Why telcos and banks will begin charging USSD transactions from airtime

• Bank and telecom customers volition soon commencement to wage for utilizing USSD services via deductions from their airtime alternatively of debits from deposits
• Telecommunication companies and commercialized banks person begun talks to modulation to an end-user billing system
• The determination is simply a departure from the erstwhile statement wherever commercialized banks charged customers for USSD from their deposits

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Telecommunication subscribers and slope customers volition soon beryllium charged for utilizing Unstructured Supplementary Service Data (USSD) done deductions from their airtime.

Reports accidental talks person precocious betwixt commercialized banks and the telcos to present an end-user billing system.

Telecom and slope customers to soon beryllium charged from their airtime. Credit: NurPhoto/Contributor
Source: Getty Images

Customers to beryllium charged for airtime for USSD

The determination is simply a departure from the erstwhile firm billing system, wherever slope customers were charged for USSD from their deposits.

The president of the Association of licenced Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, disclosed that the discussions are ongoing and that the modalities are being enactment successful spot to incorporated subscribers, telcos and the banks successful 1 suit.

The Guardian reports that the ALTON brag said the end-user billing system, which the banks person been promoting, mightiness assistance against accumulated USSD debts, curtailing the impasse betwixt the banks and the telecom operators.

Banks to extremity USSD charges connected deposits

Adebayo said that the parties person commenced treatment to migrate to an end-user billing strategy without disruptions to services for subscribers.

He said erstwhile the talks are finalised, banks volition nary longer debit again, but it volition spell to customers' airtime alternatively of debiting their slope accounts.

According to him, the speech has begun, and determination volition beryllium a migration process that the parties volition hold to, marking the extremity solution to the contented of USSD debts, which helium said the banks person been advocating for.

A September 16, 2019, memo to ALTON from the Body of Banks’ Chief Executive Officers (BOBCEO) projected an orderly implementation of end-user billing for slope customers, aligning it with modular practices for USSD billing.

According to reports, the slope bosses disapproved of sharing gross from USSD transactions with the telcos, claiming that work providers, which proviso the level for USSD services, projected to instrumentality a chopped of N4.50k per 20 seconds from the charges paid by customers to the banks. 

The banks opposed this, alleging that it would rise costs by 450% arsenic of then.

However, the telcos rejected the proposal, citing assorted dynamics, including the technology involved.

The determination to extremity USSD debts

They insisted connected firm billing, disclosing successful 2020 that the banks refused to convene a gathering to sermon the issue.

The concern led to the accumulation of USSD debts, which are presently nether a betterment system.

Subscribers are present charged N6.98k for each USSD transaction, effectual March 16, 2021.

Legit.ng earlier reported that the Nigerian Communications Commission (NCC) reported a USSD indebtedness of N160 billion, astir of which has been recovered aft telcos deactivated immoderate banks for failing to pay.

Banks and telecom companies to statesman a caller billing strategy for USSD transactions. Credit: Novatis/Contributor
Source: Getty Images

The ALTON president said that important advancement has been made successful the indebtedness betterment process.

MTN Nigeria recovers N32 cardinal successful USSD debt

Legit.ng antecedently reported that MTN Nigeria says it recovered N32 billion from Nigerian banks arsenic portion of the N74 cardinal outstanding indebtedness owed to telcos for USSD work charges.

The telecom steadfast revealed that astir N42 cardinal remained outstanding, showing ongoing tensions successful the quality betwixt banks and telecom firms.

The indebtedness betterment comes amid interventions by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) successful December past year.

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Source: Legit.ng