EFFECTIVE STRATEGIES FOR MARKETING TELEPHONE SERVICES WITH PARTICULAR FOCUS ON NITEL PLC OPERATIONS IN ENUGU METROPOLIS
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Chapter one
INTRODUCTION
1.1 Background of the Study
Prior to independence, telecommunications services in this country were primarily provided to government entities for the purpose of maintaining law and order and administering the country, with a few exceptions for commercial and industrial purposes.
The telephone network consisted of approximately 121 (one hundred and twenty one) telephone exchanges, of which 116 (one hundred and sixteen) were magnetic/manual telephone exchanges and the remaining 5 (five) were automatic telephone exchanges, which were located in Lagos Island, Ikeja, Ebute-Matta, Apapa, and Port Harcourt.
In 1960, the total number of telephone lines was 18,724 (eighteen thousand, seven hundred and twenty four), with a population of approximately 45 million, resulting in a telephone density of 0.4 telephone per 1000 inhabitants.
Following independence, the demand for telephone facilities was no longer limited to government functionaries, as trade, commerce, and private firms expanded rapidly, necessitating effective telephone services.
However, realising this, the government commissioned a team of international specialists to conduct a long-term telephone assessment of the country’s future needs. The experts’ report advocated a five-year development plan (1963-1968) that would include the following facilities:
(a) Construction of a new long-distance radio line linking Lagos, Ibadan, Benin, Enugu, and Port Harcourt.
(b) Construction of large capacity cross-bar exchanges on the Lagos mainland (7000 lines), Ikeja conduct, 298 concrete conductors or feet of cable wire for the local subscribers network, and exchange buildings with air conditioning plants.
(c) Construction of radio routes connecting 23 urban areas, including Ibadan, Kaduna, Sokoto, Kano, Jos, Maiduguri, Warri, and Calabar.
(d) The installation of new telephone exchanges in 5 (five) urban locations and 19 tones, along with the corresponding subscriber cable network.
(e) Expansion of the existing step-by-step switching equipment in Ibadan, Shogho, Akure, Illorin, Kaduna, Kano, and Jos by approximately 8,000 lines.
(f) Provision of subscribers’ trunk dialling (S.T.D) in major urban areas.
(g) Building landline routes from major urban centres to 110 rural areas and replacing manual exchanges with low-capacity automation exchanges at these locations.
In addition to the various upgrades described above, this plan called for the installation of 100,000 telephones in total. Due to the nation’s crisis (1966-1969), the programme’s implementation was largely interrupted, if not fully suspended, in the country’s eastern section. As a result, just 20,000 lines were added through 1966.
At the end of the Nigerian civil war, the state of the first years’ P and T plan (1963-1968) was assessed, and the second National Development Plan (1970-1974) was established in 1970.
The government subsequently intended to strengthen existing telecommunications facilities through marginal investment in key urban and industrial centres, progressively extend telephone services to rural areas where they did not previously exist, and restore communication systems in war-affected areas. The second national development consists of
– Spillover of initiatives from the first five years plan.
– Cable work in places ignored during the planning stages of the first five-year plan; building of 73 new automatic exchanges with a capacity of about 72,000 lines.
– Expansion of the cable network, including new automatic exchanges.
– Construction of a few radio and telephone links.
– Provision of coaxial cable in Lagos, Ibadan, Illorin, and Kaduna. Due to financial restrictions and other considerations, projects under the second National Plan were not completed during the plan period;
nonetheless, a number of these projects were carried forward for implementation during the third National Plan (91975-1980). In 1974, the total number of active subscriber lines in the country was around 52,000.
COIN BOXES
A few telephone coin boxes were installed until 1972, but they were recovered due to the transition to a new decimal currency system.
An attempt was made to change the coin boxes, but the results were not adequate.
SUBSCRIBER LINE
The telephone network rose from 52,000 lines in 1975 to 54,702 lines as of December 1976. Manual telephone service was available in 407 places around the network. This level of service constituted a telephone density of one per 1000 population, which was among the lowest in the world.
COIN TELEPHONE.
In the late 1970s, the department planned to reintroduce modern public coin telephone instruments around the federation for the convenience of the people. As part of the third National Development Plan, 3,000 coin telephones had already been ordered and would be placed gradually throughout the course of the plan.
SHORT-TERM PLAN
In order to correct the sub-standard signalling systems of the existing telephone network, as well as other problems of inadequate and overloading that had rendered telephone service intolerable,
the government was urged and accepted in 1974 to install a new separate system of international standard to cover the area of the country served by the existing equipment, which were then S.T.D services.
In addition, locations in more than five eastern states where telephone service had been disrupted by the civil war were chosen for rapid expansion under a short-term arrangement known as the contingency strategy.
This was authorised in March 1975 and has a capacity of 76,000 lines. The difficulties in linking the previous system to the new one lasted until July 1976, and as a result of the difficulties and the introduction of additional states,
the contingency plan’s capacity was extended to 167,000 lines. When the contingency plan was implemented in 1977, the country’s telephone density increased to around 3 per 1000 people.
(a) TELEPHONE EXCHANGE: The plan includes the construction and commissioning of 45 NITEL telephone exchanges and 33 mobile exchanges with contemporary cross bar switches, either as replacements for worn equipment or to expand the current system.
(a) LOCAL CABLE NETWORK: It was proposed to offer a new cable layout at 44 locations, employing a cabinet/pillar system with fully filled cable inducts and limiting the size of overhead cables to a minimum of 200 pairs. The cabinet/pillar arrangement provides much-needed case storage and operational flexibility.
The jelly in filled cables prevented moisture from entering the cable, avoiding the need for pressurisation apparatus. The ban on the use of huge aerial cables lowered fault liabilities and eased maintenance. Rehabilitation of the existing cable network was underway in regions where it could be rendered usable.
(c) TRUNK COMMUNICATION: The existing terrestrial microwave system was expanded to provide additional trunk channels to connect the 44 new telephone centres.
Additionally, the existing open wire system was replaced by a modern radio system, removing the risk of wire theft and improving the availability of reliable truck service. The strategy also adds much-needed security to the transmission network by offering alternate routes along important trunk lines.
(d) SUPPLY OF SPARE PARTS: While efforts are underway to introduce progressive local manufacture of telephone equipment in use, the government has, in the interim, revised its policy to extend the guarantee for supply of spare parts by the provider of original equipment for a minimum of five years.
This would assure a consistent supply of spare parts for at least the first five years after installation of the equipment, when it would be reassessed based on the current state of local supply.
(e) HUMAN FACTORS: To reduce delays in answering calls and providing up-to-date information to customers, operating staff were prohibited from manipulating the new equipment deployed under the contingency plan.
While extensive maintenance training was being planned to the greatest extent possible given the restricted availability of workers, maintenance assistance service contracts were granted to enable effective maintenance of telecom equipment until local resources were created in sufficient numbers.
Long-term plans
In addition to the contingency plan, the Ministry of Communication had a long-term strategy to improve telecommunications facilities across the federation as part of the Third National Development Plan (1975-1980). New contemporary telephone exchanges for 147 locations had been contracted, and plans were underway to contract for the additional 145 telephone exchanges required.
When completed, these exchanges in the new local government area will add around 203,000 lines, bringing the total number of telephone lines to approximately 370,00.
Additional 84,000 lines were to be added through the installation of mobile exchanges and interface equipment. The contracts for the new telephone exchanges comprised switching equipment as well as the cable network that connected the subscribers.
Between 1978 and 1980, 296000 new telephone lines were to be linked to the network, bringing the total to 750,000 by the completion of the Third National Development Programme.
This represents a telephone density of 10 per 1000 people. Long-term, the department aimed to boost line capacity to 2,500,000 by 1985, bringing Nigeria’s telephone density up to the global average growth rate.
Transmission projects under the Third National Development Programme would provide sufficient and reliable trunk circuits to satisfy the expected increase in trunk traffic.
Although the terrestrial radio system on microwave would continue to serve as the transmission system’s backbone. Other technologies, such as coaxial cable, domestic satellite communication, and tethered Aerostats (Ballon system), had been implemented to satisfy the projected facilities and add security to the system through duplication.
1.2 Statement of the Problem
Nigeria’s federal government recognises the importance of telephone facilities for government officials, the corporate community, and citizens. As trade, commerce, and industry expanded at a rapid pace, the government boosted its efforts to ensure that customer demand for telephones was met.
In addition to the large sums of money, the government assigned to (NET) Nigeria External Telecommunication, now known as NITEL, a team of international specialists in 1962 to conduct a study on the country’s future telecommunications requirements.
This was done to ensure that telephone services could be marketed effectively and profitably. NITEL lacks the necessary technological and complex machinery, as well as specialised manpower.
Unfortunately, NITEL has not lived up to the expectations of its many clients. NITEL subscribers/customers frequently complain about “dead lines,” noise in the background, interference, and other issues.
1.3 The purpose of the study.
This research is intended.
(i) Identify the causes of complaints from NITEL.
customers/subscribers.
(ii) To identify strategies to improve the quality of NITEL services accessible at a reasonable cost to clients in the Enugu metropolitan.
(iii) Determine the impact of prices on the marketing of NITEL telephone services.
(iv) Determine how readily available NITEL telephone services are.
(v) To promote NITEL services for consumer use.
(vi) To use the opportunity provided by this analysis to provide appropriate recommendations (strategies) for dealing with the identified deficiencies.
1.4 Research Hypothesis
Ho1: The quality of telephone services provided by NITEL plc does not foster client loyalty.
H11: The quality of telephone services provided by NITEL Plc increases client loyalty.
Ho2: The costs of NITEL telephone services are not attractive for clients.
(NITEL Subscribers)
H12: The costs of NITEL telephone services are appealing to clients.
(NITEL subscribers).
Ho3: NITEL telephone services are not easily accessible to clients (NITEL subscribers).
H13: NITEL telephone services are easily accessible to consumers (NITEL).
subscribers).
Ho4: NITEL telephone services are not successfully promoted to customers.
patronage.
HI4: NITEL telephone services are effectively promoted to customers.
patronage.
Ho5: The marketing methods used by NITEL plc Enugu do not result in
boosted the profitability of its business.
HI5: The marketing methods used by NITEL plc Enugu lead to
boosted the profitability of its business.
1.5 The Significance of the Study
The significance of this study might be understood in terms of the critical function telephone services are expected to play in a developing country such as Nigeria.
The function is critical to the successful operation of government institutions as well as the rapid growth of trade, commerce, and industry. This study is expected to help Intel identify and address consumer issues.
The study will also offer ways for NITEL to improve the quality of its telephone services, resulting in increased consumer loyalty.
1.6 Scope of the Study
In addressing the topic “effective strategies for marketing telephone services with special reference to NITEL operations in Enugu metropolis,” Enugu users were also used as research subjects to augment and authenticate information provided by NITEL workers.
1.7 Definition of Terms
Some significant words used in this study are defined as follows:
(1) NITEL subscribers: a person who pays a regular quantity of money for the use of telephone lines operated by NITEL.
(2) Cable: Strong, thick wire.
(3) Cable route: transportation system, typically using elevated cable
(4) Compressor: A machine that compresses air or other gases.
(5) Trunk communication: the main phone line.
(6) Trunk traffic: the frequency with which subscribers use the main telephone lines.
(7) Coaxial cable: Cables with the same axis.
(8) Net: Nigerian External Telecommunication
(9) DST: Domestic Satellite Communication
(10) Celluphone: a telephone system that operates over radio.
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