CHAPTER ONE

1.0     INTRODUCTION OF THE STUDY

1.1           BACKGROUND OF THE STUDY

Nigeria is a commercial manufacturing and transportation country. Individual people business and government use many difference type of telecommunication in the country. Telecommunication arrived in Nigeria over 100years ago. At independence in 1960 the country has about 18,124 phone lines, from independence, various government made several attempt to increase the number of telephone lines to Nigerians. However these attempts failed woefully due to certain reason chiefly amongst. These are monopoly of this sector by the country public utility Nigerian telecommunication plc. NITEL and its corrupt management. By the beginning of 1999, there were roughly 5000,000 lines available for a population of around 120 million Nigerians.

       Whatever complimentary things justified or not that many may have to say about the olusegun Obasanjo administration since its in caption in may 1999 one thing has become in controvertible this government successfully brought us a deregulated communication 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 administration succeeded where other before it had fail in the end these 3 lines the MTN is at the production MTN communication wireless were awarded fully GSM license.

       An underline vision for the introduction to GSM by the Nigeria government was to expand the Nigerian tendency and directly make telephone communication cheap and accessible to common man MTN telecommunication opens its door to its customer to days later that the ECONET wireless has open it own MTN has a similar package Trust Nigeria eager subscribe bombarded both network operators to great available line. The third network NITEL was no where to be found mainly due to its unpresented and internal disequilibrium.

        These two companies according to their image makes have within 2 month add more telephones lines. Over 1 million as at the last count into the Nigeria environment more was ever the case in 40 years of independence.

        One year after GSM has come to stay in Nigeria, infact many have called for the introduction of the GSM telephone a revolution in way, but one can also refer to GSM as a quatrum 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, Nigeria was discover to have 4 phone line per 100 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 400 telephone main lines and 0.00 mobile telephone respectively as at 1997, thus Nigeria embraced the GSM at its introduction. Expectation has 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 payment and import duties through discounted and will continue to benefit through payroll and other taxes from these companies many direct and indirect dealers street recharge/fill card hawkers, downright -out selling second-hand handset and accessories, we can also say that the Nigerians lines of the people of kwara state especially have been transform and the socio-economic settings has been re-energized.

       We should not neglect the fact that GSM has actually created the habit of time management in Nigerians and Kwara state particularly. This can be notices right from the curtailment of expensive salutation while contribution to the reduction of motor accident on major highways due to the elimination of long journeys for pleasure and business. It is now convenient to place a call to business associates or relative rather than waste valuable time embarking on sometimes needles journey top among is the gait to the Nigeria business environment has assured with improve cost and information technology awareness through wap services (wireless application protocol) e-commerce through mobile payment system called m-payment among others.

     Further investor feel free and more secure investing in the economy now as the GSM offered a corner stone in Nigeria race towards attainment of adequate infrastructure. According to most user the greatest worry and drawback that GSM bears is cost of maintenance most have argue that call charges are too exorbitant at around 60 naira per minute at the interception but now about 30 naira where as our per capital income in Nigeria is low. The telecom companies on the other hands have insisted that they are still at lost and would probably not break ever than until 2005 they have both rules out direct tariff.

     The managing director of MTN Mr. Andrian would speaks sometimes in August 2005 that the economics of operating cost require by the business of this states do not make a downward side. The naira is witness in the recent times this is not withstanding he stated the MNT tariff remains comparable to continental European network that are now at 6 to 7 years maturity, charges on average 15% higher than we do.

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