By Chinenye Anuforo
[email protected]
The Association of Licensed Telecommunications Companies of Nigeria (ALTON) has thrown its weight behind the new USSD billing policy End User Billing (EUB) introduced by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN).
The policy, which mandates direct deduction of Unstructured Supplementary Service Data (USSD) service charges from customers’ airtime, is expected to resolve the long-standing issue of banks failing to remit payments to telecommunication operators.
In an exclusive interview with Daily Sun, Gbenga Adebayo, chairman of ALTON, was hopeful that the initiative would address all lingering challenges.
He said, “Yes, we think the new USSD billing policy will solve telcos/banks’ disagreement on remittances, because what it will do is that the cost of using USSD will now be deducted from customers’ airtime. So, the obligation of paying for that will no longer be on the banks. It will rather be on the customers’ airtime.”
Adebayo provided context on the previous corporate billing system, explaining that banks would collect charges from customers’ accounts for USSD services and were then responsible for remitting these funds to the operators. However, this system was plagued by remittance failures.
“The problem we have had, was the failure of the banks to remit all those money.” He further clarified, “It is not that the banks are not getting the money. They are getting the money but are not remitting it. They argued around the issue of error reporting, unsuccessful accounting, and all that.”
According to ALTON Chairman, the new policy shifts place the responsibility directly to the subscriber. “So it means that since you are the account holder, you are the number holder and once you subscribe to the USSD system. The charges will be taken from your airtime.”
This direct billing mechanism is anticipated to streamline the payment process and ensure operators receive their due remuneration without relying on banks as intermediaries.
The NCC had last week on its website hinted that telecom subscribers are set to experience a significant shift in how they are billed for USSD transactions, following the introduction of the EUB policy.
Previously, charges for USSD banking transactions were often deducted directly from bank accounts, leading to a lack of immediate visibility and control for consumers. Under the new EUB model, customers will now pay for USSD banking sessions directly from their mobile airtime, mirroring how charges for calls, SMS, and data sessions are handled.
This change offers several advantages to the end-user. Customers will gain immediate clarity on their spending, knowing exactly what they have spent immediately after a transaction. This eliminates the need to wait for bank account deductions, providing a more predictable and manageable way to control mobile transaction costs. The policy also grants users the freedom to opt-in or opt-out of using USSD services for banking transactions.
The EUB model was introduced to address long-standing disputes over USSD service debts between banks and Mobile Network Operators (MNOs) and to generally enhance the quality of experience for consumers. “The EUB model is an important change in how customers are charged for transactions. It is being introduced to improve consumer quality of experience and to put customers in better control of their spending,” stated a joint release by the regulators.
Significant measures have been put in place to protect customer data and prevent double billing. Banks are now mandated to inform customers of the switch to EUB before implementation. Consumers will continue to be charged at a rate of N6.98 per session, which can last up to 120 seconds, offering better value compared to other transactions charged at N1.63 per 20-second session.
To ensure consumers are not double-billed, the CBN has directed banks not to charge for USSD transactions once a customer is on EUB. The NCC has also issued a directive to MNOs regarding this. “NCC has since directed that MNOs must provide you with an end-of-activity notification telling you exactly what you have been charged,” confirmed NCC on its website, emphasizing the commitment to clear post-transaction communication. Regulatory oversight from both the CBN and NCC is in place to ensure strict compliance, with potential sanctions for non-compliant operators or banks.
For consumers encountering challenges, it is advised to reach out to their network operator for USSD platform access issues and their bank directly for transaction-related difficulties. Both entities are obligated to provide support.
The full implementation of the EUB model will commence once individual banks and their Value-Added Service (VAS) integrators complete technical integrations, end-to-end testing, and sign Service Level Agreements (SLAs). Banks will formally notify their customers of the actual commencement date once these conditions are met.