GLOBAL SYSTEM FOR MOBILE COMMUNICATION (GSM) AND ITS IMPACT ON THE ECONOMY OF NIGERIA

GLOBAL SYSTEM FOR MOBILE COMMUNICATION (GSM) AND ITS IMPACT ON THE ECONOMY OF NIGERIA

CHAPTER ONE

1.0       INTRODUCTION

1.1       Background of the Study

It is obvious that there would be no society without communication. Communication paves the way for harmonious human coexistence. There are various schools of thought on the idea of communication because of this. The style of communication used in international relations determines a country’s development and growth, which is why the majority of nations have their own official language. This demonstrates the importance of communication in all aspects of human development and activity.

Although academic researchers and students have given communication many other definitions, the traditional English definition can be summed up as the transfer of concepts, knowledge, and attitudes from one person to another. In Nigeria, there were table phones and cell phones before the Global System for Mobile Telecommunication (GSM) was developed.

During the pre-liberalization era, the government held a monopoly over the telephone sector since it was believed that only the government had the resources to build the country’s telephone infrastructure. Telephone access was initially built in 1886 to give a telecommunication link between the British Colonial authority in Nigeria and their home nation, Britain, before the country gained its independence in 1960. (Ajayi, Salawu and Raji, 1999). Hence, only a small number of administrators had very limited access to the phone.

The globe is quickly turning into a global village, and communication, in which telecommunication is a crucial actor, is a necessary instrument for this process. One innovation replaces another in the global telecommunications sector in a couple of weeks due to the extremely quick quantum development. The wireless telephone system, which uses either fixed wireless lines or the Global System for Mobile Communication (GSM), is a significant advancement (Wojuade 2005).

Nigeria’s GSM History

General Abdulsalam Abubakar’s military administration received a recommendation for the Global System for Mobile Telecommunication (GSM), which led the Nigerian Communication Commission (NCC) to grant licenses to Celia Motophone Limited, Mobile Services Limited, and United Networks Limited and assign them the responsibility of operating the GSM network in Nigeria.

The Olusegun Obasanjo administration, however, deemed the exercise fraudulent, revoked the licenses, and instituted the telecommunication policy in 1999, giving the Nigerian Communication Commission (NCC) the authority to restructure, hold an auction, and grant new licenses to profitable businesses that could offer Nigerians a reliable and affordable telephone system.

Three companies, Nigeria Telecommunication Plc (NITEL), MTN Nigeria, and Econet Wireless, were awarded a Digital Mobile Licence (DML) on March 23, 2001, following a competitive bidding process and the payment of $285 million in license fees. The DML came with a 90-day start-up deadline, a 15-year operating license validity, a five-year exclusivity period, a dual band frequency assignment, and a waiver of the annual operating levy (not to exceed

To facilitate roaming, direct international access for own subscribers during the first year of operation (25 percent of yearly turnover). Therefore, Econet Wireless (now Airtel) began offering GSM services in Nigeria on August 7th, 2001. MTN, Nitel, Globalcom, and most recently Etisalat followed.  As of September 30, 2010, there were 63 million GSM customers in Nigeria, according to NCC.

GSM’s uses

Several GSM product and service categories are available in Nigeria. Conceptually, the users include people who hold high governmental positions, influential people in society, young people, business owners, artisans, military rank and file, and many more. People are becoming increasingly technologically oriented as time goes on, and the cell phone is the most prominent evidence of this.

You can talk with others, record some spectacular moments of life, listen to music, install game, application, videos, transfer data and files to other compatible devices and visit World Wide Web, these are the basic qualities of the latest mobile phone which makes life faster and mobile.

Therefore, looking at various uses of GSM product and Services it bring to mind the great impact and influence the new technology has brought to bear on the time of Nigerians.

In the recent past formal/informal communication were carried out through letter writing, a process which take upward of three month to move from one part of the country to another, but it is common place today to sent or call short text message to9 one or more individuals at the same time.

Some folks have become fashionable with trendy handsets and special ring-tones. To this class your handsets or ring-tone must make a statement as to what class one belongs. They believe that poor folks tend to buy cheap GSM handsets while the high and mighty carry more expensive handsets. Some GSM handsets are equipped with digital cameras which come handy at occasions where events are recorded for the future. Those who are familiar with the computer environment could transfer such pictures to screen savers, send them to others via the internet or print them with colour printers. GSM handsets have become mobile album of some sorts.

To replace transistor radio, certain devices have built-in radios for news, sports, music, and entertainment. It may be transported from location to location without being hampered by incoming calls or messages, allowing users to be informed as events unfold during the course of the study. Journalists have learned to recognize the significant contributions that GSM has made to their work of news gathering; telephone interviews and reporting, particularly in the electronic media, as well as on-the-spot video clips and images to support fresh articles, have all become commonplace. The GSM phones come with a calculator with up to 12 digits, calendars that go all the way to 2050, time, date, a torch light, an alarm clock, a browser, and many other features.

As more and more goods and services are frequently advertised through the GSM, advertisers are catching on to the GSM revolution and driving up sales and profits for the expansion of the economy. Games are widely available on GSM handsets to stimulate the mind and calm people who lack leisure time or enjoyment.

Due to its ability to shorten distances, bridge gaps between business partners, promote work coordination, and effectively manage time, GSM has decreased the cost of doing business and increased productivity. With the advent of the GSM, appointments have been more reliable because cancellations are announced right away.

With the advent of GSM, business in Nigeria has improved. Goods and services are supplied on time, delays are better controlled, and crises are quickly prevented. Through the usage of GSM, families have never been closer; information is easily shared among family members, especially when partners are separated due to difficulties with job, school, or other commitments. The ability of the GSM to use the Blackberry to connect to the internet is a function that is equally significant. This has made communication more simpler for businesspeople and other people who need the internet to complete their tasks. The Blackberry provides access to the Internet from wherever, both inside and outside of the office. Seasonal greetings, religious messages, invitations to ceremonies, and other messages have found a safe haven with the GSM since using an electronic device instead of a traditional invitation or seasonal card saves time and money.

1.2 Statement of the Problem

Without a doubt, communication is one of the main forces behind every economy. Nigeria is not excluded from the race for quick development because of the negative consequences that years of economic management reversal have had on the country’s rate of growth and development. Before the sector was deregulated under the military rule in 1992 with the introduction of a regulatory body, the Nigerian Communication Commission, it was severely underdeveloped in Nigeria (NCC). Private telephone operators (PTOs) have since received a number of licenses from the NCC to deploy both fixed wireless telephone lines and analogue mobile phones. However, the restoration of democracy in 1999 made it possible for three service providers, MTN, ECONET, and NITEL to receive GSM licenses with the addition of GLOBACOM in 2003. plc in 2001.

Problems related to usage and consequences of GSM are still prevalent in Nigeria seven years after it was first introduced. Customers continue to encounter difficulties in managing expensive tariffs, coping with subpar services, maximizing the benefits of new technology, and dealing with a variety of additional issues such as theft, mobile fraud, and scammers.

The use of GSM while driving has recently been noted by the Federal Road Safety Commission (FRSC) as a significant contributor to road accidents in Nigeria. The use of GSM by students to cheat on exams has skyrocketed recently, according to school administrators.  On the family front, it is common for couples to argue and file for divorce after discovering evidence of one partner’s fidelity GSM.

Fraudsters have profited from the GSM device by utilizing it as a trustworthy instrument to deceive, steal from, and murder innocent bystanders.

1.3 Research Questions

The ensuing queries were posed in order to fulfill the study’s goal.

1. Does the introduction of GSM offer Nigerians job opportunities?
2. Has Nigeria’s crime rate decreased after the introduction of GSM?
3. How does GSM contribute to the Nigerian economy?
4. Has Nigerians’ income and standard of living grown as a result of mobile communications (GSM)?

1.4 Research Hypotheses

For the purpose of assisting the researcher in drawing reliable conclusions during the duration of the study, the following preliminary statement should be evaluated for significance:

H1: Since the launch of the Global System for Mobile Communication,
no notable effect on the growth of Nigeria’s economy.

H2: The implementation of a global mobile communication system
has a tremendous impact on the economic growth of Nigeria.
H1: The introduction of a global mobile communication system has no
decreased Nigeria’s crime rate.
H2: The introduction of a global mobile communication system has
decreased Nigeria’s crime rate.
H1: The introduction of a global mobile communication system has no

substantial effect on the emergence of jobs in Nigeria.

H2: The introduction of a global mobile communication system has

substantial effect on employment creation in Nigeria

1.5 Aims and Objectives of the Study 

The aforementioned research questions, which eventually dovetailed into research hypotheses, are the precise aims addressed in this work.

This study’s objectives are:

1.  figuring out how GSM has directly affected the growth of the Nigerian economy.
2.  To act as a guide for decision-makers as they evaluate the telecommunications policy in order to permit a growing number of competitors to offer telephonic services.
3. To ascertain how GSM affects users and society at large.
4.  To ascertain the economic impact of GSM in Nigeria.
5.  To reveal procedures and the difficulties faced by network providers.
This study’s goal is to examine how the Global System for Mobile Communications (GSM) has affected the economy of Nigeria while highlighting the type and characteristics of the activities what it is used for, what encourages its use, and what benefits it.

1.6 Significance of the Study

The study will offer suggestions for maximizing the advantages of the new technology as well as suggestions for controlling its consequences as it aims To evaluate the implications of GSM on the Nigerian economy.
It is especially important since it would inform the populace about the most effective ways to handle the negative consequences of GSM services in Nigeria.
The study will add to the body of knowledge for mass communication professionals and students who seek to do comparable research for more study of applications and advantages.

1.7 Scope of the Study

The study’s coverage area is primarily concerned with the effects of the Global System for Mobile Telecommunication (GSM). However, Mobile Telecommunication Network Nigeria (MTN) was employed in the case study, which resulted in the derivation and conservation of information on the personnel and employees of the mobile firms. The research will be incomplete because the network operators’ users were excluded. The study looked into the firm’s customers and subscribers in some detail (MTN).

While paying close attention to MTN’s employees, investors, users, and subscribers, other network providers (such GLO, Airtel ETISALAT, etc.) are still important to this investigation. They also assisted on making this work valuable and relevant material.

1.8 Operational Definition of Terms

GSM: It is a second generation telecommunication technology, otherwise known as Global System for Mobile Telecommunication.

Stakeholders: A person or company that is involved in a particularly organization, project system etc especially because they have invested money in it. In this context, those who have invested resources in provision of GSM services in Nigeria.

Users: According to Oxford Advanced learner’s Dictionary, a person or thing that uses something. In the context of the study however, users are the subscribers of the GSM services and products.

Teledensity: Number of serviceable lines to number of population of a given location.

Uses: In the context of this study, various forms of action which GSM could be put.

Mast: A tall metal tower with aerial that sends and receives signals for the telecommunication companies.

Communication: Passing of ideas, information and attitude from person to person.

Subscriber: in the context of this study, a person who pays to receive telecommunication service.

Internet: an international computer network connecting other networks and computer from one place to another.

Media: the main ways that large numbers of people receive information and entertainment i.e. radio, newspaper etc.

Technology: scientific knowledge used in practiced ways in industries.

Tariff: in the context of this study, a list of fixed prices that are changed by telecommunications companies for a particular service.