By Patrick Imo
Service providers in the Nigerian telecommunication sector has through their apex body the Association of Licensed Telecommunication Operators of Nigeria ALTON told the financial sector, the banks in particular and the rest of Nigerians not to expect a complete Unstructured Supplementary Service Data (USSD) services severance unless the financial community and the government come to an agreement with them as in what they will be paid for delivering those services, saying they cannot offer them free of charge. They have threatened a complete withdrawal of all Fintech support services, the power behind ATMs, POS and other such technology-based financial services that are driving the nation’s financial inclusion and other such programmes.
This followed the non-remittance of operators’ fees to the telcos given the allusion by financial institutions that USSD costs as incurred by the operators are sunk costs leading to the suspension of the operators’ services charges by the Minister of Communications.
Speaking at a pre-anniversary press briefing of the association, ALTON Chairman Engr. Gbenga Adebayo explained that “the USSD channel has evolved over time from a telco exclusive channel used for only telco services such as balance inquiry and recharges, to a channel being utilized for the deployment of financial, insurance, agricultural and government services, etc. The USSD channel is delivered using the Standalone Dedicated Control Channel (SDCCH) which is also used for call set-up, SMS set-up, and delivery. Similar to the other telco services such as SMS, voice and data, network resources are utilized in the provisions of USSD services and as such there are significant costs associated with deploying and maintaining the service”.
He added that “the Banks on identifying the convenience of delivering services to its customers over the USSD channel applied to the Nigerian Communications Commission for USSD codes to deliver these services. USSD Shortcodes were thereafter issued to the Banks and as is expected, they became fully responsible for the charges associated with delivering services to their customer through these shortcodes. Subsequently, USSD channel became a preferred service channel for the financial sector because of the cost efficiencies derived from the adoption of the channel. Today, USSD codes such as *737#, *906# have become leading brands because Banks have intensified the promotion of this channel to mostly the banked base towards the overall improvement of efficiencies with less focus on other service channels such as brick and mortar centers”.
Earlier at the briefing which is preparatory to the association’s 20th-anniversary celebration, Engr Adebayo rolled the associations achievements alongside the telecommunication sector in its 20 years of existence. He said that the sector in these 20 years of its liberalisation in Nigeria has moved from one cellular mobile network with limited coverage and 26,500 connected lines to 4 GSM operators, 2 VoIP operators, 4 Fixed Wired operators with 172.9mn mobile subscriptions and teledensity at 123.5 per cent.
He averred that Nigeria is today Africa’s largest telecoms market in terms of subscriptions, stressing that beyond growth in sheer numerical terms, telecoms have evolved from being a sparsely-available public utility to becoming a ‘social overhead capital. “After 20 years, Nigeria boasts of over N15trn contribution to its economy, over 123mn internet subscriptions across various technology platforms (e.g. VoIP, GSM & Fixed Wired), sector contribution to GDP at 11.4 per cent and over USD68bn Foreign Direct Investment. This is worth celebrating,” he said.
The Association in a well-attended event celebrated these achievements and milestones in the telecom industry, giving out awards and recognitions to several deserving organizations and individuals for their contributions to these sector feats.
ALTON was formed in 1999, then known as the National Association of Telecom Operators (NALTO). It was incorporated in the year 2000 as the Association Of Licensed Telecommunications Operators of Nigeria (ALTON) a corporate body, duly registered under the laws of Federal Republic of Nigeria as an Incorporated Trustee, and officially recognized by the Government of the Federal Republic of Nigeria and the Nigerian Communications Commission (NCC) and other regulatory agencies as the industry body for all providers of telecommunications. It came into being with aim of addressing the peculiar early challenges faced by Private Telecom Operators (PTO) as they were called at the time, some of these were issues of signalling protocol issues, interconnectivity, billing issues, multiple regulations and taxation issues of right of way and protection of the overall interest of private investors in the sector, existence of which NITEL the incumbent at that time, did everything possible to frustrate.
The ALTON Chairman said “since inception, ALTON continues to play a key role in market development of the telecommunications industry. Its intervention on behalf of members on several issues such as challenges of multiple taxation, multiple regulations, rates and tariff determination, market competition, unfavourable government policies, Telecommunications as Critical National Infrastructure has been of immense benefit to the Nigerian telecommunications industry at large.”
He applauded the founding fathers, some of who are still with alive Executives of the association, past and present and members which includes all the major telecommunications licensees in Nigeria, particularly Mobile Network Operators (MNO) Infrastructure Companies (Infracos) Fixed and Mobile Fixed voice and data operators across the various segments are all members of ALTON.
Several awards were given to deserving individuals and organizations who have contributed to the growth of the sector. Top on the list was former President Olusegun Obasanjo who received the Telecom Legend Awards for his provision of the much needed regulatory and policy environment for the development of the telecom sector.
Special tributes were equally paid to the first batch of board of trustees and executive members including Late General Tanko Ayuba Rtd, Chief Adebayo Akande, Chief Ezekiel Fatoye, Chief Mike Adenuga, Mrs. Alero Nwanna, Late Engr. Alaba Charles Joseph, Mrs. Arnina Oyagbola, Mr. Chandon Kelwal Ramani, Alhaji Bashir El-Rufai, Chief Maan Lababidi, Mr. Albert Mashi, Late Mr. Chioke Ogugua, Engr. Adamu M. Yahaya, among others.
Pix: ALTON Chairman Engr Gbenga Adebayo (centre) with Gbolahan Awonuga Secretary-General (left) and Head of Technical Services ALTON at the briefing in Lagos
