Please Call Me: Makate Wins Big in Vodacom Case

Win for Makate in the Please Call Me Saga

The ongoing battle between Vodacom and Kenneth Makate over the Please Call Me service has taken a significant turn, with recent developments that are seen as a victory for Makate. This case, spanning over two decades, has captured the attention of South Africans and legal experts alike. It not only showcases the fight for fair compensation but also highlights how innovation can become the centre of a prolonged legal saga.

The Constitutional Court’s Rejection of Vodacom’s Bid

In a noteworthy ruling, the Constitutional Court of South Africa rejected an application by UK-based Vodacom to join the ongoing case as an amicus curiae (friend of the court). This decision was made on Friday, 6 September, as reported by the Forever Yena News, and marks a substantial victory for Makate. The court found that Vodacom’s involvement would not add value to the case. Makate himself called it a “massive victory” as he continues his fight for proper compensation from Vodacom, who implemented his Please Call Me idea in 2001.

The court’s decision comes at a crucial time, as Makate’s case against Vodacom is set to be heard again in court, offering him yet another chance to secure the compensation he believes he deserves for his groundbreaking idea.

The Origins of the Please Call Me Idea

Makate’s Please Call Me idea revolutionised mobile communication in South Africa. In 2001, while working at Vodacom, Makate proposed a service that allowed users to send a free message asking someone to call them back. This innovation was especially valuable in a country where many users struggled with high mobile costs and limited access to airtime. Please Call Me gave users the ability to connect with others without needing to spend money on calls, making it an essential service for millions.

The Please Call Me case is a stark reminder that innovation must be protected and rewarded fairly.

The service was launched by Vodacom in March 2001, and its popularity spread rapidly, becoming one of the most widely used mobile services in the country. However, despite its success, Vodacom failed to provide Makate with any compensation for his idea, leading him to seek justice through the courts.

Makate’s Legal Battle Against Vodacom

Makate’s legal journey began in 2008 when he launched a case against Vodacom, seeking compensation for the Please Call Me service. Over the years, the case has seen numerous twists and turns, with Vodacom consistently denying that Makate was entitled to any significant financial reward for his idea.

Makate’s legal team initially demanded R20 billion in compensation, arguing that the Please Call Me service had generated an estimated R205 billion in revenue for Vodacom since its inception. This calculation was based on the immense usage of the service over the years and the indirect value it brought to the network.

However, Vodacom contested these figures and offered Makate a mere R10 million as compensation, a sum he promptly rejected. In response, Vodacom CEO Shameel Joosub and his team developed four different models to estimate a fair compensation figure for Makate. After considering these models, Joosub arrived at a final offer of R47 million. Despite this, Makate turned down the offer, maintaining that it was far below what he deserved.

2008 Vodacom Newsletter

Call Me:: How It Works

Vodacom has introduced a new service called “Call Me,” thanks to Kenneth Makate from the Finance department. Kenneth suggested this service to the product development team, and they quickly embraced the idea.

The “Call Me” service is the first of its kind globally, allowing Vodacom prepaid users to send a free text message to other Vodacom customers, requesting them to call back. The main feature of this service is that it enables customers without sufficient balance in their accounts to stay in touch with their family and loved ones. The service is also available to business customers.

How it works:

• You send a USSD message to request someone to call you back. The other person receiving the “Call Me” message must have a Vodacom cellphone but can use any phone to return the call.
• The USSD command is 140082 plus the last seven digits of the recipient’s number (followed by # to send the request).
• A standard SMS will be sent to the other person, asking them to call you back and and showing your contact number.

Andrew Mthembu, Managing Director of Vodacom, praised the initiative, expressing his admiration that the concept came from one of their own staff. “The most impressive thing was that the idea was not from the product team but from a colleague in the finance department,” he said. He challenged the staff, asking them to come up with other innovative ideas that could address various challenges in the company. Mthembu remarked, “Surely, as young employees, we have the energy and the mindset to make the company even better. There are areas like finance, IT, operations, and more that we need to perfect.”

The service has seen great success, with over 140,000 customers making use of it on the first day alone. From December 31, the service will no longer be free, and standard SMS rates will apply.

Recent Court Rulings in Favour of Makate

Makate’s persistence paid off when the High Court ruled in his favour in February 2024. Vodacom appealed this ruling, but their appeal was dismissed by the Supreme Court of Appeal, which ordered the company to compensate Makate between 5% and 7.5% of the revenue generated by the Please Call Me service over the past 18 years. Based on the court’s ruling, the compensation due to Makate is estimated to be between R28.99 billion and R55.37 billion, depending on the models used to calculate the revenue.

Vodacom itself acknowledged that the company could be liable for an amount between R40 billion and R63 billion, which would make this one of the largest compensation payouts in South African corporate history. Despite these rulings, Vodacom continued to contest the figures, which led to further legal action.

Makate’s Compensation Claim: R9.7 Billion

A surprising twist occurred in June 2024 when it was revealed that Makate was no longer seeking the enormous compensation figures initially demanded. Instead, his legal team clarified that he was pursuing R9.7 billion, the amount he had claimed back in 2020. This shift in strategy has narrowed the scope of the case, but the claim remains substantial.

Vodacom, the majority shareholder of Vodacom, attempted to join the proceedings at this point, but their efforts were blocked by the courts. This development was a significant win for Makate, as it prevented a potential delay in the resolution of his compensation claim.

This is a massive victory for Mr. Makate in his fight for what is rightfully his.

What’s Next in the Please Call Me Saga?

With the Constitutional Court now set to hear the matter again, all eyes are on the next steps in this long-standing legal battle. Makate’s victory over Vodacom’s attempt to join the case is a positive sign for his pursuit of justice. However, the final resolution of the case remains uncertain as the court considers the complex financial and legal issues involved.

For Makate, the outcome of the next court proceedings could finally bring closure to his years-long fight for recognition and fair compensation. For Vodacom, the stakes are incredibly high, as a ruling in Makate’s favour could result in a payout that significantly impacts the company’s financial standing.

The Legacy of the Please Call Me Service

Regardless of the outcome of the court case, the legacy of the Please Call Me service is already firmly established. It has become a symbol of innovation in South Africa, providing a valuable service to millions of users and contributing to Vodacom’s success. However, it also serves as a reminder of the challenges that inventors and innovators can face when trying to secure fair compensation for their ideas.

For Kenneth Makate, the battle for Please Call Me represents not just a fight for financial reward but also a struggle for recognition and justice. His persistence in the face of numerous legal setbacks has earned him the respect of many, and his case continues to inspire discussions about intellectual property rights in the corporate world.

The final chapter of this saga is yet to be written, but one thing is certain: Makate’s victory in the constitutional court is a significant step toward achieving the justice he has long sought.

FAQs: Win for Makate in the Please Call Me Saga