Vodacom Group Ltd is paying out \u201creasonable compensation\u201d to a former employee of the South African mobile-network operator for his idea to develop a popular call-back service after a former chief executive officer first took credit for the product.<\/p>\n
The settlement comes almost a decade after Kenneth Makate started court proceedings against Vodacom for credit and financial compensation for the service that allows customers with a zero balance on their mobile phones to contact someone free of charge with the SMS message \u2018Please Call Me.\u2019<\/p>\n
\u201cVodacom can confirm that the group CEO has met with the legal representatives to convey his decision and determination on reasonable compensation,\u201d spokesman Byron Kennedy in a response to questions.<\/p>\n
\u201cIn the spirit of the confidentiality agreement both parties signed as part of the negotiating process, Vodacom will not disclose the amount set by the CEO.\u201d<\/p>\n
Makate, 42, took the idea to Vodacom\u2019s product-development team while he was working in the finance division in the early 2000s.<\/p>\n
Alan Knott-Craig, who was the CEO at that time, had to determine reasonable compensation for the idea, which didn\u2019t happen then.<\/p>\n
After lengthy court proceedings and a deadlock in negotiations in October last year, current CEO Shameel Joosub has now decided on fair compensation for the idea.<\/p>\n
About 140,000 customers made use of the service on its first day in operation. An initial development plan in 2001 for \u2018Please Call Me\u2019 said Vodacom could make as much as $23 million a day from people using the service.<\/p>\n
However, Vodacom\u2019s total revenue rose by about 3.6 billion rand ($260 million) in the 2003 financial year.<\/p>\n
\u201cVodacom considers the matter as finally settled and closed,\u201d said Kennedy.<\/p>\n