Technology
Mobile Operators, Banks to Negotiate Rates for USSD Services
By Adedapo Adesanya
The Nigerian Communications Commission (NCC) has initiated fresh engagement between some telecommunication companies and banks regarding Unstructured Supplementary Service Data (USSD) pricing and billing structure.
Both parties have always engaged in a fisticuff over the services especially in terms of charges.
The NCC in a statement said it has revised its determination on the pricing of USSD services which, accordingly, has been brought to the knowledge of the parties involved, adding that it was embarking on this peace accord to protect the interests of consumers and support a robust telecommunications sector.
The commission explained in a statement signed by its director of public affairs, Mr Ikechukwu Adinde, who disclosed that this was necessitated following a prolonged dispute between Mobile Network Operators (MNOs) and financial institutions on the applicable charges for USSD services and the method of billing.
The telcos had earlier accused banks who ride on their services to offer USSD banking services to telecoms consumer of not remitting the service charge deducted by the banks from the account of telecoms consumers
The operators then initiated a plan to start deducting the charges directly from customers’ accounts; a move that led to frictions between the parties and was also resisted by the consumers, the NCC and the Central Bank of Nigeria (CBN).
“As a responsive and effective regulatory authority, the commission recognises that its policies are not static and may be modified from time to time as circumstances demand.
“This is coming on the heels of a recent directive by Isa Pantami, minister of communications and digital economy, regarding a review of the USSD pricing by all parties involved, following a presentation made by the NCC on the billing structure, determination of USSD pricing, current status and the way forward.
Quoting Mr Pantami, it was stated that he took the decision to suspend the commencement of end-user billing where the consumers are charged directly from their airtime balance for use of USSD channels as opposed to corporate billing where the banks paid the MNOs for the use of USSD service.
The minister said he was “genuinely besieged with a barrage of complaints at the attempted commencement of end-user billing by service providers.”
He further clarified that “USSD is a service to banks and not to the telecom consumers, and as such, banks should see themselves as corporate customers of telecom operators with a duty to pay for using the telecom network and infrastructure, including USSD channels extended to them for service delivery to their customers.”
According to him, “Mobile MNOs have no direct relationship to bank customers, and cannot, therefore, charge directly for the usage of USSD channel.”
The USSD channel has evolved over time from an exclusive channel used for only telco services such as balance inquiry and recharges to a channel for the deployment of a broad spectrum of services.
These new applications of the service include financial, insurance, agricultural, government services and more, which have been augmented with the heavy reliance on digital services with the disruptions of the ongoing coronavirus pandemic.
According to Mr Umar Danbatta, the executive vice-chairman of the NCC, the agency has revised the determination previously issued by removing the price floor and the cap to allow the MNOs and the banks negotiate rates that will be mutually beneficial to all parties concerned.
The NCC also determined that MNOs must not charge the consumers directly for the use of USSD channels for financial services in the form of end-user-billing.
The transaction should be between the MNOs and the entity to which the service is provided which are the banks and financial institutions.
Technology
NCC, CBN Implement 30 Seconds Refunds for Failed Airtime, Data Purchases
By Adedapo Adesanya
The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have introduced new rules that will ensure faster refunds for failed airtime and data purchases, following rising consumer complaints over debits without value.
Under the new rules, refunds are expected to be completed within 30 seconds, except where a transaction remains pending, in which case the resolution can take up to 24 hours.
The new framework, contained in a statement issued by NCC’s Head of Public Affairs, Ms Nnenna Ukoha, on Thursday, targets unsuccessful transactions linked to network downtime, system failures and human errors that affect subscribers nationwide.
According to the statement, the guideline was developed after months of joint engagements involving telecom operators, banks, value-added service providers and other industry stakeholders.
The NCC said the framework brings the financial and telecommunications sectors up to speed on how failed transactions are handled and resolved.
“These engagements were prompted by a rising incidence of failed airtime and data purchases, where subscribers were debited without receiving value and experienced delays in resolution.
“The framework represents a unified position by both the telecommunications and financial sectors on addressing such complaints.
“It identifies and tackles the root causes of failed airtime and data transactions, including instances where bank accounts are debited without successful delivery of services,” she said.
Under the framework, Ms Ukoha said mobile network operators and banks are bound by a service level agreement that clearly defines their roles in transaction processing and refunds.
She emphasised that operators are also required to notify customers by SMS on the status of every airtime or data transaction.
The rules also address erroneous recharges to ported lines, incorrect airtime or data purchases, and instances where transactions are made to the wrong phone number.
On her part, the Director of Consumer Affairs at the NCC, Mrs Freda Bruce-Bennett, said the framework also introduces a central monitoring system to improve oversight.
She said the dashboard will be jointly managed by the NCC and the CBN to track failed transactions, refunds and breaches of service timelines in real time.
“We are grateful to all stakeholders, particularly the CBN and its leadership, for their tireless commitment to resolving this issue and arriving at this framework,” she said.
The official said failed top-ups are among the top three complaints received by the commission, adding that implementation of the framework is expected to begin on March 1, subject to final approvals and completion of technical integration by all operators and banks.
Technology
Nigeria, Google in Talks for New Undersea Cable
By Adedapo Adesanya
The Nigerian government is in advanced talks with Google for a new undersea cable to strengthen the country’s digital connectivity and resilience.
The country wants to augment existing undersea links with Europe, said the chief executive of National Information Technology Development Agency (NITDA), Mr Kashifu Inuwa Abdullahi, as per Bloomberg on Tuesday.
Mr Inuwa said this was necessary at this time, calling Nigeria’s current reliance on cables that follow the same path “a single point of failure.”
Google earlier this year said it plans to expand its digital presence significantly in Africa with the development of four new strategic subsea cable connectivity hubs in the north, south, east, and west regions of the continent.
Already, Google is investing $2.1 million to accelerate Nigeria’s artificial intelligence (AI) growth, aiming to create one million digital jobs and bolster the country’s expanding technology economy.
This is aligned with Nigeria’s National AI Strategy, which is expected to play a meaningful role in the nation’s broader digital transformation. Projections indicate that AI could contribute up to $15 billion to Nigeria’s economy by 2030.
The fund will support partnerships with local organisations. To achieve these aims, the funding will support partnerships with local organisations working in digital skills development and cyber security.
The investment further signals global trust in Nigeria’s technology sector and underlines the nation’s role as a leader in Africa’s digital transformation. As new opportunities emerge, Google believes it support is set to help shape Nigeria’s economy and its place on the global technology stage.
Technology
Airtel Africa, SpaceX to Launch Starlink Direct-to-Cell Connectivity
By Modupe Gbadeyanka
An agreement for a satellite-to-mobile service that will benefit millions of people in Africa has been entered into between Airtel Africa Plc and SpaceX.
This service is through the introduction of Starlink Direct-to-Cell satellite connectivity across all the 14 markets of Airtel Africa that serve 174 million customers.
Through this partnership, Airtel Africa customers with compatible smartphones in regions without terrestrial coverage can have network connectivity through Starlink, which is the world’s largest 4G connectivity provider (by geographic reach).
The satellite-to-mobile service will begin in 2026 with data for select applications and text messaging.
This agreement also includes support for Starlink’s first broadband Direct-to-Cell system, with next-generation satellites that will be capable of providing high-speed connectivity to smartphones with 20x improved data speed. The rollout will proceed in line with country-specific regulatory approvals.
Airtel Africa is the first mobile network operator in Africa to offer Starlink Direct-to-Cell service, powered by 650 satellites to provide seamless connectivity to its customers in remote areas.
The partnership reinforces Airtel Africa’s commitment to bridge digital divide and offer seamless connectivity to its customers.
Airtel Africa and Starlink will continue to explore additional collaboration opportunities to further advance digital inclusion across the continent.
“Airtel Africa remains committed to delivering great experience to our customers by improving access to reliable and contiguous mobile connectivity solutions.
“Starlink’s Direct-to-Cell technology complements the terrestrial infrastructure and even reaches areas where deploying terrestrial network solutions are challenging.
“We are very excited about the collaboration with Starlink, which will establish a new standard for service availability across all our 14 markets,” the chief executive of Airtel Africa, Mr Sunil Taldar, said.
Also commenting, the Vice President of Sales for Starlink, Ms Stephanie Bednarek, said, “For the first time, people across Africa will stay connected in remote areas where terrestrial coverage cannot reach, and we’re so thrilled that Starlink Direct-to-Cell can power this life-changing service.
“Through this agreement with Airtel Africa, we’ll also deliver our next-generation technology to offer high-speed broadband connectivity, which will offer faster access to many essential services.”
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