Vodacom and WirelessG in WiFi deal
Vodacom has appointed WirelessG to be the exclusive provider of WiFi data products, which it aims to bundle with certain mobile product offerings.
This comes months after the two companies were set to go to court earlier this year, after WirelessG and six other applicants filed an urgent court application against Vodacom.
The WiFi hotspot specialist accused Vodacom of not honouring a shareholder agreement which, it argued, had subsequently cost the company millions in lost revenue.
A court application argued that Vodacom had signed away its right to offer WiFi in any of its operations. The agreement essentially states that WirelessG had exclusivity on WiFi in any Vodacom operation.
In terms of the new agreement, Vodacom will offer these new bundled products as a new product range through its entire retail distribution network.
WirelessG will roll-out and integrate a national WiFi hotspot network to the G-Connect WiFi offering which comprises 6,000, WiFi hotspots over the next five years.
The technical scope and implementation specifics of WirelessG’s appointment are currently being formalized between the parties. It is anticipated to be rolled-out during the first quarter of 2014.
WirelessG CEO Carel van der Merwe said: “The parties are already engaged in rolling-out the strategic objectives we have agreed upon.”
As part of the agreement, WirelessG is also entitled to distribute and resell all Vodacom’s products.
The two parties had met in court on 9 April 2013, but instead of a legal battle, WirelessG withdrew its application after behind-the-scenes action.
“Just prior to the court proceedings this morning, Vodacom’s legal team approached WirelessG with an offer that, in event of WirelessG electing not to proceed with an application, each party can pay their own legal cost,” said van der Merwe at the time.
Carel van der Merwe
More on Vodacom and Wireless G
Vodacom vs WirelessG: billion rand blunder or storm in a teacup?
Twist in Vodacom, WirelessG battle
Vodacom killing companies: WirelessG
Vodacom vs WirelessG: billion rand blunder or storm in a teacup?
Loading ...