Pakistan Telecommunication Company Ltd

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Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. Government of Pakistan sold 26% shares of the company to Etisalat in 2006.

1 Introduction
2 Historical Background
3 See also
4 External links

[edit] Introduction

From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day, it is a story of commitment and vision. Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory in December 1990, taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licences for cellular, card-operated payphones, paging and, lately, data communication services.

Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan

Since then, PTCL has been working vigorously to meet the dual challenge of telecom development and socio-economic uplift of the country. This is characterized by a clearer appreciation of ongoing telecom scenario wherein convergence of technologies continuously changes the shape of the sector. A measure of this understanding is progressive measures such as establishment of the company's mobile and Internet subsidiaries in 1998

As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for telecom sector is in the offing.

Last Year, in middle of 2005 Government of Pakistan had decided to sell at least 26 percent of this company to some private agency. There were three participants in the bet for privatization of PTCL. Itesalat, a Dubai based company was able to get the shares with a large margin in the bet. They were supposed to pay first installment within two months but there were some news printed in Euorpeon Media about financial devastation of PTCL. They exposed the ways how Government of Pakistan had depicted some attractive but fake annual reports of the company.

No doubt the company is a back bone in the communication sector of Pakistan but they are providing very substandard services to their customers. Being a Government entity they have no interest in the problems of a customer. Itesalat has not yet taken over and the dialog at Government level of Pakistan and UAE are in progress.

Last year when Government was going to privatize the company there was country wide protest and strike by PTCL workers. They even disrupted Phone lines of some big Government institutions like Punjab University Lahore and many lines of public sector were also blocked. Military had to take over the management of all the Exchanges in the country. They arrested many workers and put them behind bars. They contention between Government and employees ended with a 30% increase in the salaries of workers.

[edit] Historical Background

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