1.1 BACKGROUND TO THE STUDY
The past 15 years have brought an unprecedented increase in access to telephone services. This growth has been driven primarily by wireless technologies and the liberalization of telecommunications markets, which allowed for faster and cheaper rollout of mobile networks. The total number of mobile phones in the world surpassed the number of fixed-line telephones in 2002; by the end of 2008, there were an estimated four billion mobile phones globally (Wireless Intelligence, 2008). The proportion of mobile phone subscriptions in developing countries increased from about 30% of the world total in 2000 to more than 50% in 2004 - and to almost 70% in 2007. No technology has ever spread faster around the world (The Economist, 2008). The introduction of competition in the mobile telephony market has often led to an immediate growth of mobile penetration (Figure 1). Countries that have taken decisive steps to establish independent regulators and foster competition have seen notable improvements in sector performance. In some cases, the announcement of a plan to issue a new license has been effective in triggering growth, encouraging the existing mobile phone operator to improve service, reduce prices, and increase market penetration before the new entrant started operations.
In recent years, steep price reductions (Figure 2), driven by technological advances, market growth, and increased competition, have contributed to the rapid expansion in mobile phone use inmany countries. Increased use of prepaid services allows mobile customers to make payments in small amounts instead of having to commit to fixed monthly subscriptions. For those who could not afford their own handsets, small loans were made available, mainly to the rural poor, to enable them to buy a mobile handset, an antenna and a large battery. This gave enterprising individuals an opportunity to rent phones to other villagers and charge for calls (The Economist, 2009). Furthermore, prepaid cards, often available in small denominations, enable even low-income consumers to have access to mobile communications, leading to higher penetration rates in poor and rural areas.In the past few years, several macroeconomic studies have suggested a link between mobile phones and economic growth (The Economist, 2009).
Sridhar and Sridhar (2004) investigate the relationship between telecommunications and the economic growth using data from 28 developing countries. The study finds that there is a positive impact of fixed lines and a significant impact of mobile phone penetration on national output. The impact of telecommunications penetration on total output is found to be significantly higher for developing countries than for OECD countries. Waverman et al ii (2005) have found that mobile telephony has a positive and significant impact on economic growth. Extra 10 mobile phones per 100 people in a typical developing country added 0.6 percentage points of growth in GDP per capita, and this impact is about twice as large in developing countries than in developed countries.
The results concur with the theory that mobile phones in less developed economies are playing the same crucial role that fixed telephony played in the richer economies in the 1970s and 1980s. Mobile phones substitute for fixed lines in poor countries, but complement fixed lines in rich countries, implying that they have a stronger growth impact in poor countries. Lee et al ii (2009) examine the effect of mobile phones on economic growth in Sub-Saharan Africa where a marked asymmetry has been observed between fixed line penetration and mobile telecommunications expansion (in favor of the latter). The findings show that mobile cellular phone expansion is an important determinant of the economic growth rate in Sub-Saharan Africa. The contribution of mobile cellular phones to economic growth has been growing in the region, and the marginal impact of mobile telecommunication services is even greater in areas where fixed-line phones are rare. The research shall therefore investigate enhancing Nigerian economy through wireless internet network.
1.2 STATEMENT OF THE PROBLEM
The advent and development of wireless internet have brought an unprecedented increase in access to telephone services. This growth has been driven primarily by wireless technologies and the liberalization of telecommunications markets, which allowed for faster and cheaper rollout of mobile networks. But how can this significant shift be made to propel developments in the economy; This research investigates enhancing Nigerian economy through wireless internet network.
1.3 RESEARCH QUESTION
1. What is the nature of wireless internet network?
2. What is the significance of wireless internet network in enhancing Nigerian economy?
1.4 OBJECTIVE OF THE STUDY
1. To determine the nature of wireless internet network
2. To determine the role of wireless internet network in enhancing the Nigerian economy
1.5 SIGNIFICANCE OF THE STUDY
The study shall provide a theoretical and conceptual appraisal of wireless internet network and shall serve a reference point of information to IT consultants and professionals.
1.6 STATEMENT OF HYPOTHESIS
H0 Wireless internet network is not significant
H1 Wireless internet network is significant
H0 The level of wireless internet network is low
H1 The level of wireless internet network is high
H0 The impact of wireless internet network on the economy is low
H1 The impact of wireless internet network on the economy is high.
1.7 SCOPE OF THE STUDY
The study centers on appraising enhancing Nigerian economy through wireless internet network.
1.8 DEFINITION OF TERMS
WIRELESS INTERNET NETWORKS: The unprecedented increase in access to telephone services growth has been driven primarily by wireless technologies and the liberalization of telecommunications markets, which allowed for faster and cheaper rollout of mobile networks.
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