CHAPTER ONE
- INTRODUCTION
Budgeting is the most important techniques whereby long-term strategies are converted into short-term action plans. Every organization including telecommunication requires not only planning but also a well co-ordinated plan to improve the quality of service was rendered to their customers in order to achieve the organization goals.
Budgeting as a predetermined objectives, represents what is most likely to happen after a careful consideration of the priorities of the company and the constraints of the company. It provides a standard for comparism with the result actually achieved.
According to the Chartered Institute of Management Accountants (CIMA), “A budget is a financial or qualitative statements prepared and approved prior to a defined period of time, of the policy to be pursued during that period for the purpose of attaining a given objectives. Thus budgets and the resulting variance would serves as a guide to current operation and service improvement in the telecom industries.
This study would review budgeting and service improvement in telecom industries as follows:
- Historical development of budget/budgeting
- Meaning of budgeting
- The purpose of budgeting
- Conditions necessary for a successful budgeting
- Process of budgeting
- Classification of budgets
- Budgeting control system
- Budgeting techniques
- The introduction of telecom services
- Types of service provided by telecom industries
- Reasons for poor quality services
- Strategies for service improvement
- The impact of budgeting on telecom service improvement in Nigeria
- HISTORICAL BACKGROUND OF CASE STUDY
The historical background of MTN Nigeria Plc, according to Ezeifedi (2009) was launched on may 16th, 2001 as part of the MTN group Africa and become the first GSM network operator. The company started its commercial operation on the GSM network at Lagos as it’s headquarter, followed by Abuja, Portharcourt, Enugu, Owerri and other states in the country.
In January 2001, MTN paid for one of the GSM license in Nigeria at US $85 million and as at date, in excess of $1.8 billion has been invested in building mobile telecommunication infrastructure in Nigeria. Since August 2001 MTN moved it’s services across Nigeria and providing services in not less than 223 cities and more than 10,000 villages across the 36 states of the country (Nigeria) and the federal capital territory Abuja.
According to Ezeifedi (2009:9), “the company introduced yellow Balm in January 2003 which was commissioned by the former president Olusewgun Obasanjo. This digital microwave transmission was the most extensive in infrastructure in all of Africa which helps to enhance call quality on MTN Network.
He further say that “in the year 2004, MTN expanded its network coverage or capacity from the number prefix 0803 to 0806 as the first GSM operator to have adopted an additional numbering system. In 2007, its network capacity was further expanded to 0703 and 0706, and finally in 2009 0813.
MTN Nigeria Plc also introduced a self help toll-free 181 customer care line through which subscribers can resolve their frequently asked questions free of charge.
MTN’s overriding mission is to be catalyst for Nigeria’s economic growth and developmental potentials not only through the provision of world class communication but also through innovative and sustainable corporate social responsibility initiative.