Mobile Phone Evolution: The Birth Of GSM And Who Made The First Call In Nigeria –
Three operators won the licenses and each license cost $285 million.
The dawn of the 21st century marked a dramatic turning point in Nigeria’s telecommunications industry.
Prior to 2001, mobile communication in Nigeria was a luxury. It was barely accessible, unreliable, and limited to a few thousand lines operated by the state-owned NITEL. But in 2001, with the introduction of the Global System for Mobile Communications (GSM), everything changed.
The Birth of GSM in Nigeria
In 2001, under President Olusegun Obasanjo, the Nigerian government deregulated the telecom sector, inviting private players to transform a stagnant industry. This move led to a landmark auction of digital mobile licenses by the Nigerian Communications Commission (NCC).
Three operators won the licenses: MTN Nigeria, Econet Wireless (now Airtel), and NITEL’s mobile arm, M-Tel. Each license cost $285 million and they had a 90-day deadline to launch services.
This deregulation opened the doors to private investment and healthy competition in a sector that had been stagnant for decades.
Who Made The First GSM Call?
Two firsts were recorded, both symbolic of the mobile revolution. On May 6, 2001, Econet Wireless made Nigeria’s very first GSM call.
This pioneering moment marked the technical birth of mobile communication in Nigeria.
The-then Chairman Strive Masiyiwa, made the very first GSM call on May 6, 2001, to the NCC regulator, announcing, “We’re live!” In his own words,
“I had the privilege of making Nigeria’s first GSM phone call back in 2001 when I called the regulator to say, ‘We’re live!’.”
Reflecting on the historic moment, Masiyiwa described it as a symbol of enterprise in Africa.
Ten days later on May 16, 2001, MTN Nigeria made its own historic first GSM call at Maritime House in Apapa, Lagos. By August 7, 2001, Econet began commercial operations, followed shortly by MTN.
Early GSM Experience
In the early days, owning a mobile phone was a status symbol because the cost of getting connected was extremely high and varied between providers.
Econet Wireless charged:
• ₦15,000 connection fee
• ₦400 monthly access fee
• ₦15,000 for handsets
MTN Nigeria charged:
• ₦20,000 connection fee
• ₦4,000 access fee
• ₦20,000 for handsets
Despite the high costs, the demand was overwhelming. Nigerians were eager to ditch unreliable landlines for instant, mobile communication.
Following Econet and MTN, other players entered the scene. Globacom (Glo) launched in 2003 as Nigeria’s first indigenous operator. It revolutionized the market by offering free SIM cards and per-second billing.
Etisalat (now 9mobile) joined in 2008, bringing a focus on data services and youth-friendly plans. These competitors intensified the race for market share, pushing down prices and improving service quality across the country.
Challenges Faced by Telecom Operators
Despite the success, telecom providers had to battle various challenges like:
• Unstable power supply, requiring heavy reliance on diesel generators
• Multiple taxation from federal, state, and local governments
• Security concerns, including vandalism of telecom infrastructure
• Foreign exchange volatility, which increased equipment costs
• Poor road access in rural areas, limiting infrastructure rollout
As of recent reports, the Nigerian Communications Commission (NCC) reports over 187 million active GSM subscribers compared to just 400,000 landlines before 2001.
The evolution of GSM also paved the way for mobile banking, social media, online commerce, and digital learning. It has made life more connected and convenient.
Today, SIM cards cost under ₦100. Entry-level smartphones are widely available. Calls, SMS, and mobile data have become affordable, connecting people from all over… all of these was an unimaginable reality in 2001.
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