Vodacom has acknowledged significant uncertainty surrounding the possible compensation it may owe in the long-standing Please Call Me case, with potential payouts ranging from millions to several billions of rand.
The telecommunications giant continues to challenge a Supreme Court of Appeal (SCA) ruling that could see it pay between 5% and 7.5% of revenue earned from the service since its inception in 2001.
In its latest financial results, Vodacom indicated that the final amount owed to Please Call Me inventor Nkosana Makate remains unknown. The company said the outcome depends heavily on the success of its ongoing appeal to the Constitutional Court and the eventual legal interpretation of the case’s merits. As a result, Vodacom has made only a minimal provision for this potential liability in its financial statements.
A Long Legal Battle
The legal battle dates back to 2016, when the Constitutional Court ruled that Makate must be compensated for his role in originating the Please Call Me concept. In 2019, Vodacom’s CEO offered R47 million, which Makate rejected, arguing the amount did not reflect the true value of the service.
The SCA later sided with Makate, ordering Vodacom to calculate compensation based on a percentage of total revenue generated by the service, an amount estimated to exceed R29 billion. Makate has since demanded R9.4 billion, excluding interest.
Awaiting Constitutional Court Decision
Vodacom escalated the matter to the Constitutional Court, which heard arguments on 21 November 2024. However, six months on, a final ruling has yet to be delivered. The Office of the Chief Justice confirmed that no date has been set for the judgment to be handed down, and all parties will be notified once a decision is ready.
This delay has drawn attention, especially as other cases heard during the same period have already received rulings. The prolonged wait has only added to the frustration for Makate, who has been pursuing compensation for more than two decades.
25 Years and Counting
Makate, now 48 years old, has endured a 25-year battle to be fairly compensated for his contribution to South Africa’s telecommunications industry. Despite nine court victories in his favour, Vodacom’s repeated legal challenges have delayed resolution.
The Constitutional Court’s forthcoming decision will be pivotal, either confirming a potentially massive payout or reversing the SCA’s judgment. Until then, both Vodacom and Makate remain in a prolonged state of legal and financial uncertainty.
In the meantime, Vodacom continues to contest the feasibility of the SCA’s orders, insisting that its appeal is grounded in legitimate legal concerns. As the saga continues, the case stands as one of South Africa’s most prominent battles over intellectual property and corporate accountability.
