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Keywords Nigeria, Telecommunication,
Customer services quality, Monopolies, Competitive strategy
Abstract This paper reports a study of 286 Nigerians and their perception of the Nigerian Telecommunications Limited (NITEL) customer service. The study became necessary as NITEL, which is a century-old monopoly, began preparing for a telecommunications market that had suddenly been opened to competition by the Nigerian government. Study outcomes showed that Nigerians did not consider NITEL's services to be 11 good", citing several complaints such as poor customer service in general, frequent line breakdowns, high costs, and lengthy installation time. Furthermore, a majority indicated preference for an alternative service provider in a competitive environment. The paper provides pointers to how best for NITEL to strategize considering the above research report. The paper argues that NITEL has very few choices as it is likely to cease existence if it fails to address lingering customer service issues in the coming years within this new competitive environment.
Background
Nigeria's telecommunications industry has transformed from a market dominated by a monopoly company to a relatively competitive market within a span of a few years after the liberalization of the Nigerian market in 1992. Within that period, two private competitors - MTN and Econet - have become the leaders in wireless telephony service, and another private competitor (Globacom) has begun to prepare for a long haul competition in the national fixed telephony arena. The Nigerian Telecommunications Limited (NITEL), which was the dominant monopoly for several years, must now prepare to survive in this new environment. The national interest in the survival of NITEL is one of pride, maintenance of a national economic cash cow, and a conduit for universal service strategy. The Nigerian government, which continues to own NITEL, considers the company as a symbol of government service to citizens and one of few state-owned companies that raises consistent revenue for the state. Moreover, the national telecommunication policy regards NITEL as the focal point for universal access and service. Thus, the survival of NITEL in this new environment is one in which there is enormous interest, particularly from the Nigerian government.
This report focuses on a study, which was conducted just a few months after the introduction of competition in the wireless telephony market. The study was designed...