Telecom
SIM Boxing, And the Unboxing of Crime Syndicate
By Suleiman Bala Bakori
Boxes have a multitude of uses, and the word “box”, lends itself to diverse contexts.
For “Ajala Travelers,” the box is a necessity for keeping goods for their endless journeys. In literature, idiomatically, it can be said that “one has been boxed into a corner;” another might say to deal with a conundrum: “think outside the box;” then there is the “Pandora’s box” that no one wants opened.
To “box one’s ear’s” refers to a hit on the head, especially around one’s ears. For those who celebrate Christmas, “Boxing Day,” which is the 26th of December, the second day of Christmastide is not to be joked with: A day to unbox gifts. So much for the box.
Another type of boxes exists in the telecommunications world: The SIM Box. Have you ever received an international call but saw a local phone number ring in?
That is SIM Boxing in action. Let me explain.
SIM boxing happens when a person uses a special equipment, what is called a SIM Box containing tens to hundreds of SIM Cards—from 32, to 96, to 512 and more SIMs —to terminate international calls by bringing in the international call into the SIM Box using internet connections and regenerating the calls to the called party from one of the hundred SIMs in the box.
This way, the called party will see the local number of the SIM from the SIM Box, and not the original international number calling.
With SIM Boxes, the syndicate charges international call carriers lower rates than what regular Nigerian telecommunications operators would charge, as they do not have to pay the full cost of maintaining and operating a phone network.
Basically, they are bypassing the normal route for international phone call termination to terminate international calls cheaply and making windfall profits off it.
Take for instance, a telecommunications operator in Nigeria would ordinarily charge international carriers 10cents per minute for terminating an international call in Nigeria. However, by routing the call through a SIM Boxing syndicate, the international telecommunications carrier only pays a fraction of the charge to the syndicate, say 5cents per minute and does not have to pay the full 10cents per minute charge.
The SIM Boxer will terminate this call to the called subscriber at a rate of, say N15 per minute using one of the SIM cards in their SIM Box.
The SIM Boxer thus makes a killing from the differential between the rate charged to the international carrier and the rate paid to telecommunications operators whose SIM they utilise in their SIM Boxes, at the expense of our national security and income of mobile network operators and quality of our service to consumers.
Asides the revenue loss that local mobile network operators suffer courtesy the activities of these syndicates, networks face congestion around areas where the illegal call routings via SIM Boxing occurs.
With the huge traffic from the boxes, callers around the area see more dropped calls, poor call quality, and slower data speeds.
The introduction of the linking of National Identity Numbers (NIN) to SIMs is one way the Federal Government has worked to tackle this criminal enterprise.
With every SIM in the country being linked to an NIN, an identity is tied to the owner of each line, and regulators now have visibility of ownership.
That is not all. There is also the “Max-4 Rule” where a subscriber is not allowed to have more than four lines per network operator linked to his NIN.
With this rule in place, coupled with the NIN-SIM Linkage, every telephone subscriber in Nigeria would not just be accurately identifiable but limited to having only four telephone lines per subscriber.
To enforce this rule, the Nigerian Communications Commission (NCC) on the 29th of March 2024 announced the deadline for Mobile Network Operators to bar all subscribers who had five lines and above, and whose NIN failed the verification test of biometrics matching.
Over the last few weeks, sources within the NCC have confirmed cases where a single NIN was linked to over 100,000 lines.
Some NINs had well over 10,000 SIMS linked to them, others over a thousand, others had hundreds.
Many have questioned the reports and asked, what would any single reasonable person be doing with these number of lines? Justifiable questions, because no sane person—who is not running a business—should own more than five SIM cards.
Given the ‘Max 4 Rule’ in place and the NIN-SIM Linkage Policy, SIM Boxers have been boxed into a corner.
The applications they use require tens to thousands of SIM Cards, and the imperative to stay anonymous.
If these policies are well and fully implemented, this is the death knell for SIM Boxing merchants.
But the regulator, NCC needs to be fast and ready for the battle ahead. SIM Boxing is a billion-dollar criminal enterprise.
They are not going to go down without a fight. It is like taking a bone being chewed from the mouth of a bulldog.
Already, the battle seems to have kicked off.
A lawyer, Barrister Olukoya Ogunbeje has recently taken the Federal Government, NCC and Mobile Network Operators to court, claiming that the barring of SIMs not linked to NINs goes against his fundamental human rights, and has cost him the loss of business opportunities.
Anyone who has Nigeria’s interest at heart ordinarily supports this policy. It then does not add up seeing a so-called activist lawyer take up such a matter that is clearly against the public interest—unless this is the Haka cry of SIM Boxers.
A most interesting observation with his case is that it is not even a class action, but individually driven. It begs the question then, who is funding Barr. Olukoya Ogungbeje?
What is his interest in fighting this policy that puts paid to the business of a criminal enterprise? Is he funded by interests in the SIM Boxing world?
Time would tell. But in the meantime, NCC must go head on without fear or intimation and clean the Augean stable of SIM ownership in Nigeria.
Suleiman Bala Bakori is a researcher, and writes from the FCT.
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.
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.
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).
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.
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).
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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