Vodacom Group has finally resolved its protracted legal dispute with former employee Kenneth Makate over the invention of the “Please Call Me” service, reaching an out-of-court settlement estimated at approximately R550 million.
The Midrand-based telecommunications company confirmed the agreement in a brief Stock Exchange News Service (SENS) announcement this week, though it declined to disclose the exact settlement figure. Bloomberg Intelligence has estimated the amount at around R550 million following Vodacom’s trading update on Thursday.
The Vodacom board approved the settlement agreement on 4 November, bringing an end to a legal saga that has spanned nearly two decades since the Please Call Me service was first launched around 2001.
The settlement represents a significant increase from Vodacom’s previous offer of approximately R47 million to Makate. However, it falls far short of Makate’s initial demands, which ranged from R10 billion to as high as R40 billion, based on the service’s success and longevity over more than 20 years.
Makate confirmed the settlement on social media platform X, stating: “Indeed, the ‘Please Call Me’ matter has been settled and is subject to confidentiality.”
The settlement amount has been incorporated into Vodacom’s interim financial results, which were referenced in a trading statement published on 31 October. Full details of the financial impact are expected to be revealed when the company releases its interim results on 10 November.
The Please Call Me service, which allows users to send a free message requesting a callback when they have insufficient airtime, became one of Vodacom’s most successful innovations. The dispute centered on Makate’s claim that he invented the service while employed by Vodacom and deserved compensation for its commercial success.
Both parties expressed satisfaction with reaching finality in the matter, with Vodacom’s SENS statement noting: “The parties are glad that finality has been reached in this regard.”
