BTRC plans to introduce session based USSD pricing
The telecom regulator has proposed Tk 0.85 for each 90 second USSD (unstructured supplementary service data) session for MFS
Tareque Moreteza
The Bangladesh Telecommunication Regulatory Commission (BTRC) wants to standardise the mobile financial service (MFS) system by introducing session-based USSD (unstructured supplementary service data) pricing.
The current practice is based on revenue sharing between MFS providers and telecom operators.
The BTRC recently sent its proposal to the Post and Telecom Division (PTD) for approval so that the global best practice could be introduced to Bangladesh. The charge will be Tk 0.85 per session including two free text messages.
A USSD session is completed through a set of code numbers pressed on the mobile phone that initiate the transaction. It is a global system for mobile communication technology used to send texts between a mobile phone and an application program in the network.
The BTRC Chairman Shahjahan Mahmood told The Independent that they would decide on a reasonable charge by discussing the matter with mobile operators.
Although the MFS is a financial service, it entirely depends on the mobile network. Currently, it provides 7 per cent to mobile operators from the revenue they earn through the service out of the 1.85 per cent service charge for cash out and Tk 5 for money transfer from one person to another.
The MFS was introduced six years ago by Bangladesh Bank on an ad-hoc or test basis.
Referring to the global standard and practices in neighbouring countries, the BTRC has proposed Tk 0.85 for each 90 second USSD session for the MFS.
However, in India and other countries, mobile operators are also allowed to operate mobile money. In Bangladesh, only banks (Rocket of Dutch-Bangla Bank Ltd) or their agents (bKash of BRAC Bank) are allowed to do.
MFS providers, however, claim that if the new pricing regime is set, it would affect the end user.
Rejecting their claim, mobile operators say that the system would not impact the end user, since this pricing would be set for business-to-business deals.
It is not a concern of mobile operators how much MFS providers would earn through USSD. The network would be used for voice calls, text messages and USSD, while charges would be calculated on the basis of the units used.
TIM Nurul Kabir, secretary general of the Association of Mobile Operators of Bangladesh (AMTOB), told the independent: The BTRC has decided the session-based price for USSD after discussing the issue with the stakeholders, including Bangladesh Bank, MFS operators, mobile network operators, AMTOB, and all have agreed to the proposal.
The AMTOB realistically believes that there is no question of increasing the tariff at the end users side. This is a bilateral issue between mobile netwrok operators and MFS operators. Session-based charging is a global best practice; it will ensure transparency and accountability in the sector, he said.
He also said mobile telecom operators have been the initial promoters of financial inclusion in Bangladesh and thus they are supporting the MFS by providing their networks.
MK
