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.

Samsung Electronics Co Ltd is seeking a way back to India market as anti-China sentiment continues to grow. A military conflict in June between China and India stirred anti-China sentiment that has affected its companies business presence in India.

As the anti-China sentiment escalates, non-Chinese companies are positioning to take advantage of the situation. Samsung is the only non-Chinese player in India and has seen an opportunity to penetrate the smartphone market where Chinese companies dominate.

Following the June conflict, India banned 59 apps of Chinese origin, particularly TikTok. The ban opened the way for indigenous apps and renewed the interest of American companies in doing business in the country.

The development seems to have stirred Samsung to fight for a leading position in India’s smartphone market even though it is dominated by companies from China that have won consumers with cheap prices.

Though Samsung still has a huge market in India, it has for long lost the smartphone market to China. Counterpoint, a tech researching firm said that India accounts for some 7.5% billion in annual retail smartphone revenue for Samsung, which makes it its second biggest market after the United States.

Reuters reported that Samsung recorded 26% market share in the second quarter to secure the No. 2 spot behind Xiaomi’s 29%, which leads the smartphone market in India. The report noted that the South Korean tech company’s diverse and inhouse supply chain helped it to beat product delays that affected other companies due to COVID-19 lockdowns.

It has been over three years since Samsung lost its dominance in India to Chinese companies. Its bounce back strategy seems to rest on its ability to source phones components internally.

Samsung has a mega mobile phone manufacturing plant in New Delhi, where it tests new devices and assembles them for export. With the manufacturing power, it has been able to curtail cost of production that took a toll on its rivals amidst the pandemic.

Reuters reported that in May, Samsung and Facebook partnered to train over 200,000 brick and mortar stores selling its phones to use social media for sales and marketing.

Xiaomi and Oppo, the leading Chinese brands in India were severely hit by the disruption of the global supply chain, following lockdowns induced by coronavirus. However, Samsung stayed in business through local production, online sales and delivery.

Samsung is building on this advantage, using its ability to manufacture internally, to fight for its place in the Indian market. It is hoping that making phones locally will cut the cost that has over the years, driven consumers to Chinese companies.

Since June, it has launched seven new smartphones, three of them cost $133,63 (less than 10,000 rupees), including its cheapest Android offering at $75, according to Reuters.

A source familiar with Samsung’s strategy in India said coronavirus has forced many online activities in the country, and therefore necessitated low budget phones.

“The COVID crisis has pushed people to use smartphones for everything from online education to digital payments to even connecting with friends on video calls. That’s why these budget phones are focused on the mass market,” the source said.

As part of its strategy, Samsung initiated installment-payment for its customers and incentive schemes designed to attract more consumers to its base, including offering students discounts on some devices.

But while Samsung appears to be gaining ground, there is still a mountain of challenge ahead of it. Although there is growing apathy toward Chinese companies, competition is still ripe. Xiaomi and Oppo still have a base of loyal customers who don’t care about what the Chinese and Indian governments are doing at the border. The companies have won them over through cheap phones and hope to use Prime Minister Narendra Modi ‘Made in India’ campaign to beat the anti-China sentiment.

On the other hand, the Google and Reliance’s Jio partnership could ruin Samsung’s prospects, as it will be offering the most affordable models of phones to Indians.

However, Samsung has a brand reputation that Indians trust, and would choose over Xiaomi and the others if the prices get close.

“Samsung is India’s No. 2 smartphone brand after Apple by image. So a phone priced between 6,000 rupees to 15,000 rupees from Samsung is very well placed today to capture market share from Chinese rivals,” said brand strategist Harish Bijoor.

Apple devices are out of the contest due to their costs, and the company is not considering lowering the price to woo customers. The cheapest iphone in India costs about 31,500 rupees, while the cheapest Xiaomi is around 7,500 rupees. So the competition is between Samsung and Chinese companies.