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2 Presentation. Libre Software for Enterprises: Create your Product,
Feed your Community, Eat your Cake! — Jesús-M. González-
Barahona, Teófilo Romera-Otero, and Björn Lundell
5 Libre Software and the Corporate World — Jesús-M. González-
Barahona, Teófilo Romera-Otero, and Björn Lundell
11 Best Practices for FLOSS Adoption — Carlo Daffara
17 Build and Sustain a Community of Practice: Method Applied to
FLOSS Projects — Stéphane Ribas and Michel Cezon
22 Community Management in Open Source Projects — Martin
Michlmayr
27 The Morfeo Project: an Open Source Approach towards Open
Innovation — Cristina Breña and Andrés-Leonardo Martínez
32 Applying Open Source Software Principles in Product Lines —
Frank van der Linden
41 Addressing Industry Needs in OSS — Jan-Henrik Ziesing
44 SpagoWorld, the Open Source Initiative by Engineering — Gabriele
Ruffatti
51 An Opportunity for Libre Software Companies: Emerging Market
in Developing Countries — Susana Muñoz-Hernández and Jesús
Martínez-Mateo
54 From Novática (ATI, Spain)
Mobile Technologies
A Case Study of the Global System of Mobile Communication
(GSM) in Nigeria — Adeyinka Tella, ’Niran Adetoro, and Paul
Adesola Adekunle
60 Promoting Skills Development in Challenging Times — ECDL
Foundation
62 Selected CEPIS News — Fiona Fanning
* This monograph will be also published in Spanish (full version printed; summary, abstracts, and some
articles online) by Novática, journal of the Spanish CEPIS society ATI (Asociación de Técnicos de
Informática) at <http://www.ati.es/novatica/>.
Vol. X, issue No. 3, June 2009
CEPIS NEWS
UPENET (UPGRADE European NETwork)
UPGRADE is the European Journal for the
Informatics Professional, published bimonthly
at <http://www.upgrade-cepis.org/>
Publisher
UPGRADE is published on behalf of CEPIS (Council of European Pro-
fessional Informatics Societies, <http://www.cepis.org/>) by Novática
<http://www.ati.es/novatica/>, journal of the Spanish CEPIS societyATI
(Asociación deTécnicos de Informática, <http://www.ati.es/>)
UPGRADE monographs are also published in Spanish (full version
printed; summary, abstracts and some articles online) by Novática
UPGRADE was created in October 2000 by CEPIS and was first
published by Novática and INFORMATIK/INFORMATIQUE, bi-
monthly journal of SVI/FSI (Swiss Federation of Professional
Informatics Societies, <http://www.svifsi.ch/>)
UPGRADE is the anchor point for UPENET (UPGRADE European
NETwork), the network of CEPIS member societies’ publications, that
currently includes the following ones:
• Informatica, journal from the Slovenian CEPIS society SDI
•Informatik-Spektrum,journalpublishedbySpringerVerlagonbehalf
of the CEPIS societies GI, Germany, and SI, Switzerland
• ITNOW, magazine published by Oxford University Press on behalf of
the British CEPIS society BCS
• Mondo Digitale, digital journal from the Italian CEPIS societyAICA
• Novática, journal from the Spanish CEPIS societyATI
• OCG Journal, journal from theAustrian CEPIS society OCG
• Pliroforiki, journal from the Cyprus CEPIS society CCS
• Tölvumál, journal from the Icelandic CEPIS society ISIP
Editorial TeamEditorial Team
Chief Editor: Llorenç Pagés-Casas
Deputy Chief Editor: Francisco-Javier Cantais-Sánchez
Associate Editors: Fiona Fanning, Rafael Fernández Calvo
Editorial Board
Prof. Wolffried Stucky, CEPIS Former President
Prof. Nello Scarabottolo, CEPIS Vice President
Fernando Piera Gómez and Llorenç Pagés-Casas, ATI (Spain)
François Louis Nicolet, SI (Switzerland)
Roberto Carniel, ALSI – Tecnoteca (Italy)
UPENET Advisory Board
Matjaz Gams (Informatica, Slovenia)
Hermann Engesser (Informatik-Spektrum, Germany and Switzerland)
Brian Runciman (ITNOW, United Kingdom)
Franco Filippazzi (Mondo Digitale, Italy)
Llorenç Pagés-Casas (Novática, Spain)
Veith Risak (OCG Journal,Austria)
Panicos Masouras (Pliroforiki, Cyprus)
Thorvardur Kári Ólafsson (Tölvumál, Iceland)
Rafael Fernández Calvo (Coordination)
English Language Editors: Mike Andersson, David Cash, Arthur
Cook, Tracey Darch, Laura Davies, Nick Dunn, Rodney Fennemore,
Hilary Green, Roger Harris, Jim Holder, Pat Moody.
Cover page designed by Concha Arias-Pérez
"Falling Upwards" / © CEPIS 2009
Layout Design: François Louis Nicolet
Composition: Jorge Llácer-Gil de Ramales
Editorialcorrespondence:Llorenç Pagés-Casas <pages@ati.es>
Advertising correspondence: <novatica@ati.es>
UPGRADE Newslist available at
<http://www.upgrade-cepis.org/pages/editinfo.html#newslist>
Copyright
© Novática 2009 (for the monograph)
© CEPIS 2009 (for the sections UPENET and CEPIS News)
All rights reserved under otherwise stated. Abstracting is permitted
with credit to the source. For copying, reprint, or republication per-
mission, contact the Editorial Team
Theopinionsexpressedbytheauthorsaretheirexclusiveresponsibility
ISSN 1684-5285
Monograph of next issue (August 2009)
"20 years of CEPIS: Informatics in
Europe today and tomorrow"
(The full schedule of UPGRADE is available at our website)
Monograph: Libre Software for Enterprises
(published jointly with Novática*)
Guest Editors: Jesús-M. González-Barahona, Teófilo Romera-Otero,
and Björn Lundell
54 UPGRADE Vol. X, No. 2, April 2009 © CEPIS
UPENET
Mobile Technologies
A Case Study of the Global System of Mobile Communication
(GSM) in Nigeria
Adeyinka Tella, ’Niran Adetoro, and Paul Adesola Adekunle
© 2009 Novática
This paper will be published, in Spanish, by Novática. Novática, <http://www.ati.es/novatica>, a founding member of UPENET,
is a bimonthly journal published, in Spanish, by the Spanish CEPIS society ATI (Asociación de Técnicos de Informática – Association
of Computer Professionals).
This paper presents a case study of the implementation of the Global System of Mobile Communication (GSM) in Nigeria,
that started in 2001. The paper includes a discussion on the nature of this system, a brief history of GSM in Nigeria as a
success story, demographics of users, benefits, problems/challenges and recommendations for future development and
improvement of GSM services in the country. It also provides some insights into the problems developing countries face in
this industry compared to those of the developed world.
Keywords: Africa, Case Study,
Communications, GSM, ICT, Informa-
tion and Communication Technolo-
gies, Nigeria.
1 Introduction
There is no doubt that communica-
tions are a major driver for any
economy. Emerging trends in socio-
economic growth show a high pre-
mium being placed on Information and
Communication Technologies (ICT)
by homes, organisations, and nations.
Improved Information Technologies
(IT), especially as far as digital com-
puter systems are concerned, are be-
coming more affordable and accessi-
ble to an increasing number of people.
Communication technologies, coupled
with the advances in information tech-
nologies, are innovations which allow
voice and data to be communicated
anywhere in the world at affordable
cost thus enabling a significant number
of people, rather than limiting its ac-
cessibility to small minority of people.
ICT have also permitted a range of
technological and institutional devel-
opments. These developments repre-
sent a major break with the past that is
Authors
Adeyinka Tella is a graduating commonwealth doctoral student and TeachingAssistant
in the Department of Library and Information Studies, Faculty of Humanities, University
of Botswana. He has wider research areas of interest. These include information system
and management, e-learning system, psychology of information, digital divide, and
information communication technology and education, etc. <tellayinkaedu@
yahoo.com>
‘Niran Adetoro received the Ph.D. degree in Library and Information Studies from
The University of Ibadan, Nigeria, in 2008. He was formerly a librarian at the Tai-
Solarin University of Education Ijebu-Ode, Ogun State, Nigeria and currently a lecturer
in the Department of Library and Information Studies at the same university. His research
interest is in the area of information technology. <niranadetoro@yahoo.com>
Paul Adesola Adelunke is a PhD student at the Abadina Resource Center, University
of Ibadan, Nigeria, and a Librarian at the Bowen University, Iwo, Osun State, Nigeria.
<adekunlesola1@yahoo.com>
producing significant qualitative
changes in what is being produced,
where, how and by whom. The changes
are cumulative and incremental. There
are already signs that ICT are begin-
ning to transform systems of produc-
tion and the relationships between
firms and States in the international
economy. These changes are acceler-
ating because technological advances
continue to bring about reductions in
the costs of ICT. As cost reduces, the
range of possible applications expands
into new areas. One of the new areas
or innovations brought about by ICT
is the Global System for Mobile com-
munication (GSM).
2 The Nature of GSM in Nigeria
The world is fast becoming a glo-
UPGRADE Vol. X, No. 2, April 2009 55
© CEPIS
UPENET
bal village and a necessary tool for this
process is communication of which tel-
ecommunication is a key player. The
quantum development in the telecom-
munications industry all over the world
is very rapid as one innovation replaces
another in a matter of weeks. A major
breakthrough is the wireless telephone
system which comes in either fixed
wireless telephone lines or the Global
System of Mobile Communications
(GSM). GSM is a technology widely
appreciated and accepted by Nigerians
as it has helped in various aspects of
the economy.
Mobile phones are more than just
a fixed-line alternative; however they
are now recognised that they are also
‘mobile’. This ‘communications on the
move’ means people can engage in
development activities that previously
would not have been possible. For ex-
ample, mobile phones enable State sur-
veillance and also allow citizens to
monitor the State.
GSM is multi-functional with many
opportunities, by means of which
many of the world’s poor communities
have access not just to a phone but to a
camera, calculator, audio player, video
player, timepiece and good enough a
platform for email and Web use. GSM
is also cross-functional by bringing
together services that cut across exist-
ing boundaries and present govern-
ments with new platforms for taking
decisions.
GSM technology is one of the lead-
ing digital cellular systems. GSM uses
narrowband TDMA (Time Division
Multiple Access), which allows eight
simultaneous calls on the same radio
frequency. It is considered as the most
advanced digital cellular technology.
GSM networks are leaders in many
typical digital services including the
Short Message Service (SMS), Over
TheAir (OTA) configuration and GSM
positioning. The SIM card (Subscriber
Identification Module) is also a unique
and essential component of GSM
phones. Technically, GSM was built
based on the TDMA protocol.
3 Brief History of GSM in Ni-
geria
In July 1999, the reigning President
of the country announced plans to pri-
vatise Nigeria Telecommunication
Limited (NITEL, as it is known), which
Globacom (Glomobile) through an-
other transparent auction process. To
further increase competition, a fifth
mobile license (with GSM spectrum)
was awarded to Emerging Market Tel-
ecommunications Services Limited,
otherwise known as Starcoms, in 2005.
However, four years after the first
GSM trail was blazed, the GSM indus-
try in Nigeria has changed tremen-
dously. Competition for subscribers is
getting fierce. Operators have resorted
to "price wars" in order to win sub-
scribers. Subscribers, on the other
hand, have more choices than ever re-
garding which GSM operator to use.
To attract, maintain and move subscrib-
ers to high-value services such as
voice, data and multimedia applica-
tions, network operators must provide
high quality services. Providing qual-
ity services will require monitoring and
quality assurance with a view to
optimize the network. The ever in-
creasing number of GSM operators
with its lower tariffs on calls has led to
continuously increasing number of
subscribers, which has made Nigeria
the largest GSM market inAfrica over-
taking and beating South Africa.
4 Demographics of GSM Users
in Nigeria
In Nigeria there were about
450,000 connected lines in May 1999
which had increased to over 38 mil-
lion lines by July 2007, boosting
teledensity growth from 0.4% to 24%
[10]. As mentioned before, early in
2008 Nigeria overtook SouthAfrica to
become the continent’s largest mobile
market with over 44 million subscrib-
ers. New customers are currently sign-
ing up at a rate of almost one per sec-
ond [5]. The capacity for growth in the
number of phone lines in the country
over the next decade remains quite
high, as some parts of the country are
yet to be covered.
5 Benefits of Mobile Telephony
in Nigeria
Nigerians have benefited im-
mensely from the advent and maturity
of a mobile telephone system. Many
Nigerians now have easy and quick
access to the phone, whereas compared
to when mobile telephones were intro-
duced in 2001, only rare and wealthy
Nigerians could afford telephone lines
previously monopolised telecommuni-
cation operation in Nigeria. Since then
a number of operators have entered the
market, including Em international
(EMIS), Prest Cable, Motophone Ni-
geria and Wireless Systems Nigeria. So
far these companies have concentrated
their services on urban. Nigeria has had
a very limited telephone network for
many years and the waiting list is esti-
mated to be over 10 million prospec-
tive subscribers who have applied to
the operators for their services. About
6 cities have IDD (International Direct
Dialing).
The replacement of Nigeria’s out-
dated telecommunications infrastruc-
ture through both multilateral and Ni-
gerian funding still constitutes a prior-
ity program of the Nigerian govern-
ment. NITEL has approved eight pri-
vate firms to be connected to its switch-
ing system in order to provide services
to different Nigerian zones. Seven of
these firms, VGC Communications,
Mobitel, Multilinks, Intercellular,
EMTelecommunications, Spar Com-
munications and GSM Celia com-
menced operation in Lagos area [12].
In August 2001 the first Global
System for Mobile (GSM) communi-
cations call was made under a demo-
cratic government. This event heralded
the dawn of a new era, "the era of GSM
technology", which has completely
changed the way of doing business in
Nigeria. Prior to 2001, the number of
connected phone lines in the country
were a mere 450,000 for an estimated
population of 120 million at the time
and the level of investment in the tel-
ecommunications sector was just about
US$50 million only [4]. Six years af-
ter, the growth in telecommunications
sector is unmatched by any other sec-
tor and it has recorded a phenomenal
growth both in terms of subscribers’
base and infrastructural development
in the country. In January 2001, the
commission conducted an auction for
digital mobile licenses. This auction
was acclaimed locally and internation-
ally as one of the best in the world due
to its high level of transparency. The
auction brought about the emergence
of three mobile Operators: ECONET
Wireless now (Zain), MTN and MTEL,
an offshoot of the incumbent operator
NITEL. In 2002 a fourth Digital Mo-
bile License (DML) was issued to
56 UPGRADE Vol. X, No. 2, April 2009 © CEPIS
UPENET
[12]. Different categories of the popu-
lation can now afford to own a mobile
line. According to [9] it is instructive
to note that while connected lines only
grew at an average of 10,000 lines per
annum in the four decades between
independence in 1960 and the end of
2000, between 2001 and 2003, an av-
erage growth rate of over 1 million
lines per annum was attained; as of
September 2003, Nigeria had attained
over 3 million lines (2.3 million of
which were digital mobile lines). To-
tal teledensity, which had been 0.4 lines
per 100 inhabitants in 1999, stood at
2.6 per 100 inhabitants by September,
2003. Ndukwe goes on to explain that
this progress is largely due to the lib-
eralisation of the Nigerian telecom
market.
Essentially the advent of GSM in
Nigeria in 2001 has generated a huge
number of employment opportunities
for all categories of the Nigerian popu-
lation. Uko asserts that the advent of
GSM sub-sector has added fillip to the
Federal Government’s wary battle
against unemployment [17]. Since
2001 when the three GSM companies
became operational, some 3,000 peo-
ple have been directly employed by
MTN, Econet and M-Tel, while
Globacom’s entry into the market
added a couple of hundreds to the class
of people who have been employed.
However, the number employed indi-
rectly by the GSM sub-sector is im-
measurable because scores of new
businesses have come about courtesy
of the sub-sector. The list is endless,
from various levels of dealerships, to
the cellphone vendors, and suppliers
of accessories, repair shops, the static
and the itinerant call shops and street
recharge card hawkers. This technol-
ogy has to some extent alleviated the
problem of unemployment in the coun-
try.
Corroborating the point above
Omeruo remarks that some of the
blessings of mobile communication in
Nigeria have been directly or indirectly
on the common people, the corporate
and business worlds, and the society
at large [14]. Job creation and employ-
ment are some of the good things that
GSM brought to us, the sector been the
highest employer of both skilled and
unskilled manpower in recent times.A
great number of people, especially
young graduates, have been given em-
ployment in the GSM companies
where they make a living and are use-
ful to their families. This somehow has
reduced crime rate.
Omeruo goes further to say that,
apart from this direct employment, jobs
have been created where many people
are self reliant doing their own GSM
businesses, one of such business is
making calls and the sale of recharge
cards to GSM users. This business is
popularly known as business centers
or call centers. Looking around the cit-
ies, towns and even villages one will
hardly walk about two poles without
seeing a business center mainly char-
acterized by the use of umbrellas, ki-
osks and even shops painted with the
colors of the mobile service providers.
It is easy to start because it requires
little initial capital, in fact all you need
is your umbrella as a shade, a stool, a
table and your handset loaded with
calling credit of any amount starting
with as little as 100 nairas (Nigerias’
currency, approx. 0.50 euros). This has
provided a means of livelihood for
many people who would have been
unemployed otherwise. Some have
also learnt the technical aspect of the
business of repairing and fixing of
mobile phones in their repair shops-
mobile or stationary as the case may
be.
On the social benefits of GSM to
the Nigerians, Omeruo points out that
Nigerians have benefited from the cor-
porate social responsibility of service
providers and phone companies [14].
Some have provided educational facili-
ties, AIDS campaign awareness and
amelioration, state-of-the-art ICT labs
to educational institutions, scholarship
awards to indigent and deserving stu-
dents, financial and equipment dona-
tions to hospitals and sponsorship of
several events. One of such events is
the Globacom Premier Football
League in Nigeria and theAfrican con-
tinent with the Confederation of Afri-
can Football (CAF) been the benefici-
ary. This usually involves setting aside
huge amount of money for sport and
football development in Nigeria, the
host community, in particular and Af-
rican Continent in general. Many indi-
viduals have also benefited from these
companies by being their ambassadors.
Nigerian social life has also being
impacted on. Relationships with
friends, relatives and loved ones are
kept alive through phones calls. In this
sense Omeruo says: "I have personally
benefited from the mid night free calls
being offered by MTN, I have good
time to talk to my friends and loved
ones" [14, p. 4].
Other by-products include the fact
that GSM has greatly reduced the need
and frequency of travelling for those
who possess mobile phone and have
access to it. Instead of travelling to
deliver some messages, people just
make the call and thus reduce the inci-
dence of road accidents in the country.
Olatokun and Bodunwa, in a study
on GSM usage conducted at the Uni-
versity of Ibadan, Nigeria, remarked
that GSM helps in proper management
of Nigerians’ time [13]. That is, it has
allowed for efficient use of their time.
Students can call to find out when a
class or examination will hold, lectur-
ers can be called to know if a class
would hold or not. Of the respondents,
274 (68.2 percent) agreed that GSM is
better than landline telephony. This can
be viewed from the point that GSM
phones can easily be carried about,
small and compact, convenient to use
and have various subscriber services
compared to landline phones.
Moreover, Ndukwe points to an-
other benefit of GSM to Nigeria by
emphasizing that business transactions
are far more productive and yet cheaper
and more convenient than they used to
be [9]. Citing the example of a jour-
nalist, sourcing for news, conducting
interviews, reverting to bosses or sub-
ordinates as the case may be, has be-
come far more seamless and produc-
tive than it used to be. The mobile
phone is empowering every social class
upper, middle and lower. Ndukwe con-
cludes that if there is a list of outstand-
ing dividends of Nigeria’s transition to
democracy in 1999, GSM must rank
very high on that list if not top it alto-
gether.
On his own Aihe emphasized that
another gift of GSM to Nigeria is that
it exemplifies the strength and beauty
of industrial regulation [2]. While the
uninformed may not fully appreciate
the complexity of telecom regulation
especially in a developing country like
Nigeria, the truth is that the Nigerian
Communications Commission (NCC)
UPGRADE Vol. X, No. 2, April 2009 57
© CEPIS
C EPIS NEWS
in the last 7 or 8 years has shown the
country and the continent at large how
telecom regulation ought to be carried
out in order to preserve the delicate
balance of interests between investors/
financiers, government and telecom
subscribers respectively. It has demon-
strated that there are times when moral
suasion should be applied and times
when force should be applied and yet
other times when market forces should
be allowed to play their role.
6 The Success Story of GSM
in Nigeria
Nigeria is often identified as the
fastest moving economy and one of the
most advanced ICT market sectors in
the Africa. It has the largest popula-
tion in Africa and Nigerian market’s
high level of sophistication makes it an
exciting and attractive market. In just
a few years, Nigeria has become the
Telecom hotspot in Africa for both
telecom operators and equipment sup-
pliers.
In 2004, Nigeria now has about five
million mobile lines and about one
million fixed wireless lines, compared
to just about 450,000 NITEL working
lines three years before. Since the GSM
launch, mobile telephony has rapidly
become the most popular method of
voice communication in Nigeria.
Growth has been so rapid that Nigeria
has been rightly described by various
commentators as "one of the fastest
growing GSM markets in the world".
The number of connected mobile
phones in the country rose from
266,461 in 2001 to 32,322,202 units
in 2006, indicating a monumental in-
crease of 12,030.18 percent. Accord-
ing to the NCC, the total number of
mobile subscribers in the country stood
at 18.6 million at the end of 2005, a
penetration rate of around 16% and
close to the regulator’s predicted end-
year figure of 20 million. The NCC
said it hopes to see the total number of
subscribers grow to 50 million by
2010. At the end of 2005, there were
1.22 million fixed wireless line cus-
tomers in the country.
In 2007 Online Nigeria.com stated
that the mobile phone sector has been
a booming industry [15]. At that time
there were approximately 1.25m
landlines in Nigeria, whereas there
were more than 30m mobile phone
subscribers.Analysts believed that this
growth would continue, with Nigeria
overtaking South Africa to become
Africa’s largest market by the end of
2007.
In the first nine months of 2007, the
country’s four mobile operators –
MTN, Globacom, Celtel (presently
Zain) and M-Tel – added over 7mn net
additions to take the market total to
almost 37mn subscribers. Given this
robust growth, the mobile sector com-
fortably met the year-end target of
39.4mn, taking mobile penetration to
almost 30%. A number of major con-
tract announcements prove that opera-
tors are still in full expansion mood,
with MTN securing a US$2bn loan to
fund its network expansion over the
next five years. Meanwhile, in Decem-
ber 2007 Globacom became the first
operator to launch commercial 3G
services in Nigeria. The service was
initially available only in the cities of
Lagos, Abuja and Port Harcourt, al-
though Globacom said that they will
be extended to other major urban ar-
eas in due course [6].
In 2008 AfricanLoft.com revealed
[1] that Nigerians woke up to read
about the sustained growth of the posi-
tive surprise that is now synonymous
with the nation’s telecommunication
sector – telephone subscribers were
46.2 million! Having about 10% of the
population as mobile phone subscrib-
ers is indeed a landmark for the Nigeria
Telecoms sector –an industry that com-
menced within the last decade. How-
ever, it’s ironic that the new subscriber
figures were released about the time it
was almost impossible to have a five
minutes mobile phone conversation
without losing signal.
The advent of GSM has brought
about new opportunities and chal-
lenges particularly to the millions of
its users across Nigeria.
Many Nigerians believe that the
GSM revolution in Nigeria is the sec-
ond independence for Nigeria, consid-
ering the ample opportunities it offers
and the ability it provides for stress-
free communication. There is no doubt
about the fact that Nigeria GSM mar-
ket is growing at an astronomical rate.
Going by the current statistics, Nigeria
– that currently account for 14 percent
of Africa’s total mobile users – is ex-
pected to increase the number of users
by 5 percent before the year ends. In
addition, the country is expected to add
13 million subscriptions above the year
2006, which increases the subscrip-
tions to 44 percent.
Based on the information above
and available statistics of GSM sub-
scription and utilisation from the time
it was introduced in Nigeria in 1999
till date compared to other African
countries, one can emphatically and
unequivocally conclude that GSM has
been a success in Nigeria.
7 Problems of GSM in Nigeria
Every good invention comes with
its attendant shortcomings. The same
is true for GSM. Due to daily expan-
sion of the GSM technology, the net-
works continues to experience prob-
lems such as difficulties in
interconnectivity, network congestion,
loading of recharge cards and occa-
sional and abnormal billing practices
engendered by infrastructural break-
down. These problems associated with
GSM since its introduction in Nigeria
will be discussed in this section. Both
the technical and social problems of
GSM in Nigeria will be considered and
possibly offer solution and the way
forward to overcome the problems.
There are several challenges facing
the GSM sub-sector in Nigeria. One of
these is the need to extend mobile cov-
erage to every nook and cranny of Ni-
geria. At present, mobile coverage is
yet to be extended to 40 percent of
Nigeria geographical spread. This
means that people in those areas can-
not benefit from the effects of mobile
telephony. It should be noted that most
of the uncovered areas are the rural
parts of the country where about 70
percent of the inhabitants dwell.
Another challenge is the need to
increase the number of mobile phone
subscribers. Nigeria is a vast country
with a population of approximately
140 million inhabitants. Thus, most of
the inhabitants are not telephone sub-
scribers. Though the number of sub-
scribers keeps increasing since the ad-
vent of GSM in Nigeria, more efforts
need to be made by the operators to
ensure that most Nigerians own and
use mobile phones. Some steps can be
taken by the operators to achieve this.
Ndukwe has identified some chal-
lenges faced by the Nigerian telecom
58 UPGRADE Vol. X, No. 2, April 2009 © CEPIS
UPENET
sector [9]. He notes that for starters,
telecommunication is a highly capital
intensive business, requiring massive
importation of equipment from abroad
and therefore massive funding.
Telecom operators in Nigeria had suf-
fered from the timidity of major local
financial institutions in and the lack of
access to long-term capital. The indus-
try is also held back by the lack of re-
liable transmission infrastructure in the
country, which has forced the major
mobile operators to divert network ac-
cess resources to build their own in-
frastructure and has led them to review
their financial and business plans. Fur-
thermore, lack of sufficient
interconnectivity resources and facili-
ties within both NITEL and M-Tel net-
works continue to hinder seamless in-
terconnection. However measures are
being pursued by the new management
of NITEL and M-Tel which hopefully
will result in full interconnection soon.
Operators also contend with inad-
equate and erratic electricity supply,
poor security and vandalisation.
Ndukwe highlights additional prob-
lems to include;
„ overcoming shortage of trained
and qualified manpower;
„ financing and implementing
expansion of telecommunication facili-
ties which must go side by side with
the development of the human re-
sources capacity that will support the
industry;
„ the telecoms sector must de-
velop personnel knowledge, skill and
competencies to understand the com-
plex linkages of wireless networks,
optic fiber, satellite systems, compu-
ter-to-computer networks, Internet,
webs and a host of other telecommu-
nications technologies;
„ this new sector also needs well-
trained personnel in other specialist
areas such as finance, planning, law,
accountancy, consultancy services,
business management; computer sci-
ence, personnel management and so on
[9].
These challenges must be ad-
dressed if GSM is to attain advanced
stage in the country and if the inhabit-
ants are to derive optimal benefits from
mobile telephone services.
The main barriers to mobile phone
growth amongst non-users have been
identified as insufficient income (41%)
and high price of handsets (27%) [9].
This is in line with research by the glo-
bal GSM association that pinpointed
the cost of handsets as the single big-
gest obstacle to affordability in emerg-
ing markets. It becomes imperative to
work with mobile handset vendors to
target cheap and affordable phones.
Handset manufacturers (particularly
Motorola) have pioneered an initial
US$50 handset that over time as de-
mand increases will fall to US$40 [9].
This sounds promising, but it would
remain a challenge since nearly 80%
of distribution in Nigeria is in the so-
called "grey market" where dealers
seek to maximize price reductions.
Estimates show that for every ap-
pointed dealer there are about 30 grey
market dealers. Though such a disor-
dered market structure often makes it
frustrating for manufacturers in this
field to increase sales, it does ensure
that competition brings down prices.
Doubtless many of the phones sold are
either secondhand or refurbished and
their sellers have mostly avoided pay-
ing import tariffs.
7 Recommendations for Fu-
ture Development of GSM
The statistics that over 16 million
handsets have been sold so far, there
are 32.2 million mobile lines in Nigeria
in 2007, with the number of mobile
lines increasing to 43 million within the
first part of the year 2008 and a pro-
jection of about 76 million mobile lines
come 2011, are indicators of how the
market is and where it is going. Many
people have actually tapped into this
boom. There is no doubt about the fact
that there the number of subscribers
and GSM service providers will keep
increasing. In this light, the following
recommendations will be helpful for
future development of GSM in Nigeria.
GSM providers should consider
extending their services to the uncov-
ered areas. Cost of obtaining a line and
buying recharge cards should be re-
duced in order to meet this challenge.
Contributions to home safety and
emergency networks, improved inter-
personal communications and more
business efficiency are some of the key
objectives. GSM operators should help
create the conditions that will help to
generate public empathy more easily.
A more disciplined approach to cus-
tomer acquisition and better customer
care would definitely top the list of
these conditions.
Governments in these countries
should open up their economy to full
participation by local and international
private companies; eliminate monopo-
lies and the abuse of market domi-
nance; ensure a minimal, but transpar-
ent, regulatory intervention; locate and
satisfy people’s demand for services;
encourage the use of open standards,
protocols and technologies; protect the
consumer from ill-treatment by opera-
tors; reduce rural-urban migration by
encouraging geographical spread of
services; and remove bureaucratic
bottlenecks relating to trade and im-
ports.
There should be a policy in which
a certain percentage of the profits made
by the GSM operators is invested back
in the economy. There is still a lot to
be done in the Internet and fax capa-
bilities of GSM mobile phones in the
country. The low/slow data-carrying
capabilities of GSM telephones mean
that businesses, government agencies,
educational institutions, individuals,
etc are still not fully reaping the ben-
efits of telecommunications [13]. An
upgrade in the communication stand-
ard is therefore recommended. Though
an increasing number of Nigeria dwell-
ers are hooked to the networks, the
operators still need to ensure that prob-
lems of interconnectivity, limited mo-
bile coverage, high cost of services,
shortage of trained and qualified man-
power, low financial capital etc. are
tackled so that Nigerians can take full
advantage of mobile telephony.
When all these are put in place, it
is believed that Nigeria, and indeed
developing countries the world over,
can exploit the full opportunities of-
fered by GSM. It means essentially that
increasing GSM use will certainly
positively enhance subscribers’ profes-
sional and personal lives.
References
[1] AfricanLoft.com. Can the Nige-
rian mobile phone companies
handle the 46 million subscribers?
<http://www.africanloft.com/
com-the-nigeria-mobile-compa-
nies-handle-the-46-million-sub-
scribers/>. [Accessed 20 Decem-
UPGRADE Vol. X, No. 2, April 2009 59
© CEPIS
UPENET
ber 2008].
[2] O. Aihe. Saving GSM companies
from themselves. Vanguard
Online, 2008. <http://www.
vanguardngr.com>. [Accessed 20
December 2008].
[3] AISI.AISI – connect national ICT
profile: Nigeria (NG). <http://
www2.sn.apc.org/Africa/
countdetCFM?countries>.
[Accessed 20 August 2008].
[4] I. Ajala. GIS and GSM network
quality monitoring: A Nigeria
Case study. Directions Magazine,
2005.
[5] P. Budde. Nigeria-Mobile market-
Overview and statistics. Budde
communication, 2008.
[6] Business Monitor International.
The Nigeria Telecommunication
Report 2008. <https://
www.businessmonitor.com/bmi/
t e l e c o m m u n i c a t i o n s /
nigeriatelecommunications_
order.html>. [Accessed 20August
2008].
[7] ITU. Basic Indicators: Popula-
tion, GDP, Total Telephone Sub-
scribers per 100 People, 2002.
<http://www.itu.int/ITU-D/ict/
statistics/at_glance/basic03.pdf>.
[Accessed 22 December 2008].
[8] National Policy on Telecommuni-
cations (2000). <http://
www.ncc.gov.ng/telecommunica-
tion>. [Accessed 20 December
2008].
[9] E. Ndukwe. The role of telecom-
munication in national develop-
ment’. The Guardian, pp. 38,
2003.
[10] NigeriaBrands. Nigeria celebrates
six years of GSM mobile phones,
2007. <http://nigeriabrands.
blogs.com/2007/09/Nigeria-cel-
ebrates-six-years-of-gsm.html>.
[Accessed 15 July 2008].
[11] Nigerian Communications Com-
mission. Achievements of Nige-
rian Communications Service,
2002. <http://www.nopa.net/
Communications/messages/
2.shtml>. [Accessed 20 Decem-
ber 2008].
[12] NITEL. PTOs are tasking us. Ni-
gerian Tribune, pp. 31, 2003.
[13] M.W. Olatokun, I.O Bodunwa.
GSM usage at the University of
Ibadan. The Electronic Library 24
(4), 530-547, 2006.
[14] K. Omeruo. The impact of GSM
mobile phone on Nigerians, 2007.
<http://www.kiwanja.net/data-
b a s e / a r t i c l e / a r t i c l e _
nigeria_impact.pdf>. [Accessed
20 December 2008].
[15] Online Nigeria.com. Nigeria:
facts and figures, 2007. <http://
www. onlinenigeria.com>.
[Accessed 20 December 2008].
[16] Researchandmarket. Mobile
handset in Nigeria, 2008. <http://
www.researchandmarkets.com/
r e p o r t s / 3 1 0 8 7 1 / m o b i l e _
handsets_in_nigeria.pdf>
[Accessed 15 July 2008].
[17] V. Uko. The environment, job
creation and safety. The Guardian,
pp. 41-47, 2004.

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A Case Study Of The Global System Of Mobile Communication (GSM) In Nigeria

  • 1. 2 Presentation. Libre Software for Enterprises: Create your Product, Feed your Community, Eat your Cake! — Jesús-M. González- Barahona, Teófilo Romera-Otero, and Björn Lundell 5 Libre Software and the Corporate World — Jesús-M. González- Barahona, Teófilo Romera-Otero, and Björn Lundell 11 Best Practices for FLOSS Adoption — Carlo Daffara 17 Build and Sustain a Community of Practice: Method Applied to FLOSS Projects — Stéphane Ribas and Michel Cezon 22 Community Management in Open Source Projects — Martin Michlmayr 27 The Morfeo Project: an Open Source Approach towards Open Innovation — Cristina Breña and Andrés-Leonardo Martínez 32 Applying Open Source Software Principles in Product Lines — Frank van der Linden 41 Addressing Industry Needs in OSS — Jan-Henrik Ziesing 44 SpagoWorld, the Open Source Initiative by Engineering — Gabriele Ruffatti 51 An Opportunity for Libre Software Companies: Emerging Market in Developing Countries — Susana Muñoz-Hernández and Jesús Martínez-Mateo 54 From Novática (ATI, Spain) Mobile Technologies A Case Study of the Global System of Mobile Communication (GSM) in Nigeria — Adeyinka Tella, ’Niran Adetoro, and Paul Adesola Adekunle 60 Promoting Skills Development in Challenging Times — ECDL Foundation 62 Selected CEPIS News — Fiona Fanning * This monograph will be also published in Spanish (full version printed; summary, abstracts, and some articles online) by Novática, journal of the Spanish CEPIS society ATI (Asociación de Técnicos de Informática) at <http://www.ati.es/novatica/>. Vol. X, issue No. 3, June 2009 CEPIS NEWS UPENET (UPGRADE European NETwork) UPGRADE is the European Journal for the Informatics Professional, published bimonthly at <http://www.upgrade-cepis.org/> Publisher UPGRADE is published on behalf of CEPIS (Council of European Pro- fessional Informatics Societies, <http://www.cepis.org/>) by Novática <http://www.ati.es/novatica/>, journal of the Spanish CEPIS societyATI (Asociación deTécnicos de Informática, <http://www.ati.es/>) UPGRADE monographs are also published in Spanish (full version printed; summary, abstracts and some articles online) by Novática UPGRADE was created in October 2000 by CEPIS and was first published by Novática and INFORMATIK/INFORMATIQUE, bi- monthly journal of SVI/FSI (Swiss Federation of Professional Informatics Societies, <http://www.svifsi.ch/>) UPGRADE is the anchor point for UPENET (UPGRADE European NETwork), the network of CEPIS member societies’ publications, that currently includes the following ones: • Informatica, journal from the Slovenian CEPIS society SDI •Informatik-Spektrum,journalpublishedbySpringerVerlagonbehalf of the CEPIS societies GI, Germany, and SI, Switzerland • ITNOW, magazine published by Oxford University Press on behalf of the British CEPIS society BCS • Mondo Digitale, digital journal from the Italian CEPIS societyAICA • Novática, journal from the Spanish CEPIS societyATI • OCG Journal, journal from theAustrian CEPIS society OCG • Pliroforiki, journal from the Cyprus CEPIS society CCS • Tölvumál, journal from the Icelandic CEPIS society ISIP Editorial TeamEditorial Team Chief Editor: Llorenç Pagés-Casas Deputy Chief Editor: Francisco-Javier Cantais-Sánchez Associate Editors: Fiona Fanning, Rafael Fernández Calvo Editorial Board Prof. Wolffried Stucky, CEPIS Former President Prof. Nello Scarabottolo, CEPIS Vice President Fernando Piera Gómez and Llorenç Pagés-Casas, ATI (Spain) François Louis Nicolet, SI (Switzerland) Roberto Carniel, ALSI – Tecnoteca (Italy) UPENET Advisory Board Matjaz Gams (Informatica, Slovenia) Hermann Engesser (Informatik-Spektrum, Germany and Switzerland) Brian Runciman (ITNOW, United Kingdom) Franco Filippazzi (Mondo Digitale, Italy) Llorenç Pagés-Casas (Novática, Spain) Veith Risak (OCG Journal,Austria) Panicos Masouras (Pliroforiki, Cyprus) Thorvardur Kári Ólafsson (Tölvumál, Iceland) Rafael Fernández Calvo (Coordination) English Language Editors: Mike Andersson, David Cash, Arthur Cook, Tracey Darch, Laura Davies, Nick Dunn, Rodney Fennemore, Hilary Green, Roger Harris, Jim Holder, Pat Moody. Cover page designed by Concha Arias-Pérez "Falling Upwards" / © CEPIS 2009 Layout Design: François Louis Nicolet Composition: Jorge Llácer-Gil de Ramales Editorialcorrespondence:Llorenç Pagés-Casas <pages@ati.es> Advertising correspondence: <novatica@ati.es> UPGRADE Newslist available at <http://www.upgrade-cepis.org/pages/editinfo.html#newslist> Copyright © Novática 2009 (for the monograph) © CEPIS 2009 (for the sections UPENET and CEPIS News) All rights reserved under otherwise stated. Abstracting is permitted with credit to the source. For copying, reprint, or republication per- mission, contact the Editorial Team Theopinionsexpressedbytheauthorsaretheirexclusiveresponsibility ISSN 1684-5285 Monograph of next issue (August 2009) "20 years of CEPIS: Informatics in Europe today and tomorrow" (The full schedule of UPGRADE is available at our website) Monograph: Libre Software for Enterprises (published jointly with Novática*) Guest Editors: Jesús-M. González-Barahona, Teófilo Romera-Otero, and Björn Lundell
  • 2. 54 UPGRADE Vol. X, No. 2, April 2009 © CEPIS UPENET Mobile Technologies A Case Study of the Global System of Mobile Communication (GSM) in Nigeria Adeyinka Tella, ’Niran Adetoro, and Paul Adesola Adekunle © 2009 Novática This paper will be published, in Spanish, by Novática. Novática, <http://www.ati.es/novatica>, a founding member of UPENET, is a bimonthly journal published, in Spanish, by the Spanish CEPIS society ATI (Asociación de Técnicos de Informática – Association of Computer Professionals). This paper presents a case study of the implementation of the Global System of Mobile Communication (GSM) in Nigeria, that started in 2001. The paper includes a discussion on the nature of this system, a brief history of GSM in Nigeria as a success story, demographics of users, benefits, problems/challenges and recommendations for future development and improvement of GSM services in the country. It also provides some insights into the problems developing countries face in this industry compared to those of the developed world. Keywords: Africa, Case Study, Communications, GSM, ICT, Informa- tion and Communication Technolo- gies, Nigeria. 1 Introduction There is no doubt that communica- tions are a major driver for any economy. Emerging trends in socio- economic growth show a high pre- mium being placed on Information and Communication Technologies (ICT) by homes, organisations, and nations. Improved Information Technologies (IT), especially as far as digital com- puter systems are concerned, are be- coming more affordable and accessi- ble to an increasing number of people. Communication technologies, coupled with the advances in information tech- nologies, are innovations which allow voice and data to be communicated anywhere in the world at affordable cost thus enabling a significant number of people, rather than limiting its ac- cessibility to small minority of people. ICT have also permitted a range of technological and institutional devel- opments. These developments repre- sent a major break with the past that is Authors Adeyinka Tella is a graduating commonwealth doctoral student and TeachingAssistant in the Department of Library and Information Studies, Faculty of Humanities, University of Botswana. He has wider research areas of interest. These include information system and management, e-learning system, psychology of information, digital divide, and information communication technology and education, etc. <tellayinkaedu@ yahoo.com> ‘Niran Adetoro received the Ph.D. degree in Library and Information Studies from The University of Ibadan, Nigeria, in 2008. He was formerly a librarian at the Tai- Solarin University of Education Ijebu-Ode, Ogun State, Nigeria and currently a lecturer in the Department of Library and Information Studies at the same university. His research interest is in the area of information technology. <niranadetoro@yahoo.com> Paul Adesola Adelunke is a PhD student at the Abadina Resource Center, University of Ibadan, Nigeria, and a Librarian at the Bowen University, Iwo, Osun State, Nigeria. <adekunlesola1@yahoo.com> producing significant qualitative changes in what is being produced, where, how and by whom. The changes are cumulative and incremental. There are already signs that ICT are begin- ning to transform systems of produc- tion and the relationships between firms and States in the international economy. These changes are acceler- ating because technological advances continue to bring about reductions in the costs of ICT. As cost reduces, the range of possible applications expands into new areas. One of the new areas or innovations brought about by ICT is the Global System for Mobile com- munication (GSM). 2 The Nature of GSM in Nigeria The world is fast becoming a glo-
  • 3. UPGRADE Vol. X, No. 2, April 2009 55 © CEPIS UPENET bal village and a necessary tool for this process is communication of which tel- ecommunication is a key player. The quantum development in the telecom- munications industry all over the world is very rapid as one innovation replaces another in a matter of weeks. A major breakthrough is the wireless telephone system which comes in either fixed wireless telephone lines or the Global System of Mobile Communications (GSM). GSM is a technology widely appreciated and accepted by Nigerians as it has helped in various aspects of the economy. Mobile phones are more than just a fixed-line alternative; however they are now recognised that they are also ‘mobile’. This ‘communications on the move’ means people can engage in development activities that previously would not have been possible. For ex- ample, mobile phones enable State sur- veillance and also allow citizens to monitor the State. GSM is multi-functional with many opportunities, by means of which many of the world’s poor communities have access not just to a phone but to a camera, calculator, audio player, video player, timepiece and good enough a platform for email and Web use. GSM is also cross-functional by bringing together services that cut across exist- ing boundaries and present govern- ments with new platforms for taking decisions. GSM technology is one of the lead- ing digital cellular systems. GSM uses narrowband TDMA (Time Division Multiple Access), which allows eight simultaneous calls on the same radio frequency. It is considered as the most advanced digital cellular technology. GSM networks are leaders in many typical digital services including the Short Message Service (SMS), Over TheAir (OTA) configuration and GSM positioning. The SIM card (Subscriber Identification Module) is also a unique and essential component of GSM phones. Technically, GSM was built based on the TDMA protocol. 3 Brief History of GSM in Ni- geria In July 1999, the reigning President of the country announced plans to pri- vatise Nigeria Telecommunication Limited (NITEL, as it is known), which Globacom (Glomobile) through an- other transparent auction process. To further increase competition, a fifth mobile license (with GSM spectrum) was awarded to Emerging Market Tel- ecommunications Services Limited, otherwise known as Starcoms, in 2005. However, four years after the first GSM trail was blazed, the GSM indus- try in Nigeria has changed tremen- dously. Competition for subscribers is getting fierce. Operators have resorted to "price wars" in order to win sub- scribers. Subscribers, on the other hand, have more choices than ever re- garding which GSM operator to use. To attract, maintain and move subscrib- ers to high-value services such as voice, data and multimedia applica- tions, network operators must provide high quality services. Providing qual- ity services will require monitoring and quality assurance with a view to optimize the network. The ever in- creasing number of GSM operators with its lower tariffs on calls has led to continuously increasing number of subscribers, which has made Nigeria the largest GSM market inAfrica over- taking and beating South Africa. 4 Demographics of GSM Users in Nigeria In Nigeria there were about 450,000 connected lines in May 1999 which had increased to over 38 mil- lion lines by July 2007, boosting teledensity growth from 0.4% to 24% [10]. As mentioned before, early in 2008 Nigeria overtook SouthAfrica to become the continent’s largest mobile market with over 44 million subscrib- ers. New customers are currently sign- ing up at a rate of almost one per sec- ond [5]. The capacity for growth in the number of phone lines in the country over the next decade remains quite high, as some parts of the country are yet to be covered. 5 Benefits of Mobile Telephony in Nigeria Nigerians have benefited im- mensely from the advent and maturity of a mobile telephone system. Many Nigerians now have easy and quick access to the phone, whereas compared to when mobile telephones were intro- duced in 2001, only rare and wealthy Nigerians could afford telephone lines previously monopolised telecommuni- cation operation in Nigeria. Since then a number of operators have entered the market, including Em international (EMIS), Prest Cable, Motophone Ni- geria and Wireless Systems Nigeria. So far these companies have concentrated their services on urban. Nigeria has had a very limited telephone network for many years and the waiting list is esti- mated to be over 10 million prospec- tive subscribers who have applied to the operators for their services. About 6 cities have IDD (International Direct Dialing). The replacement of Nigeria’s out- dated telecommunications infrastruc- ture through both multilateral and Ni- gerian funding still constitutes a prior- ity program of the Nigerian govern- ment. NITEL has approved eight pri- vate firms to be connected to its switch- ing system in order to provide services to different Nigerian zones. Seven of these firms, VGC Communications, Mobitel, Multilinks, Intercellular, EMTelecommunications, Spar Com- munications and GSM Celia com- menced operation in Lagos area [12]. In August 2001 the first Global System for Mobile (GSM) communi- cations call was made under a demo- cratic government. This event heralded the dawn of a new era, "the era of GSM technology", which has completely changed the way of doing business in Nigeria. Prior to 2001, the number of connected phone lines in the country were a mere 450,000 for an estimated population of 120 million at the time and the level of investment in the tel- ecommunications sector was just about US$50 million only [4]. Six years af- ter, the growth in telecommunications sector is unmatched by any other sec- tor and it has recorded a phenomenal growth both in terms of subscribers’ base and infrastructural development in the country. In January 2001, the commission conducted an auction for digital mobile licenses. This auction was acclaimed locally and internation- ally as one of the best in the world due to its high level of transparency. The auction brought about the emergence of three mobile Operators: ECONET Wireless now (Zain), MTN and MTEL, an offshoot of the incumbent operator NITEL. In 2002 a fourth Digital Mo- bile License (DML) was issued to
  • 4. 56 UPGRADE Vol. X, No. 2, April 2009 © CEPIS UPENET [12]. Different categories of the popu- lation can now afford to own a mobile line. According to [9] it is instructive to note that while connected lines only grew at an average of 10,000 lines per annum in the four decades between independence in 1960 and the end of 2000, between 2001 and 2003, an av- erage growth rate of over 1 million lines per annum was attained; as of September 2003, Nigeria had attained over 3 million lines (2.3 million of which were digital mobile lines). To- tal teledensity, which had been 0.4 lines per 100 inhabitants in 1999, stood at 2.6 per 100 inhabitants by September, 2003. Ndukwe goes on to explain that this progress is largely due to the lib- eralisation of the Nigerian telecom market. Essentially the advent of GSM in Nigeria in 2001 has generated a huge number of employment opportunities for all categories of the Nigerian popu- lation. Uko asserts that the advent of GSM sub-sector has added fillip to the Federal Government’s wary battle against unemployment [17]. Since 2001 when the three GSM companies became operational, some 3,000 peo- ple have been directly employed by MTN, Econet and M-Tel, while Globacom’s entry into the market added a couple of hundreds to the class of people who have been employed. However, the number employed indi- rectly by the GSM sub-sector is im- measurable because scores of new businesses have come about courtesy of the sub-sector. The list is endless, from various levels of dealerships, to the cellphone vendors, and suppliers of accessories, repair shops, the static and the itinerant call shops and street recharge card hawkers. This technol- ogy has to some extent alleviated the problem of unemployment in the coun- try. Corroborating the point above Omeruo remarks that some of the blessings of mobile communication in Nigeria have been directly or indirectly on the common people, the corporate and business worlds, and the society at large [14]. Job creation and employ- ment are some of the good things that GSM brought to us, the sector been the highest employer of both skilled and unskilled manpower in recent times.A great number of people, especially young graduates, have been given em- ployment in the GSM companies where they make a living and are use- ful to their families. This somehow has reduced crime rate. Omeruo goes further to say that, apart from this direct employment, jobs have been created where many people are self reliant doing their own GSM businesses, one of such business is making calls and the sale of recharge cards to GSM users. This business is popularly known as business centers or call centers. Looking around the cit- ies, towns and even villages one will hardly walk about two poles without seeing a business center mainly char- acterized by the use of umbrellas, ki- osks and even shops painted with the colors of the mobile service providers. It is easy to start because it requires little initial capital, in fact all you need is your umbrella as a shade, a stool, a table and your handset loaded with calling credit of any amount starting with as little as 100 nairas (Nigerias’ currency, approx. 0.50 euros). This has provided a means of livelihood for many people who would have been unemployed otherwise. Some have also learnt the technical aspect of the business of repairing and fixing of mobile phones in their repair shops- mobile or stationary as the case may be. On the social benefits of GSM to the Nigerians, Omeruo points out that Nigerians have benefited from the cor- porate social responsibility of service providers and phone companies [14]. Some have provided educational facili- ties, AIDS campaign awareness and amelioration, state-of-the-art ICT labs to educational institutions, scholarship awards to indigent and deserving stu- dents, financial and equipment dona- tions to hospitals and sponsorship of several events. One of such events is the Globacom Premier Football League in Nigeria and theAfrican con- tinent with the Confederation of Afri- can Football (CAF) been the benefici- ary. This usually involves setting aside huge amount of money for sport and football development in Nigeria, the host community, in particular and Af- rican Continent in general. Many indi- viduals have also benefited from these companies by being their ambassadors. Nigerian social life has also being impacted on. Relationships with friends, relatives and loved ones are kept alive through phones calls. In this sense Omeruo says: "I have personally benefited from the mid night free calls being offered by MTN, I have good time to talk to my friends and loved ones" [14, p. 4]. Other by-products include the fact that GSM has greatly reduced the need and frequency of travelling for those who possess mobile phone and have access to it. Instead of travelling to deliver some messages, people just make the call and thus reduce the inci- dence of road accidents in the country. Olatokun and Bodunwa, in a study on GSM usage conducted at the Uni- versity of Ibadan, Nigeria, remarked that GSM helps in proper management of Nigerians’ time [13]. That is, it has allowed for efficient use of their time. Students can call to find out when a class or examination will hold, lectur- ers can be called to know if a class would hold or not. Of the respondents, 274 (68.2 percent) agreed that GSM is better than landline telephony. This can be viewed from the point that GSM phones can easily be carried about, small and compact, convenient to use and have various subscriber services compared to landline phones. Moreover, Ndukwe points to an- other benefit of GSM to Nigeria by emphasizing that business transactions are far more productive and yet cheaper and more convenient than they used to be [9]. Citing the example of a jour- nalist, sourcing for news, conducting interviews, reverting to bosses or sub- ordinates as the case may be, has be- come far more seamless and produc- tive than it used to be. The mobile phone is empowering every social class upper, middle and lower. Ndukwe con- cludes that if there is a list of outstand- ing dividends of Nigeria’s transition to democracy in 1999, GSM must rank very high on that list if not top it alto- gether. On his own Aihe emphasized that another gift of GSM to Nigeria is that it exemplifies the strength and beauty of industrial regulation [2]. While the uninformed may not fully appreciate the complexity of telecom regulation especially in a developing country like Nigeria, the truth is that the Nigerian Communications Commission (NCC)
  • 5. UPGRADE Vol. X, No. 2, April 2009 57 © CEPIS C EPIS NEWS in the last 7 or 8 years has shown the country and the continent at large how telecom regulation ought to be carried out in order to preserve the delicate balance of interests between investors/ financiers, government and telecom subscribers respectively. It has demon- strated that there are times when moral suasion should be applied and times when force should be applied and yet other times when market forces should be allowed to play their role. 6 The Success Story of GSM in Nigeria Nigeria is often identified as the fastest moving economy and one of the most advanced ICT market sectors in the Africa. It has the largest popula- tion in Africa and Nigerian market’s high level of sophistication makes it an exciting and attractive market. In just a few years, Nigeria has become the Telecom hotspot in Africa for both telecom operators and equipment sup- pliers. In 2004, Nigeria now has about five million mobile lines and about one million fixed wireless lines, compared to just about 450,000 NITEL working lines three years before. Since the GSM launch, mobile telephony has rapidly become the most popular method of voice communication in Nigeria. Growth has been so rapid that Nigeria has been rightly described by various commentators as "one of the fastest growing GSM markets in the world". The number of connected mobile phones in the country rose from 266,461 in 2001 to 32,322,202 units in 2006, indicating a monumental in- crease of 12,030.18 percent. Accord- ing to the NCC, the total number of mobile subscribers in the country stood at 18.6 million at the end of 2005, a penetration rate of around 16% and close to the regulator’s predicted end- year figure of 20 million. The NCC said it hopes to see the total number of subscribers grow to 50 million by 2010. At the end of 2005, there were 1.22 million fixed wireless line cus- tomers in the country. In 2007 Online Nigeria.com stated that the mobile phone sector has been a booming industry [15]. At that time there were approximately 1.25m landlines in Nigeria, whereas there were more than 30m mobile phone subscribers.Analysts believed that this growth would continue, with Nigeria overtaking South Africa to become Africa’s largest market by the end of 2007. In the first nine months of 2007, the country’s four mobile operators – MTN, Globacom, Celtel (presently Zain) and M-Tel – added over 7mn net additions to take the market total to almost 37mn subscribers. Given this robust growth, the mobile sector com- fortably met the year-end target of 39.4mn, taking mobile penetration to almost 30%. A number of major con- tract announcements prove that opera- tors are still in full expansion mood, with MTN securing a US$2bn loan to fund its network expansion over the next five years. Meanwhile, in Decem- ber 2007 Globacom became the first operator to launch commercial 3G services in Nigeria. The service was initially available only in the cities of Lagos, Abuja and Port Harcourt, al- though Globacom said that they will be extended to other major urban ar- eas in due course [6]. In 2008 AfricanLoft.com revealed [1] that Nigerians woke up to read about the sustained growth of the posi- tive surprise that is now synonymous with the nation’s telecommunication sector – telephone subscribers were 46.2 million! Having about 10% of the population as mobile phone subscrib- ers is indeed a landmark for the Nigeria Telecoms sector –an industry that com- menced within the last decade. How- ever, it’s ironic that the new subscriber figures were released about the time it was almost impossible to have a five minutes mobile phone conversation without losing signal. The advent of GSM has brought about new opportunities and chal- lenges particularly to the millions of its users across Nigeria. Many Nigerians believe that the GSM revolution in Nigeria is the sec- ond independence for Nigeria, consid- ering the ample opportunities it offers and the ability it provides for stress- free communication. There is no doubt about the fact that Nigeria GSM mar- ket is growing at an astronomical rate. Going by the current statistics, Nigeria – that currently account for 14 percent of Africa’s total mobile users – is ex- pected to increase the number of users by 5 percent before the year ends. In addition, the country is expected to add 13 million subscriptions above the year 2006, which increases the subscrip- tions to 44 percent. Based on the information above and available statistics of GSM sub- scription and utilisation from the time it was introduced in Nigeria in 1999 till date compared to other African countries, one can emphatically and unequivocally conclude that GSM has been a success in Nigeria. 7 Problems of GSM in Nigeria Every good invention comes with its attendant shortcomings. The same is true for GSM. Due to daily expan- sion of the GSM technology, the net- works continues to experience prob- lems such as difficulties in interconnectivity, network congestion, loading of recharge cards and occa- sional and abnormal billing practices engendered by infrastructural break- down. These problems associated with GSM since its introduction in Nigeria will be discussed in this section. Both the technical and social problems of GSM in Nigeria will be considered and possibly offer solution and the way forward to overcome the problems. There are several challenges facing the GSM sub-sector in Nigeria. One of these is the need to extend mobile cov- erage to every nook and cranny of Ni- geria. At present, mobile coverage is yet to be extended to 40 percent of Nigeria geographical spread. This means that people in those areas can- not benefit from the effects of mobile telephony. It should be noted that most of the uncovered areas are the rural parts of the country where about 70 percent of the inhabitants dwell. Another challenge is the need to increase the number of mobile phone subscribers. Nigeria is a vast country with a population of approximately 140 million inhabitants. Thus, most of the inhabitants are not telephone sub- scribers. Though the number of sub- scribers keeps increasing since the ad- vent of GSM in Nigeria, more efforts need to be made by the operators to ensure that most Nigerians own and use mobile phones. Some steps can be taken by the operators to achieve this. Ndukwe has identified some chal- lenges faced by the Nigerian telecom
  • 6. 58 UPGRADE Vol. X, No. 2, April 2009 © CEPIS UPENET sector [9]. He notes that for starters, telecommunication is a highly capital intensive business, requiring massive importation of equipment from abroad and therefore massive funding. Telecom operators in Nigeria had suf- fered from the timidity of major local financial institutions in and the lack of access to long-term capital. The indus- try is also held back by the lack of re- liable transmission infrastructure in the country, which has forced the major mobile operators to divert network ac- cess resources to build their own in- frastructure and has led them to review their financial and business plans. Fur- thermore, lack of sufficient interconnectivity resources and facili- ties within both NITEL and M-Tel net- works continue to hinder seamless in- terconnection. However measures are being pursued by the new management of NITEL and M-Tel which hopefully will result in full interconnection soon. Operators also contend with inad- equate and erratic electricity supply, poor security and vandalisation. Ndukwe highlights additional prob- lems to include; „ overcoming shortage of trained and qualified manpower; „ financing and implementing expansion of telecommunication facili- ties which must go side by side with the development of the human re- sources capacity that will support the industry; „ the telecoms sector must de- velop personnel knowledge, skill and competencies to understand the com- plex linkages of wireless networks, optic fiber, satellite systems, compu- ter-to-computer networks, Internet, webs and a host of other telecommu- nications technologies; „ this new sector also needs well- trained personnel in other specialist areas such as finance, planning, law, accountancy, consultancy services, business management; computer sci- ence, personnel management and so on [9]. These challenges must be ad- dressed if GSM is to attain advanced stage in the country and if the inhabit- ants are to derive optimal benefits from mobile telephone services. The main barriers to mobile phone growth amongst non-users have been identified as insufficient income (41%) and high price of handsets (27%) [9]. This is in line with research by the glo- bal GSM association that pinpointed the cost of handsets as the single big- gest obstacle to affordability in emerg- ing markets. It becomes imperative to work with mobile handset vendors to target cheap and affordable phones. Handset manufacturers (particularly Motorola) have pioneered an initial US$50 handset that over time as de- mand increases will fall to US$40 [9]. This sounds promising, but it would remain a challenge since nearly 80% of distribution in Nigeria is in the so- called "grey market" where dealers seek to maximize price reductions. Estimates show that for every ap- pointed dealer there are about 30 grey market dealers. Though such a disor- dered market structure often makes it frustrating for manufacturers in this field to increase sales, it does ensure that competition brings down prices. Doubtless many of the phones sold are either secondhand or refurbished and their sellers have mostly avoided pay- ing import tariffs. 7 Recommendations for Fu- ture Development of GSM The statistics that over 16 million handsets have been sold so far, there are 32.2 million mobile lines in Nigeria in 2007, with the number of mobile lines increasing to 43 million within the first part of the year 2008 and a pro- jection of about 76 million mobile lines come 2011, are indicators of how the market is and where it is going. Many people have actually tapped into this boom. There is no doubt about the fact that there the number of subscribers and GSM service providers will keep increasing. In this light, the following recommendations will be helpful for future development of GSM in Nigeria. GSM providers should consider extending their services to the uncov- ered areas. Cost of obtaining a line and buying recharge cards should be re- duced in order to meet this challenge. Contributions to home safety and emergency networks, improved inter- personal communications and more business efficiency are some of the key objectives. GSM operators should help create the conditions that will help to generate public empathy more easily. A more disciplined approach to cus- tomer acquisition and better customer care would definitely top the list of these conditions. Governments in these countries should open up their economy to full participation by local and international private companies; eliminate monopo- lies and the abuse of market domi- nance; ensure a minimal, but transpar- ent, regulatory intervention; locate and satisfy people’s demand for services; encourage the use of open standards, protocols and technologies; protect the consumer from ill-treatment by opera- tors; reduce rural-urban migration by encouraging geographical spread of services; and remove bureaucratic bottlenecks relating to trade and im- ports. There should be a policy in which a certain percentage of the profits made by the GSM operators is invested back in the economy. There is still a lot to be done in the Internet and fax capa- bilities of GSM mobile phones in the country. The low/slow data-carrying capabilities of GSM telephones mean that businesses, government agencies, educational institutions, individuals, etc are still not fully reaping the ben- efits of telecommunications [13]. An upgrade in the communication stand- ard is therefore recommended. Though an increasing number of Nigeria dwell- ers are hooked to the networks, the operators still need to ensure that prob- lems of interconnectivity, limited mo- bile coverage, high cost of services, shortage of trained and qualified man- power, low financial capital etc. are tackled so that Nigerians can take full advantage of mobile telephony. When all these are put in place, it is believed that Nigeria, and indeed developing countries the world over, can exploit the full opportunities of- fered by GSM. It means essentially that increasing GSM use will certainly positively enhance subscribers’ profes- sional and personal lives. References [1] AfricanLoft.com. 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