The Effects of Deregulation of Telecommunication in Nigerian Economy

The Effects of Deregulation of Telecommunication in Nigerian Economy

CHAPTER ONE

OBJECTIVES OF THE STUDY

For every Endeavour of man on earth there are some objectives of this study include the following.

To trace the History of telecommunication in Nigeria.
To examine the effect of past government monopoly policy on telecommunication industry in Nigeria.
To enumerate measures of deregulation in the telecommunication industry.
To identify and examine the effect of deregulation on the growth of telecommunication industry in Nigeria.
To identify the challenges facing telecommunication industry in Nigeria.

CHAPTER TWO

LITERATURE REVIEW

1.8 Profile of Telecommunication Operators in the Southwest Nigeria.

MTN , Nigeria

TN Group Chief Executive, Phuthuma Nhleko and his management team led MTN’s expansion strategy in pursuit of new telecommunications licenses across the rest of Africa and internationally and provide support to all MTN’s operations outside of South Africa. Leading Africa into a new age of economic development using telecommunications as the springboard is the driving force behind MTN’s investment strategy for the continent. Effective communication services are vital-particularly from a business perspective and nowhere more so than in Africa, which is developing into one of their most important trading continent.

It’s on this fundamental truth that MTN has based its vision to become the leading provider of communication services on the African Continent, linking nations by providing an affordable, accessible and quality service that is a catalyst for economic development. As one of the most enterprising operators to enter the cellular area in Africa, MTN has duplicated its outstanding success in South Africa in its operations in Rwanda, Uganda, Swizaland, Cameroon and Nigeria, thus ensuring that these countries have access to leading edge technology which is affordable without compromising on quality. With these successes, MTN’s vision is fast becoming a reality, a vision with a focus on three clusters, East Africa, West/Central Africa and Southern Africa. The move towards seamless communication in Africa is gathering momentum. Thus MTN’s aims also at facilitating change that will have long-term domestic benefits, obvious economic development, local infrastructure and facilities are upgraded and the qualities of life in communities is uplifted of which Nigeria was a major destination.

MTN Nigeria, a part of the MTN Group, and Africa’s leading cellular telecommunications company, on May 16, 2001, became the first GSM network to make a call following the globally lauded Nigerian GSM auction conducted by the Nigerian Communications Commission earlier in the year. Thereafter the company launched full commercial operations beginning with Lagos, Abuja and Port Harcourt.

MTN paid $285m for one of four GSM licenses in Nigeria in January 2001. Since ,its launch in August 2001, MTN has steadily deployed its services across Nigeria. It now provides services in more than 223 cities and towns, more than 10,000 villages and a growing number of highways across the country, spanning the 36 states of the Nigeria and Federal Capital Territory, Abuja. Many of these villages and communities are being connected to the world of telecommunications for the first time ever. Aimiuwu, (2004).

The Company’s digital microwave transmission backbone, the 3,400 kilometer Y’ello Bahn was commissioned by President Obasanjo in January 2003 and is reputed to be the most extensive digital microwave transmission infrastructure in all of Africa. The Y’ello Bahn has significantly helped to enhance call quality on MTN network.

The company subsists on the core brand values of leadership, relationship, integrity, innovation and can-do. It prides itself on its ability to make the impossible, connecting people with friends, family and opportunities. MTN Nigeria also recently expanded its network capacity to include a new numbering range with the prefix 0806, making MTN the first GSM network in Nigeria to have adopted an additional numbering system, having exhausted its initial subscriber numbering range – 0803.

CHAPTER THREE

RESEARCH METHODOLOGY

RESEARCH DESIGN

According to Nnadozie, E.O. (1998:42) designing a descriptive research involves planning the procedures to be used in data collection. This will include developing the necessary instruments and determining the sample to be used for the study. In view of the study the researcher used the survey research design in the study and based on that, random sampling was used and conclusions were drawn.

POPULATION AND SAMPLE SIZE TECHNIQUE

The population of the study includes all the public servants within and outside Enugu, government officials (politicians), unemployed graduates and undergraduates self employed graduates etc. For this study, a very small sample was selected such that N =Z² x (1-p) (p) /e².

CHAPTER FOUR

DATA PRESNTATION, ANALYSIS AND INTERPRETATION

In reference to the previous chapter, it indicates that a total of 196 questionnaires were distributed and only 123 questionnaires were duly completed and returned. By implication, 73 were not returned and therefore, we shall base our analysis on the 123 questionnaires returned.

CHAPTER FIVE

SUMMARY, RECOMMENDATION AND CONCLUSION

SUMMARY OF FINDINGS

To a reasonable extent, this study has investigated the impact of deregulation of telecommunication sector on economy of Nigeria. Based on the study above, there were evidences that deregulation has an effect on poverty situation in Nigeria either negative or positive. From the result of the study, the following were found; at the beginning, the majority of the respondents were aware that government is selling their shares in the telecommunication sector to private individuals and supported that government should deregulate some of our telecommunication sector. They supported their views with the corrupt practices that were going on in the telecommunication sector which made telecommunication sector in Nigeria inefficient and unable to meet people’s expectations.

This study also revealed that deregulation of telecommunication sector in Nigeria has no significant relationship with economy of Nigeria. Majority of the respondents supported their views by stating the current Nigeria poverty profile 2010, which indicated that in “2004, Nigeria’s relative poverty measurement stood at 54.4%, but increased to 69% which represents 112,518,507 million Nigerians in 2010.

RECOMMENDATONS

For deregulation programme in Nigeria to yield a desired impact on poverty reduction in the economy, then government should endeavor to adhere to the following recommendations:

Government through National Council for Deregulation and Bureau for Telecommunication sector should carefully and accurately evaluate assets and worth of intended deregulated enterprises before deregulation.
Government should be transparent enough; to allow equity distribution of shares to all geographical zones of Nigeria, and also ensure adequate participation of Nigerians as core investors. This objective can be achieved through proper and adequate enlightenment programmes.
Government should ensure honesty and sincerity of purpose in the side of government officials charged with the responsibility for privatizing telecommunication sector.
Adequate concern and provisions should be given to workers who could be displaced as a result of deregulation exercise; government should absorb them in ministries where manpower is needed, and where there is none, new jobs should be created.

CONCLUSION

As already argued, deregulation has a potentially high impact on poverty alleviation. In light of this potential link, deregulation should be adequately integrated as a core part of any poverty alleviation strategy. Whatever the objective of the programme, it is important to take not of the concerns of the poor and where necessary, adequate measures be put in place to guarantee that in the end, the benefits of deregulation will reach the poor. If deregulation is carried out with sincerity of purpose, almost every group will come out and accept the result of divestiture. Workers will be shareholders, while consumers will be better off because of better services. New graduates and the unemployed will get jobs because of expansion and government will be relieved of the burden of subsidies. Similarly, investors will gain investment opportunities, and ultimately, the public will be free to pursue any private economic interest relating to the deregulated industry. In conclusion, if deregulation must be of necessity and bring forth the desired benefits, it has to be viewed not as an end itself, but as a means to get government interested in fostering a new division of labour between the public and private sectors.

REFERENCES

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Jerome, A. (2008). Deregulation and Enterprise Performance in Nigeria: Case study of some Deregulated Enterprises. Online available at: http:///www.aercafrica.org/documents.

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