MTN, Banks resolve disputes over USSD, to work out long-term pricing strategy
MTN and banks are expected to work out a long-term pricing structure of international best practice that would be applied to all charges relating to the Unstructured Supplementary Service Data (USSD) code.
This was part of the resolution reached at the end of the meeting between MTN, banks and the officials of the two industry regulators, the Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) respectively.
MTN was also directed to reverts to the status quo of 4.5 percent commission earnings for banks on the use of USSD code for the telco firm customers to recharge through their bank accounts.
As part of the agreement reached on Thursday, both feuding parties were also asked to come up with long-term pricing structure of international best practice that would be applied to all charges relating to USSD code.
Some banks had last week disconnected customers of MTN from their platforms after the telecom firm was said to have slashed the commission earned by banks on the use of USSD code for recharge.
However, the industry regulators for both MTN and banks had stepped in to resolve issues around the commission and to stem the disruption in the smooth operations of the telecoms firm.
The regulators called for a meeting to resolve the impasse, at the instance of the Minister of Communications and Digital Economy, Isa Ibrahim Pantami.
In a statement issued by MTN at the end of the meeting and distributed by its Senior Manager, External Relations, Funso Aina, MTN said: “Following the temporary suspension of sales of MTN products through our banking channel partners on April 2, 2021, services were restored on Sunday, April 4, 2021 with customers able to access all services.
This was agreed on the basis that MTN would revert to its previous cost of sales structures with banking partners until a new long-term agreement can be reached on a sustainable pricing structure going forward.”