Vodacom could pay between R29 billion and R55 billion to Makate

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Vodacom could be liable to pay anything between R29 and R55 billion to Nkosana Makate in connection with the Please Call Me saga. This is much higher than the previous assumptions that were based on Makate’s earlier demand of at least R20 billion and the High Court filings.

A local online publisher, MyBroadband revealed that the Supreme Court of Appeal, which handed down its decision on the 6th of February, in effect, suggested this range of compensation based on different revenue models it looked at.

Under one model, it’s suggested that Vodacom’s total call revenue generated by the Please Call Me service amounted to R194,8 billion over 18 years while an alternative model suggests that the total call revenue generated as a result of the Please Call Me service amounted to R273.4 billion over the same period.

The Supreme Court of Appeal ordered that Vodacom pay Makate between 5 and 7.5% of these revenues which could be anything between
R29 billion and R55 billion.

In the meantime, the telecommunications company is approaching the Constitutional Court to review the SCA’s decision.

If the apex court aligns itself with the Supreme Court and the High Court before it, such a reward could be catastrophic for Vodacom and all its stakeholders, including its customers.