USSD Services Archives — Business Bells

Business Bells

Tag: USSD Services

  • Banks, Telcos Agree Customers To Pay N6.98k For USSD Services

    Banks, Telcos Agree Customers To Pay N6.98k For USSD Services

     

    Mobile Network Operators (MNOs) and Deposit Money Banks (DMBs) have reached an agreement to charge bank customers a flat rate of N6.98k per transaction for the use of the Unstructured Supplementary Service Data (USSD) offered banks by telecoms operators (Telcos).

     

    The agreement was reached at a meeting on Monday, following months of protracted disagreement concerning the appropriate USSD pricing model for financial transactions carried out by bank customers using the USSD code.

     

    Before Monday’s intervention, telecom operators had threatened to suspend USSD services to banks over the unpaid charges that had accumulated to N42 billion.

     

    The USSD is a critical channel for delivering financial services, particularly for the underserved and the financially excluded, offered by telecoms operators to banks.

     

    In order to resolve the lingering issues and ensure uninterrupted services to bank customers on the channel, the Minister of Communications and Digital Economy, Dr. Isa Pantami, on Monday, chaired a meeting of key stakeholders to resolve the issue.

     

    The various MNOs, Association of Licensed Telecoms Operators (ALTON), Association of Telecoms Companies of Nigeria (ATCON), the banks and the sector regulators, the CBN and the Nigerian Communications Commission (NCC), attended the meeting.

     

    In a communiqué released yesterday and jointly signed by the Acting Director, Corporate Communications at CBN, Mr. Osita Nwanisobi, and the Director, Public Affairs at NCC, Dr. Ikechukwu Adinde, the parties resolved that with effect from yesterday, USSD services for financial transactions conducted at DMBs and all CBN-licensed institutions will be charged at a flat rate of N6.98k per transaction.

     

    This replaces the current per session billing structure, ensuring a much cheaper average cost for customers.

     

    It said: “To promote transparency, the new USSD charges will be collected on behalf of MNOs directly from customers’ bank accounts. Banks shall not impose additional charges on customers for the use of the USSD channel. A settlement plan for outstanding payments incurred for USSD services previously rendered by the MNOs is being worked out by all parties in a bid to ensure that the matter is fully resolved. MNOs and DMBs shall agree on the operational modalities for the implementation of the new USSD pricing framework, including sharing of Application Programme Interface (API), to enable seamless, direct and transparent customer billing.”

     

    It was then resolved that the impending suspension of DMBs from the USSD channel be vacated.

     

  • Banks Owe Telcos N42bn For USSD Services, Says NCC

    Banks Owe Telcos N42bn For USSD Services, Says NCC

     

    Deposit Money Banks owe telecommunications companies N42bn for services provided by the mobile network operators through the Unstructured Supplementary Service Data, the Nigerian Communications Commission has announced.

     

    Executive Vice Chairman, NCC, Prof. Umar Danbatta, announced this during his lecture at the virtual 2021 edition of the Bullion Lecture.

     

    He explained that the indebtedness of the banks to mobile network operators had been an issue over time, but stressed that the NCC was working hard to address the concern.

     

    Danbatta said, “The issue of the USSD has become an issue between the telcos and the banks. The telecommunication companies provide the infrastructure which the banks leverage on to provide banking services of all kinds.

     

    “Therefore it is expected that for this service someone should pay. No service is free. The investment in infrastructure that is driving the USSD service is a huge investment that the telcos made.”

     

    The NCC boss added, “It is expected that they (telcos) will recoup their investments in order to continue and to expand the service. About N42bn that is owed the telcos has not been paid by the banks for the provision of this service.”

     

    Danbatta said the telecommunications firms could not withdraw their services to the banks because such action would not go down well with the Federal Government.

     

    He said, “The telecommunications companies cannot unilaterally withdraw this service because it will be seen as a subversive act, undermining the digital inclusion strategy of the present government.

     

    “And no government will sit back and watch while services that empower citizens are being tampered with or withdrawn. No government will standby and watch this to happen.”

     

    To address the situation, Danbatta said the NCC would soon engage the DMBs and ensure that the matter was resolved.

     

    “So in the next couple of days, we are poised to engage the banks and ensure we reach an amicable resolution where the first item on the agenda that will feature is the payment of this N42bn accumulated debts to the telecommunications companies.

     

    The NCC boss further stated that it was important for the country to meet the critical requirements needed in order to succeed in its drive towards digital inclusion in Nigeria.

     

    He said digital financial services were offered through the use of a mobile phone, which many residents in rural areas could not afford.

     

    “They (rural residents) need phones that are affordable and therefore we must direct our resource in a manner that will bring affordable handsets to the rural population,” Danbatta stated.