I’m grateful to All Mighty ALLAH for giving me strength to put together this report and I would like to thank my parents for their throughout support, my teachers for instilling in my enough knowledge to be able to carry myself efficiently during my internship and last but not least the staff of Accounts Payable Department especially Mr. Awais Khan, Mr. Waqas Ali, Mr. Saboor , Mr. Akhtar, Mr.Muhammad Farhan., who were extremely helpful during the internship and for the compilation of this report too.
This report has been written to fulfill my MBA degree requirement. The contents of this report are based on my 6 weeks internship, starting from 22nd July 2009 till the 6thof August 2009, at Ufone GSM. This report covers the department I worked in during the tenure of my internship, the contributions I made and the lessons I learnt. My experience and observations have also been expressed here, along with some of the problems that I was able to identify during the time. Other aspects of my internship have been covered as well. The nature of Ufone’s business, its background and the over all company analysis has been performed in as much detail as possible that is Introduction to the organization since their establishment till today, its privatization, its management, its working, in all perspective of the firm. The Financial Analysis, operational analysis, marketing analysis, HR analysis, and environmental analysis have also been discussed in detail, how they compete in this competitive world and their growth analysis. After that, some information about the Finance department in which I worked as an internee. And then what I did in that department followed by some problems identified in Ufone with some recommendations.
Background Information of Pakistan’s Telecom Industry
The Telecom System of Pakistan has laid down the foundation for information infrastructure. Initially the telecom industry in Pakistan was a sort of monopoly with only PTCL operating in Pakistan and there were no other cellular companies. However in the early 1990’s there was a drastic change in the Pakistan’s Telecom sector as use of mobile phone increased and more private companies stepped into the market causing a real liberalization of the telecom industry. The real defining moment was the passage of Telecom Re-organization Act of 1996, which established the Pakistan Telecom Authority (PTA) as independent regulator of the sector and set timeframe for ending the PTCL monopoly. With the introduction of this act the telecom sector was liberalized in line with the global trends and Pakistan’s commitment to the international treaties like WTO. With the deregulation of telecommunications sector in Pakistan in early 90s, Ministry of Communications awarded two licenses to begin cellular operations based on AMPS technology. Paktel and Instaphone were formed as joint venture between foreign and local partners. Instaphone initiated its services in 1990, while Paktel started its operations in 1992. Both the companies were using AMPS technology. A year later, a third license was awarded to the Saif Group that led to the inception of Mobilink that started its services in 1994. It was the first company that introduced GSM technology in Pakistan. In 1995, the Cellular Industry suffered a major blow with the closure of operations in Karachi, the largest market, but the closure sanction was lifted after almost two years. On January 19th, 2001, PTCL entered the cellular market with its on operator based on GSM technology under the brand name of Ufone. In April 2004 Pakistan Telecommunication authority (PTA) awarded two new licenses under an open auction process for a fee of $291 million. These were purchased by two companies namely, Warid telecom and Telenor. Telenor started its operations on March 15, 2005. Al-Warid started its operations on 23rd May 2005. The telecom sector has been the major contributor to the...