Telcos Recover N171bn From Banks As USSD Billing Model Changes

13 Nigerian banks have cleared N171 billion out of the N180 billion they collectively owned telecommunications corporations for Unstructured Supplementary Service Information (USSD) companies, representing 95 per cent of the overall debt.

With the decision of the long-standing dispute, telecom operators have now totally commenced the implementation of Finish-Person Billing (EUB), which shifts USSD service fees on to customers’ airtime balances as a substitute of financial institution accounts.

In response to the telcos, 13 out of 16 banks with excellent money owed have now totally paid, whereas three others are finishing their remaining installment funds; solely one of many authentic 18 banks was not concerned within the pre-Utility Programming Interface (API) debt, and one other, was declared bancrupt.

“Now we have recovered about 95 per cent of the excellent debt,” chairman, Affiliation of Licensed Telecom Operators of Nigeria (ALTON), Engr. Gbenga Adebayo confirmed, throughout a webinar stakeholders’ assembly, titled: “Ask the Exec: USSD end-user billing”, noting that this vital compensation has paved the way in which for the total rollout of end-user billing.

Adebayo stated that beneath the brand new regime, clients will now not be billed by way of their financial institution accounts for USSD transactions, including that the N6.98 per 120 seconds cost will now be deducted immediately from customers’ airtime balances, ushering in a extra clear and standardised billing system.

The transition comes on the heels of long-standing rigidity between banks and telcos over unpaid USSD service money owed.

As of January, banks had been owing telecom operators N180 billion, primarily accrued earlier than the introduction of a standardised API that gave banks higher management over their USSD platforms.

Below the brand new EUB mannequin, telcos now not depend on the banks for buyer billing. As a substitute, when a buyer initiates a USSD transaction, a consent message will seem informing them of the airtime deduction. Upon approval, the telco verifies the financial institution’s availability by way of a USSD aggregator earlier than establishing the connection and making use of the cost.

This course of ensures customers are solely billed for profitable and verifiable service entry.

“We’re simply the transport medium.Consider it as taking a taxi to the financial institution. The driving force doesn’t know what occurs contained in the financial institution, their job is to get you there safely,” Adebayo defined.

To boost consumer expertise and transparency, error messages have now been unified throughout all telecom operators, offering constant updates on whether or not a failed transaction was brought on by the financial institution, telco, or different intermediaries.

Whereas all root USSD codes will now entice fees, Adebayo clarified that direct strings for airtime and knowledge purchases have been zero-rated. This implies clients who use these long-form codes won’t incur any deductions from their airtime for such transactions, he affirmed.

“We will probably be speaking with clients to encourage the usage of direct strings for airtime and knowledge purchases, which stay fully freed from cost,” Adebayo famous.

Whereas migration to end-user billing is ongoing, Adebayo confirmed that banks nonetheless have the choice to stay on company billing, supplied they meet their monetary obligations and preserve constant funds. “We’re not shutting anybody out. However any establishment that chooses to stick with company billing should clear their money owed and decide to well timed settlements,” Adebayo clarified.

As as to whether this EUB will additional add monetary burden on Nigerians, the chief enterprise enterprise officer, MTN Nigeria, Lynda Saint-Nwafor stated, “The shoppers had been already paying for this. The one distinction now’s that quite than deduct it out of your checking account, it will likely be deducted out of your airtime,” Saint-Nwafor due to this fact emphasised that the shift doesn’t improve prices for shoppers.