G-Connect: business rescue, retrenchments, and the way forward

WirelessG, trading under the brand G-Connect, has responded to reports that its uncapped accounts were suspended by Internet Solutions and that it plans to retrench a substantial amount of staff.

The company, which offers a variety of Wi-Fi services – including in-flight services and hotspots – recently filed a successful application for business rescue.

The process will involve “realigning” the company within 60 days.

WirelessG CEO Carel van der Merwe told MyBroadband that this will include retrenching staff in the near future.

“We are following a very challenging and detailed multi-facet rescue approach, meaning that we need to realign our entire internal environment more effectively with our external environment,” said van der Merwe.

He said that the Internet Solutions infrastructure was “up and running”, though.

“We already had negotiations with IS. They are cooperative and supportive. In fact, we have a long-term strategic approach as a partnership.”

This follows Vodacom (a 19% indirect shareholder in WirelessG) temporarily cutting off all G-Connect’s hotspots – including in-flight Wi-Fi on Mango aircraft and other hotspots – on 13 August.

Business rescue

Van der Merwe said the company and its channel partners had defined “very specific recommitments” – which includes Vodacom providing a greater contribution to revenue – as part of their plan moving forward.

“Rescue is not only about the cutting of costs, but we need a committed and active marketing and sales effort through our mobile channels. In terms of the rescue plan, we will need commitments and action in good faith from Vodacom.”

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G-Connect: business rescue, retrenchments, and the way forward