ECONOMY IMPACT OF THE DEREGULATION OF THE TELECOMMUNICATION INDUSTRY IN NIGERIA.
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ECONOMY IMPACT OF THE DEREGULATION OF THE TELECOMMUNICATION INDUSTRY IN NIGERIA.
Chapter one
Introduction
Telecom development in Nigeria began in 1886 with the construction of the first telegraphic undersea cable by the British company Cable and Wireless Limited. In 1962, the Nigerian government joined the British firm as a senior partner, becoming Nigeria External Telecommunication Ltd. (NET).
By 1984/85, Nigeria had separated the postal and telecom functions of the party department, resulting in the establishment of NITEL and the commercialization of telecom services.
NITEL’s monopoly network could not fulfil popular expectations and needs, prompting the government to partially liberalise the Nigerian telecommunications sector with the issuance of the Nigeria Communication Decree in 1992.
However, despite the great potential of Nigeria’s telecom business, progress has been modest. A new strategy was announced in 2000, which now serves as the template for full liberalisation of the telecom industry, and the market is currently the largest and fastest growing in Africa, as well as the eighth fastest growing in the world.
1.1.2 (Pre-independence Era)
Telecommunications in Nigeria began in 1886, when a cable was laid between Lagos and the colonial administration in London. By 1893, government offices in Lagos had telephone service, which was eventually extended to Ilorin and Jebba in the hinterland.
In the years that followed, a sluggish but steady development process resulted in the eventual construction of the core of a national telecommunications network.
In 1923, the first commercial trunk telephone link between Itu and Calabar was created. Between 1946 and 1952, a three-channel line carrier system was established between Lagos and Ibadan, which was then expanded to Osogbo, Kaduna, Kano, Benin, and Enugu, connecting the colonial office in London with Lagos and the country’s economic centres with local government offices.
Unshielded twisted pairs were the primary transmission medium prior to independence. This later progressed from rural carrier systems on high gauge lines to line carrier systems with twelve channel capacity.
Salloto medium-capacity systems with VHF and UHF radios were introduced around 1955. The 1955-1962 development scheme was the country’s first serious attempt to design telecommunications services.
It called for the statewide expansion of the trunk through a VHF multichannel radio system, as well as a brief microwave link between Lagos and Ibadan.
1.1.3 Post-Colonial Era
Nigeria embarked on a periodic national development plan after gaining independence in 1960.
Telecommunications development was included in all of these plans, which were typically five years in duration.
During this time, the primary focus was on expanding the network to fulfil the needs of the emerging commercial and industrial sectors.
Specific aims include:-
– Install an additional 60,000 telephone lines, bringing the total number of lines to 90,000 by the end of the decade.
– Expansion of trunk dialling capabilities to connect large urban areas, which were then popping up. Nigeria External Telecommunications Limited (NET) is established.
Unfortunately, only 26,000 lines, or 40%, could be added to the existing network, due to a lack of funds and economic dislocation caused by the Nigerian Civil War (1967–1970). Nonetheless, there are some achievements, which include:-
Installation of a microwave radio transmission system to connect Lagos, Ibadan, Enugu, Benin, and Port Harcourt, all of which are located in Nigeria’s southern transmission network. Preparatory work for the creation of NET as a limited liability company has already begun.
1.1.4 Plan Period.
It sought to extend telephone facilities from 50,000 to 750,000 lines, representing a 1,400% increase. Three switching contracts were awarded, adding over 340,000 lines to Nigeria’s networks.
– In the first contract for the contingency loan, forty-five locations were to receive exchanges with a total installation capacity of 162,000 lines, while twelve additional exchanges were to be expanded by 48,000.
– The second covered turnkey project includes 147 locations that will receive external line plant and switching equipment, resulting in an additional 121,000 lines.
– The third contract for mobile exchange called for the installation of 29 mobile exchanges with 11,300 lines.
The overall number of installed telephone lines in Nigeria is expected to climb to 612,000 by the conclusion of the plan period.
During this time, the Department of Posts and Telecommunications’ telecommunication branch was combined with Nigerian External Telecommunications Ltd. (NITEL), a limited liability company that now manages both internal and external telecommunications services in Nigeria.
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