Telecom Operators Justify USSD Charges Amid Consumer Complaints

The Association of Licensed Telecommunications Operators of Nigeria has defended the controversial N6.98 charge on Unstructured Supplementary Service Data banking transactions, insisting telecom operators must be paid for providing network access even when banking platforms fail.

Speaking during a live programme on Nigeria Info FM 99.3, hosted by Jimi Disu, ALTON Chairman Gbenga Adebayo compared telecom providers to transport services that deliver customers to banks’ digital platforms.

He said, “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.”

Adebayo explained that telecom operators incur operational costs each time customers initiate USSD transactions, including repeated attempts caused by failures on the banking side.

According to him, the Nigerian Communications Commission and the Central Bank of Nigeria are currently reviewing transaction data to determine whether failed USSD sessions are caused by telecom providers or banks.

He maintained that network providers should not be blamed for service failures outside their infrastructure, stressing that every transaction attempt consumes telecom resources.

Addressing widespread complaints over data expiration, Adebayo dismissed allegations that telecom companies deliberately exploit subscribers, noting that mobile data subscriptions are tied to fixed validity periods such as weekly or monthly plans.

He said customers who wish to preserve unused data can do so through rollover options, provided they renew before expiration.

On concerns over the decline of toll-free customer care lines, Adebayo clarified that such services are funded by the receiving organisations through reverse billing, making them costly for businesses to maintain.

He noted that current economic realities have made many organisations reluctant to continue bearing those expenses.

The ALTON chairman further blamed poor telecom service delivery on factors such as vandalism, unstable power supply, and damage to infrastructure, arguing that regulatory penalties alone cannot address the sector’s operational challenges.

He called for stronger protection of telecom infrastructure and greater public understanding of the costs involved in delivering digital communication services nationwide.