MTN Opens Up On How Banks’ CEOs Pushed USSD Charges To Customers

By Emmanuel Aziken, Editor

MTN has spoken up on the controversial plan to introduce charges for its customers who access the banks USSD service through its network saying that it proceeded on the initiative after failure to get the banks to ward off the charges.

MTN in a clarification sent to the Nigerian Stock Exchange on Thursday affirmed that its concept was for a single charge on the customers but that the banks preferred the double charge in which the customers are charged by both the banks and the telecom providers.

The telecommunication provider which said it was yet to implement the new charging scheme before the recent brouhaha said it put the best interest of its customers in consideration during its engagements with the banks and other stakeholders and only resolved to apply the charges after exhausting its options.

The other major networks, Airtel, Glo and 9 Mobile all of which are presently charging for the use of the USSD channel are yet to make any declaration on the development.

The MTN statement issued by company secretary, Uto Ukpanah read thus:

“We at MTN Nigeria Communications Plc (MTN Nigeria) approach every day with one primary objective – finding ways to make our customers lives a little easier; which is why we will focus on what really matters, our customers.

“They are the reason we made transparency and simplicity central to the recent drawn-out engagements with the banks over USSD access charges and how they should be applied.

“Following consultation with industry stakeholders, customer feedback and media reports related to the message notifying our customers of upcoming changes in our charging model for access to banking services via the USSD channel, we wish to confirm that the new charging model has not gone into effect.

“The situation has made it necessary to restate that MTN Nigeria in line with our company policy we will always be transparent in our dealings with customers, the industry and relevant regulatory bodies. The SMS notification to our customers is reflective of this commitment and was sent after formal requests received from individual banks as well as the body of Bank CEOs to implement end user billing – a billing methodology where the customer is directly charged USSD access fees irrespective of the service charges that the bank may subsequently apply to their bank accounts.

“It should be noted that the banks had up till now been on a corporate billing plan – where a corporate client, the provider of the service that is accessed through the USSD channel (in this case the banks) pays the access fees at a wholesale price.

“We believe the cost associated with USSD banking services should be charged to the consumer only once – as with other USSD based services we provide, which we believed has been adequately provisioned for within existing Central Bank of Nigeria, CBN guidelines.

“It is in fact in line with the National Financial Inclusion Strategy of the Federal Government that we resisted the calls for end user billing. We relented only after exhausting avenues of engagements with the banks in pursuit of a model that enabled a single charge.

“We believe separate charges by the banks and telecom companies are an  unnecessary burden on the consumer especially the target group that the National Financial Inclusion Strategy is aimed at.

“With this in mind, it is imperative for all parties to approach the table and engage constructively towards a solution, putting the consumer at the fore of all decisions.

“The banks have been and are still our esteemed customers and valued partners. We look forward to collaborating with them and other stakeholders and will be glad to implement the decisions approved by our regulators.”

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