ABSTRACT
In
this research work, we considered "The Economy impact of the deregulation
of the Telecommunication Industry in Nigeria". Our major concentration was
on the Nigeria market because Telecommunication is a very broad research topic.
This
project has helped us know that deregulating the Telecom sector has contributed
immensely to the Nigeria Economy positively. In order to get this, we looked at
deregulation in the real sense, what deregulating the telecom sector means and
its impact on the economy. A descriptive method was employed in looking at this
topic based on the usefulness in accomplishing a task.
This
findings revealed that the economy has been affected positively through the
deregulation of the telecommunication sector in Nigeria, and has led to nation.
building to a great extent.
TABLE OF CONTENTS
Page
Title-page
Certification
Dedication
Acknowledgement
Abstract
Table
of Contents
CHAPTER ONE
1.1.1 Introduction
1.1.2 Pre-Independence
Era
1.1.3 Post
colonial Era
1.1.4 Plan
Period
1.1.5 The
Present
1.2
Statement of Problem
1.3
Research Questions
1.4
Objectives of the study
1.5
Significance of the study
1.6
Hypothesis
1.7
Research Methodology
1.7.1 Sources
of Data
1.7.2 Scope
of study
1.7.3 Area
of Study
1.7.4 Analysis
of Data
1.7.5 Limitation
of the study
CHAPTER TWO
2.0 LITERATURE REVIEW AND THEORETICAL
FRAMEWORK
CHAPTER
THREE
3.0 Research Methodology
3.1 Survey Method
3.2 Research Design
3.3.1 Sampling
3.3.2 Population Sample
3.4.1 Data Collection
3.4.2 Questionnaire
3.5 Percentage Method
CHAPTER
FOUR
4.0 Data presentation, Interpretation and
Analysis of Data
4.1 Presentation of Data
4.2 Analysis of Data
4.3 Interpretation of Results
CHAPTER
FIVE
Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
CHAPTER ONE
Introduction
By
development of Telecom in Nigeria started in 1886 with the laying of the first
telegraphic submarine cable by the British firm cable and wireless Limited. The
Nigerian government joined the British firm as a senior partner under the name
Nigeria External Telecommunication Ltd. (NET) in 1962.
By
1984/85 Nigeria separated postal and telecom function of party department,
consequently NITEL was crated and telecom services became commercial. NITEL due
to its monopoly network could not meet up with public expectations and demands
and this led to government decision to partially liberalize Nigeria
Telecommunication sector via the promulgation of the Nigeria communication
decree 1992.
However,
despite the huge potential offered by the Nigeria telecom market, the progress
was slow. A new policy was released in year 2000 which now serve as the
blueprint for full liberalization of the telecom industry and as at today the
market is the biggest and fastest growing in Africa and the eight fastest
growing in the world.
1.1.2 (Pre-Independence Era)
Telecommunications
in Nigeria began in 1886 when a cable connection was established between Lagos
and the colonial office in London. By 1893 government offices in Lagos were
provided with telephone service which was later extended to Ilorin and Jebba in
the hinterland. A slow but steady process of development in the years that
followed to the gradual formation of the nucleus of a national
telecommunication network.
In
1923, the first commercial trunk telephone service between Itu and Calabar was
established. Between 1946
and 1952, a three channel line carrier system was commission between
Lagos and Ibadan, and later was extended to Osogbo, Kaduna, Kano, Benin and
Enugu; thus connecting the colonial office in London with Lagos and the
commercial centres in the country with Local authority offices.
The
main transmission medium during the pre-independence era was unshielded twisted
pair. This evolved later from rural carrier systems on high gauge lines to line
carrier systems of twelve channel capacity systems. Salloto medium-capacity
systems employing VHF and UHF radio were introduced around 1955. The first
serious attempt at planning telecommunications services in the country was the
1955-1962 development programme.
It
provided for the expansion of the trunk using a VHF multichannel radio system on a nationwide basis and a short microwave
link between Lagos and Ibadan.
1.1.3 Post colonial Era
Nigeria
embarked on a periodic national development plan with the attainment of
independence in 1960.
Telecommunication
development was featured in each of these plans which were usually of a five
year duration.
The
focus of attention in this period was the expansion of the network to meet the
needs of the fledging commercial and industrial.
The specific objectives includes:-
-
Instal1ation of additional 60,000
telephone lines to bring the total number of lines to 90,000 by the end of the
decade.
-
Expansion of trunk dialing facilities to
link the major urban centres that were then springing centres that were then
springing up. Establishment of the Nigeria External telecommunications (NET)
limited.
Unfortunately,
only 26,000 lines i.e 40% could be added to the existing network partly because
of under funding and partly because of disruption caused to the economy by the
Nigerian Civil War (1967-1970). Nevertheless, there are some achievement which
inc1udes:-
Installation
of a microwave radio transmission system to link the cities of Lagos, Ibadan,
Enugu, Benin and Port Harcourt all of which are in the southern part of
Nigeria's transmission system. Preparatory work toward the establishment of NET
as a limited liability company also started.
1.1.4 Plan Period
It
aimed at increasing the telephone facilities from 50,000 lines to 750,000 lines
an increase of about 1,400%. In the area of switching, three contracts were
awarded to add over 340,000 lines to Nigeria's networks.
-
In the first contract for the
contingency loan - forty five locations were to receive exchanges with a total
installation capacity of 162,000 lines and twelve other exchange were to be
expanded by 48,000 lines.
-
The second covered turnkey projects 147
locations to receive external line plant and switching equipment to add an
additional 121,000 lines.
-
The third contract covered mobile
exchange provided for installation of29 mobile exchange with 11,300 lines.
It
was envisages .that the total number of installed telephone lines in Nigeria at
the end of the plan period would increase to 612,000.
During
this period, the telecommunication arm of the Department of Posts and
Telecommunications was merged with the Nigerian External Telecommunications
Ltd. (NITEL) a limited liability company that today administers both Internal
and External telecommunications services in Nigeria.
1.1.5 The Present
Nigeria
is widely recognized as one of the major markets for telecommunications
business opportunities in the world with a population of over 140 million.
Since the democratic governance of the world had turned to Nigeria as the
country with the highest potential. Nigeria has continued to attract the
attention of serious local and foreign investors.
Though
some companies were given licenses to operate before 1999, full market
liberalization only commenced in earnest with government enacting a new
telecom. Policy document in September 2000, produced after full stakeholder
consultations. The telecommunication was finally deregulated in 2001 and this
change the story of the sector. Unlike the days when it was just NITEL that
people will have to wait for so many years to get their lines fixed after
paying huge amount of money , and so many does have that privilege and so will
have to go to call thereby waiting for ages because of the long queue.
In
2003 a new law was enacted to boost investors confidence and provide clear
rules of engagement for industry stakeholders. Private investment in the sector
has grown from about 150m in 1999 to over $25 billion by 2010 with commensurate
rapid growth in subscriber lines. The nations teledensity stands at about 65%
with about 89 million connected lines by end of 2010.
In
fact by year 2000, Nigeria had only 400,000 connected telephone line and 25,000
analogue mobile lines. The total teledensity stood at a paltry 0.4 lines per
100 inhabitants. Between 1960 and 2000 the number of connected lines grew at an
average of 10,000 lines per annum but since 2001 it has witnessed an average
growth rate of over 10 million lines per annum. Bye end of 2010 Nigeria had
attained over 80 million lines and the teledensity figures soared from 0.4lines
per 100 inhabitants recorded in 1999to 65 lines per 100 inhabitants by the end
of 2010.
1.2 STATEMENT OF PROBLEM.
Given
the magnitude of economic problems which confronted Nigeria.
Since
the early 1980s Stagnant growth rising inflation, unemployment, food shortages
and mounding external debts, The economic reforms became paramount and
telecommunication sector was equally reform to enhance a better communication
system.
For
many years it was an exclusive preserve of the government.
The
sole operation was the government monopoly NITEL. As at January 2001 only
400,000 functional lines was on ground and more than half resided in the
government offices and corporation, only a few of Nigerians had access to their
own telephones.
The
customers service was poor and subscribers waited for years to get phones
installed after paying a high fee of about 150,000 and more long queues were
common at public payphone boots, getting a dialing tone on phone was often
impossible for hours especially during the peak hours, As Telecommunication
improves business processes becomes more efficient and productive.
1.3 RESEARCH QUESTIONS.
Considering
the projects topic. The economy impact of the deregulation of the
telecommunication industry in Nigeria, solutions will be proffered to the
following problems:-
1)
Why do government deregulate the
telecommunication industry in Nigeria?
2)
What are the importance of
deregulation to telecommunication industry?
3) What
are the effects of deregulation on the growth of telecommunication industry in
Nigeria.?
4) What
benefit do governments derive from the growth of telecommunication industry?
1.4 OBJECTIVES OF THE STUDY
For
every Endeavour of man on earth there are some objectives of this study include
the following.
1)
To trace the History of
telecommunication in Nigeria.
2) To
examine the effect of past government monopoly policy on telecommunication
industry in Nigeria.
3)
To enumerate measures of deregulation
in the telecommunication industry.
4) To
identify and examine the effect of deregulation on the growth of telecommunication
industry in Nigeria.
5) To identify the challenges facing
telecommunication industry in Nigeria.
1.5
SIGNIFICANCE OF STUDY
There
are numerous benefits that could be gained from this study but I will
enumerates two major significance which are academic importance and government
Economic importance.
-
Academic importance: This piece of
research work will be of immense benefit to students aiming at working on this
aspect of the economy because they will be able to make use of the information
therein.
--
Government / Economic importance. If government can adhere and stick to.
various facts which are generated through this research work, it will help in
economic policy formulation of the country.
1.6 HYPOTHESIS
Ho...The
telecommunication industries have not been positively affected by deregulation.
Hi…The
telecommunication industries have been positively affected by deregulation.
1.7
RESEARCHMETHOLOGY
Primary
data will be used to get enough information which will be relevant to the study
and this 'will be done through the use of questionnaire. In light of this,
percentage method will used to test the validity of this research work.
1.7.1 SOURCES
OF DATA
Relevant
textbooks, Newspapers (both dailies and periodicals will be use) Journals,
through browsing on the internet and using other peoples work.
1.7.2 SCOPE OF STUDY
Telecommunication
is a very broad research topic so the study shall cover only the state of
telecommunication before deregulation of the sector and the positive effects of
deregulation on the growth of telecommunication industries in Nigeria.
1.7.3 AREA OF STUDY
The
study shall only concentrate on NIGERIA i.e The telecommunication industries in
Nigeria.
1.7.4 ANALYSIS OF DATA
In
analyzing this research work, descriptive analysis will be used
1.7.5 LIMITATION OF THE STUDY.
A
good research work requires a great deal of work and this work is not an
exemption. The following are seen as anticipated impediments to the smooth and
successful carrying out of this work. Time, Money , Data collection and Access
to secondary data.
OUTLINES
OF CHAPTERS
CHAPTER
1, Introduction
CHAPTER
2, Literature Review and Theoretical
framework.
CHAPTER
3, Research methodology.
CHAPTER
4, Data Presentation, Interpretation
and Analysis of data CHAPTER 5, Summary,
Recommendation and conclusion.
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