It is always memorable: my professor came out of the building, on a sunny Friday, congratulating me that my undergraduate project defense was successful. He said, “congrats Nd, now, you are an engineer”. On that, we at Tekedia Institute welcome the Nigerian Society of Engineers which is sending a huge contingent to Tekedia Mini-MBA which begins Aug 10. We are truly honoured that NSE chose us. Thank you – the technical builders of the Nigerian nation.
Good policy from the government. You know I am biased when it comes to the Nigerian Communication Commission (NCC). I do think it is the most effective public agency in Nigeria. Check – they always have brilliant leaders. They have a really good process – and they listen. This is another good one, and I think NCC needs to be commended for listening. If a bank does not want USSD service, telcos are free to cut it off. But if it wants, then, it needs to pay the telcos for the service. But never should customers be asked to cover that cost directly when the same banks will tell you to use digital channels. You get it – banks might introduce another monthly charge; that is fine. But as it stands, customers are not paying directly.
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 for the deployment of a broad spectrum of services, including financial, insurance, agricultural, government services and more. The use of USSD channel has become a critical resource in the economy even more so in this era of the Covid-19 pandemic that has witnessed a rise in reliance on digital services.
The Executive Vice Chairman of the NCC, Prof. Umar Garba Danbatta, in the interest of the consumers and other stakeholders, has revised the Determination previously issued by removing the Price Floor and the Cap to allow the Mobile Network Operators and the banks negotiate rates that will be mutually beneficial to all parties concerned.
The NCC also determined that Mobile Network Operators must not charge the consumers directly for the use of USSD channels for financial services in the form of end-user-billing. The transaction should be between the MNOs and the entity to which the service is provided (i.e. Banks and Financial Institutions).
Nigerian Communication Commission (NCC) Reverses Determination on USSD Pricing
In July 2019, the Nigerian Communication Commission (NCC) waded into a dispute between telcos and banks, over Unstructured Supplementary Service Data (USSD)’s pricing. Banks and telcos had increased the charges on transactions carried out using the USSD channel, and it didn’t augur well with consumers.
As consumers protested the increment, the regulators of banking and communication industries ordered a reversal of the added pricing on USSD.
“After receiving briefing about the proposed USSD charges, I realized there was no justification for the new tariff and consequently, I directed its immediate suspension. Any telecom operator that violates this directive would be sanctioned appropriately,” The Minister of Communication and Digital Economy, Dr. Isa Pantami said then.
The CBN governor, Godwin Emefiele told the banks then that the charges incurred using the unstructured supplementary service data is sunk cost and would not be allowed to happen.
“I have told the banks that they have to move their business, move their traffic to a telecom company that is ready to provide it at the lowest cost possible, if not at zero cost. And that is where we stand, and we must achieve it,” he said.
Based on these directives, the proposed additional USSD charges were quashed, even though the telcos protested.
However, over one year after the directive was given; the Commission has made a turnaround to allow the industries’ players to decide how much is paid and who is paying.
In a press release signed by NCC’s Director of Public Affairs, Dr. Ikechukwu Adinde, on Wednesday, the Commission announced that it is reversing its directive restricting mobile network operators from implementing increased charges on transactions executed through USSD platform.
The Nigerian Communications Commission, in furtherance of its mandate to protect the interests of consumers and support a robust telecommunications sector, has revised its Determination on Unstructured Supplementary Service Data (USSD) pricing published on the 23rd of July, 2019.
The amendment was necessitated following a protracted dispute between Mobile Network Operators and Financial Institutions on the applicable charges for USSD services and the method of billing.
As a responsive and effective regulatory authority, the Commission recognises that its policies are not static and may be modified from time to time as circumstances demand.
This is coming on the heels of a recent directive by the Hon. Minister of Communications and Digital Economy, Dr. Isa Ali Pantami, regarding a review of the USSD pricing by all parties involved, following a presentation made by the Commission on the billing structure, determination of USSD pricing, current status and the way forward.
Speaking during the presentation, the Minister stated that he took the decision to suspend the commencement of end-user billing (where the consumers are charged directly from their airtime balance for use of USSD channels as opposed to corporate billing where the banks paid the MNOs for the use of USSD service) because he was “genuinely besieged with a barrage of complaints at the attempted commencement of end-user billing by service providers.”
The Minister also clarified that “USSD is a service to banks and not to the Telecom Consumers, and 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.”
According to him, “Mobile Network Operators (MNOs) have no direct relationship to bank customers, and cannot, therefore, charge directly for usage of USSD channel.”
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 for the deployment of a broad spectrum of services, including financial, insurance, agricultural, government services and more. The use of USSD channel has become a critical resource in the economy even more so in this era of the Covid-19 pandemic that has witnessed a rise in reliance on digital services.
The Executive Vice Chairman of the NCC, Prof. Umar Garba Danbatta, in the interest of the consumers and other stakeholders, has revised the Determination previously issued by removing the Price Floor and the Cap to allow the Mobile Network Operators and the banks negotiate rates that will be mutually beneficial to all parties concerned.
The NCC also determined that Mobile Network Operators must not charge the consumers directly for the use of USSD channels for financial services in the form of end-user-billing. The transaction should be between the MNOs and the entity to which the service is provided (i.e. Banks and Financial Institutions). A copy of the Determination is available on the NCC’s website, www.ncc.gov.ng.
Could It be that the definition of democracy is taking a new shape through 2020. We have always defined it this way: Leadership, Of the People, by the People, for the People. According to John L. Haney, Proceedings of the American Philosophical Society.
Whilst comparing democracy in politics with globalization in the corporate world, we can assume that a few terms that encourage globalization is somehow becoming a thing for the diary. There is no doubt that indigenous people are somehow giving more open arms to their fellow indigenes, with belief that it gives them better security, sense of belonging and opportunity to grow within a familiar ecosystem. Countries are now encouraging more products made Of their People, by their People, and for their People.
It will be great to stand by Globalization, rather than Overzealous indigenization. The earth in its natural state, encourages one man for another, that is why it spreads its seeds in different quantities and quality shares across various shores. Gold in the east, Silver in the west, so that the east will be encouraged to trade with the west. Even the holy book supports merchandising, foreign investment, and international trade as strategies of financial safety, freedom and love for humanity:
Read: Ecclesiastes 11:1-6
This could be the birth of globalization, but due to certain human cupidity, the science of globalization is becoming more like a simple art work, just designed and decorated in our history books.
The fun and excitement of being a human is the ability to interchange cultural blessings in the form of; Music, Stories, Trading, Nation to Nation diplomatic support, exchange of Technology and Medical expertise et al. Encouraging indigenization, should never exterminate that sense of the world as a small village. In this small community called earth, do not fight the special blessing of your neighbor, because you never know when even his cough will save you from an intruder.
Using Tiktok as example, being banned in India, and to be bought over in America by Microsoft instead of ban, I recall an article by Professor Ndubuisi Ekekwe (PHD) in The MicroTok for America!, where he said and I quote:
Poor TikTok in America as it makes its way to Microsoft. Forget it. I am not sure if MicroTok, my suggested name for the Microsoft future version, will live up to the glory of the real TikTok. It would be complicated as what makes TikTok hot is the AI which drives those short video recommendations to align perfectly for users. Mess up those AI systems, you have nothing.
There is a possibility that MicroTok could struggle because of one thing: the zero privacy in China makes its mobile solutions more engaging as they can use data which American companies cannot use in improving their models.
Going for Our Own only, in other words, indigenization, may sound so interesting and instantly impressive, but it can never be innovative enough to match the fun and adventure, the multinational localization of businesses would have given. The generation after us may need something to connect them with their sister nations, not just their sister and brother in the same house.
That calls up the word; Multinational. If the world powers, change Democracy by the people into Democracy by “Our Own” people, which in the corporate world means, changing of Corporate Globalization of into Corporate Indigenization;
Because, they said that, if one hand touches oil, it may span to the other four fingers. If indigenization becomes the order of the day, localization may become the innovation of the near future, and every business will be forced to adapt to it else excuse the geopolitical zone.
Average Nigerian likes to dress Italian, drive German, party Caribbean, spend Arab, breathe American and bleed Nigerian. This may sound uninteresting, but differential attention will teach you that, this is the reason the dollar man still wishes to invest in Nigeria, host Nigerian in his country and even identify with a Nigerian. By nature a Nigerian man welcomes innovations, and encourages local business to innovate with international outlook else stand a chance of exemption.
The world needs to be Nigerian by the mind of welcoming innovation; we are still one world, whose affluence in milk complements another’s deficiency in protein. PingSmile.com Tech is coming from Nigeria, and will live and thrive across nations of the world, because we propagate the art of globalization.
Indigenization concern should really be treated with great attention to save the future of the business world. Instead of banning entirely a particular lucrative product in your land, what about regulating the features and security-wise if that may be the case.
Dear world, and super intelligent regulatory bodies, we need one another to thrive on this planet earth of ours. It is more interesting to see Facebook running and thriving in China, while WeChat is thriving in the USA. It is so much fun seeing Indian dancers on Tiktok, while shopping on JioMart in China. The world is a global village, let it continue to be like that.