
even weeks for the lineman to show up due to its detachment towards the company itself.
Although great initiatives have taken by Daniel Ritz in the past 3 years to its top and mid-level
management but very few changes happen in the grass root which interacts with customers
face to face directly. If they show a negative attitude towards the consumer in terms of its
complain it creates a bad image towards PTCL and will shift to other competitors easily at first
opportunity when they also provide the same services or even better then PTCL does.
 PTCL
PAKISTAN TELECOMMUNICATION
COMPANY LIMITED
“Strategic Options”

Be able to construct a strategy plan for an organization

3.1 Use modeling tools to develop strategic options for an

organization

3.2 Develop a comparative understanding if activity from

organization in the market

3.3 Create options to form the basis of future organizational

strategy
In business world for any organization to survive it needs a have an appropriate strategy for it
long term survival? Strategy is method or a plan by a firm that reflects on its decisions its offers
to its customers on particular products or services in a particular market chosen to bring out
the desired future through achievement of an organization vision and goals.

A strategic plan is basically like an outline for a company’s vision or goals and the means to
achieve and accomplish them it provides a roadmap for its top level management or leaders. A
successful strategy is always based on smart choices so strategic options are basically to explore
opportunities in the market place through products and services either existing or new once
provide new or good opportunities for the firm use its available resources. It’s a tool for every
company to use and to identify the direction of the company’s objective in achieving and
accomplishing its business success in the long term.

In telecom sector the probability of a company’s success determines with carefully crafted
strategic options that help to deal with the uncertainty, dynamic and complexity nature of this
market, environmental factor and choices.

PTCL COMPANY STRATEGIC DECISIONS OPTIONS

After a broad external & internal environmental analysis of PTCL Company coming to
conclusion and understanding that what is the mission and aspiration is for this company is the
next stage would be is to formularize future base strategic options for PTCL.

This tool is basically like a creative alternative action-oriented choice to different situation an
organization has to face. The ‘Strategic option tool’ will help PTCL Company in order to identify
and advice the company to in hand already prepare alternative options or perspectives to
possible responses to trends, opportunities and threat from the outside world impact on the
company that have already been identified by a comprehensive environmental external and
internal scanning through different modeling analysis tool like PESTEL, SWOT, Stakeholder
Analysis etc., it basically links together all the facts and figures taken from strategic analysis
different process and choose the best choice in modifying the business model of PTCL in order
to achieve PTCL strategic vision.

“To be the leading company in telecom industry & the most admired ICT provider in Pakistan.”

STRATEGIC OPTIONS MODELS

Strategic options are like a bridge the gap between the analytical phases of the strategic project
elaboration with the decisional phase for PTCL. After through different analytical tools applied
on PTCL from external to internal factors, competitive position of the firm and its competitors;
though different strategic options model one can identify and evaluate different set of strategic
options for PTCL to modify its business model in order to get its desirable goals. After the
evaluation of the set of potential strategic options from the modelling tools a PTCL has to
choose the one that better fit with its strategic vision.

A company’s future strategies base on three things:-

1. Growth
2. Maintenance (Maturity)
3. Diversification (Lay off)

There are different strategic model tools to use for to develop strategic option for PTCL
Company; where ANSOFF Model is used to applied to discover what kind of future strategic
plans are required at a corporate level while at business level two model will be discussed in
here one is the Porter’s Generic Strategic Model that describes how a company pursues a
competitive edge over the choose market scope in which it determines the strategic direction
of the organization and the other one is Strategic Clock Model is used for a company to analyze
its position market in relation to what its competitors have to offer. And at Operational Level
Resource Based Model is used for strategic resources options provided by an organization with
a golden opportunity to develop competitive edge over its rivals. All these model described
here have to been implement on the PTCL Company in order to find its comparative analysis its
competitive positions and operating cost over the next 5 to 6 years and what strategic options
PTCL has made according to its market trends and position in the next 5 years from 2018-2022.

A convenient way to classify levels of strategy is to view Corporate Strategy is responsible for
market definition for example Diversification into new product or geographic markets need,
Business Strategy is responsible for market navigation for example attempts to secure
competitive advantage in existing product or geographic markets and at Functional Strategy as
the foundation that supports both of them above strategies like from Information systems,
financial system, technical system, human resource practices, marketing strategies and
production processes that facilitate achievement of corporate and business strategy.

As any business organization is divided into three levels and each level offers a different
prospect of an organization in order to help the firm in analyzing how to increase its efficiency
and performance of an organization. So, any Strategic initiatives taken by a huge company lets
in this case PTCL co., its strategy is also divided among the three level of the company as well
for a strategy to formulate and implement in a company.

Now at the Top or Corporate Level Strategy of PTCL has to answer the entire fundamental
question in order to make new decisions that what is it wants to achieve let’s say in 5 or so
years, is it growth, stability or retrenchment. While at Mid or Business Unit Level Strategy PTCL
focus must be on how and what course of need to be taken to complete its goals and
objectives. It all depends on the level of knowledge on its customers, market, products and
services; its strategies at this level are either by going for low cost leadership or differentiation
based. And at the Low or Market Level Strategy in PTCL it entirely focuses on how you’re going
to grow depending on market penetration, market development, product or service
development, or diversification. What marketing tactics will be used in each area for an
organization to grow in it?

ANSOFF MODEL
The Ansoff Model is a core business strategy tool; used to identify which overarching strategy
the business should use which tactics should be used in the marketing activity by PTCL. It’s
appropriate for a company like PTCL to adopt more the one strategy to reach different markets
in the telecom industry. Igor Ansoff suggested that there were solely 2 approaches that are
effective in developing a growth strategy; through varying what is sold (product growth) and
whom it is sold to (market growth). The Ansoff Matrix demonstrates the choices of strategic
direction open to PTCL Company by mapping its business into the matrix based on two
dimensions: product and market. It delivers four strategic options according to each zone, with
each exerts different level of risk. On the basis of
decision of using a new or present product for a new
or present market the matrix provides four
product/services marketing strategies list given
below.

1. Market Penetration Strategy

2. Product Development Strategy

3. Market Development Strategy

4. Diversification Strategy

PTCL is the leading company in the Pakistan Telecom

Industry it’s already available to far stretch of the nation with few exceptions & it’s already
present in different telecom market niches like from being a telecom internet service provider
to telecom mobile service provider with large collection of products & services portfolio. If PTCL
wants to expand itself in new regions or market it should be considered as a market
development strategy. The existing products and service are not new to the market like in
mostly big cities and towns but if it’s targeted to potentially new market or a niche markets
where PTCL can expand its products and service aren’t available like in Northern regions for the
business in some new markets like Gilgit, Chitral, Sakurdu etc. Due to vast portfolio of Products
and Service PTCL provides need to have more than one strategy to benefits it company in long
term like for example PTCL with market development strategies it could use relative marketing
effort such as market penetration of Landlines or calling cards etc. as pricing and promotional
activities or distribution channel expansion to upgrade them to target and attract the required
customers.

Market Penetration Strategy for PTCL Products & Services

The lowest risk strategy is for PTCL Company to sell its existing products/services into existing
markets because as its aware of its customers, has established channels. For example using this
strategy is already used for PTCL Landline, International Calls Rate etc.

This is only possible where markets are still growing in this case scenario telecom market is
growing irrespective of its economic condition, its done by using the other elements of the
Marketing Mix; the 4P’s; such as price discounting in domestic and international calls rate and
additional promotional activity offers or bundle packages to attract its existing customers. To
increase its sales regarding Landline service or International calls PTCL has to penetrate deep
into telecom market at the expense of its competitors. Landline service are at the end of it
innovation.

Product Development Strategy for PTCL Products & Services

With change in telecommunication world due technology advancement or innovation every

telecom company or corporation has to be up to date with latest technology they are using
similarly in PTCL case too. As ANSOFF Matrix second strategy option is to develop new products
for existing customer that is called ‘Product Development’; the best example of this in telecom
industry is smartphones telecom companies bring latest mobile phones with upgrade
technology and new features or services for its existing customers and also attract new
potential customers. Similarly is the case of in telecom operators service companies; PTCL
telecom service operator that bring new services and products with the increase in customers’
demands and technological advancement like in Broadband Internet service were customer
appetite for more bandwidth, speed and reliability in its services is increasing day by day. PTCL
to satisfy this customer need by providing latest technology in data services by upgrading its old
copper cables into optical fiber cables in majority of its big cities exchanges and providing new
services like GPON Fiber to the Home “FTTH” services which the latest cutting edge technology
in Broadband services. Another telecom segment that is Broadcasting TV Services; PTCL is the
pioneer in this segment through Product Development Strategy PTCL launched IPTV service
“PTCL SMART TV” with the state of art in digital better quality pictures by providing multi-
channel TV services over the internet facilities where the control of the channels are at the
customers hand disposal. PTCL is still bring new features to its PTCL SMART TV through APPS
like Video on Demand, partnership with Netflix, iFlix the latest trend in market for customer to
watch their favorite latest movie , series , education channels. These online streaming channels
are mostly for targeting the young or tech involved generation. PTCL is also developing many
other mouthwatering features Products and services for younger generation who are into
online gaming so it has already launched PTCL Pakistan Gaming Lounge where gamers would
play with high speed bandwidth and no lag during the games. It’s also introduced AI solution to
its customer’s care, e-billing services and automatic record and tracking its employees and
customer complaints and data; it’s also help in other interactive service like SMS voice
integrated applications for customer’s satisfaction. PTCL has also developed products & service
in wireless mobile broadband segment like dongle or Wingle device that provide 3G/4G
technology in voice and data services. 4G technology is much better in terms of data service for
streaming the internet including video files. PTCL strategy in Product development has
launched a variety of 3G/4G device in this segment like EVO WiMAX devices like 3G WiFi/MiFi
the latest one in 3G technology was EVO 3G Wingle 9.3 which is not available anymore in major
cities due its launched its latest device in 4G technology CharJi 4G LTE EVO.

In this strategy Product/Services and Promotion elements of marketing mix is higher than
Market Penetration in terms of operational cost for PTCL. This strategy is though risker but it
success depend on the PTCL’s in depth knowledge and insight into their customers/markets
needs and demands as well as their own internal capabilities and competencies also Financial
for driving into different innovative ideas.

Market Development Strategy for Products & Services

PTCL to increase in its revenue and sales it’s also using this strategic option ‘Market
Development Strategy’ which involves launching its existing products into new markets
geographical area wise or creating a new market with the existing market. PTCL is now
expanding its products and services to those regions as well were it had not yet established due
to physical environment condition unpredictability like Chitral and northern regions of KPK,
licensed were not given to PTCL to operate on those regions like Azad Jammu & Kashmir and
Giligit Baltistan, or for the political and security purposes like in FATA areas or small towns or
villages in the other provinces as well. But now PTCL is expanding its service with the approval
of the government and PTA in these geographical areas by providing voice and data services
with fiber optical cables are being laid in FATA and Balochistan regions plus other products and
services also like SMART TV, 3G/4G technology. 3G/4G devices of PTCL are promoting in these
regions as well. PTCL is also providing FTTH service to niche market also with in the major cities
as well where FTTH demand is very high like in Islamabad DHA, Bahria Town etc., in Lahore
Clifton Area or in Peshawar Hayatabad area.

This strategy is quite risker than market penetration because it’s difficult to understand the
complexities of new or niche markets so in terms of this PTCL is providing its services where its
demand is quite high. PTCL has to consider its key changes in the marketing mix in terms of
Place and Promotion. PTCL has to consideration of the new channels and routes to the new
market as well as promoting its services to new target segments.

Diversification Strategy for Products & Services

Pakistan Telecommunication Company Limited “PTCL” telecom company being one of the
leading player in the telecom industry whose product/services portfolio is quite robust and
diversified then any its competitors in any segment in the telecommunication market. In the
last 2 decades PTCL has increased its product & services lines in these categories voice, cellular,
data, multimedia, 3G/4G, CDMA and satellite. Due to the rapid dynamic change in the telecom
market of Pakistan and increase in the competitors choose of the riskiest strategy of all four in
the ANSOFF Matrix as PTCL moved into an unfamiliar charted market ocean. As we can see
from its product & services portfolio is quite diversified. PTCL has undertaken ‘unrelated
diversification strategy’ after carefully analysis of the environment & its own resources
capabilities to invest in it and could have potential gain in highest returns to PTCL.

PTCL has invested from Telephone industry which was its core business to many other
industries after liberalization of the telecom market in Pakistan. PTCL has invested in Cellular
Mobile Industry where PTCL provides “GSM” mobile services by the brand name “Ufone” to
customers, it’s also put it footprint in the broadcasting channel industry by providing PTCL
SMART TV through internet services, it’s also operates as an ISP Internet services provider, it
also has invested in Satellite communication, it has also invested in DTH Direct To Home TV
service throughout Pakistan by acquiring Skylink co. Limited share, it also provides technical
supports to other industries as a wholesale/retail business by giving them license on
transmission line either it be copper, fiber, broadcasting, submarine cables, satellite or
bandwidth to other telecom mobile/internet service providers with again acquiring DVCOM
Data co. and PTCL has also invested in banks sector U Microfinance Bank Limited “U Bank”
which PTCL wholly owned subsidiary. PTCL’s practicable options are based on its diversified
sources of income and through a sustained aggressive marketing campaign and a commitment
towards innovation and retaining the customer base.

PTCL is one the telecom companies in Pakistan that is dynamically but slowly growing its
position as the leading ICT service provider and a corporate telecom leader. PTCL’s
management has come up with a 5 year Strategic Master Plan for the company their it defines
it ownership, timelines and it corporate KPI “Key Performance Indicator”, where yearly targets
on market shares & performance for various products and services like data, voice, multimedia,
wireless broadband technology etc.

Corporate KPI is best performance measurement system for Telecom companies like PTCL
where market trends and dynamic changes happen quite often. It helps an organization in
restructuring of an organization, to be supportive of adaptive changes in market trends in terms
of products and services plus competition, migration from old network to latest based network,
technological changes and internal environment of the company as well. PTCL investment
strategies are based on how to allocate its assets, resources and manage them on it diversified
products/services portfolio. Since PTCL’S at corporate level strategy is Unrelated Diversification
Strategy which is quite risky strategy so in order to improve in it investment and its returns are
all part of PTCL Master Plan in how up its game through various strategy in order to became a
giant telecom leader in Asia.

While Michael Porter’s Generic Strategies Model is used to determine the direction of the
organization will be to accomplish its goals and objectives. It a business strategic framework for
organization to choose from 4 strategies to have a clear course in order to be able to beat the
competition its only possible if a company has a competitive advantage over it competitors.

The crucial factor for any company’s success is the level of attractiveness of the industry in
which the firm operates and its position within that industry. In practical grounds a firm with
average profitability generates superior returns its possible if and if an organization has
positioned its roots very deeply into the market. A firm position itself by leveraging its strengths
plus deep knowledge and understanding of its surrounding externally and internally.

GENERIC STRATEGIC MODEL

Michael Porter’s has argued that a company’s strengths ultimately fall into its generic strategies
framework model so that the company’s competitive advantage either cost advantage “Cost
Leadership Strategy” or differentiation “Uniqueness of Products/Services”. These strategies are
applied at the business unit level that provides a competitive advantage to focus towards a
broad (Whole Market) or a narrow (Niche Market) scope.

The Telecommunication industry & service sector is growing and attracting many investors to
invest in the telecom market in around the world not just Pakistan. The Telecom industry or
Information Communication Technological industry has become essential in publics lifestyle.
The company PTCL operates in the Telecom industry where it is the largest ICT services provider
in the market.

The key strategic challenge mostly for any businesses is to fine the perfect way of achieving a
sustainable competitive edge over its competing products or services and firms in the market
while this competitive edge is an advantage over its competitors is achieved by offerings
customers by providing a greater value in terms of lower prices or unique benefits and services
that justifies its higher prices. In order to choose the right strategy for an organization it’s
important to be aware of the competencies and strengths plus its position in the market.

PTCL is the largest operational network & infrastructure within ICT “Information &
Communication Technologies” telecom sector. It provides all the telecom market segment
products & services like voice, data, GSM, 3G/4G and IPTV. It’s still an integrated monopoly in
the telecom market of different segments.

Through SWOT Analysis we know that PTCL strengths is that it’s largest and experienced ICT
operator in the current market with diversified products & services portfolio and other than
that it’s a large corporate company that also has invested into other areas like as a retail or
wholesale to other operators as well with a good financial position this year and through
Industry Analysis PTCL competitive position overall is there is no currently threaten by its
competitors to its position in the market but its alarming for PTCL because its competitors are
providing the same products and services at cost war although they are operating in selected
few geographical regions/areas all over Pakistan.

PTCL is a huge corporate company with a vast strong diversified portfolio of telecommunication
products and services at different segments of the industry like telephone, cellular mobile
phones, broadband ‘fixed or wireless technology’, multimedia, OTT, satellite and many more
value added services ; so PTCL has multiple strategies and each strategy is designed with
respect to its business units because the nature of corporate & ICT operators is quite diversified
with its maturity level its customer seeks multi-dimensional satisfaction such as price, quality,
convenience and latest technology.

PTCL’s generic strategies and intensive growth strategies directly relate to the company’s
strategies in pricing, marketing and other areas of the business. It’s the largest and backbone
Telecom Company in Pakistan, PTCL Porter’s generic strategy model and intensive strategies are
basically aligned to support the company’s position in various segment of the telecom market
in Pakistan. PTCL shows that its generic strategy is a major factor till this current date has given
an advantage against other telecom companies. PTCL’s generic strategy, based on Porter’s
model, aligns with the company’s intensive growth strategies “ANSOFF MODEL”. In particular,
the intensive growth strategy of diversification is the key to fulfilling this generic strategy and
supporting PTCL’s success till the current data.

DIFFERENTIATION STRATEGY IN PTCL

This is the strategy where the company provides a unique type of services and activities
or features, which are not being provided by their competitors. Since the telecommunication
industry achieved a significant growth over the past decades in Pakistan, PTCL has good
potential in the future. With the newest applications like FTTH (Fiber to the Home Service)
introduced in 2016, providing of 3G/4G services in mobile and wireless broadband services,
higher data speeds, multimedia messaging system, and 24/7 customer care service programs.
PTCL always tries to attract potential customers and as well as differentiation enables the
company to hunt for the potential customers and those who are currently using the
competitor’s services as well. On the other hand, differentiation strategy has also helped PTCL
in some ways to develop its corporate image in the industry over the past few years. To
undertake a differentiation strategy any company needs to come up with innovative and
creative ideas and as well as a considerable amount of technological investments. This process
needs to be supported by the employees and as well as to make the employees more
compatible with the differentiation strategy; the company needs to undertake proper training
and development processes.

PTCL is using differentiation as its generic strategy because it wants to target a broader market
in the telecom market because of high demands in information and Telecommunication
products and services has made the lives of the public digitized. The general public demands in
internet access, mobile services, entertainment, network coverages, Value added service like e-
billing, bundles packages, customer care services and prices. PTCL is providing a large portfolio
of unique products and services with minutely has unique features then its competitors
because it important to be flexible and to be able to adapt quickly in this changing market or
risk the competition to beating it.

COST LEADERSHIP STRATEGY IN PTCL

Cost leadership means develop the service at a lower cost than the competitors do. Since PTCL
charges don’t put premium prices on its few services for customers, PTCL do practice cost
leadership strategy to be competitive in the market. PTCL’s has the largest infrastructure of
copper transmission line all over the nation and submarine cable provided to connect with
international community since the decline of voice using Landline technology either locally,
domestically or internationally at call rates due to customers migration to GSM to Android Apps
like WhatsApp, Facebook etc. the telecom operators is left with no choice to offer the lowest
possible price and multiple bundle of offers and packages to attract customers in using this
services. Since PTCL has the largest market share in telephone sectors with average prices
strategies for its nationwide & international calls, internet packages etc.

FOCUS DIFFERENTIATION

This is basically with “Niche Market” concept where the company focuses on market segments.
The main advantage of being the focus strategy is that there will not be any competition in the
 selected segment since others have ignored it. On the other hand, the company could get more
profits in these segments where the company could obtain higher margins since there are no
substitutes.

PTCL though diversification and variety of Products and Services has retain its position in the
market place by providing GPON FTTH Broadband, OTT like Netflix, iFlix etc. and more value
added features to its customer above 10Mbps subscribers and it’s the initial phase in expanding
its old technology into optical fiber so for starters PTCL has target a niche market only in
geographical wise like mostly in major metropolitan areas with future plan is to include more
cities in the future. Internet services providers ISP are still persistently competing with PTCL in
term of providing same products and services at cost advantage to attract customer to them.

These generic strategies by PTCL each have attributes that serve to defend against its
competitive forces or not.

Industry PTCL Generic Strategies

Forces Cost Leadership Differentiation Focus
Potential PTCL is the leading in fixed lines due to Since PTCL loyalty is not so strong potential Potential Entrants is quite high
Entrants its Cost leadership Strategies in order entrants are not discourage by PTCL for niche market let take Fiber to
to deter potential entrants who are strategies with vast products and services the Home internet services even
providing telephone serves because mainly due to customers dissatisfaction in though PTCL is only target major
still in Pakistan fixed line services do some major areas due to quite complaints big cities due high demand of
generate large revenues in corporate about PTCL service performance in customers.
business communities, universities, broadband sector and also delay in
retailer, shopping centers PTCL is the customer care services.
first choice of course.
Buyer Power Since the buying power of customer is In areas where PTCL competitors in terms Large buyers in size have less
high due to huge pool of other options of broadband or multimedia contents in power to negotiate because of
available to the customers so lower low and the larger size of buyers are few alternatives.
prices in services like call rate, internet available so it has quite less power to
packages and other value add services negotiate because they have very few
is the best way to retain and attract its alternatives to choice from.
buyer.
Supplier The buying of supplier is quite low in To provide ICT towards its customers PTCL Suppliers have high power here
Power Pakistan Telecom market due needs certain bandwidth frequency, because of low volumes
availability of too many suppliers. hardware devices like cables, routers that supplies availability due to
are not manufactured in Pakistan to make it latest or new technology
operational. PTCL has logistic agreements involvement.
with foreign supplier companies like
Ericson, Huawei, and ZTE etc. so PTCL do
add its supplier power on to its customers.
Substitutes Low prices could defeat its substitutes When customers are attract to different Specialized or core ability of
Availability like landline substitute is GSM cellular unique features like in case of broadband PTCL FTTH, SMART TV or OTT
service. against 3G/4G services its ability to provide services also reduce in the
unlimited bandwidth reduces the threat to threats to substitutes
different substitutes.
Competitors PTCL has still monopoly over Since Brand loyalty is low for PTCL to keep It quite difficult for PTCL rivals if
transmission lines all over the country customers from its rivals is quite difficult they can’t meet customers
because it able to compete on price as but only possible if PTCL increases it brand need through differentiation
well as it provides its own transmission loyalty through 100% customers focus
lines services to other operators at high satisfaction
 price

STRATEGIC CLOCK MODEL

This quite an interesting model of Strategic choices for a company called Bowman’s Strategic
Clock Model that explore the options for strategic positioning for a company i.e. how a product
or services should be position in such a way to get the larger chunk of market position in
competitive market.

Let take a step back and think what is it in a strategy that enables a business to achieve a
sustainable competitive advantage over the competition its usually around ways of offering
consumers best value not just in terms of lower prices although that often a great way of
competing but also in terms of differentiation extended to which a consumer perceives a
significations difference between the your products and those of the competitions an which
leads to them to buy you rather from them and this is really at the heart of the idea behind the
Bowman’s strategic clock and in sense it builds on the Porter’s Generic strategy so you can see
some similarities between the two.

Bowman’s strategic clock explores the options for how a business position its products &
services in the market strategically like what is the most competitive position that enables it to
get advantage and the way it does this is to identify a series of eight strategic positions that a
business can take based around two dimensions the dimension of price and the dimension of
perceived value by the customer.

Let see how PTCL has strategically position itself through its products and services in the market
strategically and at what competitive advantage it gets from either in terms of price or how its
customers perceived its value.

No Frills

This strategic position is not a very competitive for any business where it’s a combination of low
price but low value added to its products and services and of course it doesn’t sound like a
particularly attractive or likely successful strategic position its often known as bargain-basement
strategy where you offer product as cheap as you can and the consumer buys it because it
really cheap cheapest as chips but actually it’s a very little perceived value in the products &
services it unlikely that this kind of products & services or position is going to be sustainable for
the long term because somebody else will always come along try to undercut you with an even
lower price than your cheap as chips.

In future I think PTCL will have to adopt this strategy for its declining rate in call rates due high
threats of substituted services are already available that are free of cost like mobile services or
VoIP “Voice over IP” services like WhatsApp, Viber etc.
Low Price

In this strategic position there is some added value or more perceived value or are still
competing on low price so in this position the successful business are going to be the low cost
leaders almost certainly they have built into operation of the business around cost minimization
and business accepts the margins on each products are going to be low but high volume of
outputs can still generates high overall profits. In business that are competing purely on prices
with a perceived value products or services are at price war as its main features for competitors
trying to win by posting itself in this strategic position.

PTCL strength on as voice operators and there is no other rivals of PTCL can match its
connectivity and voice quality. PTCL provides the lowest call rate either at domestic or
international calling tariffs to facilitates its customers so it connect their loved ones not just in
Pakistan but also across the world at extremely affordable rates.

In domestic call tariffs are Rs. 2/ per min and for international calling rate is 99 paisa / per 20
secs which highly affordable international and lowest call rates in 20 frequently dialed countries
and 24/7 uninterrupted voice connectivity

Fixed lines are though out of date but still it’s the largest infrastructure for communication
network in mostly ever country in world same case in Pakistan now it’s mostly best applicable
in the 21st century in corporate business sectors, government sector, universities, shopping
center or malls etc. so consumer still do perceive these services because it already existed in
the first place across the country and after liberalization of telecom market it also adopted low
price strategy after launching of first GSM technology and in 2014 3G/4G services also made
into the market but without LTE technology but currently that is also available in future
hopefully 5G technology services will be launched in 2019-2022 will make telephones services
to go down even more.

Hybrid

As around the clock we move up to its 3 rd position it adds to some product differentiation and
it’s also mentioned in porter generic strategies is being a combination of low cost and
differentiation as it strategy what known as Hybrid Position Strategy where the position
involves some elements of low price as compared to its completion but also persuaded the
consumers to buy because there is relatively high value added through product differentiation
and of course this is one of the effective strategy but as we see in PTCL also offer low cost prices
as an economical packages in it data services like DSL broadband services but also its quite
distinctive in differentiation in term of product and services for it students and corporates
sectors with very few added value services like the basic are Free Smart TV or Free phone call to
local regional services and constituently new offers are added in here.
Differentiation

Now in here the companies are moving away from low prices to a bit high price value. A
differentiation strategy as in Porter generic model as well is simply all about adding more
perceived value to its products and services. This strategy is all about branding and it’s all about
good and high quality products for its loyalty customers and lots and lots of added in terms of
branding position, its image and customer care services so that its perceived value is very high it
even justify it pricing strategies just like PTCL’s is using differentiation strategies for its Internet
services of High Speed Data either through VDSL broadband or GPON FTTH services from its
competitors to gain more customer satisfaction and their loyalty by adding lots and lots of
added value services like Free Video Conference call, Emailing services, High speed data in
download and upload in both services, no lags for gamers etc.

Focused Differentiation

This strategy is differentiation but its slightly different approach to price because the product o
services is position at deliberately at high price because the customers not only want that
differentiation in the product but in term of quality and also want to pay at the high price and
they pay the high price because of the high perceived value in the service or product.

In PTCL there are certain premium price for highly targeting segmentation, promotional and
distribution. For example in highly large corporate sectors like banks, stock exchanges etc.
where data transaction is done daily in need high bandwidth data so thousand and millions of
transaction should be done in few secs like availing PTCL packages of 50Mbps or 100Mbps for
more than Rs. 10,000/- installment charges and monthly charges is high than Rs. 6,000+ /-
without taxes. But it’s very difficult for PTCL to sustain this kind of strategy because
competitor’s pool is greater and can provide similar to its services at low price.

Risky High Margins

One of the risks of pricing high but perhaps without offering the perceived value is that
somebody else is going to come along with same value at lower price so this kind of strategy is
called risky high margins where price are set quite highly but actually the product isn’t offered
any extra in term of the perceived value. This strategy is quite danger is that customer is skill in
finding just as good at a lower price.

Monopoly Pricing

Where there is a monopoly in a market, there is only one business offering the product or
services or dominate business in the market. The monopolist doesn’t have any sensitivity bone
towards perceived added value for customer the only choice for them it either buys or not.
There are no alternatives. The monopolist set whatever price they wish for. Fortunately, in
most countries around the world, monopolies are tightly regulated to prevent them from
setting prices as they wish.

The best example for this is PTCL in around 90’s and 2003 before the liberalization of Pakistan
telecom market for other companies to come and invest in this market. PTCL solely dominate
this industry for quite a decades and it prices were very high at that time and customer really
did had any choice to choose from. This monopoly of PTCL ended when Government of
Pakistan tight its regulation by opening its market for foreign investment and thus is ended the
monopoly of PTCL and now its strategy is on competing bases in the telecom market.

Loss the Market Share

This strategic position is the one that every organization needs to on the lookout for this is a
recipe for disaster is called loss of the market shares position this happening at any stage of a
business is offering a product or services with relatively low added value but for a price that
isn’t low so the consumer has no reason to stick with this product or services because either
they can get the high value for the same price or they could get a lower prices that is being
offered for the business.

PTCL “Ufone” is the best example of it when it started like around 2004 it had the 2 nd largest
market share in the mobile operating services but with passage of time it was stuck in the
middle in neither offering lower prices or but neither its added lots of perceived value to its
services I can argue that it was in position eight due loss of market share in 2005 was 20.19% to
13% market share is now in the 4th position in 2017.

The last three strategic positions are uncompetitive because these are the once where its price
is higher than its perceived value and for long term survival these are not the best opt for any
business to be at sustainable position provided that the company is operating in a competitively
market, there will always be competitors that offer a higher perceived value for the same cost
or the same perceived value for a lower price. Business need to watch out for such positioning
strategy because the chances of its competitive position in the market are on threat.

Currently to this date PTCL is not adopting or practicing the last 3 positioning strategy on
bowman’s clock model. The above strategies are all based on Market Based View Strategy
mainly focuses on the external environment only, while a Resource-Based view emphasizes
factors just internally of an organization. In strategy decision making or opting, both strategical
views become intertwined with each other. Information and norms change adaptively in
operating environment, trends in customer demands and choices, current and new
competitors; pace of technological change and innovations etc. all affects the strategic choices.
On the other hand, a firm's is not adaptive to these changing environment its resources and
capabilities may restrict its strategic options and it’s not suitable for long term strategies. These
changes all depends on the culture or environment of any organization is how adaptive
environment it is and constantly ready to face any such challenges so that it shouldn’t affect the
organization overall strategic position and decisions and its performance.

RESOURCE-BASED MODEL
Resource-based Model is an approach used to achieving a competitive advantaged by an
organization to make a catalogue of its resources and capabilities in order to determine which
are it strengthens and weakness and set strategies based on the business key factors in order to
achieve its competitive advantage instead of looking at competitive environment outside at its
organizational level or functional level. From this Model it is crystal clear that this view of
strategy formulation mainly focuses on resources, assets, capabilities of business which can give
a competitive edge to the firm. Based on these competitive advantages, attractiveness of
business can be assessed and then a new strategy can be formulated accordingly.

Resource-based theory deal with that the possession of strategic resources provides a company
with a golden opportunity to develop its competitive advantages over its rivals. These
competitive advantages can an organization into generating strong profits by better utilizing its
resources and assets. A strategic resource/capabilities are the key criteria’s as an asset that is
valuable, rare, costly to imitate and no substitutable in a combined to become the core
competence of an organization to help the firm in creating strategies that capitalize on
opportunities and ward off threats & serve as a source of competitive advantage.

It is much more feasible to exploit external opportunities via existing resources by a different
approach instead of attempting to accumulate new skills for each and every opportunity. Each
organization has a collection of unique resources and capabilities that provides the bases for its
strategy is the primary sources of its returns. Capabilities do evolve and must be managed
dynamically. In this model, resources are given the major role in helping companies to achieve
higher organizational performance. There are basically two types of resources of any
companies’ tangible and intangible assets.

PTCL is a mega corporate company that provides telecommunication services and information
Communication Technology to its consumer. PTCL is the oldest and largest telecom company in
the telecom sector. It already jam-packed with lots of telecom and business oriented resources
and capabilities that have made it the leading company in the market. Since is in the Telecom
market it foremost need is it network infrastructure penetration across the country which
already deeply rooted to every corner of Pakistan from copper to fiber, fiber to satellite,
satellite to microwave and microwave to submarine cables and other telecom material
resources includes telecom devices, antennas, cables, routers systems, air conditioners,
switches, ports etc. required for transforming resources such as building, equipment’s, human
resources, furniture etc.

Resources of PTCL like capital equipment, skills of individual’s employees, patents, finance,
talented manager etc. are all input into the company service production process of PTCL is
classified into 3 categories Physical Capital Resources, Human Capital Resources and
Organizational Resources
PHYSICAL CAPITAL RESOURCES
These are the Tangible resources and to PTCL these assets play a vital factor in assisting to the
company performance. The tangible assets are organizations that are relatively being seen,
touched, quantified and easy to identify even by their competitors. PTCL physical assets
included financial resources, organizational resources and technological resources such as
property, plant, towers, exchanges, geographical location, buildings, machinery, furniture’s,
equipment & devices for telecommunication operations, etc. like copper cables are easily
arranged from local market but other cables like fiber optics, PTCL has its own specific coaxial
cables or devices like routers, switches, TV entertainment boxes units are all purchased with an
agreement signed by both companies that supplied from foreign companies like ZTE, Ericson,
Huawei, LTE, etc. and capital “cash” all these assets are tangible. Physical resources can easily
be bought within the market so that they confer very little advantage to the business for any
organization in the long run because rivals can also acquire the identical assets. All the cost
includes expenditures, related overheads; impairment losses etc. all are physical assets of PTCL.
It also includes those asset which are effective to the company when it is probably depend of
future economic benefits PTCL in bring cost flow to the company. It also includes the amount of
repair and maintenance cost ae well.

HUMAN CAPITAL RESOURCES

These are the intangible resources are everything else that have no physical presence but still is
owned by the organization. PTCL company’s intangible assets are its culture, its brand
reputation, trademarks, intellectual property, the knowledge and skills of its workforce or
employees. In contrast to physical resources or assets, brand reputation is built over a long
period of time and it’s something that other companies can’t buy from the market. PTCL is a
brand recognized company which the largest and experienced telecom company in Pakistan
with unique routine and practices including HR, innovative resources handling, IT Solutions etc.

It also includes licensing for provide telecommunication & ICT services like voice, internet,
Broadcasting IPTV, and many other are taken from PTA authority body to PTCL are cost less as
its only cost over in which a license is acquired or renewed only like bandwidth for wave
frequency is licensed with agreement with Huawei company limited and same case with the
computer software.
PTCL who wish to achieve long-term competitive advantages should therefore place a premium
on trying to nurture and develop their firms’ intangible resources.

Human resource is intangible and the most important assets of an organization in here it means
the workforce. The success & failure of an organization is mostly dependent on the ability,
talent and caliber of the peoples working therein. Without any positive and creative
contributions from the organizations employees an organization can’t progress & prosper. In
order to achieve its goals & objectives of an organization, therefore, the organization needs to
recruit people with requisite skills, qualifications and experience.

Since PTCL is Telecom Company it currently instituted with professional, experienced, skilled,
qualified in both IT and business the organization required by the company up to its local
exchanges

Currently the organization has a professional and experienced team currently over 18,000+
employees; cut downs had to been made from 36,000+ to its current size purpose was reduce
its operational cost by letting go of its unskilled employees and improve its performance by
getting the required skilled, experienced and qualified employees.

The current economic situation of Pakistan shows that there are a large number of unemployed
people who are looking for jobs. Therefore the labor market will not be a problem for PTCL if it
needs more employees.

The Intangible resource like PTCL is its brand equity which it possesses and is it friendly
environmental culture to inspire its employees to do their very best, so PTCL is providing
various programs in order to motivate it employees and make them loyal to the company not
like the time of privatization of PTCL. After Daniel Ritz took control of PTCL management he
brought many changes into its working environment by training and developing its employee
technical as well as communication skills to satisfy its customers complain, so that there should
be no layoffs or strikes or poor morale to be found in the culture environment of PTCL
company.

On occasion, events like programs in internal and external environment can turn a common
resource into a strategic resource. Like PTCL consider this as way to increase its brand image
and position not just for its employees but create a positive image by sponsoring in education
like youth education programs, by doing campaigns against discrimination for women’s work,
sponsoring in sports in cricket by teaming up with Islamabad gladiators in PSL League etc.

Its organizational structures is based on hierarchical style except the CEO everyone is under
someone else subordinate like the President & CEO, the Board of Directions, then different
Departments under them Technical, operational, finance, Commercial which if further divided
into Marketing , Sales and Customers services, Corporate & Development, HR and admin.

Hiring of talented young fresh graduate and experienced peoples from engineering, IT or
business field is done by the HR to able help PTCL is achieving its goals and objectives shifting of
employees from one department to another or to another region or currently PTCL has now
talented, experienced, professional team after the liberalization of PTCL and reduce the
employees at that time were around 64000+ in which most of them were even uneducated
employees were hired due to political influence which created a burden and unwanted
operational cost on the company. PTCL has gone under many changes not just in terms of the
work culture and environment that has improved over years but also in terms of people. Due to
advancement of technology and popularity the increase in IT, Computer Science, Software
Engineering also increased with it in Pakistan with economic liberalization in the telecom
market. The current economic situation of Pakistan demonstrations that there is a huge pool of
unemployment & underrated education with respect to global standards so as CSR PTCL has
initiative like youth education program and Youth Summit Program to hire 350 young engineer
and business graduates yearly. Therefore the labor market has no problem for PTCL. The
financial strength of PTCL is strong because recently PTCL have been acknowledged through an
independent rating exercise as a result of which JCR-VIS has assigned PTCL a long-term rating of
AAA which will enhance stakeholders'' confidence.

Organizational Capital Resources

These are also intangible resource or assets of an organization but they are a little bit different
from the human capital resources because in here it’s the competencies and skills that a firm
employs to transform it input into outputs.

Like PTCL include has a formal reporting structure, controlling and coordinating systems as well
there is an informal relations among the departments within the company which has created a
more friendly environment in a hierarchical structure company.

What make PTCL in this type of resource unique to its other competitor are the use of SAP ERF,
Afiniti AI Solution platforms and IaaS clouding computing Structure has help the company in
enhancing it performance in terms of it service ”output”.

Intangible assets usually stay within the company & these assets are the main source of
sustainable competitive edge over its rivals. In comparing the two types of resources, intangible
resources are more likely to meet the criteria for strategic resources (i.e., valuable, rare,
difficult to imitate, and non-substitutable) than tangible resources.
Customers do not simply send money to an organization because it owns strategic resources.
Instead, capabilities are needed to bundle, to manage, and otherwise to exploit resources in a
manner that provides value added to customers and creates advantages over competitors.

Capabilities are another key concept within resource-based theory. An easy way to remember
to distinguish the resources from capabilities is this that resources refer to what an organization
owns; while capabilities refer to what the organization can do. Capabilities tend to arise over
time as a firm takes actions that build on its strategic resources. A firm dynamic capability
enjoys long term survival because they are skilled at continually updating its array of
capabilities to keep pace with changes in its environment. Since PTCL is the most experienced
telecom company in Pakistan it has all required resources and its ability to change with time
and environment and trends in market by providing constantly IT solution and improvement
and upgradation of it resources and also increase its customer base and segments long with
also creating new once and also through different better offers and initiatives as a corporate
social responsible company to improve the social and economic life style of peoples as well as
increases it brand image and create loyal customers.

PTCL distinctive capabilities those are difficult for other firms in replicating are introduction of
PTCL Public Cash Payment Machines which is a self-service mechanism to pay all type of PTCL
bills. PTCL is the first one to launch Interactive Television Service “PTCL Smart TV”. PTCL enable
its customers to create Wi-Fi Cloud, allowing 5 gadgets to connect instantly. Customer can pay,
update or restore their accounts from 43,490 locations nationwide. PTCL is call service center is
upgrade with Artificial Intelligent Platform to provide facility in servicing to its customers and
many more.

The company has committed all available resources to build a sustainable employee base with
enhanced skills to survive in the future socio-economic environment. PTCL sees its way forward
on the CSR front through partnerships with educational institutions, investments in building
future skills for employability, enhancing organizational behavior, developing professional skills
and offering various training programs. It will commit its resources for capacity building,
enabling and empowering youth through digitalization, investing in building future skills for
employability and working on a partnership with the Technical Education and Vocational
Training Authority (TEVTA) to provide hands-on experience to diploma-holders. In this way, it
will develop a skilled workforce in the long-term to drive economic growth and reduce poverty
& improve the society living life.

The competition between telecom companies in Pakistan is a good example of these companies
that operate in the same industry and thus, are exposed to the same external forces, can
achieve different organizational performance due to the difference in resources. PTCL competes
with Zong, NayaTel, StormFiber, Mobilink and many more on data, voice, multimedia services
market, where PTCL provides a variety of diversified products and services from low price in
calling rates to economical standard price and higher price range in Internet services either
access through FTTH or DSL and also it provides multimedia services to OTT Services like
Netflix, iFlix and it also provides other services to telecom operators in the operational
networks like bandwidth license sale as a result, it reaps higher profit margins and still the
leading telecom company in the market due it unique resource and it capability to integrate
these set of resource into a perfect mix in providing service to its customers.
This shows that PTCL has all the required resources and capabilities to run its business
smoothly. It has definitely have a competitive advantages too which it used to compete with
the competitors and remain as leading telecom company in the market. The BCG matrix has
already shown the attractiveness of this business. On the basis of this analysis we can formulate
a new strategy for the business i.e. to enter a new market.
The competitive edge of PTCL over its rival is the foremost its telecommunication and ICT
infrastructures are spread out countrywide. PTCL is also the only companies that provide
landline phone connection along with copper DSL broadband at a very large scale. It’s the only
company that also is a trend starter in Pakistan. It has multiple subsidiaries they any other
telco’s. PTCL also spends good amount on marketing and advertising. It’s also the only company
that provides the most diversified and large products and services portfolio other than fixed line
and DSL. It also the first one in introducing Artificial Intelligent based IT solution and Cloud
computing among the telecom companies. PTCL competitive edge over other companies is this
also that it is a member with 4 largest international cable consortium system SMW3, SMW4,
IMEWE and recently signed AAE-1 which acts as a gateway for Pakistan to the information
superhighway1.

Telecommunication or Information Communication Technology is already an attractive industry

in whole global due to which it has become a digital global village and the same level of
attractive of this industry is in Pakistan also. In which an organization is given a pool of
opportunities around the corner it’s just one need to have the financial and resources
capabilities to exploits these opportunities for their business growth and the constant
development, innovation and advancement of technology there is always great opportunities
for telecom companies to avail these and to be the first one to launch it into the market. PTCL is
exploiting to its utmost level to bring more revenue and growth to its business and market
share. Through BCG Analysis and PESTEL Anaylsis the most attractive industry for PTCL is GPON
FTTH “Fiber to the Home”, OTT Players as Netflix, iFlix etc. and future technologies like 5G
Technology services, Internet of Things (IoT), AI and machine Learning, Green Technology,
Augment Reality and Virtual Reality etc.

For to select a strategy the best fit one that allows the company to utilized its resources and
capabilities relative to the opportunities in the external environment according to the changing
trends which keeps changing dynamically in the telecom market and the thirst for more data
increase in speed and reliable connectively among the internet users is growing very
dynamically. The best strategic tool I have used is ANSOFF Strategy to suggest different
strategic options for PTCL to avail from these and grow in the company’s revenue and growth.

The Key Criteria of Resource and Capabilities are Valuable, Rare, Costly to imitate and Non-
Substitutable and when they are met it becomes a core competencies of that organization and
serves as a source of competitive edge over its rivals along with its managerial competence are
also important in the eyes of top management of PTCL. Core competence is what creates a
brand value and competitive advantage.

Core Competences of PTCL is that it’s Infrastructure deployment in every transmission medium
and network management across country. PTCL provides telecom services as State-of-the-art
to customer service network. PTCL has laid Optical Fiber Access Network in the major
metropolitan centers of Pakistan and local loop services have started to be modernized and
upgraded from copper to an optical network. PTCL has heavily invested in undersea submarines
cable systems with other leading telecom providers
RESOURCE-BASED PTCL Resources
All asset like Financial Resources,
Organizational Resources, Technological
MODEL FOR PTCL Resources all the telecom & IT assets including
Hardware and Software, Human Resources , IT
Solutions, License, Computer Software,
Customer Services Talented Managers,
Controlling & Coordinating System etc.

PTCL Capabilities
To provide customer services in terms of
Telecom and ICT services through its diversified
portfolio products and services and customer
oriented services through better services in
voice, data, IPTV and up to dated technology
with high volume and speed through
revamping its image into brand image in the
eyes of the customer.

PTCL Competitive Advantages

Its infrastructure deployment and network
management across all over the country
State-of-the-art customer service oriented
network. PTCL has laid Optical Fiber Access
Network in the major metropolitan centers
of Pakistan and local loop services have
started to be Modernized and upgraded
from copper to an optical network PTCL has
heavily invested in undersea submarines
cable systems with other leading telecom
providers.

Attractive Industry for PTCL

Due to advancement of Technology and in
Telecom Sector there are many opportunities
for PTCL to exploit like in GPON FTTH
“Broadband Industry’, 5G Technology “Cellular,
Wireless Broadband technology and IOT
(Internet OF Things), Artificial Intelligent based
IT Solutions or Augment Reality etc.

PTCL Strategy
For PTCL to formulated strategic planning the
best tool is to use ANSOFF Matrix. I suggest
using this tool through Market Development
along with GPON FTTH to provide it services to
faraway places like Gwadar, FATA, & Chitral
etc. and through Product development and
Diversified Strategy PTCL can tap into 5G
technology into a totally different era of
technology and market.
BUSINESS STRATEGY OF PTCL
A business strategy for long term or short is basically, a set of competitive moves and actions.
The strategy is used by an organization either for long or short term business in order to attract
potential customers or through different means which will also help in strengthening
performances and achieve organizational goals. In business, there’s always an essential need
for manifold strategies at various levels as a single strategy is not only inadequate but improper
too. Therefore typically business structures always possess three levels. At the operational level
strategies are like marketing, financial strategies, human resource strategies etc., while at
business level strategies for an organization can implemented through different business
strategic and analytical tools like Generic Strategic Model or Strategic Clock Model and from at
corporate level used for long term or action-oriented strategies that is done by the most
popular strategy used by most organization for their future planning is ANSOFF Strategy. While
all these 3 are descried in detail above.

Marketing

The Marketing Department likes any other company department it’s a revenue-generating
department for PTCL business to expand its image, awareness about its products and services
offers and info. This department is goes into market research and gives its feedback to
management or the top level about the customers’ demands needs and wants on the basis of
which, the company produces its products and services and positioned it in such a way that it
gives a value to the customers. Thus Marketing department plays a pivotal role in the
company’s business development, growth & expansion.
Every company it’s essential to manage its marketing activities efficiently and effectively.
Specifically the company needs to know about how to analyze the market opportunities due to
external factors changing, select appropriate target markets, segmenting the market in proper
segments by establishing the marketing mix and bring out the marketing efforts effectively
through properly managing.
So we will move in the pattern describe below for PTCL:-

1. Marketing Strategy

2. Market Segmentation

3. Marketing Mix
Marketing Strategy of PTCL
To understand the work flow of marketing department of PTCL and its function how it helps
PTCL in its business development, growth & expansion we must have clear picture of the PTCL’s
marketing strategy. PTCL Marketing Strategy depends upon the Marketing Mix which is all
about 7P’s “Product, Place, Price, Promotion, People, Process and Physical Evidence” of
marketing. Through identifying its targeted market, PTCL defines the Product, Pricing and
Promotional Strategies in order to appeal to this telecom market and the strategy to deliver the
product/services to the market. Thus it’s important to ensuring that the firm is delivering
maximum value to its customers.

Marketing Segmentation for PTCL

Basically a marketing strategy identifies the target markets for the company to do business in
that segment, also desired position in the markets each segments and the marketing mix that
will induce those target markets “niche” through different strategies.

Marketplace is targeted through market segmentation. Segmentation is further classified into

five types i.e. Demographic Segmentation, Geographic segmentation, Psychographic
segmentation, Behavioral segmentation and Social/Culture

 Demographic Segmentation (youth, age, gender, corporate, race/ethnicity, household

type, home ownership, education, employment, income etc.),
 Geographic Segmentation (Residential, Metropolitan cities, Business Communicate etc.)
 Positioning the company by product through positioning differentiation, by product
usage, against a particular competitor, against an entire product category, by
association and positioning by problem it also includes the Marketing Mix 7P’s i.e.
Product, Price, Promotion, Process, People, Physical Evidence and Place.

PTCL TARGET MARKET

PTCL’s revenue actually come 80% from its corporate consumers then in comparison to its
common customers is just 20%. The corporate customers are big and small business
organizations and communities. The primary focus of PTCL marketing efforts is on retaining and
satisfying this segment of key customers at any cost then the 20% chunk.

For the sole purpose PTCL has established Corporate Customer Services Centers in major cities
to take care of these vital consumers. Aside from these crucial customers, PTCL also targets
common public and other small business companies for sale of its landline telecom services like
telephone, fax, Internet, spectrum as well as other services like VMS, CLI and Digital Facilities
etc.
Marketing Mix OF PTCL

PRODUCT
Any organization when provides its products or services they keep in their mind certain things
like the perception of the market trends and customers’ demands before defining any product
or service.

PTCL has the most diversified portfolio of its Products & services and it’s developed according
to keeping the customer oriented perception in their minds. Like PTCL provides its services to
its customers are further classified into common customer, corporate consumers and others.

SERVICES FOR CONSUMERS: These customers are households and the nature of it services to
them are very commonly available to everyone and mostly for the purpose of increase its living
style like telephone, Internet, TV Channels etc. and making the home digitally connected to
each other connection and the charges to install all these services at home starts from
according to domestic level.

SERVICES FOR CORPORATE CUSTOMERS: These are business oriented customers such as Firms,
Business Organizations, Institutions/Universities, Public Call Office, etc. along with all the basic
services by PTCL it provides more VAS “Value Added Services” through different packages
according to the nature and size of the Organization Like the most common service to such
consumer are Video conferencing Call, CDI, International Level Calls, SmartCloud Computing
services etc.

PTCL Products and its services can be easily classified into 2 categories in order to understand
them easily. PTCL portfolio of its Products & services are classified into voice and data.

In voice products/services it’s further divided into 2 categories wired and wireless. Wired voice
contains it Fixed Landline services which is further divided into domestic call and International
Call while in Wireless voice services its further divide into Cellular services where it provide
from GSM “SMS, Calling, Pre Paid or Post Paid services” along with 3G and 4G services while
this part of PTCL services is handle separately by its subsidiary company Ufone.

In data basically the broadband services are either fixed or wireless categories in which fixed
services are provide to its customer through DSL, HFC and GON FTTH while in Wireless Mobile
Service Broadband services are providing its 3G/4G services through different devices like
WiMAXs, Dongles, Wingle, EVDO etc. PTCL also offers through data IPTV services like SMART
TV, SMART TV APP, VOD, and Netflix etc. PTCL also provides international connectivity through
its 4 submarine consortium communication cables that connects with internet super high way.
PRICE
The price plays a curial role in marketing plan for a company to determine the profit and
revenue along with its survival depends on its. Price always helps a company’s products/service
shape by playing a perceptive role in the eyes of the customers.

PTCL practices very efficient and effective pricing strategy that it allows PTCL to sell its products
and services at an Ideal Price in the eyes of the customers to attract huge pool of potential
consumers and conversely at the same time it serves its purpose that is increase in the
company revenue and growth rate of the business through using Pricing Strategic Matrix which
illustrates different level of pricing strategies are used for its products and services in terms of
price/quality 4 combination mix in order to determine the optimum price of its product and
services through this method.

PRICING MATRIX
The Pricing Strategy Matrix describes by mapping the price against quality of products/services
in four most common combination strategies.

 Economy Pricing – In this strategy it sets a low price for low-quality goods.
 Penetration Pricing – This strategy is basically for initial setting at low price for a high-
quality product & then increasing it with time.
 Price Skimming – this strategy is basically for initially setting a high price for a new low-
quality product and then reducing it with time.
 Premium Pricing – The Last strategy pricing in the matrix is setting a high price for high-
quality goods.

Each strategy serves a different and unique purpose and the most important one is to choose
which is the most relevant to the desire situation according to the organization

PTCL before choosing which strategy is more appropriate for its products and services, PTCL
must know which market you are targeting in which the physiological factor also includes here
by considering factors like the competitions, cost, objective of the company brand etc., and it's
also important to review your pricing strategy according to the changing nature of the market
world.

PTCL pricing strategies according to the Price Matrix it has applied on its vast products &
services portfolio such as it use economy pricing for its Landline, Vfone and EVO Products and
services since their demand is quite low in the market. While Vfone and 3G EVO device are
completely liquidated for big and major cities. For its SMART TV, Netflix, iFlix and CharJi service
it use Penetration strategy while for its Fixed DSL Broadband services it use skimming strategy
while in its premium strategy it used for its Fixed Broadband services for its ADSL, HFC and
GPON FTTH Services.
PTCL PRICING QUALITY
STRATEGY LOW HIGH
MATRIX Vfone Netflix

LOW 3G EVO Wingle iFlix

Economy Pentration
PRICE PTCL Landline PTCL SMART TV

CharJi 4G LTE

ADSL
Broadband
HIGH Skimming Premium
HFC GPON FTTH
DSL Broadband

PLACEMENT
Placement or distribution is quite vital part in order to provide its Services & product to the
customers in such a place that it is easily accessible for the buyers. Since PTCL has the most
efficient position and it has laid its distribution channels all across the country so that it access
to ever corner on Pakistan and market penetration becomes easy.

PTCL use hybrid kind of distribution channel for its ISPs exchanges local or regional it use
Selective distribution and for its One Stop Shop and area wise exchange it use franchising
distribution channel.

PTCL Headquarter Office is located at Islamabad and its Regional Headquarters “Regional ISPs”
are located at different selected regions across the country. Now these regions provide
Telecommunications services to the customers in their respective areas through local ISPs. In
each area Exchanges Franchisor, Call Centers, Customer Service Care Centers and One Stop
Shop are available to facilitate the customer needs.

PROMOTION
Promotion for PTCL is very crucial component in its marketing mix strategy not just for sales of
its products and services but also in boosting brand recognition. PTCL Promotion is comprised
of 4 basic promotional tactics.

 Advertising
 Sale Promotions
 Public Relations
 Organizational Selling

These promotion mix tactics used by PTCL for promoting its brand image along with it Telecom
& ICT services of its products/services.

ADVERTISING:

PTCL use different communication methods like advertising in print & electronic media,
internet, main website page, and social media like Facebook, Twitter etc. and Billboards. PTCL
advertise its latest offers, like PTCL Prepaid Calling Cards, Digital Facilities, Broadband internet
new offers and packages etc. and these advertising is done periodically time and places to
remind its customers of these services. These mostly are used for its common customers while
for its corporate consumers its corporate ads are also broadcast through print media to mark
special occasions.

PTCL’s Commercials are mostly about Prepaid Calling Card, voice messaging, CLI, and Digital
Facilities’ etc. are broadcast immediately on electronic media, means TV Commercials as a
reminder for its customers. PTCL mostly is using it promotional techniques through cyber
networking.

SALES PROMOTION:

PTCL use different sales promotional techniques on special events like Ramadan or EID Package,
Women’s Day or Independence Day etc. offers like 20%, 50% discounts on call rates etc. or in its
Limited broadband packages for CharJi Services like extra 100 GB data volumes free or 50% off.

ORGANIZATIONAL SELLING:

PTCL still enjoys being the leading telecom company in the market and its customer services
centers are playing vital role as a sale outlets. Customers are send now a days email
promotional messages or even calls from PTCL agents from customer services centers to
promote its organizational brand value along with information about new products or services.
They even send reminder emails regards to billing services info and confirmation

PUBLIC RELATIONS

PTCL is now also promoting its brand image through public relation tactic as part of CSR
“Corporate Social Responsible” initiative to improve the social lifestyle of public like sponsoring
Islamabad United in PSL sports, seminars like women’s power awareness, health related
regards fatal diseases, environment cleaning initiative and many more. So that ot creates a
positive image in the social public so promotion is done basically for a positive word of mouth
to spread instead of negative one.

PEOPLE
Peoples are directly related to the business nature and many other factors like products,
services, language are associated with as well people are the one the promotes develops,
manages its business routines to sell its products and services to its consumer’s.

The company’s employees are nearly equal to 18000+ are working in all over the branches of
PTCL in Pakistan. PTCL has hired highly qualified and skilled people into its company
performance to their utmost capabilities. PTCL believes and thinks that the employees are their
assets and through many initiatives in training and development and other programs in order to
motivate and inspire them that they are a part of PTCL and creates company loyalty through
initiatives like Youth Summit Program, FueL, HMM, Online Harvard training, Rewarding system,
Promotion with merit, Wall of Fame through Recognition programs to identify and motivate a
person performance and hard work and also PTCL has focused on innovation and engagement
initiatives, which was depicted by the launching of the ‘PTCL Ideas Olympiad’ platform, where
all its employees were made part of an Ideas competition and create a sense of belonging to
the company which creates more motivation than any other reward base programs.

PROCESSES
The process or system of a company affects the execution of it services so that it could be either
simple or complicated. PTCL has simple process to get the connectivity and other services from
the company and the customer does not feel any kind of complication during this whole
process. PTCL process contains very simple day to day reunite questions through its call service
center in matter like new connection, regarding info about its billing and payments, change of
Packages, complaints etc.

PHYSICAL EVIDENCE
In service industry like telecom sector for telco’s operators there should be physical evidence
that provides services to its customers and through this tactics it pertains how a business or its
services are perceived by the customer. The basic concept of this is for branding its company
image because peoples can feels your presence in the marketplace. It’s basically physiologically
manipulating the consumer’s in order to attract even more towards them it basic targets are its
existing and potential consumers.

PTCL is very good at building attractive service shops franchise in order to attract the customers
through its OneStopShop as physical evidence to show it presence that it is the leading
company in the telecom market through its exterior architecture and interior as well managed
nothing like its competitor Mobilink, Telenor franchises. It’s very attractive with its internal
environment with well-mannered and educated staff presence in order to facilities its
consumer’s although its only franchised in metropolitan cities like Lahore, Karachi, Islamabad ,
Rawalpindi, Peshawar etc.

These shops are well equipped with technical equipment and instruments which are imported
from England and Japan. There is huge networking of intra net as well as extra net in PTCL
shown in these shops just to show the consumers and attract them from outside the exterior
architecture of the building to the inside with highly tech equipment to automatically attract
and manipulates its consumer towards that they become compel to know about the products
and service of PTCL. This whole process is based on customer action oriented to make them
interact with you.

Comparative Anaylsis
Comparative anaylsis is defined as an explanation of finding the similarities and difference item
by item comparison of process, alternatives, products, qualification, set of data etc. Basically in
business it is used in a way to identify its competitive positions and operating outcome and
results over a specific period of time. The comparative analysis of PTCL is describe through
extensive analysis at macro-environmental and micro-environmental level through various
analytical tools and modeling tools and techniques that help PTCL in measuring its financial
status of the company.

Through different analytical & modeling tools like PESTEL, SWOT, ANSOFF Matrix, RBM, BCG,
Value Chain Analysis and many more has help in determining its industrial analysis, situational
analysis and competitive analysis, it market trends and share and its position of PTCL in the
Telecom market is the status of Leading Telecom Company in the telecom market is at a
competitive position then it rivals and is show by its annual quarterly reports that whether the
company has increase in its revenue, profit and growth or shrink rate of the company’s business
due to its external and internal factors either they’re creating more opportunities or more
threat for the company’s overall business due to its competition increases rapidly.
 In PTCL case through these various tool and techniques it shows that PTCL is at great position
financial its business is strong; bring innovation in its products & services, qualified and skilled
people and to provide corporate culture within the company and it HRM is also closely includes
them in future plans.

Future Strategic Options for PTCL

One the basis of modeling tools (Competitive Analysis, Ansoff matrix, Resource-based model)
and comparative analysis (BCG matrix) following future options can be generated:

Future Strategic Options for PTCL

Future Description Explanation of Strategic Option
Strategies Strategy

Option 1 Product Use Products Development to develop new products that have to
Development bring new ideas like 5G technology that is the market place latest
Strategy trend.
PTCL is fully integrated Telecom company that constantly is up
grading its diversified portfolio of its products and services such
as PTCL SMART Cloud Computing and 5G Technology services.

Option 2 Market Using market development to enter into new local market e.g.
Development Gwadar, FATA, Chitral and other Punjab and Sindh small towns or
Strategy villages etc.
Competitive analysis of PTCL demonstrates that the company has
great potential to enter into new market which is not targeted
yet. By availing this opportunity the business can increase its
market shares in data, voice, IPTV, 3G/4G services etc.

Option 3 Diversification Using differentiation strategy and making differentiated products

Strategy for mass market.
Analysis using Ansoff matrix demonstrates that company can
also take opportunity of differentiating its products (adding new
product line & technology). These differentiated products will
also help the business to increase its market share. The company
can make use of this advantage and should try to provide new
products or services to its customers like IaaS Cloud computing;
5G Technologies, and Artificial Intelligence based IT solutions
and services like PTCL call centers is already working as Afiniti AI
based system to customer callers and it should be upgrade even
more through Machine Learning, Augment Reality & Cross
industry Alliance.
Resource based model shows that company has enough resources and capabilities to
implement both the options.

Strategic options take advantage of facts and figures, trends, opportunities and threat from the
outside world and its internal strength and weakness in PTCL Company. Strategic options are
identified for PTCL after company’s comprehensive assessment while keeping in mind the
aspirations of PTCL Company is.

Implementing the strategic options in order to realize the strategic vision means act on the
business model of the firm, and on its different aspects. Due to the relevance of the relation
between strategic options and business model it could be useful to get a little more deeply in
the concept of business model.
 PTCL
PAKISTAN TELECOMMUNICATION
COMPANY LIMITED
“Micro Environmental Analysis”
Be able to construct a Strategy Plan for an organization

4.1 Propose a suitable structure for a strategy plan that ensures

appropriate participation from all stakeholders of an organization

4.2 Develop criteria for reviewing potential options for a strategy

plan

4.3 Construct an agreed strategy plan that includes resource

implications
STRATEGIC PLANNING FOR PTCL
STRATEGIC PLAN
Strategic Planning is defined as:-

“Strategic planning for any organization is the process of well defining its strategy,
direction and making decisions on allocating its assets and resources to chase its
strategy and also to control the mechanisms or techniques for guiding the
implementation of the strategy in the future.”

According to the environmental analysis of PTCL the three attractive options for business’s
future strategy are to enter a new market and product development and diversification. As the
PTCL already spread its network infrastructure across every corner of Pakistan while only far
way places like rural areas or very small villages and towns like FATA, Balochistan, Gwadar,
Chitral, Gilgit is still need highly attractive due to one belt road project initiative taken by the
Government of Pakistan and China through these region so the increase in demand for telecom
and ICT services is also growing in here and the most attractive one is the Gwadar port that
connects the china to others other parts of the world through these warms water and free
trade route will establish here along with many business opportunities and city projects that
definitely need connectivity.

Since PTCL has already has project alliance with SCO co. in Giligit Baltistan to connect its optical
fiber from china to Islamabad and PTCL will provide the infrastructure from connecting it to the
Gwadar from Islamabad. PTCL need to lay down its service in Broadband GPON FTTH services
along with additional services like PTCL Landline, PTCL SMART TV, OTT Players like Netflix, iFlix
etc. and PTCL SMART Cloud services for its general consumers and for its corporate consumers
like small business, retails, other operators along with the above mention products and services
video conferencing call, Prepaid services and many more to ease & smooth in transaction for
end user business dealings. As internet has become as essential part of our lifestyle in Gwadar
big cities and smart city projects are being developed their also have great opportunities for
PTCL to increase in its business in those residential areas as well for providing its services there.

So I suggest PTCL to not just provide the network infrastructure but also start its local
exchanges in those areas as well to grab most of the market share their and since it already has
its 4 major submarine cable consortium system connected with outside world to provide an
international connection to Pakistani its will be very beneficial and less cost in deploying its
resource and assets are already exists there.
Since the situation of FATA area in terms of law and security is now moved towards betterment
and the demand of increasing telecom and ICT services also increase in those area and also in
rural areas like Chitral, upper dir. Etc. as well has quite a good opportunity for PTCL to be the
first one to grab this market as well it help increase in its consumer base in voice and data.

Since the current Government of Pakistan, the Information Minister of Telecommunication &
Technology has also approved of projects like deploying of telecom network infrastructure to
far way areas like small villages and towns. I suggest to PTCL to provide connectivity of GPON
FTTH and local exchanges and one stop shops to create awareness and information regarding
its products and services along with connectivity for the user.

The other option of developing its products and services portfolio to include 5G technology and
Cloud computing services home consumers as well while right now PTCL is providing PTCL
SMART Cloud for its corporate, retail based consumers but its will be popular in few months
after the advancement of 5G technology it will also increase in the cloud computing benefits
personal users by taking advantage of this technology user can easily pay online services,
paying bills and also in serves in storing music, video and other files in the cloud and can access
in it anywhere. So it’s will also benefit the common consumer as well since due it increase in
technology and the trend of doing its all personal services through internet “IoT”.

We can already see as it not PTCL not just emerged as telecom operator in last few years but it
also expand its corporate business up to significantly 13% growth over the last year like by
signing new corporate customers in Managed services & Cloud Infrastructure Services “PTCL
SMART Cloud “resulting in 154% and 188% growth in these 2 telecom segments.

While 5G Technology service will provide more data surfing in terms of smooth video quality
and no buffering like in Fixed FTTH in wireless broadband services and improvement the next
high level of 4G services and not just in telecommunication or ICT services it also bring new
concept to Internet of Things (IoT) to bring the cities into smart cities in every corner.

I recommend PTCL to start in 5G technology services as well in order to remain with the
demand increasing of customer to provide satisfactory level in bring new technology first to its
customer. It’s the most anticipated trend in the telecom market all over the world and it wills
definitely benefits form launching this services in Gwadar port and other major cities.

The last strategic option for PTCL is unrelated diversified strategy. PTCL as a corporate company
has already started in unrelated diversified strategy as it’s already put it foot in microfinance
banking sector in which PTCL “Ubank” has double growth in over its previous revenue in 2017
up by 64%.

So I suggest PTCL to invest in sectors like Education, Agriculture and Construction since with the
increase in 5G technology it definitely impact on these sectors as well. Although this is quite risk
strategy because they all depend on the economic situation of Pakistan and its quite
unpredictable as it changes with time and situation

Therefore I suggest PTCL to invest into these segments like in education to provide the latest
and up to date education in telecommunication, computer science, engineering and business it
well also increase the image of PTCL in the eyes of the customer and see PTCL as Corporate
Social Responsible Company instead of its image as a state owned company. Along with this it
also increase the level of education rate in Pakistan and also creates a pool of required
candidates for its business operations for future use.

Since with the advancement of 5G technology service in the future, Augmented & Virtual
Reality in order to make the cities into smart cities as well as field like in agriculture,
architecture and construction and telecommunication sector itself.

I suggest PTCL to invest into developing AR products that will help the company in order to find
pin pointy where the default lies among the cluster of cables and wires either though
smartphone handsets or from software platform installed in the exchanges and headquarter. It
also helps in managing and learning with AI and Machine Learning software’s platforms etc.

Since the development of entirely new genera of Technology i.e., IoT Devices will impact the life
style and the way we live and do our work. For example in agriculture and other fields as well in
order to improve its living style.

STAKEHOLDER MAPPING

Any future strategy for any company is always greatly influenced by its stakeholders of the
business entity. Therefore, studying of the stakeholders and keeping them engaged according
to their involvement and influence is very important. For this a strategy for ensuring their
appropriate and active participation is needed.

Any future strategy to be implemented needs to ensure its appropriate participation of

Stakeholders

It is important for every business to consider its stakeholders when planning any new strategy.
PTCL’s analysis has provided three basic options for future strategic plan. One is to enter a new
market, second one is to develop new product & diversification of its products in the existing
market and the third one is unrelated diversification strategy like investing in Agriculture,
Educational, Banking etc. sectors. All these strategies will have a major impact on all the current
stakeholders. Therefore we need to manage and prioritize its business stakeholders properly.
 Prioritize Stakeholders

PTCL Stakeholder list is given below and the Table below shows the main stakeholders are
prioritize in sequences and their interest in business.
PTCL’S Stakeholder Groups

Internal & external stakeholder network of PTCL is quite vast, ranging from day to day
operations to those public positions that influence our activities. PTCL identities the following
groups are essentially important for PTCL business to grow.
 Shareholders (Government, Etisalat, Board of Directors etc. & others)
 Public Authority Bodies (Government, PTA & others)
 Associated Companies (Etisalat, Skylink, DVCOM Data Private Limited & others)
 Top Management
 Employees
 Competitors
 Customer
 Banks & insurance Companies (State Bank Of Pakistan, Ubank)
 Trade & Labor Union
 Suppliers (ZTE, Z T Company, Huawei, Ericsson etc.)

STAKEHOLDERS INTEREST

Shareholders Generate more profits & High Sales & to promote its Brand image in Global vise

Government To get more tax and also economic development plus social improvement and
competing with other countries in telecom sector and also increase in employment
opportunities & improvement in Economic State

Top Management Strategic Position of PTCL in the future, growth, performance, profit, High Sales, Brand
Image, Qualified, Skilled Employees & Loyalty.

Employees Economic well-being, job security Job satisfaction, Salaries according to their work/
performance, Good working and friendly environment, Career Development, Training
Opportunities and culture & Sense of belonging
Suppliers & Alliance
Long term and strong relationship with its suppliers and alliances. Business Agreement
involves in IT Solutions, regular orders and time payments etc. for all the telecom and ICT
requirements.

Investors Repayments with interests, regular cash flows as result of their investment in the
business

Public Authority Fair and regular tax payments, Licensing & Permission work according to legal and
 regulatory framework.

Customers Quality & innovative products and services, economic to premium prices & maximum
value in terms of product or service, customer care services.

Mapping
To satisfy the interest of all these stakeholders following strategy should be used to ensure
their effective participation. The participation matrix is a strategic planning tool for the active
involvement of stakeholders in strategic planning process and its implementation, to ensure
that all the major stakeholders and decision makers are properly managed for successful
implementation of future strategies. This tool can be used to here, to involve the stakeholders
to ensure that they can accept the new strategy.

MAPPING OF STAKEHOLDERS
Stakeholders APPROACH STAKEHOLDERS BY THESE MEANS
INFORM CONSULT INVOLVE COLLABORATE EMPOWER
Keep Informed Keep Informed, Work with them Incorporate their advice Implement what
Listen & Give to ensure that & recommendations they decide
Feedback on their concerns &
their suggestions issues are
addressed
Shareholders X X X X X
“Etisalat”
Government X
Top X X X X
Management
Employees X X
Suppliers & X X X
Alliance
Investors X X
Public X
Authority
Customers X X

Stakeholder Analysis

Employees are the stakeholders who need to be carefully managed when planning a new
strategy as they are the ones directly involved in the implementation of these strategies. If not
properly managed they can adversely affect the success of a strategy. Management need to be
well informed and must be empowered to implement decisions they make based on the proper
analysis of the situations. Their suggestion and recommendations must also be taken into
 consideration just like investors & customers. Every business plans to satisfy its customers,
therefore it should take advice and suggestions from customers into consideration when
implementing strategies. Similarly investors are stakeholders who are involved in financing the
strategies. They have invested their money in the plans and will want active participation. But it
is the responsibility of management to implement the recommendations after carefully
analyzing their appropriateness. The government of Pakistan and Public Authority like PTA
comes in the same category to be just kept informed. While all the shareholders has the highest
prioritize for any future planning so they needs to be well informed, consulted, involve and
empower. Since its shareholder is further divided into its parent company “Etisalat” with 26%
share and managerial power while although Government of Pakistan holds only 62% with on
involvement and right to decide whether what PTCL Strategic Plans should be so that’s why it’s
only kept in informed box.

LIST CRITERIA FOR POTENTIAL STRATEGICAL PLAN

Criteria for reviewing potential options for a strategy plan

Balanced Scorecard

I suggest using balance scorecard for evaluating the strategic plan. The balanced scorecard
assess a strategy or a plan using four criteria i.e. Finance, customers, internal business
processes and organizational learning and growth. According to this method, any strategy that
satisfies these four criteria is considered to be implementable by the business.

To be the leading and most admired Telecom & Information Communication Technology ICT
Vision Service provider in and for Pakistan.
To be the partner of choice for our customers, to develop our people and to deliver value to
Mission our shareholders.

Strategic Content Partnership & Customer Services Corporate Social

Priorities Alliance Responsibility
Strong supply chain for content & Descriptive to its latest offers Social initiatives creates brand
Strategic information communication must surpass anything in base awareness and increase to
Results services, exclusive agreement. telecoms market today and the attract a wider households and
must use cut edge IT. corporate base subscriber
Balanced Scorecard
Strategic Crietria Measures Targets Initativies
Objectives “Projects”
Before selecting any future strategy it is important to analyse  Upgrading of
Increase Revenue whether the company will have enough finance to implement  Net finaical
the new strategy or not. No business will want to start a project profit  24% account
FinancialIncrease if it is facing problems related to finance. Financial resources,  Operatin per yr system like
Profitability financial stability, increased returns and reduced costs are the g Costs SAP ERP
Decrease few of the major concerns which are assessed here.  Revenue  20%  Simlplify
 Operating Cost For the options identified in above task, the company’s financial in Target per yr billing
condition seems good and strong. The business is running Market operations
profitability across all the cities in Pakistan and the options  12% through
Financial Strong above will likely result in increasing business profits as well. per yr clouding
Currently the banks even “Ubank” are also giving business programs
finance on reasonable interest rates

Balanced Scorecard
Strategic Crietria Measures Targets Initativies
Objectives “Projects”
Improving Before working on any strategy keeping in view  Market
Clarifying offers
the identified options, assessment of the needs study for
new
and expectations of the customers is vital. The  % Market  20% Product
Improve Market product and services should be provided
Customers
Perception
Share per yr devleopem
according to customer demands. Index nt, new
Evaluate the options to see if they will result in regions,
Improve and new
Customer maintaining or increasing customer satisfaction.
 %  15% sectors
Satisfaction The new strategies must be evaluated against Custome per yr competivite
the customers’ needs and demands. The new r end users
product & services should be opened keeping in Satisfacti requirment
Customer view what customer wants and how their on Index are what
satisfaction can be maximized. Since its high  Customer
Oriented Services
volume and speed is already the demand of improveme
customers and is growing dynamically as well so nt through
GPON FTTH market penetration and launching even more
of 5G technology services is already become a upgarding
trend way before coming into the market. Afinti AI
Solutions
Improve Before implementing the strategies it is  New  15%  Network
operational important to make sure that the internal Products this transforma
Excellence & year tion Project
processes of the business must be aligned with Services of its 100
the new strategy. The new strategies should be
Internal Business
Improve Process % of  30% Exchanges
evaluated against different Process Sales this
Management year  Trainign
arrangement (right process in the right
System  New proegrams
department) such as: management, operation,
Market  14% for new
Improve systems, information and communication. Pentratio this offering of
information The new strategy should be such that there n year it services
& should be an overall improvement in work and how to
Communication efficiency of the business keeping in mind the  New use these
Services consistency in the internal processes of the Prodcuts  5% platforms
& per yr like Afinit
business. The given options and the business services AI platform,
Improve Cost analysis shows that these options will be in Pentreati  >80% IaaS and
Control aligned with PTCL Company’s internal process. on SAP ERFetc.
every
reporti
Increase  Brand ng
Customer Value Awarene period
 ss Score
Business
 End user
Activates Feedback
Score

Balanced Scorecard
Strategic Crietria Measures Targets Initativies
Objectives “Projects”

Improve Lastly the new strategy must be  No of  Future Leader (FueL)

Knowledge evaluated against the need of  Hiring Young recruits for high potential
& Skills learning and growth. Every Recruits hire 100 young PTCL employee
strategy is implemented by Plans increase  Management
each year. Development
Improve employees; therefore it is better
Programs (MDP) for
Technology to make sure that the employees the top-tier & mid-
are fit for their new jobs. The  Employee  95% in level managers
Improve Supply new strategy should be analyzed Development place  Online training
Chain to see what new learning is Plans Harvard Manage
required and how different Mentor (HMM)
trainings can be provided in a  ‘PTCL Ideas Olympiad’
Motivate & productive way. These training  Techinaical  90% platform
and learning opportunity will and effieceint  Wall of Fame
Prepare Managerial  PTCL Fiesta
Workforce increase job satisfaction in
training index  Sponsoring the Sports
employees and will increase their
Gala etc.
productivity. To increase the  Recognition
motivational & inspirational level  Information  70% Ceremonies
of employees is must to create a Effiecny  X factor training
sense of belonging and company index programs for
loyalty Assistant Managers
 Double and lower level
If learning and growth  Coporate every year  ‘The 7 Habits of Highly
opportunities for employees are Sector like this Effective People’
available, then the new strategy Revenue year it was program
can be considered as 13%  Emergency
Evacuation and Safety
implementable as the employees
drills initivtes
in this case will be satisfied and  HSE (Health, Safety
sure about with the and Environment)
implementation process and  First Aid Trainings for
overall outcomes of the strategy. CSRs (Customer
Services
Improve Human Capital Representatives)
execution capacity by Manpower  CPEIs (Customer
optimization, performance Premises Equipment
driven culture, leadership and Installers)
talent management and human
capital development.
 Customer Professionalism Integrity Quality Helpfulness Community Efficiency Team
Focus Work

Developing the criteria for strategic management plan is a form of various sources. The
reviewing options are to identify the effect of management strategy in PTCL. The options
consist of mostly as given below:-

Attractiveness To Stakeholder: The criteria that involve the stakeholder must have the
Organizational Learning & Growth
attractiveness to the stakeholder. It should reserve the interest of Stakeholder and to be
attractive to them

Feasibility Studies: PTCL has Human Resource Management of 18000+ work forces for working
for PTCL Company. It growth rate for last years is quite good and in 2018 its total annual
revenue generated is 126.2 Billion PK Rs. & it’s noted that its growth increase all the year
recorded in its quarterly annual reports.

This kind of growth was record in 2014 and it has also its subscriber base it has got
Technological approach of applying the self-service till and online shopping service for the
consumer.

 Effects on Market position and share:

The criterion of making the potential options for strategic plan is to assess the effect on present
market position (72.69%) and the share it has.

 Risk assessment:

The option for strategy plan is to identify the potential risk and assess it properly which may
arise anytime during the strategic plan.

Cost Benefit Analysis: Commercial Cost benefit analysis is a process of measuring, comparing
and identifying the commercial cost that involve the investment in return of it brings benefit in
PTCL.

Organization Audit
Mam whenever I search about this I get more confused in here the examples in google are very
complicated
 Be able to develop an organization company profiling

5.1 Assess the current objectives and goals of your selected

company. Compare its core organizational values (ethical, cultural,
environmental, social and business) with the current business
objectives of an organization.

5.2 Develop appropriate vision and mission statements for an

organization to guide the proper implementation of the plan

5.3 Produce agreed future management objectives for an

organization

5.4 Develop measures/tools/ techniques for evaluating a strategy

plan
PTCL COMPANY PROFILE
PTCL is the leading and the only fully integrated telecom operator in Pakistan providing a vast
array of telecommunication services, both voice and data, using its unparalleled network
capabilities of wireline and wireless access, across the length and breadth of the country to all
segments of society be that it be retail, corporate and business entities or other operators.
PTCL
PTCL is all set to redefine its established boundaries of the telecommunication market and is
PAKISTAN TELECOMMUNICATION
shifting the productivity frontier to new heights. Today millions of peoples demand is instant
access to new products and ideas. More importantly PTCL wants to bring better living standards
COMPANY LIMITED
with increased values in this ever-shrinking globe of ours. PTCL is now setting free the spirit of
innovation. PTCL aim is that it will be the first choice for customers in the future, just as it has
been over the“PTCL
past nineCOMPANY
decades. PROFILE”
Current Objectives & Goals Of PTCL
Pakistan Telecommunication Company Limited “PTCL” is committed to being the leading
Telecom & ICT operator in Pakistan with vast range of telecommunication services and
managing along being a Corporate Responsibility entity as an core part of its business
development with its determination to do its utmost as a social awareness and contribution to
make the lives of individuals by providing better standards of society as a whole.

Slogan of PTCL

Hello to the Future

Corporate Vision

“To be the Market Leader in Telecom Sector”

Mission of PTCL

“To be a customer oriented organization.”

Core Organization Value of PTCL

Our values serve as a roadmap and guideline for day to day work in order to achieve customer
satisfaction through their innovative thinking & Ideas and at the same time a provide a working
environment where it nurtures Professional integrity, Teamwork, company loyalty and the
ability to embrace change.

Objectives
The primary objectives for PTCL co. emphasis on its Telecom & Customer Services along with its
Corporate Responsibility are as follows:

 Provision of Telecom ICT services all over the country.

 To Plan, establish and maintain telecommunication.
 Providers, international and regional telecom organizations for better international
communication and technical cooperation in telecommunication business.
 Expand customer awareness of all value-added services of PTCL.
 To improve the efficiency of Customer Service Centers by deputing qualified persons.
 PTCLs customers are assured that the company runs its operation and services in an
ethically professional manner
 PTCL company is proud of all the initiatives is done till now to serve its social
responsibilities along with how the company has handle its corporate social
responsibility in well manner and professionally.
 PTCL’s stakeholders have high expectation in terms of its social commitments and
services to be up to latest market trends.

Assessment Of Company’s Goals & Objectives

Pakistan Telecommunication Company Limited (PTCL) is mega Corporate Telecom Company not
just to provide latest cut edge telecom & ICT services to its consumers but is highly committed
to its all activities as an essential part as a Corporate Social Responsibilities to the corporate
culture. PTCL believes in provide service to its society is very crystal clear to improve & develop
the lives of individuals in Health, Education, Environment and Community Development.

PTCL motto as its CSR initiative goal is “To improve the economic and social lifestyle of people”.
The main focus of PTCL to bring digital awareness, freedom & connectivity in this challenging
and dynamic changing environment in the society and trends by provide its latest cut edge &
innovative technology and competence.

The Company believes that through its contribution in making the economy of Pakistan and
influencing the society in a positive direction like key issues in our society or economy is
suffering and to eliminates these matters such as eliminating poverty line, through improving
education rate, Safety & Health to spread awareness regarding fatal diseases and safety issues
like accidents etc., Global warming reduce to environment awareness and encouraging the safe
use of ICT and be environment friendly, to discourage gender discrimination, to sponsor in
entertainments events like PSL, theatrical etc., and also by adopting its internal culture
environment friendly for its employees to feel motivated and inspired and satisfied from the
company’s policies and also customer-friendly policies as well across all the segments of society
be that it be retail, corporate and business entities or other operators.

So basically PTCL core values with respect to objectives are that “We Care”, “We Put Customers
First”, “We Work as a Team” and “We Embrace Change”.

PTCL treats everyone with respect, dignity and is responsible & committed towards for
maintaining safe and enable environment to care of our communities and society. We also
safeguard the company assets and information. PTCL passion for serving our customers is great
and their satisfaction is measure by knowing and seeing everything from the customer’s eyes.
PTCL builds trust through open and transparent communication, ease of services by making
things simple by already anticipating customers’ needs and desires along with resolving
proactively if any complaint is launched by the customer. We go out of our way to build
customer relation and take pride in making our customer experience delightful.

PTCL seek and value everyone’s contribution like a team even well a family because together
we are strong through establishing trust, set realistic expectations, listen attentively to issues
and problems of the employees and share our feedbacks openly. PTCL also recognize
contribution celebrates success and learn from failure and go extra mile to support others.

PTCL is always ready to embrace change to shape our own destiny by being proactive and open
to new ideas and innovation. PTCL encourages diverse perspectives and exhibits
entrepreneurial mindsets and take risks for meaningful changes.

PTCL is also committed towards establishing trusting relationships with their stakeholders. They
are keen to prove that at any face of challenge by the consumer they are 100 % sure they will
find solution to these problems and satisfy their customer at the highest level. The want
improve their customer loyalty even more so that they are confident in PTCL operational and
services along with the aim to provide maximum satisfaction to its customers and investors.
Many investors prefers

PTCL over other organization since its oldest and experienced in the telecom sector and due to
its redefining the established boundaries of the telecommunication market and has shifted the
productivity frontier to new heights along with as a corporate responsible company and highly
committed towards its social, environment and economy commitment, in which investor high
expectation are now a days.

PTCL is also working towards Customer loyalty through various programs and initiation to
motivate and inspire their employees. They want their employees to take pride of the way the
business is done at PTCL who exposure itself to compete in the corporate world with practical
experience in the dynamic environment of PTCL along with trainings on cutting-edge
technology platforms, leadership skills and best industry practices and they expect that their
employees will feel pride in just being part of PTCL with sense of belonging to company.

Suggested Mission & Vision for PTCL

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 Statement
To foster learning environment & professionalism, motivation & quality and services based
optimum and latest cut edge technology to enrich the lives of our customers in “Quality” and
“Time” customer services to help our customer’s satisfaction to reach their full potential also,
to deliver maximize shareholder value & sustained growth in earnings and profitability with a
competitive edge.

Vision Statement
Our vision is to be the leading and most admired Telecom and Information Communication
Technology ICT Service provider in and for Pakistan to by achieving customer satisfaction and
maximizing shareholders value.

Strategic Management Objectives

 To retain its market leader position by providing outstanding customer service.
 To provide diversified portfolio in its products and services.
 To meet our customers’ needs and expectations.
 To increase customer sales by increasing number of subscribers and offering customer
wants packages.
 To increase number of towers and exchanges in Gwadar & rural areas.
 To meet the increasing demand services must be based on the most optimum & cutting
edge technology.
 To have great relationship and alliances with its suppliers, international and national telco’s
for better international communication and technical cooperation in the telecom and ICT
business.
 Expand its customer base and also provide awareness on all new and value added services
of PTCL Products and services.
 To improve efficiency of Customers Services and Care Centers by assigning professional and
qualified personals.

Techniques for Evaluating PTCL Strategic Planning

Monitoring and Evaluation is basically the routine tracking and reporting of priority information
on the progress of the program and its intended outputs and outcomes. This includes the
monitoring techniques on the input and outputs through record keeping and regular reporting
systems which also refers to process evaluation. Monitoring and evaluation is a basic
components of all programs to assess whether or not resources are being spent according to
the plan and whether or not the program is delivering the excepted outcome or nor.

These simple steps may help us to review and evaluate the performance of our implemented
strategies.

1. Regularly monitor the activities and compare their current performance against our
objectives.
2. Identify performance gaps and determine why they exist.
3. Seek out opportunities to improve and take corrective action or adjust our targets.

We will need to adjust your strategy, specifically our marketing and promotional strategy if it is
outdated, costly or failing to meet its objectives. This process should include:

 Encouraging people related to the process (both internal and external) to propose new
ways to improve the marketing process.
 Analyzing customer reaction to all aspects of the marketing mix.
 Conducting ongoing research of customer’s needs and expectations to identify
opportunities for change.
 Monitoring and investigating changes in the market to find new opportunities and
develop your strategies.

Continuously improving and adapting our strategies will help to ensure the long term success of
our business in an ever-changing competitive market.

Balanced Scorecard

Balance scorecard for evaluating the strategic plan. The balanced scorecard uses traditional
financial measures with criteria that measures performance from three additional perspectives
for customers, internal business processes & organization learning and growth. According to
 this method, any strategy that satisfies these four criteria is considered to be implementable by
the business.

To be the leading and most admired Telecom & Information Communication Technology ICT
Vision Service provider in and for Pakistan.
To be the partner of choice for our customers, to develop our people and to deliver value to
Mission our shareholders.

Strategic Content Partnership & Customer Services Corporate Social

Priorities Alliance Responsibility
Strong supply chain for content & Descriptive to its latest offers Social initiatives creates brand
Strategic information communication must surpass anything in base awareness and increase to
Results services, exclusive agreement. telecoms market today and the attract a wider households and
must use cut edge IT. corporate base subscriber
Balanced Scorecard
Strategic Crietria Evidence
Objectives
Before selecting any future strategy it is important to
Increase Revenue analyse whether the company will have enough finance to  Availability of enough
Financial
Increase implement the new strategy or not. No business will want to finance to implement.
Profitability start a project if it is facing problems related to finance.
Decrease Operating Financial resources, financial stability, increased returns and
Cost reduced costs are the few of the major concerns which are  Maximum returns from
assessed here. the implemented
Financial Strong For the options identified in above task, the company’s strategy.
financial condition seems good and strong. The business is
running profitability across all the cities in Pakistan and the  Reduced cost wherever
options above will likely result in increasing business profits possible.
as well.
Currently the banks even “Ubank” are also giving business
finance on reasonable interest rates
Improving Before working on any strategy keeping in view the
Clarifying offers identified options, assessment of the needs and  Maximum customer
expectations of the customers is vital. The product and satisfaction.
Improve Market services should be provided according to customer
Customers
Perception
demands.  Low customer
Evaluate the options to see if they will result in complains.
Improve Customer
Satisfaction maintaining or increasing customer satisfaction.
The new strategies must be evaluated against the  Increase in customer
customers’ needs and demands. The new product & base.
Customer services should be opened keeping in view what
Oriented customer wants and how their satisfaction can be
maximized. Since its high volume and speed is already
the demand of customers and is growing dynamically
as well so GPON FTTH market penetration and
 launching of 5G technology services is already become
a trend way before coming into the market.
Balanced Scorecard
Strategic Objectives Crietria Evidence
Improve operational Before implementing the strategies it is
Excellence important to make sure that the internal  Internal process is
Internal Business Process
processes of the business must be aligned aligned with the new
Improve with the new strategy. The new strategies strategy.
Management System
should be evaluated against different Process
arrangement (right process in the right  Overall improvement in
Improve information
& Communication Services department) such as: management, operation, work efficiency.
systems, information and communication.
Improve Cost Control The new strategy should be such that there
should be an overall improvement in work
Increase Customer Value efficiency of the business keeping in mind the
consistency in the internal processes of the
Business Activates business. The given options and the business
analysis shows that these options will be in
aligned with PTCL Company’s internal process.
Improve Knowledge Lastly the new strategy must be evaluated
& Skills against the need of learning and growth.  Learning and growth
Every strategy is implemented by employees; opportunities for
Organizational Learningtherefore
Improve Technology & Growth it is better to make sure that the employees are
employees are fit for their new jobs. The new available.
Improve Supply Chain
strategy should be analyzed to see what new
learning is required and how different  Employees are well
Motivate & Prepare
trainings can be provided in a productive way. trained and developed.
Workforce
These training and learning opportunity will
increase job satisfaction in employees and will  Employees are satisfied
increase their productivity. To increase the with the
motivational & inspirational level of implementation
employees is must to create a sense of process and overall
belonging and company loyalty outcomes of the
If learning and growth opportunities for strategy.
employees are available, then the new
strategy can be considered as implementable
as the employees in this case will be satisfied
and sure about with the implementation
process and overall outcomes of the strategy.
Improve Human Capital execution capacity by
Manpower optimization, performance driven
culture, leadership and talent management
and human capital development.
Balanced Scorecard

Vision
&
Strategy
 PTCL
PAKISTAN TELECOMMUNICATION
COMPANY LIMITED
“Implementation of Strategic Planning”

Be able to option for implementation of an organization strategic

Plans.

6.1 Develop a schedule for implementing a strategy plan in an

organization (for e.g. an activity chart, Gantt chart)

6.2 Create appropriate dissemination processes to gain commitment

from stakeholders in an organization to gain their commitment to
the strategy plan when it is implemented.

6.3 Design an appropriate monitoring and evaluation systems for

the implementation of a strategy plan in an organization
IMPLEMENTATION OF PTCL STRATEGIC PLAN
Scheduler for PTCL Strategical Plan
Do this later after downloading MS Project for it.
 Sample to how to do this
Duration
Description Precedence
(weeks)
1 Conduct Market Research
2 Assess need for new product development 4 -
3 Analyze competitors Product, strategies, processes etc. 4 -
4 Assess customers satisfaction 4 -
5 Assess internal resources 3 -
6 Review new opportunities 2 2,3,4,5
Give Report to higher management with
7 1 6
recommendation
8 Review recommendations and get managements approval 1 7
9 Research and development for new product
10 Research new ideas 8 8
11 Review with management and IT 4 10
12 Get acceptance 1 11
13 Develop the concept and perform testing 16 12
14 Acceptance of developed idea 2 13
15 Launch new idea 10 14
16 Monitor and Control 10 14
17 Review current marketing strategies 4 14
18 Research and recommend Changes to existing strategies 2 17
19 Analyze new pricing options 3 18
20 Make new promotions 6 18
21 Search for new distribution channels (in rural areas) 4 18
22 Review ideas with management 1 21
23 Get approval 1 22
24 Launch new idea 8 23
25 Monitor and Control 8 23

Gantt Chart
Project will complete in 61 weeks that makes approximately 15 months
Stakeholder Analysis is described as a process or various researchers describe stakeholders’
analysis as a process of systematically gathering and analyzing qualitative information in other
to determine whose interest should be taken into consideration that affects the organization
whole.

Dissemination Process
The strategic options for PTCL is suggested above the dissemination plan must be address with
the purpose of outreaching to its stakeholders. If there is little point in engagement with your
stakeholders before launching our plan, it creates lack of efficacy and will not encourage the
buy-in and may even undermine your company, particularly if negativity spreads. So it’s
important to track and monitor your efforts and estimate the response to and from them.
Speak to the stakeholder individually but face to face, encourage feedback & through email
tracking assess whether people are reading the information that you are broadcasting or not
and tweak your efforts accordingly. Part of this is like keeping a finger on the pulse of the
company’s reputation which is very important. Conduct surveys if necessary and establish who
thinks what and why. Knowing what the perception will go a long way toward finding the
necessary means to turn it around. This dissemination process for to know how committed the
stakeholder is and is not losing its interest along the way so that why they need to be in the
loop constantly.

Stakeholders Group of PTCL & each of them have a different interest in the company and it
depends on who influence the activities of PTCL more; they definitely need to keep a close eye
on them and satisfy them at all cost. To manage the stakeholders to get maximum benefit, PTCL
should adopt following strategy through stakeholder analysis “Power grid analysis”

PTCL STAKEHOLDER ANALYSIS

“For the Strategic options proposed”
1. Investors (Share Holders like Etisalat) – Managed Closely
2. Top Management: “CEO & Board Of Directors” – Manage Closely
3. Employees – Keep Informed
4. Public Authority: “PTA” – Keep Satisfied
5. Associated Company: - Keep Informed
6. Experts (Opinion Advisors) - Monitor
7. Government / PTA “Public Authority” – Manage Closely
8. Distributors: “Suppliers or Alliance Partnership” - Manage Closely
9. Customers - Keep Informed
Now to disseminate useful information to each of these stakeholders the following strategy is
adopted that how we are going to keep inform the stakeholder regarding about the outcomes
at different stages.

PTCL STAKEHOLDER ANALYSIS

“The Disseminate Process”

1. Investors (Share Holders like Etisalat)

Formal meeting and an eye on trending changes in global situation
2. Top Management: “CEO & Board Of Directors”
Regular formal meetings, reports and feedback should be arranged
3. Employees
Meetings, memos and emails can be used to share information with
employees
4. Public Authority: “PTA” – Keep Satisfied
Meetings, memos and emails can be used to share information with
employees
5. Associated Company: - Keep Informed
Electronic and print media should be used wherever a need arises
6. Experts (Opinion Advisors) – Monitor
7. Government / Public Authority “PTA”
Formal meeting and an eye on trending changes in political situation
8. Distributors: “Suppliers or Alliance Partnership” - Manage Closely
Can be communicated through phone calls, regular visits etc.
9. Customers - Keep Informed
Communication is possible through advertisements, sales persons, call
centers, SMS and electronic calls

Monitor & Evaluation of PTCL Strategical Plan Implementation

Monitoring is the organized and systematically collection & analysis of information as the
project progresses per according to the plan. It is aimed at improving the efficiency and
effectiveness overall performance on an organization. It is depends on certain targets set and
activities planned by the PTCL company during the planning phases. It helps PTCL in keeping the
work on track & let management know when things are going towards sour.
If monitor is done properly then it’s an invaluable tool for better management by the company
or an organization, and it provides a useful base for evaluation as well. It helps PTCL in
determining whether the resources available with the company’s hand are they sufficient
enough or being well used or not, whether the capacity the company have is it sufficient and
appropriate & whether it also show are you going in that direction which you had planned to
do. Evaluation is the comparison of actual project impacts against the proposed strategic plans.
It looks at what you set out to do, at what you have accomplished, and how you accomplished
it. It can be formative or summative means during the course of the implementation of the plan
by an organization it can determine how to improve the strategy or it’s a complete failure.

The management committee should use reports against its annual operational plans to review
progress towards meeting the strategic aims and objectives. Since PTCL policy is to report
quarterly annual report each year on its progress on different projects
simultaneously. Therefore, PTCL is ensuring to keep appropriate records of the work they have
been done so that progress is assessed by the CEO.

This whole process is involved, at the implementation stage of our suggested plan, and being
clear about what the systems and structures are required to implement this plan. The
suggested measure you decide will give an indication of how well you’re doing, hence, PTCL use
KPI indicators to measure like having the minimal Average speed of Answer (ASA), while on
average each customer was entertained in 19 seconds. While in PTCL the system CSR/CPEIs is
accountable and indicates the performance and KPI achievements from project to operational
staffs work.

Before completing your plan, you need to agree how and when it will be monitored and
reviewed and what information the Management Committee needs to receive in order to
review progress.

When reviewing progress towards achieving the strategic aims and objectives, the PTCL
Management Committee should:

 Ensure that activities are kept within the parameters of the agreed strategic aims and
objectives
 Ensure that activities are consistent with the company vision, mission & values
 Keep under review internal and external changes which may require changes to the
suggested strategy proposed above or affect the company’s ability to achieve their
objectives.

From different approaches to monitoring and evaluation I suggest the company should use
Goal-based monitoring and evaluation.
Approach Major purpose Typical focus Likely methodology
questions
Goal-based Assessing Were the goals Comparing baseline
achievement of goals achieved? Efficiently? And progress data;
and objectives. Were they the right finding ways to
goals? measure indicators.

Techniques to be used for collecting progress data and setting measure indicators:

 Recorded observation
 Recording and analysis of important incidents (called “critical incident analysis”)
 Structured questionnaires
 One-on-one interviews
 Focus groups
 Systematic review of relevant official statistics.

Mam I having problem in this part actually I don’t know what exactly I am supposed to here
Recommendation
Later