Telecoms Regulation

With No Direct Relationship To Bank Customers, MNOs Cannot Directly Charge For USSD Channel.

The Nigerian Communications Commission (NCC) has said that to resolve the ongoing struggle between banks and Mobile Network Operators (MNOs) over the charging for usage of the USSD Channel, it has determined that because telcos have no direct relationships with bank customers, it cannot directly charge for access and use of the USSD channel. This must be a transaction between the banks and their respective consumers.
Accordingly, the regulatory authorities submitted that: “USSD is a service to banks and not to the telco consumers, 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.”
To this effect, the NCC has said it will be issuing a directive to mobile network operators not to charge consumers directly for the use of USSD channels for financial services in the form of end-user-billing.
Credit: contribution from

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