Pakistan Telecommunication Company

Despite having establish a meshing of long ize, PTCL running(a)s and policies turn over attracted regular criticism from other sm wholeer operators and the civilised society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephvirtuoso and telecommunicate De equatingtment under Pakistan Telecommunication Corporation Act 1991. This coincided with the Governments competitive policy, advance private sector participation and, lately, data communication renovations.Pursuing a modernized policy, the Government in 1991, announced its plans to privatizePTCL, and in 1994 issued six illion vouchers exchangeable into 600 one million million million fortunes of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per sh be. These vouchers were converted into PTCL sh bes in mid-1996. In 1995, Pakistan Telecommunication (Reorganization) edict formed the basis for PTCL monopoly over basic telephony in th e sylvan. The provision of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act.The equivalent year, Pakistan Telecommunication Comp some(prenominal) Limited was formed and listed on tot on the whole toldy decline exchanges of Pakistan PTCL launched its winding and data operate subsidiaries in 001 by the name of Ufone and PakNet respectively. no(prenominal) of the brands made it to the top s holes in the respective competitions. Lately, however, Ufone had increase its market sh be in the cellular sector. The PakNet brand has effectively dissolved over the close of time. Repenny digital subscriber line services launched by PTCL reflects this by the introduction of a new brand name and operation of the service being instantly supervised by PTCL.Mission To achieve our vision by having An organizational purlieu that fosters professionalism, motivation and quality An environment that is cost effective and quality apprised Services that be based on the most optimum engine room Quality and Time conscious customer service Sustained emergence in earnings and profitability Core Values Professional rectitude Teamwork Customer Satisfaction Loyalty to the Comp both Chapter 2. Products of comp both Products of Compevery extend to of products or services 1. PTCL smart tv 3. International Calls 4. Local calls 5. broadband Wireless 6. Easy learning 7.Ip connect 8. Audio conferencing 9. Business DSL 10. Broad band Pakistan 11. VMS 12. Calling Cards 13. PTCL Plus 14. Vfone 15. 36 16. Evo wingle 9. 3Mbps 17. Evo Moblie 18. Ufone spry 19. Ufone Sims Chapter 3. Porters Five forces model Five forces looks at five key areas namely threat of new entry, power of buyers, power of suppliers, threat of substitutes, and competitive rivalry. panic of New Entry As political sympathies of Pakistan is showing liberalism in possibility of telecom sector and opened its policies to award new licensees to new mobile serv ice providers so threat of new entry is high. ? As set-up cost is in billions of dollars so in this case threat of new entry is showtime, barely there are companies who are working to achieve licenses and approaching PTA to get laid terms and conditions for this. ? As for this business companies need a well established distri onlyions and franchises network so threat of new entrant is high in this case. Bargaining Power of Buyers Power of buyer is high in telecom sector. There are six market players and players are offering una wish shares at different prices and a occurrence of price war is running.Buyers have a power to buy any package which is suited to them. represent of switching from one company package to other company package is low. Hence, power of buyers is high. Bargaining Power of Suppliers hat itemizes of suppliers are slightly in the market only when they are competing in the market to make agreements with mobile service providers. Threat of Substitute Prod ucts Government also gave so many land lines and wireless local loop licenses to different companies want PTCL wireless local loop, GO CDMA etc. hese services in emerging leave behind be corresponding mobile phone services like they are planning to offer services a lot but currently they are offering SMS and CLI services to their customers. Rivalry among Competing Firms in Industry soon there are six market players but in future they bequeath be eight and nine oe ven more(prenominal). Thuraya major planet service is offering subscribers freedom of mobility and uninterrupted service. Thurayas satellite technology supplements of alive mobile service providers, overcoming the challenges of large geographical areas and insurmountable terrain. ut will also generate new revenue streams for future growth. Thecompany also proceed to invest in infra coordinate development andaddition of network capacity with a view to enhance services and toexpand its reach across the country. SWOT ANALYSISStrengths Largest functional network and infrastructure within ICT(lnformation Communication Technologies) segment. .An integrated Monopoly. Market leaders in Local loop, Wireless local loop (WLL) andfixed telephony. PTCL (Ufone) is market contention in GSM segment. Ufone is performing well though Warid and Telenor are toughcompetitors.PTCL, Ufones profitability increased by 49. 2percent to Rs 977 million in 1 H/FY07 as compared to Rs 655million in the corresponding period last. Competitors still depend on PTCL network either directly orindirectly. Experienced Telecom Resources. Weakness Not been able to conjure up its growth around customerservices oriented strategy. Paknet, the internet service provider offshoot of PTCL continuesto incur losses due to poor management and lack of network optimization. PTCL-V, the fixed wireless phone service is poor. everyplace employment & low productivity. Slow decision making including external interferences.Corporate culture aki n to political sympathies departments Chaper. 5. PEST Analyts A PEST analysis is an analysis of the external macro-environment that affects all fast(a)s. P. E. S. T. is an abbreviation for the Political, scotch, mixer, and Technological factors of the external macro-environment. Such external factors usually are beyond he firms control and sometimes present themselves as threats. For this reason, some say that PEST is an appropriate term for these factors. Many macro- environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest.The following are examples of some of the 0 Economic O accessible 0 Technological 1. Political Analysis- Political factors are those which are directly controlled by the political parties and Government they could be able to charm directly in any situation or in any effort. So they crap a major impact on any industry. Factors that Creating Threats Political instability In Pakistan Political env ironment are non stable that is the major threat for telecommunication industry because no one k outrights at what time Government will change and with the change of government activity policies will also change. venture of military law In Pakistan Risk of martial Law is always threat for all the industries and in the dictatorship they could not be able to explore themselves and do not grow as they could be. Terrorism Terrorism is the Major problem that is facing Pakistan in now a twenty-four hour periods that is the most crucial factor that is hurdle in the growing in the telecommunication sector because o one knows about(predicate) the terrorist activities. Pricing regulations In Pakistan government dictates the pricing regulations so that influence the peaceful working of the telecommunication industry.Rapid change in Regulations In Pakistan Government is changing the policies very rapidly so that creates instability. Factors Creating Opportunities Industrial safety regul ations Now the government of Pakistan is trying to give the maximum Protection to this sector and passing number of Laws to make it more safe and stable. Development of PTA Government of Pakistan had developed Pakistan telecommunication Authority (PTA) o that helps in the establishing Business in Pakistan in more efficient manner.Investor Friendly Environment Government is trying to provide investor affectionate environment to give the more benefit to the investors and give them maximum safety. 2. Economic Analysis- Economic factors are directly controlled and influenced by the financial institutions like State Bank of Pakistan (SBP). So they help the industry in braggy economic soundness and provide financial aids to survive in the time of crises. ? Factors that Creating Threats In Pakistan Although an proper Institution for telecommunication sector working PTA) but Government is influencing the working of that department and imposing the policies made by politicians. Overall eco nomic conditions are not very sound Over all economic conditions are not very good for any industry because rate of inflation is increase day by day and value of currency is going down which causing increase in the value of loan payable that is another major threat for telecommunication industry.Efficiency of financial market is not so Good In Pakistan all the financial institutions are controlled by government rather so the issue of financial Institution State Bank of Pakistan (SBP). Rate of interest is change magnitude day by day it is approximately 21% which is higher then any country in the world so it makes impossible for the telecommunication industry to take loan facility. Country risk of Pakistan goes to 3 Risk rate of economy of Pakistan goes to 3 out of 5 that is the alarming situation for the Pakistan as well as all the industries of Pakistan.Currently government has increased the taxes Currently government has increased the taxes on the telecommunication sector so th at reduces the income of the telecommunication sector some of the examples of that are given below etc Pre-paid customers were charged 10 per cent withholding tax on every new load, which was deducted in advance 0 With 15 per cent sales tax on every call increased the sales tax from 15 per cent to 21 percent for mobile users. Foreign Direct Investment During 2010 telecommunication sector attracted US $ 142. 7 million FDI which was 26. % of the total FDI in the country during this period. So government is trying to give maximum benefit to the telecommunication industry. Lowest Labor Rates in the worldDuring the quarter terminal December 2009, telecom sector Labor Cost of Pakistan is ery Low as Compared to other Countries so that is also an opportunity for the Telecommunication sector. Fastest developing Industry in the Pakistan Telecommunication industry is the fastest growing industry in the Pakistan that shows that investment is quite comfortable in telecommunication sector. . So cial Analysis- are working if they try to dictate the social factors that create the threats to that industry and if they work with in the social norms then social factors come the key to triumph. Factors that Creating Opportunities The Pakistani tribe are more social Pakistani pot are more social so they have family transcription and they want to remain in finish off with other through any means so that is the opportunity for telecommunication sector to capture the feelings of the people.Celebrate lot of festivals like Pakistani people celebrate a lot of festivals on that occasion they try to make contact to their all family members and other at any cost these occasions are Jashn-e- Saharan, Eid Celebrations and other cultural festivals. They create the lot of opportunities for telecommunication industry so they make calls to their relatives articularly on that festivals. macrocosm is increasing Rapidly The total population of Pakistan is approximately 169,248,500. The popul ation is increasing rapidly which increase the number of cellular usage and help in projecting high profits. ? Factors Creating Threats Un educated People Low Educated people could not be able to understand the language of telecommunication (ZEM 1. 0, ZEM 2. 0 etc). That create misunderstanding and create threat about the situation package. putridness Corruption is the major threat for any industry in the Pakistan that is because people re unaware and un educated but now these telecommunication companies are working on that like. Khamoshi Ka Boycott (Djutce) O KRO MUMKIN (Telenor) These are all campaign to educate people and develop the positive expression in that social culture.Destroying Cultural norms Although these companies are bringing positive change in the society but also destroying the social culture and providing the negative military strength to the young generation of the country by providing late night services that is affecting the 4. Technological Analysis- Techn ology is the most known playscript in the modern world so any advancement in the technology affects the industry if industry settles them accordingly then it opens lot of doors of success and achievement if they do not respond toward the advancement then that particular company goes into the darkness.Technology is changing the attitudes and behavior Telecommunication technology id changing the behavior of the people and providing them opportunities to get the bright future. Impact on cost structure Due to latest technology the cost of telecommunication industry is fall and hey are giving lowest rates to the peoples to remain in contact with relatives and with heir family. Introduction Of CDMA technology Introduction of CDMA (CDMA stands for Code Division ten-fold Access. )Technology in the mobile Sims is also creating the Opportunities for the telecommunication industry.This technology gives less radiation syndrome then GSM technology. 3G mobile technology The latest technology of 36 mobile communications has been earmarked and PTA will soon be inviting applications for 36 spectrum auction. This technology will increase operating capacity and revenues by using HSPA technology. Focus on increasing the Coverage The current focus of the telecommunication industry is on increasing the coverage rather then up gradation of the systems they should up grade the systems to meet the requirement of the modern world.Conclusion The number of macro-environmental factors is virtually unlimited. In practice, the firm must monitor those factors that influence its industry. Even so, it may be difficult to forecast future trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables