CHAPTER ONE

INTRODUCTION

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 namely:-

a) Cable theft

b) Vandalisation of telecommunications equipments, payphone booths, underground cables by road construction and erosion through manholes.

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 services?

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 those wants

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 business use.

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.