1pvt of ptcl

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Privatization Of PTCL

In 2003 PTCL monopoly comes toan end when government decidedto completely liberalize thetelecommunication industry.

Due falling revenues governmentpursued a progressive policy in1991 and announced its plans toprivatize PTCL.

PTCL has been privatise twice, once

in 1994 when 12% shares were soldto general public n secondly in2006, 26% shares were sold toforeign investor.


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The Privatization Commission,Government of Pakistan had plannedto privatize 51 % shares of entitythrough bidding.

In response, the government faced

stirred opposition from the employeesof PTCL lead ofemployees parties andstrike of about 20 days lead the kneesof government down, which re-scheduled the mechanism andpresented plan of privatizing 26 % of

shares along with the managerialpower to Etisalat (Choudhary, et al.,2008).

Privatization Of PTCL


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Privatisation of `PTCL, why?

Government should concentrateon governing countries instead ofrunning businesses.

They should monitor businessactivities n penalize the onesfound guilty

Ptcl was a monopoly undergovernment control thus didnt

face any competition or had anyincentive to be more productive.


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Privatisation of PTCL, why?

Breaking the monopoly triggered the marketcompetition and thus improvement was seen intechnology and rates decreased drastically as

well. This will raise finance for the government and

they could allocate in an efficient manner ininfrastructure , school , hospitals etc

The incentives created would prompt theorganisation to advertise massively and attractnew subscribers


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Corporate Vision

To be the leading ICT service provider in the

region

by achieving customers satisfaction and

maximizing

shareholders value.


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MISSION STATEMENT

To achieve our Vision by having An organizational

environment that fostersprofessionalism, motivationand quality.

An environment that is costeffective and qualityconscious.

Services that are based on themost optimum technology.

'Quality' and 'Time' conscious

Customer Service. Sustained growth in earnings

and profitability.


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Telecom Services Tariff The Re-regulation process offered

people to enjoy more choices, greateraccess to value added services atcheaper prices.

Impact on Competition With the privatization and Re-

regulation of PTCL many Competitorshave entered in Pakistani market.

Paktel and Instaphone 1990

Mobilink-1994

Ufone-2001

Warid and Telenor- 2005

Ptcl also faces competition from NTCand worldcall for providing fixed lineservices.

Changes after Privatisation


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Impact on employees PTCL has approx. 65000 employees before privatization.

The main workforce of the PTCL is unqualified and unskilled.

Introduction of VSS(voluntarily separated scheme) Financial Position

There was increase in operation expenses by 11.7%.

The main reasons for the reductions in the revenue arereductions in tariffs and heavy competition in the market.

Changes after Privatisation


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Positive Argument

Improvement in technology: Like DSL, Broadband, IPTV,

optic fiber cables and voicemessaging

Budget effective The losses of ptcl was now not

to be covered fromgovernment budget .

Raised real money

It provided government withinstant finance which it I couldhave invested in improvementof infrastructure.


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New projects

Launch of Vfone expanded the network to

provide coverage in all largeand small cities including over10,000 villages in rural areas of

Pakistan. Launch of broadband Pakistan

PTCL will not only be bringingthe benefit of high speedInternet access to subscribers

in major cities but will alsogenerate new revenue streamsfor future growth.


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New projects

EVO: It runs on a 3G network and can

offer an average of 300-500 Kbpsdownload speeds.

Improve customer service The contact center is powered by

fully automated IT based Billingand Customer Care applicationsthat provide online informationto agents to serve the customersinteractively.


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New projects

Telephone to Television

PTCL initiated the multichannel Inter ProtocolTelevision (IPTV) projectduring 2006-07

SEA-ME-WE-3 Optical FiberSystem:

a Submarine Optical FiberSystem Project wascommissioned in August1999.


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Negative impact

Reduction in Profits Loss of subscribers due to competition

If the government have showed a little concern for it andmanaged it in a proper manner it have been today at a betterplace then now. As the PTCL has been the highest profitearning state-owned company with real-estate assets worthbillions of rupees across the country including commercialplazas, residential colonies and exchanges.


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