THE ROLES OF GSM IN DEVELOPING COUNTRY

CHAPTER ONE

INTRODUCTION

        Nigeria is a commercial manufacturing and transportation country. Individual people business and government we many different types of telecommunication in the country.

        Telecommunication arrived in Nigeria over 100 years ago. At independent in 1960, the country has about 18,724 phone lines. From, independence various government made several attempt to increase the number of telephone lines to Nigeria. However, these attempts failed woefully due to certain reasons, chiefly among these are monopoly of this sector by the country’s public utility Nigeria telecommunication plc. Nitel and its corrupt management. By the beginning of 1999, there were roughly 500,000 lines available for population of around 120 million Nigerians.

        Whatever uncomplimentary things, justified or not that many may have to say about the Olusegun Obasanjo administration since its in caption in May, 1999. One things has become in controvertible, this government successfully brought us a deregulated communications sector by auctioning is global system for mobile (GSM) license in January, 2001 and 285 million each and further resented a license 3 for NITEL. The administrations succeed where other before it had fail, in the end, these 3 lines the MTN is at the action. MTN communication wireless were awarded fully GSM license.

        An underlining vision for the introduction to GSM by the Nigeria government was to expand to Nigeria tele density and directly mate telephone communication cheap and accessible to common man . MTN telecommunication opens its door to its customers two days later that the ECONET wireless has opened its own, MTN has a similar package.

        Trust Nigeria, eager subscribers timbered both network operations to great available lines. These third networks NITEL was now here to be found mainly due to, its unprepared ness and internal disequilibrium.

        These two companies, according to their image makers have within two months, add mole telephone lines. Over 1 million as at the last count, into the Nigeria environment, more was ever the case in 40 years of independence.

        One years after, GSM has come to stay in Nigeria infact many have called for the introduction of the GSM telephone revolution in way, but one can also refer to GSM as a quantum leap for Nigerians infrastructure capacity building, which is a major ingredient for the much debated jump starting of the strangulated national economy. According to a World Bank comparative study on information and communication network between 1994-1997 in some African Countries, Nigerian was discovered to have 4 phone lines per 1000 people as opposed to 5 in Cameroon, 9 in Kenya, 11 in Senegal; and 15 in Zimbabwe. Another study contained in the World development report, 1999/2000 situates Nigeria as having merely 4000 telephones main lines and 0.00 mobile telephones respectively as at 1997.

        Thus, Nigerians embraced the GSM at its introduction. Expectation had always been high for the introduction of a mass based telephony which is both convenient and cheap to acquire.

        The nation treasury also benefited through license fee payments and import duties, though discounted and will continue to benefit through payroll and other taxes from these companies. Many direct and indirect jobs have been created. Such as employment by the individual operators, direct and indirect dealers, street recharge. Refill card hawkers, downright, tout selling second-hand handsets and accessories. We cam also say that the Nigerians lives of the people of Kwara State especially have been transformed and the socio-economics setting has been re-energized.

We should not neglect the fact that GSM has actually created the habit of time management in Nigeria and Kwara State particularly. This can be noticed right from the curtailment of expensive Nigeria salutations while contributing to the reduction of motor accidents on major highways due to the elimination of long journeys for pleasure and business. It is now convenient to place a call to business. As societies or relative rather than waste valuable time embarking on sometimes needless journey top among its benefit is the gait the Nigeria business environment has assumed with improved cost and information technology awardness through Wap services (Wireless Application Protocol), commerce through mobile payment system called M-payments among others further investors feels free and more secured investing in the economy now as the GSM offered a cornerstone in Nigerian’s race towards attainment of adequate infrastructure. According to most users, the cost of maintenance most have argued that call charges are too exorbitant at round 60 Naira per minute at the inception, but now about 30 Naira where as our per capital income per year in Nigeria as low. The telecom companies on the hands have insisted that they are still at lost and would probably break ever than until 2005. They have both ruled out direct tariff.