Pest Analysis for Pakistan Telecommunication Company Limited

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but will also generate new revenue streams for future growth. The company also continued to invest in infrastructure development and addition of network capacity with a view to enhance services and to expand its reach across the country.

•Largest operational network and infrastructure within ICT (Information & Communication Technologies) segment.
•An integrated Monopoly.

Market leadership in Local loop, Wireless local loop (WLL) and fixed telephony.
•PTCL (Ufone) is market challenger in GSM segment.
•Ufone is performing well though Warid and Telenor are tough competitors. PTCL, Ufone’s profitability increased by 49.2 percent to Rs 977 million in 1H/FY07 as compared to Rs 655
million in the corresponding period last.
•Competitors still depend on PTCL network either directly or indirectly.

Experienced Telecom Resources.
•Not been able to nurture its growth around customer
services oriented strategy.
•Not been able to nurture its growth around customer
services oriented strategy.
•Monopolistic culture has further added to its complexities. •
Paknet, the internet service provider arm of PTCL continues
to incur losses due to poor management and lack of
network optimization.

PTCL-V, the fixed wireless phone service is poor.
•Over employment & low productivity.
•Slow decision making including external interferences.

Corporate culture akin to government departments

•Low teledensity of Pakistan.
•Have vast infrastructure and real estate assets which can be leveraged further.
•Global connectivity reliability has been improved. PTCL is expanding the long distance and infrastructure side through spreading out two sea-me-we submarine cables.
•Partnership with new entrants in a deregulated environment. •Scope for efficient/cost effective operations.
•Increased competition in long distance continues to exert pressure.

VOIP use is increasing despite ambiguous and discriminatory policies.

Exposure to market competition.

Migration to Cellular Networks.

Ability to Attract & Retain Quality Professionals.

Reduction in International Settlement Rates.

Strengths, weaknesses, opportunities and threats of PTCL in detail. Strengths
• Oldest Telecommunication Company of Pakistan founded in 1947. • All the telecommunication companies operating in Pakistan directly or indirectly dependent upon PTCL network. • PTCL maintain the records of customers in an organize way that is not the case with other private • Telecommunication companies in which the numbers are allocated without proper verification. • PTCL can be used as a backup network if the mobile networks are down due to any reasons. • It has been offering speedy Internet DSL connection to the customers and also offers concession to the students • PTCL is offering multiple services which includes TV, Internet and Telephone using local loop. • The largest landline network of Pakistan.

• It offers low rates for the national calls as compared to mobile networks. Weaknesses
• Flat organizational structure
• Bureaucratic environment.
• Political intervention in decision making.
• Extra employee overhead due to extra hiring.
• Customer service is very poor specially in Internet services • Vwireless coverage and service is very poor.
• Functional units are not well organized.
• Bad debts due to non payments of bills.
• Weak marketing of new services.
• Lack of technical staff in DSL technical support.
• People used to give bribe for new connection of Landline. • Form processing for new connection takes more time in larger cities. Opportunities
• Joint ventures with other telecommunication companies for introducing new services. • Improvement in customer services.
• Hire technical staff to reduce the level of DSL issues in order to increase customer satisfaction. • Proper planning and implementation is...
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