PTCL Internship Report

Will Optimization and Corporate Support

Duration date 7th August to 17th September

Submitted By: Nazeer Ahmad

Department: Procurement department of PTCL
Acknowledgement

I am writing this acknowledgment letter to express my heartfelt gratitude for the opportunity
to intern at PTCL (Pakistan Telecommunication Company Limited) as part of my 6-week
internship program. It has been an invaluable experience, and I am grateful for the knowledge
and skills I have gained during my time with your esteemed organization.

I would like to extend my sincere thanks to the entire PTCL team, especially to Sir Ishtiaq
Aziz, Sir Muhammad Umer, Sir Asad, Mam Samra Arif and Mam Marrium Awan for
providing me with guidance, support, and constant encouragement throughout my internship.
Their expertise and mentorship played a vital role in shaping my understanding of the
telecom industry and developing my professional abilities.

I had the chance to exercise critical thought, perform well as part of a team, and adapt to a
changing workplace. Furthermore, I would like to express my gratitude to the entire team at
Procurement Department for their warm welcome and collaborative spirit. I actually valued
the sense of community and the chance to work with a talented team of experts.

I am extremely thankful to PTCL for giving me this wonderful internship opportunity, which
certainly helped to both my academic and personal growth. The knowledge and skills I have
acquired during my time at PTCL will undoubtedly be an asset as I pursue my career in the
telecommunications field.
Executive Summary:

During my internship at PTCL Company, I worked on various projects in the procurement

department. As an intern, I had the unique opportunity to gain practical insights and firsthand
knowledge from the perspective of a professional working in the telecom industry. This
internship report provides a quick overview of my 6-week internship experience at PTCL
(Pakistan Telecommunication Company Limited), where I analyzed into a variety of PTCL
contracts with its Vendors, conducted a comparative analysis of statements, explored frame
agreements, and studied financial proposals.

I assisted with the development of RFQ, calling for quotations, and creating PO (purchased
order). I also had the opportunity to attend meetings and observe the inner workings of a
successful procurement team. Overall, my internship was a valuable learning experience that
allowed me to develop new skills and gain practical experience in the field of supply chain
Management.
Table of contents:
 Introduction to PTCL

 Brief introduction

 Shareholding

 Zones

 Competitors

 Internship program

 What I have learned

 Week 1

 Week 2

 Week 3

 Week 4

 Week 5

 Week 6

 Learning experience

 Knowledge acquired

 Skill learned

 SWOT Analysis
INTRODUCTION OF PTCL

From the beginning of the Posts & Telegraph Department in 1949 and establishment of
Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in
telecommunication in Pakistan. PTCL launched its mobile and data services subsidiaries in
2001 by the name of UFONE and Pak Net respectively. Lately, however, UFONE has
increased its market share in the cellular sector. The Pak Net brand has effectively dissolved
over a period of time. In 2005, Government of Pakistan decided to sell 26 percent of the
company to some private corporation. There were three participants in the bidding process for
the Privatization of PTCL. ETISALAD an Abu Dhabi company was able to get the shares
with a large margin in the bid. In June 2005, ETISALAD won the 26% of PTCL shares along
with management control of the then telecom monopoly for US$2.6 billion.

Pakistan Telecommunication Company Ltd., commonly known as PTCL is the national

telecommunication company in Pakistan. PTCL provides telephone and internet services
nationwide and is the backbone for the country's telecommunication infrastructure. The
corporation manages and operates around 2000 telephone exchanges across the country,
providing the largest fixed-line network. Data and backbone services such as GSM, HSPA+,
CDMA, LTE, broadband internet, IPTV, and wholesale are an increasing part of its business.
The shareholding of PTCL was reduced to 62% when 26% of shares and control were sold to
Etisalat Telecommunications while the remaining 12% to the general public in 2006 under
Prime Minister Shaukat Aziz. All bigger decisions are taken by Etisalat. However, the 62%
of shares still remain under the management of government-ownership of state-owned
corporations of Pakistan.

Communally PTCL owned two subsidiaries Ufone and U Bank. PTCL is a part of the
connection of four major Submarine communication cable networks: SEA-ME-WE 3, SEA-
ME-WE 4 and I-ME-WE and AAE-1. There are actually 3 zones in each city: North,
Central, South and each zone contains 6 regions and each region has its own departments.
Like HR, Finance, Procurement, operations/reporting departments and legal and technical
departments PTCL follows different rules and regulations to buy or sell our products. Sops of
PTCL are different from others. In reality, this was PTCL entire narrative.
INTERNSHIP PROGRAM

I was interested in SUPPLY CHAIN MANAGEMENT and the procurement and contracting
is one of the important sectors which come in supply chain management. I have interning in
PROCUREMENT department. Supply chain students are spending whole duration of
internship in procurement department. There was 5 seniors’ team members under which I was
working. Sir Ishtiaq Aziz, Sir Muhammad Umer, Sir Asad, Ma’am Samra Arif and
Ma’am Marrium Awan.

As per requirement the duration was of 6 weeks and the internship started on 07-08-2023 and
was completed on 19-09-2023 at PTCL Telecommunication North Zone, F5/1 Islamabad.

My whole internship duration was in procurement department because I was doing Supply
chain management so this department also a part of supply of goods and contracting.
What I learned:

Week 1
Today, August 7, 2023, was my first day for work with PTCL Group Ltd. So I had simply
started working in room 211 of the procurement department. Sir gave a brief overview of our
company and department after asking me a few questions about me, which I had already
discussed. I eventually received a 10- to 12-page document including multiple policies,
guidelines, and procedures. Policies, different types of tenders, tenders' documentation
methods, and the procurement cycle process were all included in these files.

There were different types of words written in it, such as RFQ (request for quotations), PO
(purchase order), PR (purchase requisition), and BOQ (pricing template), and all of them had
different meanings. There were different PO and PR numbers which they were getting, and
some of the tenders and their types were mentioned in it, how many and what types of tenders
are there, and how it is documented.

I learned a lot about the company's purchasing procedures, with a focus on how they obtain
necessary goods for end users in the Islamabad and Rawalpindi regions. The procurement
process had several steps, beginning with the distribution of tenders to prospective vendors.
The proposals described the specific requirements and technical requirements for the
necessary components. Vendors then submitted their bids, including information about their
products, costs, and anticipated delivery dates.

PCC include 4 type of tender in North zone of PTCL Pakistan.

• Limited tender (three vendors registered).
• Public tender (insufficient vendors are registered).
• Expansion tenders (Already installed equipment will get or the vendor who will
provide extra advantage will get the tender).
• Proprietary procurement (when procuring process is single source).
• Procurement shall be based on three quotations expect for single source.
• Weightages of technical and commercial scores shall be mentioned with their
technical evaluation criteria. In any change the whole tender process will repeat.
• In commercial 30% score and technical 70% scores are comes in awarding points.
The winning suppliers received contracts to collaborate with PTCL after an extensive review.
These suppliers showed they could deliver high-quality goods at low prices while also being
able to meet PTCL's standards, delivering an ideal partnership.

Overall, the PTCL internship gave me an extensive understanding of the complications

associated with procurement tenders, bids, evaluations, and awards.

Week 2
In week 2 I learned about PR and Po and how they are generated on applications which
PTCL is using for their routine work. Sir was also telling about the difference between
Purchasing and procurement also telling that outsourcing is not procurement.

In the whole week I have done 2-3 works like we have made comparative files in which a lot
of agreements were there and we were cross checking their dates and validity.

We became mindful about POT and PCC this week. All major choices are taken by PCC
(Procurement Category Committee) and POT (Procurement Operation Team), which they
actually refer to as the procurement strategy. POT basically executes tasks in accordance with
the roles established by PCC.

The department performs the Basic works.

● RFQ
● Tender
● Frame agreement

RFQ
This agreement is valid for a Limit of 0 rupees to 5 lakh amount. And RFQ based
Procurement takes time 28 days. In which different tasks like RFQ generation take 4 days and
request for quotations from vendors take 5 days and also evaluation in quotations also take 5
days and negotiations meetings take 10 days and preparation and approval of PO take 4 days.
PCC team shall fill RFQ compilation check list to ensure all relevant information are handed
over to POT team to be referred for checklist. The following information shall be in
documents.
Vendor will be shared password protected quotations or hard copies in envelops with POT.
Password shall be shared by manager.
Procedure:
There are 6 steps for RFQ Generation.
1) PCC received approved PR and provide to POT team with all required document for
RFQ
2) POT team prepares RFQ all process floats on email and after receiving Quotations N-
2 send to PCC team.
3) After getting PCC team evaluate the quotations and prepare comparative statements.
4) PCC team receives revised offers and makes negotiations if required.
5) PCC team recommends the vendor and attains approval from DoP.
6) POT team prepares PO and get it released signed by DoP.
RFQ cancellation:
It shall be cancel than one level above the respective PR approving authority and shall be
viewed and approved by CXO-2-SPT. Category manager can also cancel RFQ End user will
also delete all the PR and POT team will inform all the stakeholders and vendors also notified
same way.
Tender
This agreement is made for a limit of 5 lakh to 30 million rupees. For tender document
preparation SPT team receives all necessary document with procurement strategy then send
to POT team and they compile the tender document if it ye then it will directly send to
procurement department. If it is not approved then it will review in finance/legal/technical
department.
Tender documentation preparation:
• SPT team will received all the required procurement strategy documents then send it
to POT team for complies of these documents if these documents are in standard form then
after checking through Legal, finance, Technical department they directly send it to CXO-3
POT team person after reviewing and checking then they approved these tender.
• If there is any issue in these documents or documents are not in standard form then
legal, finance, technical department review and send it to the next step (CXO-3 POT) team.
Time limit for whole process:
Procurement strategy approval 2 days
Compilation of tender documentation 2 days
Bidding period 10 days
Bids evaluation 5 days
 Negotiation with vendors 5 days
Generating PO 2 days
Approvals PO 2 days

Frame agreement
This agreement is valid for 3 years. In one section they set prices of items and valid these
prices for 1 year. Frame agreement which we made under one agency for maximum three
years under end user CXO-1 and CXO procurement shall sign with 2 agencies if required.

How do they start working?

With the PR clarification and payment confirmation mail they generate GRN (good received
number) on SAP.

Week 3
The third week of the internship had me researching the key part of the contracts between
PTCL and its vendors. These contracts work as legally binding contracts that create a formal
connection between the telecommunications operators and its vendors. These agreements
accomplish two main objectives: to set up a legal framework for the partnership and to ensure
the fair and open selection of prices for the delivered goods or services.

Another important element of these contracts is confidentiality. Sensitive information,

including intellectual technology, business strategies, and customer data, must be protected
by PTCL and its vendors when it circulates across the course of their partnership. By
maintaining strict confidentiality measures, both parties can foster trust and ensure the
security of their respective interests.

In order to remove any ambiguity regarding the financial responsibilities of each party, taxes
and duties are also covered in these contracts. There are clear rules indicating who is in
control of paying taxes, import tariffs, and other relevant payments.

Typically, vendors must agree to provide a warranty period for their goods or services, during
which PTCL can ask for repairs, replacements, or refunds for any defects or failures.
Moreover the contracts contain important information about the effective and expiry date.
Effective date represents the starting date of contracts and the expiry date represents the
contract termination or renewal. With the help of these dates we can remove any ambiguity
Regarding the contract duration or guarantees between both parties. These contracts
established legally protected relationship between PTCL and their vendors\suppliers. With
the scope of work, term and conditions contractors obligations and expiry and effective dates
these contracts provide good framework.

Week 4
This week one of the specific tasks assigned to me which was comparing of quotations
provided by different vendors the main task was to identify the lowest rate to ensuring the
good quality of product and services? This process gives experience the comparisons of
quotations and selection criteria.

The first step is calling to different vendors for their quotations of required goods and
services. This department typically handled this task, that to reaching out the essential
vendors through RFQ or RFPs. Vendors were requested to submit their detailed offers, which
should have included information on pricing, product details, delivery dates, guarantees, and
other relevant terms and condition. The quotations were standardized to eliminate any errors.
This step involved organizing the received quotations into a structured format, which allowed
for easy comparison of key parameters, such as pricing models, quantity discounts, and
additional costs (e.g. Shipping, taxes).

Once the quotation was regulate them the story goes towards the selection of lowest rate
vendors. The final selection is made on the comprehensive evaluation that considers all the
factors mentioned above. And PCC team final go through the entire process and analysis the
conducted during comparisons. I was able to learn a lot of experience about procurement
process and how businesses try to choose the contractors in a way that balances cost and
quality during my internship at PTCL.

I have got the opportunity to making a BOQ (Bill of quantity) that was great experience for
me as well. The BOQ is a comprehensive document which itemizes and quantifies items like
Labor, material and all the others resources required for the specific project. BOQ plays vital
role in managing and budgeting for the maintenance of different tasks and ensuring the
organization facilities.
Week 5
During my 5th week I have got valuable opportunity contribute the budget allocation process.
To begin with we conducted an in-depth review of the existing infrastructure and assessed its
capacity to meet the increasing demand for telecommunication sector. Furthermore budget
allocation considered different expenses like operational expenses, office expenses and other
day-to-day expenses. Expenses were carefully analyzed to optimize the utilization and cost-
efficiency while ensuring a seamless operational workflow.

Overall budget allocation process they also maintained open communication with different
stakeholders, including regional managers, technical experts and financial experts. In short,
PTCL North Region budget allocation used an extensive approach taking factors such as
infrastructure demands, operational costs, socio-economic variables technology
improvements and environmental sustainability and customer needs. We actually wanted to
improve the overall services of PTCL in North Region and support PTCL to grow and
successes in many components.

During this week I have learn Bid Bond or bid money or CDRs which is Amount of the bid
which the vendor actually pays as a security. Bid money is actually is 10% of the total
amount.

Week 6
During my 6th week I have learned about payment and Revenue that how they generate. The
revenue PTCL is generating from public, corporate and individuals customers. If anyone who
will not pay a bill then with different procedure the account is gone in closure and the process
is that first the overall net will be closed and within 1 month the one way call will be happen
and after two months the two way call will also be closed and at the end the CMC credit
monitoring Comity team will go for recovery and restored the bill. And I have studied about
PSTN number and DSL number. PSTN number stands for Public switch telephone network
and DSL numbers is only provide good services to their valuable customers.

Learning Experiences:
• Knowledge Acquired:

I have gained plenty of knowledge from internship duration. The professional office
environment, working methods, schedules etc. with this I get few things which should be in
any individuals is punctuality, honesty with job and good communication skills.

• Skills Learned:

Documentation Skills I have learned from this department and also evaluation of best
supplier and their selection is also comes in my skills. Gmail writing, excel work i learned.
Preparation of comparatives and checking unit rates and quantities and in case of any fault
mentioned them is also comes in which skills I have learned.

Ethically lot of natural emotions and beliefs comes like hard work, respect, and way of
communication. PTCL North Zone office work environment was very comparative and
friendly.

We all internee were facing difficulties in Excel work. Few tasks were on Power Point and
Excel and there were formulas which we were unaware but later on we learned and applied.
And the second most difficult work was checking PO numbers and their payments.
STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT) ANALYSIS:

Strengths:
It’s a oldest communication company in Pakistan all relevant telecommunication companies
are dependent on PTCL because it maintains all the customers records in organized way.
If mobile network is down due any reason so PTCL work as a backup network. Now it is also
offering 5G networks and concessions to students. Because it is largest landline of Pakistan
so it provides most good multiple services to customers like TV, Internet, Telephone using
loop.
Weaknesses:
It is government owned company so political intervention is involved in decision making.
Due to flat organizational structure and bureaucratic environment make the company strategy
difficult. V wireless coverage so bad services in most congested areas. In big cities for new
connection documentation takes lot of time for installation of connection.

Opportunities:
Making collaboration or integrating with other private telecommunication companies can
give opportunity of advanced and skilled labor and equipment. To increase the customer
satisfaction hiring skilled and technical staff is also opportunity. Latest technology and using
of fiber cable also a great opportunity for PTCL.

Threats:
Strong competition from other companies and Inflation in the country may increase the cost
of services which will finally transfer to customers. Energy crises throughout the country and
rapid raise in Government taxes and duties are also threat for PTCL. And New competitors,
Political instability also plays great role in threats of all type of organizations. Security issues
with in countries also a threat. Cybercrimes percentage is increasing.