ABSTRACT
The dissertation is on evaluating
the impact of GSM operating companies on Nigerian economy. The objectives of
the study were: to ascertain the impact of GSM operating companies on Nigerian
economy; to determine the impact of GSM technology on the people of Nigeria; to
identify the challenges faced by GSM operating companies in Nigeria. The study
used both primary and secondary sources of data. A total of 300 copies of
questionnaire were administered and 285 were received and analyzed. The
statistical tools for data analyses include tables, percentages, and
chi-square. The findings indicate that the advent of GSM companies facilitate
economic development, increase GDP and attract foreign direct investment (FDI);
the introduction of GSM technology enhances business operation, quality of life
and offer employment opportunities to Nigerians; Inadequate power supply; transmission
infrastructural problems; vandalization of network installations; lack of good
access road network; etc, are some of the challenges facing GSM operating
companies in Nigeria. The study concludes that; the deregulation of the
Nigerian telecommunication sector, hence, the introduction of GSM technology
has made very significant positive impact on the economic situations of
Nigeria. The study from its findings recommends that: the government should
expand tele-density and directly make telephone communications cheaper and
accessible by giving more licenses to GSM operators in order to allow for
healthy competition among the GSM operators; there is need for the Federal
government to provide the necessary economic infrastructures (particularly
power supply) to the GSM operators in order for them to deliver efficient
services and to be able to reduce their call charges; and government should
encourage local manufacture of GSM operating equipments and components, and
above all, strengthen the security apparatus of the country so as to protect
GSM installations from vandalization by the men of the underworld.
TABLE OF CONTENTS
Title Page
Abstract
Table of contents
CHAPTER ONE
1.0: Background to the Study
1.1: Statement of the Problem
1.2: Objectives of the Study
1.3: Research Questions
1.4: Research Hypotheses
1.5: Scope of the Study
1.6: limitations of the Study
1.7: Significance of the
Study
1.8: Operational Definition
of Terms
References
CHAPTER TWO
2.0: REVIEW OF RELATED
LITERATURE
2.1: The History of GSM
technology
2.2: The origin of GSM
companies in Nigeria
2.2.1: GSM and Needs
2.3: The regulatory framework
of GSM Companies in Nigeria
2.3.1: The functions of the
Nigerian Communications Commission (NCC)
2.4: Challenges facing GSM
Operating Companies in Nigeria
2.5: keys to sustainability
of GSM Operating Companies in Nigeria
2.6: Impacts of GSM Operating
Companies on Nigerian Economy
2.6.1: GSM companies and Job
Creation/ employment in Nigeria
2.6.2: GSM Operating
Companies and GDP in Nigeria
2.6.3: GSM Operating
Companies and Investment in Nigeria
2.7: Impacts of GSM on the
People of Nigeria
CHAPTER THREE
3.0: RESEARCH METHODOLOGY
3.1: Area of Study
3.2: Sources of Data
3.3: Population of the Study
3.4: Sampling Technique
3.5: Description of Research
Instruments
3.6: Data Analysis Techniques
3.7: Validity of the Research
Instruments
3.8: Reliability of the
Research Instruments
CHAPTER FOUR
4.0: DATA PRESENTATION,
ANALYSIS AND INTERPRETATION
CHAPTER FIVE
5.0: SUMMARY OF FINDINGS,
CONCLUTIONS AND RECOMMENDATIONS
5.1: Summary of Findings
5.2: Conclusions
5.3: Recommendations
Bibliography
Appendix
CHAPTER ONE
1.0 BACKGROUND OF THE STUDY
The world is fast becoming a global village and a necessary
tool for this process is communication, of which telecommunication is a key
player. The quantum development in the telecommunications industry all over the
world is very rapid as one innovation replaces another in a matter of weeks. A
major breakthrough is the wireless telephone system, which comes in either
fixed wireless lines or the global system for mobile communication (GSM)
(Wojuade, 2005).
Without mincing
words, communication is a major driver of any economy. Nigeria is not left out
in the race for rapid developments, as the years of economic reversal via
mismanagement have had adverse effects on its rate of growth and development.
The Nigerian telecommunications sector was grossly under-developed before the
sector was deregulated under the military regime in 1992 with the establishment
of a regulatory body, the Nigerian Communication Commission (NCC). Since then,
the NCC has issued various licenses to private telephone operators. These licenses
allow private telephone operators (PTOS) to roll out both fixed wireless
telephone lines and analogue mobile phones. The return of democracy in 1999
however paved the way for the granting of GSM licenses to three service
providers, MTN, ECONET (which later changed to VMOBILE and now AIRTEL), and
NITEL plc in 2001; with GLOBACOM joining in 2003, and finally, ETISALAT which
is the latest entrant in the industry in January 2007. In fact, this auction
for Digital Mobile Licenses (DML) conducted by the commission- NCC, was
acclaimed locally and internationally as one of the best in the world due to
the high level of transparency associated with the exercise.
The development of
GSM in the world was prompted by the need to provide seamless
telecommunications through Europe. Back in the early 1980s, analogue mobile
telephony was growing rapidly and operators find it increasingly difficult to
interconnect the various networks in Europe. This was so because each
implementation of the analogue service was fundamentally different, which made
inter- working a serious challenge. To address this challenge, a study group
Called ‘Group Special Mobile’ (where GSM got its name) was formed and was
tasked to provide a standardized system for mobile telephony. Out of this group
(and seven years later), the GSM standard was realized. In January 1992, the
first GSM network, OY Radioing AB in Finland went on air.
Today, GSM covers
over 1.2 billion users on 630 networks in over 212 countries, and is the
fastest growing technology of all time. The initial release of GSM was called
GSM Phase I, and it is commonly referred to as the first generation. This
release made provision for the basic voice, SMS and circuit switched Date (CSD)
services. CSD allow a maximum data rate of 9.6kbs and was capable of fax
transmission as well. Supplementary services at that point were very basic
consisting of call forward and called barring capabilities.
The second
generation (GSM Phase 2) was released in 1995 and provided enhanced supplementary
services, amongst which were calling line identity (CLI), all waiting and
multiparty services. Data services however remained limited to 9.6kbs. GSM
Phase 2+ was an enhancement to GSM Phase 2 and was released two years later in
1997. Realizing the need for enhanced data service, Phase 2+ address this
requirement by making provision for high speed circuit switched data (HSCSD)
and General Packet Radio Services (GPRS). HSCSD and GPRS allowed maximum data
rates of 48kbs and 177kbs respectively.
In Nigeria, the
National Economic Empowerment Development Strategy (NEEDS) highlights the
nation’s socio-economic development aspiration. Specifically, it called for the
reform of the public sector, enabling a robust private sector-led economy and
the implementation of an effective social charter to reduce poverty, create
wealth, generate employment and re-orientate national values. One obvious
fundamental feature is that it clearly delineates responsibilities between
government and the private sector. While government would provide the enabling
business and regulatory environment, the private sector is to invest in and
manage ventures that stimulate and support socio-economic development.
In the same vein,
being aware of the catalytic role typically played by mobile telecommunications
in socio-economic development in Africa, GSM companies in Nigeria have
developed a Joint Economic Development (JED) framework to support the
government in the actualization of its objectives as set out in NEEDS. JED
outlines the positive multiplier effects of mobile telecommunications on
virtually every sphere of endeavour in the society, previews further prospects
targets, highlights challenges and proffer solutions to such challenges and
assigns specific roles to government and operators for further optimization of
the benefits of GSM services in Nigeria.
Basically, NEEDS target for the telecommunications sector
include: i. Attainment of tele-density of 1:25 by the year 2007; ii. The
development of a national communications backbone and multi-media
super-corridor. Strategies identified for attaining these targets include the
use of fiscal
financial incentives to encourage investment, adoption of a local content
policy in the manufacture of equipment, accessories and components as well as
financial support for rural roll out and Internet access. Today, tele-density
stands at about 65%. There is significant improvement in rural telephone access
penetration from just one (NTEL’s) transmission backbone in 2001, to at least
four other backbones have been constructed across the country today.
In Nigeria, there
has been more expeditious roll out in rural areas covering over 50% government
areas and at least 5,000 communities and villages. These developments informed
the Nigeria’s present rating as the fastest growing telecommunications market
in Africa.
The summary is that
the telecommunications sector has, in respect of tele-density exceeded its
targets under NEEDS. This is essentially due to the advent of GSM companies in
2001 which has resulted in a dramatic increase in the total number of lines
from just 866,782 in 1999, to over 60million in year 2008, out of which GSM
operators accounted for 57,622,901 lines, while fixed line operators accounted
for 2,537,504 code division multiple access, CDMA, operators connected 780,938
lines (Ndukwe, 2008).
Finally, from the
foregoing, it is pertinent to note that this recent drive in telecomm reform
policy initiatives has made noticeable impacts on the Nigerian economy. It is
however instructive to investigate the extent and the magnitude of the impacts
on the Nigerian economy. Indeed, this forms the background of the study.
1.1 STATEMENT OF THE
PROBLEM
It is a well known
fact that before the advent of GSM in Nigeria, the telecommunications industry
in Nigeria was nothing to write home about. Obviously, in the words of
(Adegboyega, 2008), the journey to success in Nigeria telecommunications sector
has been long and tortuous. Telecommunications facilities in Nigeria were first
established in 1886 by the colonial administration. At independence in 1960,
with a population of roughly 45 million people, the country only had about
18,724 phone lines. This translated into a tele-density of about 0.5 telephone
line per 1,000 people (Magneto, 1998). He however asserted that in those early
days, services were primitive as the coordinated pegboard switching system was
used.
According to Ndukwe (2000), the commercialization of the
then P & T, gave birth to NITEL in 1985. He however noted that though the
network growth rate improved following the birth of NITEL, the rate was however
too small to compensate for the rate of population growth, and hence did not
reflect the improved wealth of the nation. Ndukwe stressed that the Nigerian....
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