Nigerian Telcos Defend USSD Charges, Data Expiration Policies Amidst Consumer Outcry

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has pushed back against mounting public anger over USSD banking charges and data expiration policies. In a clear defense of the industry, ALTON Chairman Gbenga Adebayo articulated the operators' position, emphasizing that telecommunications companies are not merely passive conduits but active providers of essential infrastructure.

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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 likened the telcos' role to that of a taxi service, stating that they must be compensated for providing the connection, regardless of whether the end service, like digital banking, functions correctly. This analogy aims to reframe the narrative from one of exploitation to one of service provision, highlighting the costs incurred by operators even when transactions fail due to issues with other parties, such as banks.

Furthermore, Adebayo sought to clarify the complexities surrounding data expiration and the operation of toll-free customer service lines. He explained that data plans are structured with finite periods and that rollovers are possible with timely renewals. Regarding toll-free numbers, he pointed out that the cost is borne by the receiving entity, a practice becoming less feasible in the current economic climate. These explanations are crucial for managing consumer expectations and addressing widespread misconceptions.

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You can’t carry it in perpetuity.

The association also highlighted the significant challenges impacting service quality, including vandalism, power shortages, and infrastructure damage. ALTON argues that regulatory fines alone are insufficient and that robust protection of telecom infrastructure is paramount for network improvement. This perspective underscores the operational realities faced by telcos in Nigeria, suggesting that solutions require a multi-faceted approach involving infrastructure security and a better understanding of the industry's cost structures.

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In today’s economic environment, fewer organisations are willing to bear those costs.