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1.1 BACKGROUND TO THE STUDY
Modern civilization cannot do without communication, especially by distant
wireless communication. This has become a consumer product that is bought
and enjoyed on a massive level and repeatedly. Therefore, organizations that
provide more and cost effective telecommunication services tend to have more
customers than other organizations (Ndukwe, 2006).
The significance of telecommunications services in the smooth operation of
business activities in any country cannot be overemphasized.
Telecommunications services are most vital infrastructure in national
development, ranking in importance to only water supply, electricity and
transportation system. In this era of information age there is a consensus
among economists and political leaders that the most important factors of
production are not capital, land and labour but instantaneous access to global
information network (Akuyili, 2009).In Nigeria, Telecommunication is owned
by the government, this makes telecommunication a public organization and
product. Nigerian telecommunications Limited has been saddled with the
responsibility of providing telecommunications services in Nigeria and has
distinguished itself for over a decade as a leading telecommunications services
provider (Vanguard, 2008).
The increasing importance of services, particularly, telecommunications
services in Nigeria economic development and growth has led to increasing
awareness of the need for communication facilities among people. Therefore,
one major catalyst of the growth in the use of telecom services in Nigeria is as a
result of its accuracy, speed, precision and efficiencies in information
management (Adetayo, 2007). Nigerian Telecommunications Limited in its
efforts to market these telecom services is confronted with some problems
a) Cable theft
b) Vandalisation of telecommunications equipments, payphone booths,
underground cables by road construction and erosion through
c) Non payment of NITEL bills by customers.
d) Destruction of facilities (exchange) through fire outbreaks
e) High cost of equipment and poorly equipped marketing department
Source: Oral Interview with Mr. Idowu Awosanya (Head of Public
Relations, NITEL, Lagos Mainland Territory)
The question now is to find out the problems and prospects of marketing
telecommunications services in Lagos metropolis.
1.2 STATEMENT OF PROBLEM
The telecommunication industry has in the past few years witnessed
tremendous improvements in the modernization of the telecommunications
network through out the country, such improvements on the network have
extensively enhanced the service offering of Nigerian Telecommunications
Limited (NITEL), which now showed the leap in the telecommunication
technology being used in Nigeria.,
The status of Nigeria Telecommunications Limited as a public enterprise
providing telecommunication services has created problems in the area of
product creation, pricing, product distribution and promotion. There can also
be prospects. The problem of this study therefore is to investigate these
problems and prospects using Nigerian Telecommunications Limited (NITEL)
Lagos Zone as a unit of study.
1.3 OBJECTIVES OF THE STUDY
The objectives of this study include the following:-
i). To find out the problems of marketing Nigerian Telecommunications
Services in Lagos.
ii) To investigate the prospects of marketing Nigerian
Telecommunications services in Lagos metropolis.
iii) To find out the seriousness of the problems.
iv) To estimate the seriousness of the prospects.
1.4 RESEARCH QUESTIONS
The study will attempt to provide answers to the following questions:-
i) What are the problems of marketing Nigerian Telecommunications
ii) What are the prospects of marketing Nigerian Telecommunication
services in Lagos metropolis?
iii) What are the levels of seriousness of the problems?
iv) What are the levels of seriousness of the prospects?
1.5 SCOPE OF THE STUDY
The research is restricted to Nigeria Telecommunications services Limited
(NITEL) Lagos. It will also review the prospects and problems associated with
the marketing of telecommunications services in Lagos metropolis.
1.6 LIMITATION OF THE STUDY
This study is limited to the extent that it involves only the marketing of
NITEL service in Lagos metropolis. In this way, it is a regional study. The
study is also hindered by time and finance
1.7 SIGNIFICANCE OF THE STUDY
Telecommunications services have become indispensable tools in the operation
of any business activities. According to Information from NITEL service
Information Guide, human beings are continuously creating new means of
making life easier. In this endeavour, the exchange of ideas and all forms of
information between persons, communities, countries, continents and planets
have propelled telecommunications into revolutionary tools for the unification
of the world into what is referred to as a global village.
The study therefore, will go a long way to help the management of Nigerian
Telecommunications Limited to:-
i) Improve the marketing of its services in view of the rapid changing
technology in the telecommunication sector.
ii) That result ill help the management to adopt a more aggressive
customer oriented posture in line with the gradual deregulation of the
telecommunication sector and also for NITEL to take advantage of
more recent technologies with wireless loop.
iii) Most importantly, the study will assist the Management of Nigerian
Telecommunications Limited to adopt both short term and long term
options in order to position itself effectively and efficiently in the
industry to cope with the looming competition resulting from
government privatization policy.
1.8 DEFINITION OF TERMS
Marketing: Is the creation and delivery of a standard of living
a) Finding out what consumers want
b) Then planning and developing a product or service that will satisfy
c) Then determining the best way to price, promote and distribute that
product or service. Simply put, it is human activity directed at
satisfying needs and wants through exchange process.
Service: Are those separately identifiable essential intangible activities that
provide want satisfaction and are not necessarily tied to the sale of a product
or another service. To produce a service may or may not require the use of
tangible goods and if such use is required, there is no transfer of the title to
those tangible goods.
Problem: Is a constraint factor in an event or thing that is difficult to deal
with or understood.
Prospect: An advantage factor in an event or chances of being successful.
Lagos Metropolis: A major city or big city in Lagos State of Nigeria.
Subscriber: A customer who rents a telephone for either private or
NITEL: Nigerian Telecommunications Limited owned by the government
of Nigeria and is in charge of providing telecommunications services in the
country. Such services are Fixed line telephone, Mobile, Long distance call,
Transmission and Reception of Real time Television for Network service,
Telegraph and Registered telegraphic
address, Private leased telephone and Telex services, Maritime mobile
services, Internet service, etc.
Adetayo, A. (2007): “Towards Efficient Telecom Services Provision in
Nigeria” Journal of Communication, Lagos State Polytechnic,
Akuyili, D. (2009): ICTS and National Development: The Role of
Stakeholders. A paper presented at a Public Lecture at Sheraton
Vanguard Newspaper (2008): NITEL, M-Tel Vs FG: The Un-kept Promises,
Monday, 20th, October.
Idowu, A. (2009): Oral Interview, Monday, 30th November.
Ndukwe, A. (2006): “NCC Performance Evaluation”; Telecom Digest, Vol. 2,