By Chinenye Anuforo
The Association of Licensed Telecommunications Operators of Nigeria (ALTON), has disclosed that effective Monday, March 15, 2021, its members are initiating a phased process of withdrawal of USSD services, starting with the most significant debtors within the Financial Service Providers (FSPs).
ALTON is the umbrella body of Licensed Telecommunications Service Providers, Network Operators, Infrastructure Companies and Value Added Services Providers
Press statement signed by Mr. Gbenga Adebayo, the group’s chairman stated that, ALTON is aware of the letter issued by the Minister of Communications and Digital Economy to the Central Bank of Nigeria, seeking a resolution to the on-going dispute between the banking sector and the telecoms sector over the appropriate methodology to use to charge for USSD services.
Adebayo recalled that, in order to accelerate the adoption of financial services on USSD, the FSPs partnered with his members to zero-rate the USSD access to end-users, while they bore the cost for the provision of service.
“Based on this arrangement, the banks took on the responsibility of billing customers and paid our members for use of the USSD infrastructure from the service fees deducted from the customer’s bank account, but following the issuance of the USSD pricing determination by the Nigerian Communications Commission (NCC), which resulted in a price review of USSD service by our members, the banks decided that they would no longer pay for USSD service delivered to their customers and requested our members to charge customers directly for use of the USSD channel,” Adebayo stated.