Telecommunication in Nigeria : Mtn Ngeria 2001 - 2009

TELECOMMUNICATIONS IN NIGERIA : MTN 2001 TO 2009 AS A CASE STUDY

CHAPTER ONE
Introduction/Background to the Study
Objectives of the Study
Significance of the Study
Scope and Limitation of the Study
Research Methodology
Literature Review
End Notes

CHAPTER TWO
Telecommunications in Nigeria
Historical Development of Telecommunications in Nigeria
Introduction of Global System for Mobile Communication (GSM) in Nigeria
End Notes

CHAPTER THREE
Origin and Growth of MTN in Nigeria
MTN Operations in Nigeria
Administrative Structure of MTN Nigeria
Organogram
Products and Services
Contributions of MTN Nigeria to National Development
Challenges of MTN Operations in Nigeria
Vox Populi
End Notes

CHAPTER FOUR
Summary, Recommendations and Conclusion

BIBLIOGRAPHY

Introduction/Background to the Study
When Nigeria gained her independence in 1960, there were only 18,724 functional telephone lines for an estimated population of 45 million, which was a "teledensity" ratio of 0.04 telephones per 100 people. During the thirty-odd years of military rule, there was very little by way of investment in telecommunications, and other sectors did not fare any better. According to the International Telecommunication Union, by 1996 Nigeria's teledensity ratio was a mere 0.36.It rose slightly to 0.4 by 1999; according to the Nigeria Communication Commission (NCC). Nigeria's teledensity is a far cry from the African average of 1.67. Even the NCC admits that Nigeria has had a very limited telephone network for many years, and the waiting list is estimated at over 10 million people, who have applied to the incumbent monopoly, NITEL (established in 1985) for services.
The Nigerian mobile market had undergone significant growth since the licensing of the initial operators in the sector in 2001, supported by a successful liberalization program in the sector as well as an exceptionally positive political and economic environment. Market penetration rose from 1.2% in 2002 to 48.4% at the end of 2009, as many Nigerians, previously dependent on the expensive and inefficient fixed-line incumbent Nitel, were granted access to modern telecommunications at an accessible cost.
By mid–2007, Nigeria was one of the most competitive markets in the Middle East and Africa region, a region that averaged only three operators per country. There were four main GSM operators, with further competition coming from a large number of CDMA-based regional operators offering both fixed wireless and mobile services (with a cost base significantly below that of the GSM operators). The CDMA operators are also likely to provide increased competition in the event that the regulatory regime in relation to number portability is relaxed.
The Nigerian mobile telephony market (Africa’s largest) grew by 23% in 2008, adding 2.9% in GDP contribution and generating $8.4 billion in overall telecom service revenue in addition to accounting for $12.5 billion of private sector investments. By 2009 GDP contribution was 3.67%. Nigeria's total telecom revenue is expected to increase at compounded of annual growth rate of 5.7% from US$9.24 billion in 2009 to $11.14 billion in 2013 according to industry experts

We estimate that the compound annual growth rate of the Nigerian mobile telecommunication market was about 96% between 2001 and 2008 reflecting a period of phenomenal growth in the industry. This declined to 84.35% over the period from 2001 to 2009 reflecting the effects of a severe economic slowdown and reduced customer acquisition by the leading operators in the industry. As can be seen from the above table, the annual growth rate for 2008 of 42.3% was reduced to 16.1% in 2009, and is currently 5.88% for the period to April 2010.
Whilst mobile penetration rates increased from 42% in 2008 to 48% in 2009, that rate of growth has stalled significantly and penetration rates at April 2010 had only increased by a further 2% to 50% at the end of April 2010.
Nigeria is one of the most competitive markets in Africa, with five GSM mobile operators. This has resulted in lower tariffs, a wide variety of innovative services, attractive offers and improvements in service quality in order to differentiate and set the brands aside. MTN remained the market leader at year‐end 2009, with more than 42% of overall subscriptions; MTN has managed to maintain its position as the largest operator in terms of subscriptions by constantly investing in aggressive network rollouts. It has also recently introduced various value‐added services, such as mobile TV, MTN Google, Video Cam, Mobile Internet and a SIM backup service.

Objectives of the Study
This would be a review of the Nigerian Telecommunication Industry before and after the Introduction of Global System for Mobile Communication (GSM) in Nigeria with focus on MTN Nigeria as one of Nigeria’s leading Telecommunication Company. Its origin and growth, its operations in Nigeria, its products and services, the role it has played in the Nigerian society, and economy. We would also be taking a look at its administrative structure, its contributions and challenges in Nigeria. We’ll look at the general effects of a better telecommunications infrastructure on development and at the specific actions of the MTN Foundation, a group within MTN that pursues social development in Nigeria.

Significance of the Study
This study is to reviews the history and important of MTN Nigeria in Nigeria * To get a better understanding of the Nigerian Telecommunication Industry before the introduction of the Global System for Mobile Communication * To learn more on the origins and history of MTN Nigeria: MTN Nigeria is part of the MTN Group, Africa’s leading cellular telecommunications company. * To find out the challenges faced by MTN Nigeria in the Nigerian Telecommunications Industry * MTN Nigeria’s impacts on the Nigerian Economy * MTN Nigeria’s contribution to the Nigerian Social Development

Scope and Limitation of the Study
Although we have many companies in the Nigeria Telecommunication Industry, the study will be limited MTN. The study is wide in range but focus is only restricted to MTN Nigeria during the period of 2001-2009. Thus, it will be limited only to the output that the respondents from the company will provide such as data and information that will come from the interview questionnaires distributed, as well as the information from literatures that will be cited and reviewed.