CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The journey to success in Nigeria’s Telecommunication industry has been long and tortuous, facilities were first provided in 1886 by the colonial administration mostly landlines. At independence in 1960, with a population of roughly 40 million people, the country only has about 18,724 phone lines in use. This translated to a tele density of about 0.5 telephone network consisted of 121 exchanges of which 116 were of the Manuel (magneto) type and only 5 were automatic. Kotler (2003). Between 1960 and 1985, the telecommunication sector consisted of the department of post and telecommunication (P&T) in charge of internal network and a Limited Liability Company, the Nigeria external Telecommunication NET limited is responsible for the external telecommunication (services) NET provides the gateway to the outside world. The installed switching capacity at the end of 1985 was about 20,000 lines as against the planned target of one telephone to 100 inhabitants recommended by ITU for developing countries. The quality of services was largely unsatisfactory. 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 development in the telecommunication industry all over the world is rapid as one innovation replaces another in a matter of weeks. Either a major breakthrough is the wireless telephone system that comes in fixed wireless telephone lives or the global system of mobile communication (GSM) communication without doubt is a major driver of any economy. Emerging trends in socio economic growth shows a high premium being place on information and communication technology (ICT) by homes, organization and nations. Burdus (2001). Nigeria is not left out in this race for rapid development, as the nation’s economy has been subject of years of economic reversal via mismanagement and bad leadership. The Nigeria telecommunication sector was grossly underdeveloped before the sector was deregulated under the military regime of General Ibrahim Babagida in 1992 with the establishment of a regulatory body; the Nigeria communication commission (NCC). So far the NCC has issued various licenses to private communication operators this include (7) seven telephone providers that have activated ninety thousand (90, 000) lines; 45 internet services providers with a customer of about 17,000. Several intermediations by providing on-line banking services to bank in Nigeria, these Licenses allowed private Telephone Operators (PTOs) to roll out both fixed wireless telephone lines and analogue mobile phones. The return of democracy in 1992 proved the way for granting of GSM Licenses to three (3) service providers; MTN NIGERIA, AIRTEL AND NITEL PLC now TRANSCORP in 2001.

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