Telecommunication services have become imperative in determining the level of economic activity in our modern world. Before opening up the telecommunication sector to a number of competitors in 2001, NITEL (established 1985)as the largest provider of telecommunication services operated an inefficient monopoly. The commercialization of the sector in 1992 witnessed expansions not only in domestic satellite, Gateways, and submarine cables but a new management structure and a GSM arm became necessary in order to enhance efficient, effective and a reliable telecommunication system in the country. At least with the split into "TERRESTRIAL and GSM" components in1996, there was the general believe that the commercialization invariably meant greater expectation in terms of service delivery to all and sundry. This however was not forth coming. NITEL's services were still rated as poor and only accessible to few in the society particularly the rich. This led to further granting of licenses to other GSM operators by the Obasanjo's administration in 1999 to improve efficiency in the sector. The study attempted to determine the extent to which the telecommunication industry in the country has been transformed in terms of expansion in the telecoms network, efficient and effective service delivery achieved with deregulation. To do this, data was gathered from the primary source through questionnaire, interview as well as non-participant observation methods. Secondary data were sourced from Text books, official publications of the BPE, CBN, and NCC. Journals, Annual Reports and News Letters from NITEL/MTEL, publications and official websites of MTN/GLO, Newspapers articles and other unpublished materials complemented our primary data. Using the chi-square, a non-parametric tool of statistical analysis, we discovered that deregulation brought about expansion of telecommunication networks through increased trunks and lines but quality of service was still poor due to problems of congestion, interconnectivity and poor call quality. We also discovered that government really lacked the will power to have affected the desired changes in NITEL/MTEL viewing the acquisition process; undervaluation and the repeated failure of the BPE to privatized NITEL/MTEL. The study recommended among other things that since all attempts to deregulate or privatized NITEL/MTEL failed, what is needed is good management, competent and well qualified board of directors for NITEL/MTEL and not necessarily privatization. The study also recommended the need for a strong government regulatory agenda in order to curtail the high prices and excessive exploitation from private operators.