IMPACT OF TELECCOMMUNICATION INDUSTRY ON NIGERIAN ECONOMY
    ABSTRACT
The world has become a global village with telecommunication being an indispensable tool in the entire globalization process the impact of telecommunication have become highly essential in this process. In Nigeria, development in this vital sector has been very phenomena and the usage of telecommunication (GSM) has become very prominent with noticeable effect on several economic aspects. It is however instructive to investigate the impact of this latest technology on communication on the Nigerian Economy.
    The study examine the impact of telecommunication industry on the Nigerian economy and examined the growth implication. Secondly data was used, model were specified and regression method was used in estimating it. However, the findings revealed that telecommunication have impacted on the economy by increasing their market access and reduced distribution cost, which invariably affected the service provider cost. Also the study revealed how GSM has enabled Nigerians to transact their businesses easily resulting in higher productivity, reduction in poverty level and prevalence through increase in income generating capacity and business expansion, improved living standard, boosted economic capacity and stimulate the economy to achieve the desired macro-economic policy targets.    
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1    Background to the Study            
1.2    Statement of the Research Problem            
1.3    Objective of the Study                    
1.4    Research Hypotheses                     
1.5    Scope of the Study                
1.6    Significance of the Study                
1.7    Limitation of the Study                    
1.8    Definitions of Terms                 
CHAPTER TWO: LITERATURE REVIEW
2.1    Concepts and Meaning of Telecommunication        
2.2    History and Facts about Telecommunication
Industry in Nigeria                     
2.3    The Nigerian Telecommunications
Regulatory Framework        
2.4    Nigerian Communications Act, 2003        
2.5    Impediments to Investment in Telecommunication Sector in Nigeria                        
2.6    Evidence of Impact of Telecommunication on
Economic Around the World     
CHAPTER THREE: METHODOLOGY
3.1     Introduction                
3.2     The Model Specification            
3.3     Data and Estimation Procedure        
CHAPTER FOUR: EMPIRICAL ANALYSIS
4.1     Introduction            
4.2     Descriptive Statistics                
4.3     Econometric Analysis        
CHAPTER FIVE: SUMMARY OF FINGINGS,
 RECOMMENDATION AND CONCLUSION
5.1     Summary of Findings            
5.2    Recommendations                
5.3     Conclusion                            
References                         
     Appendix                         
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND TO THE STUDY
    The world has become a global village with telecommunication being an indispensable tool in the entire process of globalization. However it is not in dispute that Telecommunication and Information Technology (IT) play very important roles in the process. This is obviously why development in this vital sector over t he years has been phenomenal all over the world. Infact this is why emerging trends in socio-economic growth shows high premium being placed on information and communication technology (IT) by nations organization and homes.
    Nigeria, fortunately, has not been left out of this race for rapid development in the telecom industry. Unlike in the past, governments consider telecommunication service to be so vital to national interest and economic development that it was placed directly under their control in most countries, until fairly recently, when deregulation and competition where introduced (Lee, 2003). These recent advances in telecommunication technology have been an important vehicle in permitting information exchange to develop as a valuable commodity for moving the country into post industrial and informational based economic growth. In this present world, a modern telecommunication industry is not only essential for domestic economic growth, but is a prerequisite for participation in increasingly competitive world markets and for attracting new investment. Given this development, the perspective on telecommunications development research today should concentrate on how best to increase and include telecommunication as an essential component of the Nigerian economy. Telecommunication industry should indeed be seen as an indispensable precedent in economic development.
    According to World Bank (1995), Late Starters in the telecommunications, will risk exclusion from the global economy and face. Severe comparative disadvantage on their goods and services, the development of telecoms in the world began in 1830s. According to Ajayi, Salawu and Raji (2008), Sir Charles Wheatstone constructed the first commercial electrical telegraph and Sir William Forthergill Cooke Samuel Morse on the other side. Atlantic Ocean independently developed another version of electrical telegraphy that he unsuccessfully demonstrated on 2nd September 1837. Some, after Alfred (1938) developed the register and was successfully demonstrated on 6th January 1938. The first transatlantic telegraphic label allowing transatlantic telecommunication for the first time was successfully completed on 27th July, 1866. Alexander Bell invented the conventional telephone in 1876 and the first commercial telephone services were set up in 1878 and 1879 in both Haven and London (ITU, 1999).
    However, Nigeria today has not been left out of this race for rapid development, after years of gross under-development, the nation’s telecom was liberated with the return of democracy in 1999 and the deregulation of the telecoms sector. This led to the granting of global system for mobile Telecommunication (GSM) in 2001, when the deregulations of the subsector of the economy gave way to private involvement license by the Nigerian Communication  Commission (NCC) to three providers like Econet, MTN, and M-Tel this was followed by the licensing of the second National Operator (SNO), in 2003, that is Globalcom and universal Access Service licenses of 2006 which include fixed telephone VSAT and internet service provider. Also, in March 2008, the NCC gave license to another GSM operator known as Etisalat (Aig Binode 2005). GSM license in Nigeria cost about US$ 285 million Naira, reference to NCC Act (2003), the recognition that telecommunication industry is an important input in a house hold or nation’s production function has major implication for development policy.
    In Nigeria, given the long years of decadence the factors responsible for the slows growth in telecoms sector inspite of the encouragement and enormous investment by the government before the deregulations. In the 1990’s were not looked into. In addition, the fact that the trend and the revolution of the development of telecommunication (GSM) growth on Nigerian Economy have not received a great deal of attention from researcher prompted. This study and it is against this background that this study has been conceived and insipient.
1.2    STATEMENT OF RESEARCH PROBLEM
    There is no sector in the economic that is problems free. To this end the following research problem shall be addressed.
1.    What is the impact of telecommunication industry on economic growth in Nigeria?
2.    What is the economic development trend as a result of telecommunication industry introduction in Nigeria?
1.3    OBJECTIVE OF THE STUDY
    The objectives of the study are to:
1.    Examine the extent to which telecommunication industry has influenced the economic growth of Nigeria.
2.    To evaluate the economic effect of introducing telecommunication like GSM, internet service in Nigeria.
3.    To investigate the long-term impacts of telecommunications on the Nigerian Economy.
1.4    RESEARCH HYPOTHESES
1.    Telecommunication  industry has a positive influence on economic development in Nigeria.
2.    An increase in telecommunication industry output will accelerate the rate of Nigerian economy.
1.5    SCOPE OF THE STUDY
    It is a Nigeria specific study which covers a period of twenty-one years (1991 – 2011). Relevant data shall be sourced from Central Bank of Nigeria statistical bulletin and the Nigerian stock exchange.
1.6    SIGNIFICANT OF THE STUDY
    As stated in the introduction and objective, the study will be relevant to the government and policy in Nigeria, providing basic information that will serve a guide to them in making appropriate policies and programmes affecting the telecommunication industry in Nigeria. Again, the study will also be relevant to both the operators, all participants in the telecommunication industry, customer, investors and potential investors on the trends and impact of telecommunication industry on the Nigerian Economy.
    Finally, the study will also be beneficial to both academic, researchers, students of finance and other related discipline, as it will provide them relevant data that will enable them carryout further studies on this area if they so wish.
1.7    LIMITATION OF THE STUDY
    The stressed of searching for materials and composing the different material consulted was not an easy tasks. Also finance is also another constraints to this research work.
1.8    DEFINITIONS OF TERMS
1.    Communication: This is the activity of conveying information through the exchange of thoughts, messages or information, as by special, verbal, signals, writing or behaviour.
2.    Telecommunication: Is the science and practice of transmitting and receiving information by electro-magnetic means.
3.    Tele-density: Is a measurement of how many telephones are available,  expressed as the number of telephone lines for every 100 people in a country.
4.    Economy: The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
5.    Gross Domestic Product (GDP) total product of goods and services produced in a country within a given period usually a year.