Vodacom has disclosed that the potential compensation payout in the long-running Please Call Me case remains highly uncertain, with outcomes ranging from millions to billions of rand.
The Vodafone-owned telco is still challenging the Supreme Court of Appeal’s (SCA) ruling, which ordered it to pay 5%–7.5% of total revenue from the service since 2001.
In a statement published today as part of its financial results publication, Vodacom said:
“Consequently, the range of the possible compensation outcomes in this matter is very wide. The amount ultimately payable to Mr. Makate is uncertain and will depend on the success of Vodacom’s appeal against the judgment and order of the SCA, on the merits of the case.”
The company has recorded a provision immaterial to its financial statements as it continues to dispute the compensation level.
Background of the Case
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In 2016, the Constitutional Court ruled that Vodacom must compensate Nkosana Makate, the inventor of the Please Call Me service.
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Vodacom’s CEO initially offered R47 million in 2019, which Makate rejected.
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The SCA later ruled in Makate’s favour, ordering 5%–7.5% of total revenue (estimated at R29 billion minimum).
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Makate is demanding R9.4 billion plus interest.
Pending Constitutional Court Decision
Vodacom filed an appeal with the Constitutional Court, which heard arguments on 21 November 2024.
However, six months later, a judgment is still pending.
Last week, the Office of the Chief Justice (OCJ) confirmed to TechFinancials that:
“A date for the handing down of judgment… is yet to be set. Parties will be informed when the Court is ready.”
Why the Delay?
While other cases heard in November 2024 have already been decided, the Makate vs. Vodacom ruling remains outstanding.
Makate’s 25-Year Wait for Justice
Makate’s lawyer, Stuart Scott, emphasised:
“Makate is now 48 years old. He’s been waiting 24 years for compensation, while Vodacom continues to profit from his invention.”
Despite nine court victories, Vodacom’s ongoing appeals have prolonged the case, leaving Makate in limbo.
What’s Next?
The Constitutional Court’s decision will determine whether Vodacom must pay billions or if the SCA’s ruling will be overturned.
Until then, the compensation range remains vastly uncertain.
For now, Vodacom maintains its stance:
“We are challenging the SCA’s judgment on multiple grounds, including the feasibility of its orders.”
As the legal battle drags on, Makate’s fight for fair compensation continues – 25 years after his invention changed South Africa’s telecom landscape.
