EVALUATING THE IMPACT OF GSM OPERATING COMPANIES ON NIGERIAN ECONOMY

EVALUATING THE IMPACT OF GSM OPERATING COMPANIES ON NIGERIAN ECONOMY (ENTREPRENEURIAL PROJECT TOPICS AND MATERIALS)

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.

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….

EVALUATING THE IMPACT OF GSM OPERATING COMPANIES ON NIGERIAN ECONOMY (ENTREPRENEURIAL PROJECT TOPICS AND MATERIALS)