THE EFFECTS OF COLOCATION ARRANGEMENT ON COST EFFICIENCY OF SELECTED GSM FIRMS IN NIGERIA

This research work focused on the effects of Collocation arrangement on Cost Efficiency of selected GSM firms in Nigeria. The sources of data for this research work were exclusive primary data sources. Primary data sources for this research work were obtained from structured and standardized copies of questionnaire targeted to 200 respondents. The respondents were professionals or stakeholders in the area of the research interest. Data collected were subjected to multiple regression analysis. On the basis of the multiple regression output, a relationship model was estimated. It was found from the results of the study that colocation arrangements as a whole and (or) individually has significant effect of cost efficiency. This significance was attributed to the following aspects of colocation arrangements: security arrangement and spectrum sharing arrangement. Other colocation arrangements such as Network operations arrangement, Core Network arrangement and Human resources arrangement were significant. We therefore make the policy recommendations: (i) the Regulatory body (NCC) should standardized the telecommunication system platforms in Nigeria (ii) Elimination of the monopolistic behaviours by the regulator (iii) Granting of more colocation licenses to third party companies (iv) the colocatees should jointly secure sites (v) the colocatees must provide adequate maintenance culture with regard to hardware and software resources (vi) Effective and efficient training and re-training programmes be organized for their staff. We then conclude that when these policies are put in place the following will be the benefits in the telecom sector: (i) Reduction in negative environmental and health hazards (ii) Optimization in the use of scarce national resources (iii) Shift in focus to service-based innovation instead of network deployment (iv) Releasing of capital for strategic investments (v) Decrease in the barriers to market entry for new entrants.