In South Africa’s dynamic mobile landscape, the transition from USSD (Unstructured Supplementary Service Data) to USSI (Unstructured Supplementary Service Data over IP) marks a significant evolution to a new medium for network connectivity. USSD, the cornerstone of mobile service accessibility, is now transitioning to USSI, which leverages IP networks for enhanced capabilities. In the blog below, we explore this transformative journey, uncovering the impact of the evolution of USSD to USSI in today’s mobile communication landscape.
Understanding USSD
USSD (Unstructured Supplementary Service Data) is a communication protocol used by mobile phones and network operators to exchange text-based messages. These messages facilitate interactive, menu-driven services and are transmitted rapidly over the traditional signalling channel. In this way, USSD provides a fast and efficient way to transfer information between a mobile device and a service provider.
One of the key functions of USSD technology is that it operates through session-based interactions, meaning that each interaction is a real-time exchange between the user and the application. Below, we highlight how easily and efficiently this technology facilitates these mobile transactions:
- User Initiates Session: The user dials a USSD code (e.g., *123#).
- Request Sent: The mobile device sends the USSD request to the mobile network.
- Network Processing: The network routes the request to the appropriate application server.
- Server Response: The server processes the request and sends a response back to the network.
- Display Response: The response is displayed on the user’s phone, often in the form of a menu or informational message.
- User Interaction: The user can interact with the menu by sending further requests and continuing the session until it is terminated.
This all takes place in seconds, which is one reason why this technology has gained so much popularity. However, many agree that the main driving factor behind the development of USSD technology was accessibility. Let us explain this in more detail.
In the 1990s and early 2000s, mobile phones were generally used for voice calls and SMS. As mobile networks and technologies evolved, there was a need for more interactive services that could be accessed without smartphones or mobile internet. USSD emerged as a solution for this, providing menu-driven services on basic and feature phones. Now, you might be asking why there was such a need for these USSD services and accessibility. The answer is that in South Africa during this time, there was high mobile penetration, but many did not have access to the internet. With increasing numbers of mobile users, there was a demand for accessible services that could work on any mobile phone without an internet connection. USSD technology is also highly cost-effective and relatively inexpensive to implement, making it an attractive option for Telcos and customers.
Over the years, the application of USSD expanded and diversified primarily because of its accessibility and ease of use. Due to these factors, USSD has been used across various business applications and has become a versatile, accessible service tool. Some of the services that USSD provides include:
- Banking – Customers can check account balances, transfer funds, and pay bills using USSD codes provided by their banks. For example, dialling a specific code can initiate a banking menu where users can navigate through different banking services.
- Airtime Recharge – Customers can purchase airtime by dialling a USSD code, entering the amount they wish to recharge, and confirming the transaction. This is especially useful for prepaid mobile users.
- Mobile Money Services – These services allow customers to send and receive money, pay for goods and services, and manage their mobile wallets via USSD.
- Service Subscriptions – USSD allows customers to subscribe to various value-added services, such as news updates, sports scores, and caller tunes.
- Government Services – Governments use USSD for various citizen services, such as tax filing, voter registration, and accessing government information. USSD ensures accessibility to government services even in remote areas.
- Customer Support and Self-Services – Many businesses use USSD to provide customer support and self-service options. USSD menus allow customers to access information, request assistance, or check order status or product availability.
- Healthcare – USSD has been employed to improve healthcare services in some regions. Patients can use USSD to schedule appointments, access medical records, receive health tips, and get emergency assistance.
From the above, it is clear that USSD has evolved into a powerful mobile transaction and service tool. Its accessibility, ease of use, and compatibility with even the most basic mobile phones make it valuable for communication and service delivery. Now that we understand USSD technology, let’s dive into USSI and how this technology is impacting mobile transactions.
The Emergence of USSI
Although the functionality of USSD has remained relatively the same since its inception, there has been one significant technological advancement. This has been the development of USSI (Unstructured Supplementary Service Data over IP).
USSI is an advanced communication protocol that builds on the traditional USSD technology by utilising Internet Protocol (IP) networks. USSI allows for the transmission of text-based messages and interactive services over IP, enabling more sophisticated and feature-rich interactions compared to the original USSD protocol.
The primary distinction between USSD and USSI lies in their network compatibility. USSD services operate efficiently on 2G and 3G networks. However, when functioning on IMS (IP Multimedia Subsystem) and LTE (Long-Term Evolution) networks, USSD services often need to fallback to 2G/3G. This fallback process can introduce delays, adversely impacting the customer experience.This is the primary driver behind adopting USSI.
USSI addresses this issue by providing seamless access to USSD services directly from LTE/IMS networks without the need for fallback. A USSI Gateway enables subscribers to perform actions such as balance inquiries and service configurations directly within the LTE/IMS environment. This approach ensures a consistent and uninterrupted user experience across different network types. There are several other benefits associated with USSI, which include the following:
- Consistent Service Quality – Users receive the same high-quality service experience across all modern network types, enhancing overall satisfaction.
- Handling High Volumes – Due to IP networks’ scalability, USSI can efficiently manage a larger number of simultaneous sessions. This is beneficial during peak usage times.
- Efficient Resource Use – The reliance on IP infrastructure allows for more efficient use of network resources, reducing operational costs over time.
- Secure Transmission – IP-based communication offers enhanced security features, such as encryption, which ensures that sensitive data is protected during transmission.
- Interactive Services – USSI allows for more dynamic and interactive services that can be tailored to individual user needs.
- Support for Modern Devices – As users increasingly adopt smartphones and gain access to mobile internet, USSI can cater to this broader audience by providing advanced services compatible with these devices.
From the above, it is clear that USSI technology enhances the capabilities and performance of USSD services by leveraging the strengths of IP networks. This results in improved user experiences, richer interactions, better scalability, enhanced security, and seamless integration with modern technologies while maintaining broad accessibility.
Challenges and Opportunities
USSD and USSI technologies have many key benefits for Telcos and customers alike, but there are also various challenges, specifically with the implementation of USSI.
Mobile device software must be updated for Telocs to implement USSI on their networks. Some mobile smartphone devices have this capability, but it needs to be “switched on” by the manufacturers, which poses a challenge as many mobile smartphones do not already have this capability enabled. Due to this, many Telcos are developing their own smartphones that not only have USSI capabilities but are also more cost-effective for those customers who cannot afford the expensive 4G and 5G smartphones currently on the market. By offering more cost-effective smartphone options, there is an opportunity to continue to enhance accessibility and the use of USSD services.
With USSD being a high-revenue driver for many Telcos, not being able to provide these service offerings because of the 2G and 3G sunset will significantly affect their bottom line. What is the solution? The answer lies in utilising innovative technology like Adapt IT Telecoms NextGen v.Services solution, which has a USSI Gateway module. This module allows Telcos to deliver USSD-based services over USSI. In this way, the end-user/customer will still use an interface similar to USSD, but this service will be facilitated over the 4G and 5G networks. By utilising this kind of technology, Telcos can still capitalise on this essential revenue stream.
Despite these challenges, USSI offers numerous opportunities for innovation and growth, and this will be how USSD services will be facilitated in the future.
Conclusion
USSD and USSI technologies remain vital cornerstones of mobile services in South Africa’s dynamic landscape. While USSD has long been applauded for its accessibility and simplicity, USSI’s emergence introduces a new medium for network connectivity, leveraging IP networks for a seamless USSD experience over newer networks. Despite challenges in adoption and integration, the future is promising as USSI opens doors to innovative services and expanded accessibility.
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Experienced in the Telecoms & IT industries, encompassing services and solutions from the traditional to the evolved digital communication networks, embracing profound knowledge and proficiency in both the technical and sales disciplines. Product Management, including construct, software lifecycle, roadmap strategy and market leadership of Adapt IT’s portfolio of Next Gen Value Added Services (NG-VAS) solution stream.
