Challenges of operators of global system for mobile telecommunication services in Nigeria: towards mitigating the pain

Abstract

The providers of Global System for Mobile Telecommunication (GSM) and Code Division Multiple Access (CDMA) services have operated telecom sector for more than a decade now. Despite the increase in the market size of the sector, there is continuous failure of infrastructure that tends to undermine the landmark achievement. Against this backdrop, the study investigated the perceptions of operators of GSM services. The study was a cross sectional survey. A sample of 1600 respondents was selected from Ibadan Main City (MC) and Less City (LC). Also, 34 In-depth Interviews (IDIs) were conducted. Tariff (89.0%), network disruption (78.9%), call drops (82.4%), wrong call destination (78.9%) and indiscriminate GSM mast erection (65.7%) constituted major challenges in the sector. Qualitative data showed that infrastructure inadequacy, governments inconsistent policies, heavy import duties and multiple taxations, land dispute, vandalism, security and unhealthy competition limited the capacity of GSM providers to offer quality services and relatively low tariffs. Service providers relied on self generating electricity to power their base stations engines to keep the supply of GSM services. This kept production cost very high in the last ten years. Government should be proactive in tackling infrastructure failure in the telecommunication sector.