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USSD: Telcos Threaten To Disconnect Banks by dre11(m): 8:11am On Nov 28, 2019
By Samson Akintaro




Telecommunications operators in the country said they may be forced to disconnect the links that allow bank customers perform financial transactions on their phones.

This came as the operators insisted the banks must pay for the use of Unstructured Supplementary Service Data (USSD), which rides on telecoms infrastructure.

USSD is a Global System for Mobile (GSM) communication technology that is used to send text between a mobile phone and an application programme in the network.

It is currently the best available communications technology to deliver mobile financial services to low-income customers.

The operators had recently announced plans to start charging mobile users for every session of USSD, aside charges by banks.

The announcement had sparked outrage, prompting the Minister of Communications and Digital Economy, Dr. Isa Pantami, to order its suspension.

However, speaking through the Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, at a press briefing in Lagos yesterday, the telcos said the issue has gone beyond ministerial directive as they have been bearing huge costs for the links that allow USSD transactions, which banks are profiting from.

While noting that the telcos are already calculating the cost and would soon pass it to the banks, Adebayo said failure of the banks to pay would lead to disconnection of all the links.

“We cannot continue to bear the costs while banks get the service free and charge customers for it. USSD service comes at a cost to the operators, it is not a sunk cost as they are insinuating; it is a recurring cost.

“This is no longer a matter of ministerial directive, we are calculating the costs and very soon, we will come out with what we have incurred and present it to the banks, if they say they are not going to pay, we will also have to withdraw our services and disconnect the links.

“This means that Nigerians will no longer be able to carry out financial transactions on their phones,” he said.

Adebayo added that the USSD debt, which is now accumulating, would be treated as interconnect debt and the banks would have to pay for it fully or be disconnected.

The ALTON Chairman said the telcos have unanimously agreed on this decision as a last resort as the regulators have failed to address the issues on ground.

According to him, both the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) as well as the Minister of Communications and Digital Economy have shunned moves by the telcos to have a negotiation.

While the CBN and the minister had condemned earlier moves by the telcos to start charging bank customers for USSD to recover their costs, the operators, after suspending plan, had urged the regulators to convene a meeting for negotiation to resolve the issue.

However, Adebayo said neither the minister nor NCC, nor the CBN has taken any step since October.

He expressed worry that the telecoms regulator, NCC, whose regulation spells out the USSD charges, which the operators were trying to implement as a standard, has remained silent over the issue.


https://www.newtelegraphng.com/2019/11/ussd-telcos-threaten-to-disconnect-banks/

Re: USSD: Telcos Threaten To Disconnect Banks by grossintel(m): 8:34am On Nov 28, 2019
So you mean this service was supposed to be free, and banks charge for it. Who is scamming who in this country

54 Likes 5 Shares

Re: USSD: Telcos Threaten To Disconnect Banks by Parablesonmarble: 8:38am On Nov 28, 2019
Nigeria is simply not ripe for the cashless policy forced on the populace. Inflation rate is high and making legit money in Nigeria doesn't come easy. Now having the hard earned money being taken from our hands again in the name of different taxes, duties, dues and miscellaneous charges will eventually lead to wahala. This is a straight fight between Telcos and banks. They've tried shifting the said fees on to final consumers, it didn't work but you can be sure they'll try again in another form. Let it be known to greedy telcos and banks that Nigerians are tired of this nonsense. Let them discontinue the service once and for all, we'll find a way of adapting. Don't kill us with burdens just to enrich your own pockets.

32 Likes 8 Shares

Re: USSD: Telcos Threaten To Disconnect Banks by hisexcellency34: 12:58pm On Nov 28, 2019
Everybody is just ripping off Nigerians under this Buhari government? What kind of negative Next Level is this?

16 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by Cindycruzz: 12:58pm On Nov 28, 2019
grin various trends upandan grin
Re: USSD: Telcos Threaten To Disconnect Banks by samuelshosanya(m): 12:59pm On Nov 28, 2019
Na waooooo
Re: USSD: Telcos Threaten To Disconnect Banks by Inception(m): 12:59pm On Nov 28, 2019
OKOKOBIOKO!

2 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by CapitalHYC(m): 12:59pm On Nov 28, 2019
They. All mad

1 Like 1 Share

Re: USSD: Telcos Threaten To Disconnect Banks by UDOKABESTLUV(m): 1:00pm On Nov 28, 2019
Too bad
Re: USSD: Telcos Threaten To Disconnect Banks by wonuks(m): 1:00pm On Nov 28, 2019
Too many transaction bills to pay for this period. This next-level hot ni cheesy

1 Like

Re: USSD: Telcos Threaten To Disconnect Banks by Racoon(m): 1:00pm On Nov 28, 2019
shocked The government said they didn't asked banks to charge for USSD services while the the banks are saying the otherwise.Who do we believe today for God's sake? sad

6 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by Emceesaka: 1:00pm On Nov 28, 2019
Wetin we gain
Re: USSD: Telcos Threaten To Disconnect Banks by BlackfireX: 1:01pm On Nov 28, 2019
Bank scamming us..


Eff cc una dey crase

4 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by tot(f): 1:01pm On Nov 28, 2019
What's the point of having regulators who can't do their work?

11 Likes 2 Shares

Re: USSD: Telcos Threaten To Disconnect Banks by Sunisonflex39(m): 1:01pm On Nov 28, 2019
Audio Disconnection




no be Nigeria?

Las las the bank go find way to charge us to pay for that dept..





by January next year now banks will use one grammar to collect extra 20-50 Naira from our accounts every month.

7 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by BarrElChapo(m): 1:01pm On Nov 28, 2019
No problems once they leave us out of their squabbles
Re: USSD: Telcos Threaten To Disconnect Banks by hernandson(m): 1:02pm On Nov 28, 2019
lmnopq
Re: USSD: Telcos Threaten To Disconnect Banks by GOFRONT(m): 1:02pm On Nov 28, 2019
Naija for sale....Hot blooded Opprtunists everywhere you go

1 Like

Re: USSD: Telcos Threaten To Disconnect Banks by superlanny(m): 1:03pm On Nov 28, 2019
Everybody looking for the best available way rape Nigerians mercilessly, our yansh don red already, na to burst the yansh hole, bunch of useless mofo's

5 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by Ayt27(m): 1:03pm On Nov 28, 2019
Why then does the bank charge for the transaction on USSD? What exactly is the charge for?

The banks are being greedy(As banks usually are) they charge N20 for interbank and N52 for intra-bank transactions and they still don't want to cut the telcos in on it.

The telecos should cut the service and insist the banks share the profits with them.

3 Likes 1 Share

Re: USSD: Telcos Threaten To Disconnect Banks by Dottore: 1:03pm On Nov 28, 2019
Ik
Re: USSD: Telcos Threaten To Disconnect Banks by SouthSouth1914: 1:03pm On Nov 28, 2019
Confusion
Re: USSD: Telcos Threaten To Disconnect Banks by bizhop01(m): 1:05pm On Nov 28, 2019
Banks are criminals
Re: USSD: Telcos Threaten To Disconnect Banks by gabbasin: 1:06pm On Nov 28, 2019
First Bank use to charge N20 per ussd transaction even for checking your balance

2 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by paradigmshift(m): 1:07pm On Nov 28, 2019
nice one...
Re: USSD: Telcos Threaten To Disconnect Banks by abbasajao(m): 1:08pm On Nov 28, 2019
grossintel:
So you mean this service was supposed to be free, and banks charge for it. Who is scamming who in this country
Do banks really charging for it? Pls I need to know oo
Re: USSD: Telcos Threaten To Disconnect Banks by Quality20(m): 1:10pm On Nov 28, 2019
9mobile has being reaping us long b4 now. in fact if ur airtime bal is low d bank ussd code won't work

2 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by Ibegtodiffer: 1:10pm On Nov 28, 2019
In the last hours, *894# of FBN hasn't been working. I pray it's coincidence.
Re: USSD: Telcos Threaten To Disconnect Banks by lyriclekidd(m): 1:10pm On Nov 28, 2019
Okay

Re: USSD: Telcos Threaten To Disconnect Banks by femi4: 1:12pm On Nov 28, 2019
LOng overdue...they are unreliable these days
Re: USSD: Telcos Threaten To Disconnect Banks by BabaO2: 1:13pm On Nov 28, 2019
What links that man is talking about ?
USSD is for service codes delivery and should be FREE.
Service CODE is meant for recharging and enquiry making only.
Greediness of Nigerians have set in again just to exploit the masses at any slight opportunities.
I don't blame them, but when NCC will not employ and engage people that have clear understanding of the technology

4 Likes

Re: USSD: Telcos Threaten To Disconnect Banks by mechanics(m): 1:14pm On Nov 28, 2019
There are ways to do transactions, if they disconnect the service, mobile app is available, so the bank has nothing to loose but I believe the banks should negotiate with the Telecom operators.

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