USSD charges service fees, not exploitation – ALTON chairman
Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Mr Gbenga Adebayo, has explained that the N6.98 USSD charge on USSD banking transactions are justified, as they reflect the cost of connectivity provided by telecom operators, whether the banking transaction was successfully completed or not.
He dismissed widespread consumer complaints as a misunderstanding of how telecom services operate.
Adebayo made the clarification during a radio programme on Nigeria Info FM 99.3, monitored by the News Agency of Nigeria (NAN) in Lagos.
“The phone company is like a taxi taking you to the bank’s digital office. Even if the bank’s system is down when you get there, you still have to pay the taxi man,” he said.
He explained that telecom operators provide network access for each transaction attempt, and repeated attempts due to failed bank systems still consume network resources.
On the issue of data expiration, Adebayo said data bundles are structured within specific validity periods and are not designed for indefinite use.
“You can’t carry it in perpetuity, but you have the benefit of extending it without losing unused portions by just resubscribing,” he said.
He added that subscribers could retain unused data through rollover benefits, provided they renew their subscriptions before expiration.
Addressing concerns about toll-free lines, Adebayo clarified that such services operated on a reverse billing model rather than being entirely free.
“Nothing is free. These are reverse charge lines where the business or government pays for the calls,” he said.
He noted that economic constraints had reduced the number of organisations willing to absorb such costs.
The ALTON chairman also disclosed that the Nigerian Communications Commission and the Central Bank of Nigeria were reviewing data to determine responsibility for failed USSD transactions.
