BREAKING: Telecom companies might discontinue USSD services soon

The potential of withdrawing Unstructured Supplementary Service Data (USSD) services to Deposit Money Banks (DMBs) is being considered by telecom operators. In a last-ditch effort, N120 billion in unpaid debt for Unstructured Supplementary Service Data (USSD) services is being recovered.

A widening gulf between the telecom and financial industries is being caused by the protracted problem, which has lasted for around four years, and the telecoms are threatening to sue the banks.

The Chairman of the Association of Licenced Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, has expressed disappointment that this issue has gotten politicized in The Guardian.

Adebayo emphasized that this is essentially a commercial matter and that there are interested buyers and willing sellers in this situation. He clarified that when the banks didn’t pay, it would have been proper to stop the service.

He said, “So, you run into this kind of situation when you expose commercial agreements to interference from politicians. We assert categorically that some topics, such as price review, should be left to the forces of the market rather than being decided by the government because doing so is not sustainable.

He said that influence from politics prohibited the enforcement of contractual obligations. He continued by arguing that it is more sustainable to let market forces determine some matters, such as pricing reviews, rather than letting the government step in.

Additionally, he added that Dr. Bosun Tijani, Minister of Communications, Innovation, and the Digital Economy, expressed compassion and emphasized that responsible behavior from all parties concerned might have prevented the situation from reaching this level during ALTON’s recent discussion with him.

He concluded by noting that the minister had agreed to handle the problem, but he also issued a warning that if it was not dealt with right now, service withdrawals might become unavoidable.

An Artificial Intelligence (AI) Research Scheme has been launched by the Federal Government, with a goal of awarding N5 million to 45 businesses and researchers. The program’s objective is to encourage the use of AI to enhance the economy.

Consumers may bear the burden of the telecom-banking conflict.

The Unstructured Supplementary Service Data (USSD) debt issue between Nigeria’s telcos and banks has repercussions that stretch far beyond boardrooms for corporations. It may have a variety of effects on consumers, from service interruptions to significant cost effects.

The imminent danger of service interruptions is one of the most pressing worries for customers. Many daily services used by Nigerians depend on USSD technology, including mobile banking, airtime top-ups, and getting crucial information on their mobile devices. Millions of people’s everyday routines might be affected if telecom firms decide to take action, such as stopping USSD services because banks haven’t paid.

Imagine not being able to use USSD on your basic phone to check your bank balance or make payments. If USSD services are interrupted, simple actions like recharging your phone over USSD may become difficult. Consumers may experience inconveniences and may lose access to essential banking services, especially the millions of people who do not use Android or Apple phones.

Furthermore, it’s feasible that these additional costs may be passed on to the customer if telecom carriers are compelled to shoulder the cost of providing USSD services without receiving payment from banks. Telcos may have to modify tariffs or fees in a highly competitive market to offset their losses, which could result in increased costs for subscribers.

Additionally, the interruption in services may result in higher prices for customers. For instance, if customers are unable to perform mobile transactions and are instead required to visit actual bank offices, they may be forced to pay for transportation and lose important time. For those who live in rural locations or have limited access to banking infrastructure, this may be very difficult.

Concerns about the dispute’s impact on financial inclusion are also raised by its potential to disrupt USSD services. Many Nigerians rely on mobile banking and USSD services for their financial needs, especially in isolated or underserved locations. Financial inclusion efforts may be hampered if these services become unreliable or expensive, leaving vulnerable communities with restricted access to banking services.

Demanding revolution

Both business participants and consumers are left hoping for a speedy and peaceful resolution to this conflict. Nigerians depend heavily on the banking and telecom industries, and any protracted conflict that has a detrimental impact on consumers would not be the best conclusion.

The impact on customers must be taken into account as the situation develops, and all stakeholders must work towards a solution that protects their interests and guarantees the ongoing availability of critical USSD services. After all, the ramifications of this conflict will primarily affect customers all over Nigeria.

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Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

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