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Telecom

NCC Puts Losses to Call Masking, SIM Boxing @ $3Bn

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Nigerian Communications Commission (NCC) has disclosed that the sector loses about $3billion in revenue occasioned by call masking/refiling and SIM boxing.

 

Prof. Garba Umar Danbatta, executive vice chairman of the Commission, said that “SIM boxing or Interconnect By-pass Fraud (IBF) is one of the most prevalent frauds in the telecom industry today and it is estimated to be costing the industry $3 billion in lost revenue,” Danbatta disclosed.

 

Themed “Overcoming the Challenges of Call Masking/Refiling: Task Ahead for the Telecoms Industry”, Danbatta stated that the topic of the meeting was carefully chosen to brainstorm on the menace of call masking/refining and SIM boxing, their dangers to the industry and how the menace can be curbed.

 

Danbatta who was represented by represented by Felicia Onwuegbuchulam, director, consumer affairs at t the 85th Edition of the Telecom Consumer Parliament (TCP) in Lagos, said that call masking is a worrisome development that constitutes serious challenges not only to the telecoms industry, but also poses serious security threats to the entire country.

 

The EVC went further to explain that “Call masking/refiling basically happens when an international call is terminated in Nigeria as a local number and the perpetrators have ulterior motive of profiting from price differentials between international and local calls.”

 

Further Danbatta said “As a commission, we have discovered that call masking is being perpetrated with small movable devices called SIM boxes, which are electronic boxes loaded with SIM numbers.

 

“A SIM box has capacity to receive and transmit calls undetected.

 

“However, the challenge is that these SIM boxes are never type-approved by the commission, a clear indication that they are being used illegally in the country.”

 

Speaking on the origin of Call Masking Danbatta said “Our findings have shown that masking of calls with another number, especially international calls, start trending since September 2016 when NCC reviewed and implemented the termination rate for international inbound traffic from N3.90/min to N24.40/min.

 

“So what is happening is a clear indication that some unscrupulous elements want to continue to fraudulently profit from the earlier lopsidedness in the International Termination Rate (ITR) which we had before the 2016 review.”

 

Danbatta said  that as part of zero tolerance for ‘communications fraud’ in the market and the determination of the commission to stamp out the practice in the industry, the NCC in collaboration with different stakeholders and security agencies, held series of meetings which led to the suspension of six indicted interconnect exchange licensees in February, 2018.

 

“Not only did the commission suspend the indicted licensees, the regulator also barred about 750,000 numbers assigned to 13 operators from the national network.

 

“These numbers were suspected of being used for masking and NCC took a hard uncompromising stance to withdraw their use,” Danbatta stated.

 

Although he said despite these regulatory actions, masking of calls has persisted as telecoms consumers continue to express outrage over call masking much as security agencies constantly put pressures on the Commission to find lasting solutions to the menace.

 

Danbatta said, specifically, concerns have been expressed on several occasions by the office of the National Security Adviser, the National Intelligence Agency, Department of State Services (DSS) as well as Committees of the House of Representatives.

 

He said based on the attendant security and economic implications as well as anti-competition dimension of call masking in the telecoms industry, “We advise consumers to be patriotic enough to report call masking case to the NCC.

 

“Such feedback will go a long way in assisting the commission to investigate the call masking cases reported, identify the perpetrators and subsequently take appropriate regulatory measures towards curbing the call masking menace.

 

“As a responsible tell communications regulatory agency, I am happy to inform you that the NCC is actively taking concrete steps towards addressing the issue of call masking, call refilling and SIM boxing.

 

“In the meantime, some of the measures being taken by the commission include, working on issuance of Direction to MNOs to explore every technical means not to allow their networks to be used for call masking and SMS boxing activities.

 

“Creating awareness on call masking through different social platforms and via our various outreach programmes to educate consumers and encourage them to report cases experienced call masking to the commission for investigation and necessary enforcement actions, among other measures.

 

 

 

 

 

 

 


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Telecom

Mafab Gets 0724 Number Series, Launches Mcom 5G Brand

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Mafab Communications, operating under the brand Mcom, has officially activated its mobile service infrastructure and commenced offering telecommunications services — including voice, data, and SMS — with new number range, Nigeria CommunicationsWeek can report.

Mafab Gets 0724 Number Series, Launches Mcom 5G Brand

Dr. Musbahu Bashir, founder Mafab, owners of Mcom

Nigeria Communications Commission (NCC) has also confirmed the entry of Mcom which listed 0724 as officially assigned to Mafab.

An insider at Mafab told this reporter that “ We are Nigeria’s first 5G standalone network provider, revolutionizing the telecommunications landscape.  We are driven by a vision to foster a world where possibilities know no bounds with the power of technology”

Recall that the original 5G licence was awarded to Mafab in 2021, with an expectation that rollout would have fully commence by August 2022.

MTN Nigeria, the other winner of the license adhered to this timeline and deployed its 5G across major cities like Lagos, Abuja, and Port Harcourt.

Mafab on the other hand, requested and was granted an extension of time, which it have finally taken advantage of by the recent launch.

Mafab Communications is owned by Dr. Musbahu Bashir, who is also the founder and chairman of the company.

He is the individual behind the Mcom 5G brand and has been instrumental in launching the company’s 5G services.


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Telecom

NCC to Name, Shame Telecom Infrastructure Vandals

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Nigerian Communications Commission (NCC) has vowed to intensify its collaboration with security agencies to arrest and prosecute individuals vandalising the country’s Critical National Information Infrastructure (CNII).

NCC to Name, Shame Telecom Infrastructure Vandals

Auwal Abdullahi, head of Quality of Service at the NCC, said this during a media engagement held in Abuja.

The move comes on the heels of the recent signing of the “Designation and Protection of Critical National Information Infrastructure Order, 2024” by President Bola Tinubu.

The Order is aimed at protecting essential digital and communication systems from cyberattacks, vandalism, and related disruptions.

Speaking on the development, Abdullahi said: “The Critical National Information Infrastructure (CNII) Act has provisions for prosecution, and the operationalisation of CNII falls under the purview of the Office of the National Security Adviser (ONSA). Anyone found liable for damaging or disrupting CNII will be prosecuted going forward. We are working with relevant agencies like the Nigeria Security and Civil Defence Corps (NSCDC) to tackle these problems and prosecute offenders.”

He recounted that some telecom operators recorded significant financial losses two years ago, largely due to exchange rate pressures and infrastructure vandalism.

“About two years ago, we noticed a situation where some of our key telecom operators were recording massive losses. Despite increasing revenues, they were struggling with heavy forex-related obligations that ate into their revenues. This led to poor quality of service,” he said.

According to him, the recent tariff adjustments have placed the industry back on a path to profitability and renewed investment.

“As a result, they are able to reinvest in their networks, which will lead to better quality of service and experience. We expect investments in the industry to increase significantly this year, more than what was seen in the last two years. The Nigerian telecoms industry has great promise, evident in its revenue growth and service delivery, despite the recent challenges,” he added

Also speaking at the event, Aminu Maida, executive vice chairman and CEO of the NCC,  reassured stakeholders that the Commission remains committed to driving improvements in network quality across the country.

Represented by Mrs. Nnena Ukoha, acting head of Public Affairs, Maida challenged journalists to act on the knowledge shared at the forum.

“This is not for you alone. You now have this information, do not just sit on it. For instance, you were given figures on fiber cuts and thefts affecting NCC. Who is responsible for those infrastructures? The NSCDC. Ask them: ‘Of all these incidents, what are you doing about them? How many people have been prosecuted?’ Every state has legal departments. Go and ask them: ‘What are you doing to protect critical infrastructure?’ he queried.

 

 

 

 

 

 

 

 

 

 

 


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Telecom

USSD: 13 Banks Clear Debts – ALTON

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Association of Licensed Telecommunications Companies in Nigeria (ALTON) has revealed that 13 commercial banks have fully settled their outstanding Unstructured Supplementary Service Data (USSD) service debts to Mobile Network Operators (MNOs).

USSD: 13 Banks Clear Debts - ALTON

Gbenga Adebayo, chairman, ALTON

The remaining three banks are nearing completion of their payments, having cleared over 95% of their respective debts, according to Gbenga Adebayo, chairman, ALTON.

This resolution paves the way for a new billing system for USSD banking transactions.

Going forward, charges for these services will be debited directly from customers’ airtime accounts.

The update on debt settlements and the upcoming billing model were discussed , during the ‘ASK the Exec’ online meeting anchored by MTN.

Participants included Lynda Saint-Nwafor, chief enterprise business officer at MTN and  Adebayo.

According to the ALTON Chairman, there has been substantial progress in resolving the long-standing debt issue.

“As of January, the outstanding debt from banks to MNOs for USSD services was N180 billion. Of the 17 banks with pre-API outstanding payments (excluding Heritage Bank, which is insolvent), 13 have fully settled their debts, and the remaining three are in the final stages of installment payments, with over 95% of the debt cleared”, he explained to journalists present at the call.

The clearance of historical debt is crucial as the industry moves to a new operational model.

“Banks with outstanding debts will not be excluded from the new system; they can either migrate to end-user billing once their debts are cleared or choose to remain on the old corporate billing model, provided they settle their outstanding obligations”, Adebayo pointed out.

Since 2021, collaborative efforts between the telecommunications and banking industries, supported by their regulators, have aimed to standardize charges for USSD banking transactions, resulting in a unified fee of N6.98 per transaction.

Saint-Nwafor, explained the upcoming change: “The most significant change is the transition to end-user billing, where customers will now be billed for USSD transactions directly from their airtime accounts instead of their bank accounts. This means deductions will no longer occur from bank balances but from airtime balances held with MNOs.”

Previously, banks directly debited customers’ bank accounts, a system that presented challenges regarding transparency and control.

To address this, an Application Programming Interface (API) was developed, granting banks full control over their USSD channels. For instance, a bank like GTBank with the USSD code *737# can now ensure a customer’s number is accepted by the bank before a transaction proceeds, after which the bank applies the N6.98 charge.

MNOs like MTN simply facilitate the connection, earning their N6.98 fee for providing the channel.

To ensure a smooth transition and consistent experience, a standardized process for end-user billing has been implemented across all operators and banks: Consent Message: Customers dialing a bank’s USSD code will receive a clear consent message informing them of the N6.98 deduction from their airtime and requesting acceptance.

Aggregator Communication: Upon acceptance, the MNO will contact a USSD aggregator to confirm the bank’s availability, preventing billing for unfulfilled services. Transaction and Billing: Once the bank confirms readiness, the MNO connects the customer and bills the airtime account.

All MNOs have also unified their messaging to customers, providing consistent communication on service levels and transaction outcomes, clarifying if a transaction failed due to issues on the bank’s end or the telco’s side.

Crucially, telco service purchases (airtime and data) from banks are zero-rated when customers use direct strings (e.g., dialing *737*10000# for N10,000 airtime instead of the generic *737#).

This informs both the MNO and the bank of the specific intent, making these transactions free.

Customers are strongly encouraged to use these direct strings to avoid charges, and extensive communication campaigns are planned. Any instance of double deduction (from both airtime and bank accounts) should be reported to the customer’s bank.

Adebayo addressed several key questions, reassuring the public about the implications for consumers and businesses.

He noted that for consumers, the shift to end-user billing has a zero net effect on cost, as they were already paying the N6.98 fee, albeit from their bank accounts.

Transparency and accountability are enhanced through standardized consent messages, inter-industry agreements, and MNOs’ commitment to provide monthly performance statistics to regulators.

“If a transaction fails due to MNO network issues, the customer will not be billed, or any deduction will be reversed. However, if the failure originates from the bank’s end (e.g., insufficient bank balance, bank system downtime), the customer will still be billed, with the reason for failure communicated”, ALTON Chairman explained.

The concern about USSD usage limiting access for those in unbanked areas or without airtime was also addressed.

“The N6.98 charge is considerably lower than alternative transport costs to physical banking points. Furthermore, customers can purchase airtime from their bank accounts at zero cost using direct strings, even if they have no airtime, as long as they have funds in their bank account. USSD is seen as a convenience channel, with all stakeholders contributing to the cost of providing financial services”, Adebayo stated.


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