Cell C has stated that it is facing a legal dispute with Huge Cellular over the renewal of a supply agreement with the company.
Huge Cellular and its parent company Huge Telecom have filed an interdict with the Johannesburg High Court to prevent Cell C from suspending the services it is providing to Huge Cellular.
Cell C had an Enterprise Supply Agreement Huge Cellular which was not extended by the parties and will subsequently be suspended.
The mobile network provided Huge Cellular with wholesale airtime, which the company used to deliver enterprise telecommunications services to its customers.
Huge Cellular said the suspension of the services provided by Cell C will leave 16,000 of its customers without connectivity.
It also argued that Cell C should honour a clause in the agreement which would allow Huge Cellular to continue using an accumulated number of minutes following the termination of the contract, up until February 2022.
Cell C chief legal officer Graham Mackinnon told MyBroadband that there is no merit to the interdict filed by Huge Cellular, however.
“Huge Cellular did not extend an Enterprise Supply Agreement with Cell C before the due date,” Mackinnon said.
“As a consequence, the agreement terminates 28 February 2019.”
“We can confirm that an interdict has been filed and as we do not believe that there is any merit to the application we intend to oppose it.”
Huge Group statement
Huge Group has subsequently released a statement to shareholders regarding its court filing for an interdict against the suspension of services by Cell C.
While the company did not provide feedback on the litigation, it said it was confident in the successful outcome of the proceedings.
“Shareholders are advised that an article has appeared in the media in terms of which subsidiaries of the company are cited as applicants in legal proceedings with a supplier,” the company said.
“The litigation has yet to be determined by the court. Huge is not in a position to comment on the litigation nor the content of the media publication in question.”
“The board of directors of Huge remains confident in the successful outcome of the litigation it is pursuing.”