CHAPTER ONE
INTRODUCTION
1.0 INTRODUCTION
The
past 15 years have brought an unprecedented increase in access to telephone
services. This growth has been driven primarily by wireless technologies and
the liberalization of telecommunications markets, which allowed for faster and
cheaper rollout of mobile networks.
The
total number of mobile phones in the world surpassed the number of fixed-line
telephones in 2002; by the end of 2008, there were an estimated four billion
mobile phones globally (Wireless Intelligence, 2008)1.
The proportion of mobile phone subscriptions in developing countries increased
from about 30% of the world total in 2000 to more than 50% in 2004 - and to
almost 70% in 2007.
No
technology has ever spread faster around the world (The Economist, 2008). The
introduction of competition in the mobile telephony market has often led to an
immediate growth of mobile penetration (Figure 1). Countries that have taken
decisive steps to establish independent regulators and foster competition have
seen notable improvements in sector performance. In some cases, the
announcement of a plan to issue a new license has been effective in triggering
growth, encouraging the existing mobile phone operator to improve service,
reduce prices, and increase market penetration before the new entrant started
operations.
In
recent years, steep price reductions (Figure 2), driven by technological
advances, market growth, and increased competition, have contributed to the
rapid expansion in mobile phone use inmany countries. Increased use of prepaid
services allows mobile customers to make payments in small amounts instead of
having to commit to fixed monthly subscriptions. For those who could not afford
their own handsets, small loans were made available, mainly to the rural poor,
to enable them to buy a mobile handset, an antenna and a large battery.
This
gave enterprising individuals an opportunity to rent phones to other villagers
and charge for calls (The Economist, 2009). Furthermore, prepaid cards, often
available in small denominations, enable even low-income consumers to have
access to mobile communications, leading to higher penetration rates in poor
and rural areas
1.1 BACKGROUND OF THE
STUDY
In
the past few years, several macroeconomic studies have suggested a link between
mobile phones and economic growth (The Economist, 2009). Sridhar and Sridhar
(2004) investigate the relationship between telecommunications and the economic
growth using data from 28 developing countries. The study finds that there is a
positive impact of fixed lines and a significant impact of mobile phone
penetration on national output. The impact of telecommunications penetration on
total output is found to be significantly higher for developing countries than
for OECD countries.
Waverman
et al ii (2005) have
found that mobile telephony has a positive and significant impact on economic
growth. Extra 10 mobile phones per 100 people in a typical developing country
added 0.6 percentage points of growth in GDP per capita, and this impact
is about twice as large in developing countries than in developed countries. The results concur
with the theory that mobile phones in less developed economies are playing the
same crucial role that fixed telephony played in the richer economies in the
1970s and 1980s. Mobile phones substitute for fixed lines in poor countries,
but complement fixed lines in rich countries, implying that they have a
stronger growth impact in poor countries.
Lee et al ii (2009)
examine the effect of mobile phones on economic growth in Sub-Saharan Africa
where a marked asymmetry has been observed between fixed line penetration and
mobile telecommunications expansion (in favor of the latter).
The findings show that mobile
cellular phone expansion is an important determinant of the economic growth
rate in Sub-Saharan Africa. The contribution of mobile cellular phones to
economic growth has been growing in the region, and the marginal impact of
mobile telecommunication services is even greater in areas where fixed-line
phones are rare. The research shall therefore investigate enhancing Nigerian
economy through wireless internet network
1.2 STATEMENT OF THE PROBLEM
The
advent and development of wireless
internet have brought an unprecedented
increase in access to telephone services. This growth has been driven
primarily by wireless technologies and the liberalization of telecommunications
markets, which allowed for faster and cheaper rollout of mobile networks. But how
can this significant shift be made to propel developments in the economy; This
research investigates enhancing Nigerian economy through wireless internet
network.
1.3 RESEARCH QUESTION
1
What is the
nature of wireless internet network?
2
What is the significance of wireless
internet network in enhancing Nigerian economy?
1.4 OBJECTIVE OF THE STUDY
1
To determine
the nature of wireless internet network
2
To determine the role of wireless internet
network in enhancing the Nigerian
economy
1.5 SIGNIFICANCE OF THE
STUDY
The
study shall provide a theoretical and conceptual appraisal of wireless internet
network and shall serve a reference point of information to IT consultants and
professionals.
1.6 STATEMENT OF
HYPOTHESIS
1
H0 Wireless internet network is not significant
H1 Wireless
internet network is significant
2
H0 The level of wireless internet network is low
H1 The level of wireless
internet network is high
3
H0 The impact of wireless internet network on
the economy is low
H1 The
impact of wireless internet network on the economy is high.
1.7 SCOPE OF THE STUDY
The
study centers on appraising enhancing Nigerian economy through wireless
internet network.
1.8 DEFINITION OF TERMS
WIRELESS INTERNET NETWORKS:
The
unprecedented increase in access to telephone services growth has been driven
primarily by wireless technologies and the liberalization of telecommunications
markets, which allowed for faster and cheaper rollout of mobile networks.