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    Pestle Analysis of PTCL

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    Salman Saeed
    PTCL faces political influence in decision making and is pressured to invest in unprofitable areas. Economically, high inflation has reduced customers and priority for telecom services. Socially, PTCL has responsibilities to provide broadband access in rural areas at low costs. Technological shifts like moving to IP networks require billions in investment.

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    Pestle Analysis of PTCL

    Uploaded by

    Salman Saeed
    75 views2 pages
    PTCL faces political influence in decision making and is pressured to invest in unprofitable areas. Economically, high inflation has reduced customers and priority for telecom services. Socially, PTCL has responsibilities to provide broadband access in rural areas at low costs. Technological shifts like moving to IP networks require billions in investment.

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    PTCL faces political influence in decision making and is pressured to invest in unprofitable areas. Economically, high inflation has reduced customers and priority for telecom services. Socially, PTCL has responsibilities to provide broadband access in rural areas at low costs. Technological shifts like moving to IP networks require billions in investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    75 views2 pages

    Pestle Analysis of PTCL

    Uploaded by

    Salman Saeed
    PTCL faces political influence in decision making and is pressured to invest in unprofitable areas. Economically, high inflation has reduced customers and priority for telecom services. Socially, PTCL has responsibilities to provide broadband access in rural areas at low costs. Technological shifts like moving to IP networks require billions in investment.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    PESTLE ANALYSIS OF PTCL

    1. POLITICAL: Despite privatization of PTCL, still 68% of the shares are with Government
    of Pakistan. PTCL is working under Ministry of IT & Telecom and Secretary IT M/O IT &
    Telecom use to be the Chairman of PTCL Board. So Political involvement always remains
    in decision making of the policies in PTCL. Lot of investments have to be made in the
    areas on Political pressure where otherwise it is not feasible economically. Even during
    hiring of higher officials in the Company, Political involvement do occurs.

    2. ECONOMICAL: Global and National economical situation do affects the working of


    PTCL as well. Due to high inflation rate, buying power of the customers is getting low and
    low. Among all other utilities PTCL lines have the lowest priority among the customers.
    Customers will surely prefer to retain and pay bills of Electricity as first priority, Water
    and Gas as next priority, thus PTCL line have the least priority among financial
    constraints of the customers. This has affected PTCL as well. During 2006 PTCL use to
    have 5.4(Millions) customers, which have now been reduced to 3.1(Millions) due to high
    inflation rate, affordability and competition from the mobiles.

    3. SOCIAL: PTCL being a Government entity plays a vital role among all telecom operators
    socially and have more social responsibilities than any other company in Pakistan. In lot
    of the areas, where telecom facility is very difficult to be provided and financially not
    viable, still PTCL invests for the social betterment of the people of Pakistan. Presence of
    Broadband in over 1000 cities and towns is a proof of it. In hundreds of the towns,
    where even most of the people cannot afford to have Broadband services, still PTCL
    provides the services at very cheap rate. Like small cities of Central Punjab and Interior
    Sindh, remote areas of Baluchistan and KPP, PTCL has made huge investments with very
    little pay back as social responsibilities and to enhance education facilities by providing
    Broadband services. Another aspect of social impact is the use of the mobile has
    become a symbol of social status, which also affects PTCL.

    4. TECHNOLOGICAL: Technological shift affects and have affected PTCL a lot. Due to
    rapid changes in technology, PTCL has to make huge investments to provide latest
    technology services but at the same time company has to make huge investments. For
    example shift of traditional TDM switches into IP Switches require billions of Rupees,

    This study source was downloaded by 100000855384015 from CourseHero.com on 10-30-2022 09:44:00 GMT -05:00

    https://www.coursehero.com/file/117615245/74576952-Pestle-Analysis-of-Ptcldocx/
    which is under way and by the end of December 2011, 70% of the exchange switches
    will be converted into NGN switches.

    5. LEGAL: PTCL being member of ITR has to follow ITU (International Telecommunication Union)
    rules, PTA regulations and Government of Pakistan rules and laws. Similarly Labour laws also
    apply on the regular employees of the PTCL. Regular Government employees of PTCL are around
    90% of the total employees and have legal protection of services. This protection affects
    implementation of performance based culture in the company. Reward and punishment cannot
    be properly imposed due to this legal protection.

    6. ENVIRONMENTAL: Now a day in Pakistan’s environment mobile sector is progressing


    with a nice pace and is affecting PTCL. Erection of towers and specially during laying of
    underground network or its maintenance, one has to dig the streets and roads, thus
    affects even the community. PTCL has to pay huge amounts to the municipalities’ for
    digging of the streets and road crossings. It affects PTCL financially as well very time
    consuming. PTCL has to follow international environment accord as well Ministry of
    Environment rules in this regards.

    This study source was downloaded by 100000855384015 from CourseHero.com on 10-30-2022 09:44:00 GMT -05:00

    https://www.coursehero.com/file/117615245/74576952-Pestle-Analysis-of-Ptcldocx/
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