THE IMPACT OF SELECTED FACTORS AFFECTING TELEDENSITY IN NIGERIA. A RESEARCH PROJECT MATERIAL ON ENTREPRENEURSHIP
1.1 Background of the Study
Telecommunications facilities in Nigeria which were first established in 1886 by the then colonial administration. These were geared towards discharging administrative functions rather than the provision of socio-economic development of the country. Between 1960 and 1985 the telecommunications sector consisted of the Department of Posts and Telecommunications (P&T) in charge of the internal network and a limited liability company, the Nigeria External Telecommunications (NET) Limited, responsible for the external telecommunication services. NET provided the gateway to the outside world. Telecommunications development during this period is characterized by serious short-falls between planned targets and their realization, principally because of poor management, lack of accountability and transparency and low level of executive capacity. Telecommunications department was split into Postal and Telecommunications Divisions. The later was merged with NET to form Nigerian Telecommunications Limited (NITEL), a limited liability company, while the Postal Division was reconstituted into another organization called the Nigeria Postal Service (NIPOST). The main objectives of establishing NITEL were to harmonize the planning and co-ordination of the internal and external telecommunications services, rationalize investment in telecommunications development and provide accessible, efficient and affordable services.
In 1998 the Ministry of Communications published the National Policy on Telecommunication under the President of the Federal Republic of Nigeria and Commander-in-Chief of the Armed Forces; Chief Olusegun Obasanjo, who then inaugurated a committee on telecommunications policy for Nigeria. This approved National Policy on Telecommunications was launched in October 1999. The policy was generally well-received in order to promote the policy goals of total liberalization, competition and the private sector-led growth of the telecommunications sectors. The chairman of the National Council on Privatization (NCP), Vice President Atiku Abubakar inaugurated a 22 member Telecommunications Sector Reform Implementation Committee (TSRIC) on 1st February 2000, to enhance domestic and universal acceptability in the anticipated new environment. The committee was encouraged by the National Council on Privatization to review the policy.
1.1.1 Policy Objectives of National Telecommunication
The general objectives of the National Telecommunication Policy (NTP) are to achieve the modernization and rapid expansion of the telecommunication network and services.