{"id":791977,"date":"2024-09-22T07:26:57","date_gmt":"2024-09-22T05:26:57","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=791977"},"modified":"2024-09-23T07:52:24","modified_gmt":"2024-09-23T05:52:24","slug":"vodacoms-latest-please-call-me-warning","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/791977\/vodacoms-latest-please-call-me-warning\/","title":{"rendered":"Vodacom&#8217;s latest Please Call Me warning"},"content":{"rendered":"\n<p>Vodacom&#8217;s YeboYethu BEE scheme has applied to the Constitutional Court to become a friend of the court in the ongoing Please Call Me saga, warning that a payout from the mobile operator will hit black shareholders.<\/p>\n\n\n\n<p>YeboYethu is Vodacom&#8217;s empowerment scheme that pays out regular dividends to black shareholders.<\/p>\n\n\n\n<p>According to the <a href=\"https:\/\/www.timeslive.co.za\/sunday-times\/business\/business\/2024-09-22-vodacom-payout-will-hurt-black-investors\/\"><strong>Sunday Times<\/strong><\/a>, the scheme&#8217;s CEO, should Vodacom be forced to pay out the billions of rands demanded by Kenneth Makate in the Please Call Me case, it would have dire consequences for the scheme and its shareholders and may ultimately lead to its ultimate demise.<\/p>\n\n\n\n<p>The group and the YeboYethu Investment Company say they will be materially impacted by the ruling by the Constitutional Court, hence the application. The late application was justified in that they only became aware of the full impact of a possible payout to Makate in June,<\/p>\n\n\n\n<p>YeboYethu is just the latest Vodacom-linked entity to try and get in on the case, with the group&#8217;s biggest shareholder, Vodafone, attempting the same at the end of June.<\/p>\n\n\n\n<p>However, the Constitutional Court shot this application down earlier in Septemeber.<\/p>\n\n\n\n<p><strong>The ongoing saga<\/strong><\/p>\n\n\n\n<p>Vodacom has been fighting a decades-long battle over the Please Call Me service, which Makate brought forward. Makate is seeking fair compensation for the idea.<\/p>\n\n\n\n<p>According to Makate, he had an idea for a free missed-call service that he shared with his superior at Vodacom in 2001. The service aimed to allow customers to get their contacts\u2019 attention without using airtime.<\/p>\n\n\n\n<p>As&nbsp;<a href=\"https:\/\/dailyinvestor.com\/telecommunications\/43849\/true-please-call-me-inventor-says-makate-should-only-get-one-cent\/\" target=\"_blank\" rel=\"noreferrer noopener\">reported<\/a>&nbsp;by Daily Investor, Vodacom launched the service, known as Please Call Me, in March 2001, and it became widely used across South Africa.<\/p>\n\n\n\n<p>Makate then launched a lengthy legal battle against Vodacom in 2008, seeking compensation for his idea.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/Makate-idea-man.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"703\" height=\"526\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/Makate-idea-man.jpg\" alt=\"\" class=\"wp-image-790176\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/Makate-idea-man.jpg 703w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/09\/Makate-idea-man-300x224.jpg 300w\" sizes=\"auto, (max-width: 703px) 100vw, 703px\" \/><\/a><figcaption class=\"wp-element-caption\">Vodacom newsletter identifying Makate as the originator of the Please Call Me idea. Source:&nbsp;<a href=\"https:\/\/mybroadband.co.za\/news\/\"><strong>MyBroadband<\/strong><\/a><\/figcaption><\/figure>\n\n\n\n<p>Makate\u2019s legal team had initially demanded R20 billion to compensate him for his idea, based on a calculation that the Please Call Me product had generated R205 billion in revenue since its implementation.&nbsp;<\/p>\n\n\n\n<p>Vodacom did not share Makate\u2019s views on how much revenue the service generated or how much he deserved.&nbsp;The courts, however, sided with Makate on the matter.<\/p>\n\n\n\n<p>After being ordered to fairly compensate Makate for his idea, Vodacom initially offered him R10 million. Makate rejected this offer, and Vodacom CEO Shameel Joosub\u2019s team then constructed four models to estimate how much Makate should get based on different scenarios.<\/p>\n\n\n\n<p>After averaging the two models with the highest values, he came up with an offer of R47 million. However, Makate rejected this as well, and the matter again ended up in court.<\/p>\n\n\n\n<p>Makate approached the High Court, and in February 2024, the court ruled in his favour. Vodacom appealed this ruling at the Supreme Court of Appeal.<\/p>\n\n\n\n<p>However, the Supreme Court dismissed Vodacom\u2019s appeal and ordered the company to compensate Makate&nbsp;<strong>between 5% and 7.5% of the revenue generated by the service over 18 years<\/strong>.<\/p>\n\n\n\n<p>According to MyBroadband\u2019s analysis, this ranges from R28.99 billion to R55.37 billion using the models accepted by the court.<\/p>\n\n\n\n<p><a href=\"https:\/\/businesstech.co.za\/news\/trending\/759167\/vodacom-looks-to-settle-r40-billion-please-call-me-saga-out-of-court-this-week\/\"><strong>Vodacom noted in March<\/strong><\/a>&nbsp;that it was on the hook for between R40 billion and R63 billion, based on this order.<\/p>\n\n\n\n<p>However, a twist in June\u2014where Makate\u2019s legal team opposed Vodacom\u2019s majority shareholder, Vodafone, from joining proceedings\u2014revealed that he was \u2018only\u2019 seeking the compensation claimed in 2020, which was R9.7 billion.<\/p>\n\n\n\n<p>He said his claim from 2020 still stands \u2013 R9.7 billion.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/790166\/win-for-makate-in-please-call-me-saga\/\">Win for Makate in Please Call Me saga<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vodacom&#8217;s BEE scheme, YeboYethu, is reportedly the latest to join the fray as the threat of a multi-billion-rand payout to Kenneth Makate sits with the ConCourt.<\/p>\n","protected":false},"author":10,"featured_media":751822,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-791977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/791977","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=791977"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/791977\/revisions"}],"predecessor-version":[{"id":792016,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/791977\/revisions\/792016"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/751822"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=791977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=791977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=791977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}