{"id":31955,"date":"2013-02-19T13:01:19","date_gmt":"2013-02-19T11:01:19","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=31955"},"modified":"2013-02-19T13:02:39","modified_gmt":"2013-02-19T11:02:39","slug":"wirelessg-is-after-money-vodacom","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/31955\/wirelessg-is-after-money-vodacom\/","title":{"rendered":"WirelessG is after money: Vodacom"},"content":{"rendered":"

Vodacom<\/a> has filed a response to WirelessG<\/a>\u2019s urgent court application, arguing that a loss of income of R1.4 million per month is behind WirelessG\u2019s urgent court application.<\/p>\n

WirelessG filed an urgent court application in January 2013, arguing that Vodacom is reneging on its shareholder agreement and is in breach of its first right of refusal when it comes to WiFi provisioning.<\/p>\n

However, Vodacom said that the main driver behind WirelessG\u2019s urgent court application is money.<\/p>\n

Vodacom\u2019s five year retail agreement to resell WirelessG retail products \u2013 in which Vodacom paid WirelessG R300,000 per month \u2013 is coming to an end in February 2013.<\/p>\n

Vodacom decided to terminate this retail agreement because it only generated R20,000 in WirelessG product sales, which means that the payment of R300,000 for this service did not make financial sense.<\/p>\n

However, this is not the only lost revenue for WirelessG. Another agreement called the “binding agreement”, in which WirelessG was contracted by Vodacom to supply guest WiFi services to the Southern Sun group also comes to an end in February 2013.<\/p>\n

According to the Vodacom court documents, WirelessG received approximately R1.1 million per month over a 24-month period for its services related to the Southern Sun agreement.<\/p>\n

This means that WirelessG stands to lose an income of around R1,400,000 per month at the end of February 2013.<\/p>\n

According to the Vodacom legal document, the combined total of monthly payments and Vodacom\u2019s capital investments in WirelessG comes to more than R100 million.<\/p>\n

\u201cThe reality is that the drying up of Vodacom\u2019s financial support with effect from end February 2013 \u2013 when the Retailer Agreement and the Binding Agreement terminate \u2013 has brought about this application,\u201d Vodacom said in its submission.<\/p>\n

Vodacom\u2019s Tlhabeli Ralebitso<\/a> added in its court submission, that WirelessG never brought up these issues in five years of its partnership with Vodacom. This raises questions regarding the timing of WirelessG\u2019s urgent court application.<\/p>\n

According to Vodacom, the WirelessG business is unlikely to be sustainable without this financial support.<\/p>\n

WirelessG CEO Carel van der Merwe<\/a> was asked for feedback about Vodacom\u2019s claims, but he did not comment by the time of publication.<\/p>\n

More Vodacom vs WirelessG articles<\/h3>\n

WirelessG lashes out at \u2018incompetent\u2019 Vodacom<\/strong><\/a><\/p>\n

Vodacom killing companies: WirelessG<\/strong><\/a><\/p>\n

Vodacom vs WirelessG: billion rand blunder or storm in a teacup?<\/a><\/strong><\/p>\n

Vodacom in the dock over Wi-Fi contract<\/strong><\/a><\/p>\n

Vodacom investments under the spotlight<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Vodacom hits back at WirelessG\u2019s accusations, which includes surprising information about the ongoing legal battle<\/p>\n","protected":false},"author":10,"featured_media":31961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[4717,26,27,2477],"class_list":["post-31955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-carel-van-der-merwe","tag-headline","tag-vodacom","tag-wirelessg"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=31955"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31955\/revisions"}],"predecessor-version":[{"id":31957,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/31955\/revisions\/31957"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/31961"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=31955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=31955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=31955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}