Communications of the IIMA


Communication of information has been enhanced with the advent of Information and Communication Technology, mobile phone technology inclusive, which contribute to economic growth and development. This study assessed the profitability and hidden disincentives of cell phone business in Nigeria. 200 respondents were sampled in five randomly selected States. Data analysis included descriptive and gross margin techniques. In terms of gains, margin-cost ratio (MCR) of mobile phone business was 1.72 while in terms of losses, about 54% reduction in margin was experienced in using generator to provide power. It was suggested that improvement in public power supply must be relentlessly pursued.