Telecommunications operators in Nigeria, under the Association of Licensed Telecommunications Operators of Nigeria, have justified the N6.98 USSD fee charged on banking transactions, stating that the cost reflects services rendered regardless of whether transactions are successful.
ALTON Chairman, Gbenga Adebayo, addressed the issue during a radio programme, responding to increasing complaints from subscribers who describe the charges as unfair. He explained that telecom providers supply the network access required for each USSD attempt, even when bank systems fail to complete the transaction.
Using a relatable analogy, Adebayo compared telecom services to transportation. He noted that just as a passenger must pay a taxi fare even if their destination is inaccessible, subscribers are billed for USSD sessions because network resources are used each time a code is dialed.
He further revealed that regulators, including the Nigerian Communications Commission and the Central Bank of Nigeria, are reviewing ongoing disputes between banks and telecom operators. The review aims to determine responsibility for frequent transaction failures experienced by users.
Addressing concerns about data expiration, Adebayo clarified that data bundles are designed with validity periods and are not meant for indefinite use. However, he noted that subscribers can retain unused data through rollover options by renewing their subscriptions before expiry.
He also explained that so called toll free lines are not entirely free, as the receiving organisation bears the cost of such services. According to him, economic constraints have limited the availability of these services in Nigeria.
While acknowledging user frustrations, Adebayo emphasized the importance of understanding the operational costs of telecom services, including infrastructure maintenance, power challenges, and vandalism. He called for collective responsibility in protecting telecom infrastructure to improve service delivery.
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