An Investigation Into The Role Of GSM Operation In Developing Direct Market In Nigeria (A Case Study Of MTN Nigeria)

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An Investigation Into The Role Of GSM Operation In Developing Direct Market In Nigeria (A Case Study Of MTN Nigeria)

Abstract

GSM communication is vital toll in the Nigeria economy as most sector depends on it for the effective communication and development of direct marketing in the nation GSM have a direct relationship with direct marketing as most people use their phone for creating awareness about their product the study was conducted to investigate the role of GSM in developing country. The study also expatiate more on the important of GSM. The study also look at contribution of GSM to overall economy development of the nation. The aim of marketing tool and development of direct marketing in the course of the study both primary and secondary data was used in gathering data, but secondary data was used most GSM is faced with challenges and the most pressing one is high tariff charges. Recommendation was made based on the findings his tariff charge should be reduced to enable the consumer enjoy uninterrupted services. Basic amenities like good road network security should be provided to enhance the performance of GSM operators in Nigeria

Table of Content

  • Title page
  • Certification
  • Dedication
  • Acknowledgment
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Statement of problem of the study
  • 1.3 Aims and Objectives to the study
  • 1.4 Significance of the study
  • 1.5 Scope of the study
  • 1.6 limitation and Constraint of the study

Chapter Two

2.0 Literature Review

  • 2.1 Concept of Direct market
  • 2.2 Effect of GSM on Direct Marketing
  • 2.3 Important of Direct Marketing in Nigeria
  • 2.4 Challenges Facing GSM Market in Nigeria
  • 2.5 Causes of High Charges by GSM operators
  • 2.6 Solution to Problem of GSM
  • 2.7 Problem of the Markets
  • 2.8 Prospect of the Market
  • 2.9 Formation of hypothesis

Chapter Three

3.0 Research Methodology

  • 3.1 Research Design
  • 3.2 Sources of Data Collection
  • 3.3 Population of the Study
  • 3.4 Sampling and Samples of size
  • 3.5 Method of data Collection
  • 3.6 Instrumentation of Direct Market
  • 3.7 Validity and Reliability of Instrument

Chapter Four

4.0 Data Presentation and Analysis

  • 4.1 Brief history of the Case study
  • 4.2 Presentation of Data
  • 4.3 Discussion of Finding

Chapter Five

5.0 Summary Conclusion and Recommendation

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendations
  • References

Chapter One

1.0 Introduction

1.1 Background of the Study

Nigeria is a commercial manufacturing and transportation country. Individual people business and government use many difference type of telecommunication in the country. Telecommunication arrived in Nigeria over 100years ago. At independence in 1960 the country has about 18,124 phone lines, from independence, various government made several attempt to increase the number of telephone lines to Nigerians. However these attempts failed woefully due to certain reason chiefly amongst. These are monopoly of this sector by the country public utility Nigerian telecommunication plc. NITEL and its corrupt management. By the beginning of 1999, there were roughly 5000,000 lines available for a population of around 120 million Nigerians.

Whatever complimentary things justified or not that many may have to say about the olusegun Obasanjo administration since its in caption in may 1999 one thing has become in controvertible this government successfully brought us a deregulated communication sector by auctioning is global system for mobile (GSM) license in January 2001 and 285 million each and further resented a license 3 for NITEL administration succeeded where other before it had fail in the end these 3 lines the MTN is at the production MTN communication wireless were awarded fully GSM license.

An underline vision for the introduction to GSM by the Nigeria government was to expand the Nigerian tendency and directly make telephone communication cheap and accessible to common man MTN telecommunication opens its door to its customer to days later that the ECONET wireless has open it own MTN has a similar package Trust Nigeria eager subscribe bombarded both network operators to great available line. The third network NITEL was no where to be found mainly due to its unpresented and internal disequilibrium.

These two companies according to their image makes have within 2 month add more telephones lines. Over 1 million as at the last count into the Nigeria environment more was ever the case in 40 years of independence.
One year after GSM has come to stay in Nigeria, infact many have called for the introduction of the GSM telephone a revolution in way, but one can also refer to GSM as a quatrum leap for Nigerians infrastructure capacity building which is a major ingredient for the much debated jump starting of the strangulated national economy. According to a world bank comparative study on information and communication network between 1994-1997 in some African countries, Nigeria was discover to have 4 phone line per 100 people as opposed to 5 in Cameroon 9 in Kenya, 11 in Senegal, and 15 in Zimbabwe. Another study contained in the world development report 1999/2000 situates Nigeria as having merely 400 telephone main lines and 0.00 mobile telephone respectively as at 1997, thus Nigeria embraced the GSM at its introduction. Expectation has always been high for the introduction of a mass based telephony which is both convenient and cheap to acquire.

The nation treasury also benefited through license fee payment and import duties through discounted and will continue to benefit through payroll and other taxes from these companies many direct and indirect dealers street recharge/fill card hawkers, downright -out selling second-hand handset and accessories, we can also say that the Nigerians lines of the people of kwara state especially have been transform and the socio-economic settings has been re-energized.

We should not neglect the fact that GSM has actually created the habit of time management in Nigerians and Kwara state particularly. This can be notices right from the curtailment of expensive salutation while contribution to the reduction of motor accident on major highways due to the elimination of long journeys for pleasure and business. It is now convenient to place a call to business associates or relative rather than waste valuable time embarking on sometimes needles journey top among is the gait to the Nigeria business environment has assured with improve cost and information technology awareness through wap services (wireless application protocol) e-commerce through mobile payment system called m-payment among others.

Further investor feel free and more secure investing in the economy now as the GSM offered a corner stone in Nigeria race towards attainment of adequate infrastructure. According to most user the greatest worry and drawback that GSM bears is cost of maintenance most have argue that call charges are too exorbitant at around 60 naira per minute at the interception but now about 30 naira where as our per capital income in Nigeria is low. The telecom companies on the other hands have insisted that they are still at lost and would probably not break ever than until 2005 they have both rules out direct tariff.

The managing director of MTN Mr. Andrian would speaks sometimes in August 2005 that the economics of operating cost require by the business of this states do not make a downward side. The naira is witness in the recent times this is not withstanding he stated the MNT tariff remains comparable to continental European network that are now at 6 to 7 years maturity, charges on average 15% higher than we do.

ECONET and MTN have both claimed that their supposed high tariff result from the enormous start up cost they had to endure to virtual nil telephony infrastructure when they paid harrowed in Nigeria and also an inefficient and disorganized power sector to top it all up, these companies add that the 285US million dollar they paid for the licenses were too high indeed there is some truth in this claims. However, it will be difficult for any discerning mind to accept that the 285US million dollar, ECONET and one have to consider the size of Nigerians market if well served harnessed, would generate enormous revenue for these telephone companies in the medium to long term.

To ask a simple question in how many countries are they operating withing a year and sold over a million line, Nigeria communication commission NCC has been called upon by many Nigeria to put a check on pricing structure of these GSM companies with NITEL lately coming into the fame with N22per minute talk time at peak period, it is perceived that the competition we be more balance, it is able to push adequate line with reliable service into the market in the process, the tariff of both ECONET and MTN would have become infer-able.

Another GSM menace probably in the short time, is the short term, is the nonchalant attitude of motorist in handing the set while driving, this necessitate the Kwara State Government to carve out a law banning the use of GSM while driving. GSM may have increase the volume of armed robbery and assassination in the country. Even bank have disallowed the use of GSM withing the banking hall. This though could be described as the failure of the police than anything else if you are a stranger or visitor at Lagos the false rule of the game is not to flaunt your GSM wardals who serves as the conduct pipes to strum GSM black the low and show data carrying capacity of GSM telephones means that business government gentles education institution, individual e.t.c are still not fully reaping the benefit of GSM mobile telecommunication. The internet and fax capabilities of GSM mobile phone still have a lot to be desire in these areas and make the development efficient.

What lies in the future? The operation have promised wider courage better, connecting contribution to the reduction of motor accident on major highways due to the elimination of long journeys for pleasure and business association or relatives rather than waste valuable time embarking on sometimes needless journey.

1.2 Statement of Problems of the Study

They study will be conducted to investigate the role of GSM developing country. The study will expatiate more on the importance of GSM. Also the study will examine the position of Kwara state in the country tendency these have been identified as lack of financial muscles to deliver efficient and effective services.

1.3 Aims and Objective of the Study

The importance and usefulness of GSM in Nigeria has become idely accepted in our society the result is the growing and increasing of GSM has help in making use of GSM to get their product into the market and have better share in the market. This has proved to determines the relationship that exist between mobile telecommunication and social economics development in Nigeria. The study identify the problems confronting mobile telecommunication in Nigeria.

1.4 Significance of the Study

The outfit of this research study could provide a benchmark for economy circumstance as well as the problem attributed to social economic development mobile telecommunication operators so as to increase their level of efficiency and effectiveness.

The result will be usefully to the marketer as sources of communicating effectively than transportation.
Also the result will be useful to the government as it will provide information on the require amenities and level of availability.

Above all this work will serve as a source of information to any student who may in the nearest future wish to undertake a similar research or future research.

1.5 Scope of the Study

The study will principally cover all aspect of the role of GSM in developing direct market in Nigeria emphasis would be on the impact growth and contribution of GSM in developing forward the social economics and political advisement of Nigeria.

The research work will be limited MTN Nigeria limited in Ilorin Kwara State, where all the respondent shall be drawn from with the hope that result ill be equally applicable related users.

1.6 Limitation And Constraint to the Study

In according a research of this nature researchers are bound to have limitation that include the extent to which it could go. Therefore the revenue of the limitation to the writer include financial constraint, availability of time and attitude of the respondent to the information requirement, financial constraints is one of the limitation that the writer faced. Before some data are collected to write his project a lot of money was required to travel down to the source of the information student there was not enough money to travel up and down. There was time constraint such that enough time of the research to go far as actually wanted was not available. The attitude of some of the respondents in the organization of the case study tends to be back and many respondents do feel such as exercise is a waste of time and to not see reasons why their time should be waste in giving information.

Chapter Five

5.0 Summary, Conclusion and Recommendations

5.1 Summary

This research study was designed to look into the investigation into the role of GSM in developing direct marketing in Nigeria using as a case study.

GSM was defined as global system of mobile telecommunication which is a modem means of communication it is a technology developed which involve the used of waves in transmitting of information from one sources to another. This is a means whereby transfer of information ideals and messages through mobile means of communication GSM is the most available source of communication which available to marketer in Nigeria as it is a means through which various good and services are advertised to the consumers.

5.2 Conclusion

In conclusion GSM which is an integral part of any developed, developing economy should be giving proper attention to contribution to the development so that it will contributed to the overdraft development of the economic. Direct marketing is very important in any marketing it can be develop effectively when it is done with the use of phone because the use of the questionnaire distributed. It show that all most all Nigeria have access to one form of phone or the other so it will be easy to communicate to large population through the use of phone the positive relationship which exist between GSM and direct marketing should be encourage to enhance affection communication of various good and services. The case which is MTN Nigeria which is the most used GSM network in Nigeria contribution to the development of direct marketing and to the over all development of economic activities of the nation GSM operation should be develop to make them more effective.

5.3 Recommendations

During the cost of this study some useful findings were discovered and below are some recommendation based on these findings. It has been established from this study that GSM is an instrument for a developing country. However this high tariff charge by the GSM operators is the major problem. It is therefore recommend that the high tariff charge should be reduced to enable the consumer enjoy uninterrupted services

It as discovered that lack of basic amenities also have adverse effect on the operation of GSM in Nigeria . Government should provide basic amenities like steady power supply, good road network, security e.t.c. So that the activity of these operators will be encourage and improved.

GSM /phone is used by many people for marketing activities. The GSM operator should provide better services delivery so that user of GSM phone will more encourage to make use of their phone in marketing of their product and services. Because it is more easier to market on the phone since most people use phone in Nigeria.
Phone is as vital tool in development of direct marketing. It used should be developed to encourage users to make user of it.

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