The Economic Efficiency of Android Phone Enabled Modems and Standard Modems in Nigeria: The Case of Abuja

Abstract

This study examined the economic efficiency of Android phone-enabled modems and standard modems in Nigeria. A sample of 388 commercial (cybercafe) and private internet service users were selected using random sampling. The data were analyzed using frequency and percentage calculations to identify patterns and trends as well as ordinal logit regression analysis. The research study revealed that the odds for higher economic efficiency rise when subscribers or commercial (cybercafe) and private internet service users’ monthly internet subscriptions is lower. Similarly, the study revealed that the odds for higher economic efficiency rise when subscribers or commercial (cybercafe) and private internet service user’s daily internet access time increases. Regarding connectivity issues while using an Android-enabled modem, the study showed that the odds for higher economic efficiency fall when connectivity challenges increase. The odds for higher economic efficiency increase when connectivity challenges arise while using a standard modem. The research study also showed that the odds for higher economic efficiency increases when more expensive Android phones are used. The study further revealed that the odds for higher economic efficiency will fall when subscribers or commercial (cybercafe) and private internet service users use less expensive standard modems. The study also revealed that the effect of the explanatory variables or predictors is different across the levels of the dependent or explained variable. Thus, the study recommends that regulatory agencies and operators should come up with a price per megabyte of internet access that will reduce the initial cost of services rendered by private and commercial internet users in a bid to drive economic growth. Regulators and service providers must ensure minimal or no interference with the service provided to end users in a bid to promote the economic efficiency of Internet services. Efforts must be made by the government to the efficient devices affordable, and an embargo must be placed on the importation of internet devices (phone and standard modem) with poor efficiency