Three Essays on the Deregulation Policy and Competition in Nigeria's Telecom Industry

By deregulation of the telecom industry in 1999, the ownership of phone lines in Nigeria jumped from 0 per 100 people in 1998 to 68 per 100 people in 2012, and 79 per 100 people in 2013 (World Bank, 2013 and NCC, 2014). In addition, the number of firms competing in the telecom market increased from one firm (Nitel-the incumbent) in 1998 to 25 firms in 2013. NITEL lost its monopoly power. The international and domestic calling rates fell from N250 in 1998 to N25 in 2013 and from N40 to 60 kobo, respectively to the welfare of the people, thereby bridging the gap between the haves and have-nots. Using the state-level and the industry-level data, this study shows that the availability of mobile phone technology and investment in human capital development are important determinants of the country's technology transfer and economic growth. The study finds that the positive effect of mobile phone technology on GDP growth rate tends to be greater in low-income states and smaller in high-income states. This implies that technology reduces inequality in the distribution of economic benefits. The study also finds that the impact of technology diffusion on labor productivity is higher in industry sectors that are currently less dependent on mobile phone technology. It observes that R&D; and capital intensities also determine the degree of impact. In conclusion, mobile phone technology makes implementation of deregulation policy possible in the telecoms industry which leads to equitable distribution of telecom services which were hitherto unavailable to 97% of the population. The availability of the new technology has increased economic growth in Nigeria and labor productivity in various industry sectors.