By Adeyemi AdepetunALTON claims sanctions await defaulting DMBs over debt
Telecom subscribers will quickly be paying for the usage of Unstructured Supplementary Service Knowledge (USSD) with deductions from their airtime. The Guardian gathered that talks are at present at superior phases between the deposit cash banks (DMBs) and telecommunications operators to introduce an end-user billing system. Finish-user billing refers to a system the place the shopper is immediately charged for utilizing the USSD service slightly than the service supplier being charged. This implies the shopper’s cellular account (airtime or direct billing) is debited for the USSD session, no matter any subsequent fees the financial institution would possibly apply.
It is a change from the normal company billing mannequin the place banks have been billed for USSD utilization. The Chairman of the Affiliation of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, advised The Guardian that discussions are on, and the modalities are being fine-tuned to swimsuit subscribers, telcos and DMBs. Adebayo stated end-user billing, which the banks have been advocating for a while now, would possibly assist to protect towards gathered money owed as witnessed within the imbroglio between the banks and the telecom operators. “So, we have now now commenced dialogue emigrate to Finish-Consumer billing with out disruption to companies by subscribers. As we speak, if you do USSD, the banks cost you and debit your account (Debit alert for the switch). When the discussions are accomplished, banks is not going to debit once more, however it can go immediately out of your airtime. As a substitute of the banks taking the cash out of your account, it can go out of your airtime. “The dialog has began; there’s a migration course of that we are going to agree with the banks. This would be the finish answer to the problem of USSD money owed, which is what the banks have been clamouring for. The dialogue is one, however events nonetheless must agree that techniques must be upgraded and operations must be clear in order that persons are not billed for companies they didn’t get. The dialog is on,” he acknowledged. Recall that in a letter addressed to ALTON by the Physique of Banks’ Chief Govt Officers (BOBCEO), dated September 16, 2019, the financial institution chiefs had proposed an “orderly implementation” of end-user billing for financial institution clients, “aligning with the usual apply for USSD billing.” Within the memo to ALTON, the financial institution chiefs frowned at sharing the income from USSD transactions with the telcos because it claimed that the service suppliers, which give the platform for the USSD service, had proposed to take a minimize of N4.50k per 20 seconds from the fees paid by clients to the banks. The banks kicked towards it, alleging that it could elevate the price by 450 per cent as of then. Nevertheless, the proposal on the time didn’t sit properly with the telcos due to the dynamics, together with the expertise behind it. The telcos had slightly insisted on company billing. In 2020, the telcos claimed that the banks refused to return to a roundtable to debate the matter and put a ultimate lid on it then. As such, the non-conclusion of the matter 5 years again contributed vastly to the gathered USSD money owed, that are at present beneath a restoration mechanism. Subscribers are at present charged N6.98K for each USSD transaction; this took impact on March 16, 2021. As of November 2024, the Nigerian Communications Fee (NCC) put the USSD debt at N160 billion, of which the bulk has been recovered following the directive handed to telcos in January to deactivate failing banks. About 18 banks have been fingered to have been culpable. Talking on the restoration course of to date, Adebayo stated important progress has been made to recuperate the money owed. “By way of the money owed, we have now recovered important funds. It’s not but uhuru! Fairly various the banks have honoured their obligations as directed by the 2 regulators. Everyone seems to be following the round directive. There are some nonetheless not obliging the directive, however sanctions will come across them,” the ALTON boss acknowledged.
Within the round collectively signed by the Central Financial institution of Nigeria (CBN) and NCC, the regulators directed DMBs and MNOs to agree on cost plans, both a lump sum or installment by January 2, 2025. They stated if installment funds are opted for, they have to be accomplished by July 2, 2025.
“That 60 per cent of all pre-API invoices have to be paid as full and ultimate settlement of such invoices. On this regard, cost plans (lump sum or installments) have to be agreed between a involved DMB and MNO by January 2, 2025. “For the avoidance of doubt, the place installmental cost is proposed by a DMB, such a proposal have to be primarily based on equal month-to-month instalments, and cost have to be accomplished by July 2 on the newest.
“That in furtherance of earlier resolutions by the CBN and the NCC, DMBs should pay eighty-five per cent (85 per cent) of all excellent invoices issued after the implementation of Software Programming Interfaces (API) (ie February 2022) between the involved DMB and MNO (e. post-API money owed) by December 31, 2024.
“Equally, eighty-five per cent (85 per cent) of all future invoices have to be liquidated inside one month of service of the bill.
“That topic to the passable implementation of the directives in Paragraphs 1 and a pair of above and in furtherance of the understanding between DMBs and MNOs on the transition to Finish-Consumer Billing (EUB), the NCC will activate the required regulatory processes to revert to EUB.
“Solely MNOs and DMBs in full compliance with Paragraphs 1 and a pair of above shall be allowed to transition to EUB. The NCC and the CBN will present steering on public enlightenment measures in respect of the transition in the end. Pending completion of the transitional preparations in Paragraph 3 above, MNOs are to undertake the ‘10-second rule’ for USSD invoicing.
“Because of this any USSD session lasting lower than ten seconds will not be billable.” The regulators additionally stated the “DMBs with pay as you go billing choices have the chance emigrate to EUB, topic to the completion of the required regulatory processes.”
