Surprising twist in Vodacom, WirelessG battle
WirelessG has elected not to proceed with a legal application against Vodacom, following an offer from Vodacom’s legal team. This is according to WirelessG CEO, Carel van der Merwe.
However, Vodacom explained that it was ready to defend the case, which may have included recovering its legal costs from WirelessG.
In January 2013, WirelessG and six other applicants filed an urgent court application against Vodacom, arguing that Vodacom is not in compliance with its shareholding agreement with WirelessG.
According to WirelessG, Vodacom had not honoured its shareholder agreement which, it said in court papers, had subsequently cost the company millions in lost revenue.
WirelessG argued in the legal documents that:
- Vodacom was not permitted to provide Wi-Fi independently from WirelessG;
- Vodacom was obliged to offer WirelessG’s Wi-Fi as an integral part of its data bundles;
- Vodacom had to provide WirelessG with a data pricing equal to Vodacom’s best wholesale data price.
The two parties met in court on 9 April 2013, but instead of a legal battle, WirelessG withdrew its application after behind-the-scenes action.
“Just prior to the court proceedings this morning, Vodacom’s legal team approached WirelessG with an offer that, in event of WirelessG electing not to proceed with an application, each party can pay their own legal cost,” said WirelessG CEO Carel van der Merwe.
“As WirelessG is of the opinion that, following prolonged negotiation, a settlement is imminent, WirelessG opted not to continue with the application but rather finalize negotiations in good faith.”
WirelessG accepts Vodacom offer on “good faith and trust”
Carel van der Merwe
Van der Merwe said that they took the initiative to accept Vodacom’s offer in good faith, and that WirelessG “really trusts that the settlement will still be finalized this week”.
“However, WirelessG shall not hesitate to protect its rights by means of further legal recourses should Vodacom not demonstrate the same urgency in settling this matter,” van der Merwe noted.
Vodacom explains events
Vodacom spokesperson Richard Boorman confirmed that the matter was withdrawn from court by WirelessG – however, Vodacom’s version of events differ slightly from that of WirelessG.
Vodacom spokesperson Richard Boorman said that the case was withdrawn by WirelessG, but that Vodacom was ready to defend the case in court.
Boorman said that Vodacom was in discussions with WirelessG to find an amicable solution to the dispute raised by WirelessG earlier this year
“These discussions had not led to a settlement agreement prior to 9 April, the date set to hear the urgent application,” said Boorman.
“Vodacom was therefore ready to defend the court action on the day of the hearing, and if successful would have been entitled to recover its costs from WirelessG.”
However, WirelessG withdrew the action and the parties agreed to pay their own costs.
“Vodacom is continuing to explore all avenues to find an amicable resolution,” said Boorman.
More Vodacom and WirelessG articles
Big revelation in Vodacom-WirelessG case
Vodacom heading for cultural crises and suicide: WirelessG
Startling Vodacom revelation in court documents
Vodacom must give you Wi-Fi with 3G: WirelessG
Vodacom tripled our broadband prices: WirelessG
Loading ...