Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Netflix, Warner Bros talks raise fresh headaches for MultiChoice

      Netflix, Warner Bros talks raise fresh headaches for MultiChoice

      5 December 2025
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Telecoms » Huge Group, Cell C deal ends in acrimony, finger-pointing

    Huge Group, Cell C deal ends in acrimony, finger-pointing

    By Duncan McLeod3 September 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Huge Group CEO James Herbst

    Relations between Cell C and its soon-to-be-former client Huge Group have reached rock bottom, with the former claiming it’s owed R60-million by the latter and the latter saying it’s actually the one that’s owed money “morally”.

    The two parties have now entered a second phase of arbitration to resolve the acrimonious dispute, with both sides accusing each other of acting in bad faith.

    The latest developments in the long-running saga, which has been dragging on since early 2019, come after the high court in Johannesburg last week handed down judgment against Huge Group subsidiary Huge Cellular’s attempt to seek an urgent interdict against the Cell C Service Provider Company from cutting off services, potentially affecting more than 20 000 mainly small and medium enterprise customers.

    On Cell C’s version, we operated on their network for free. On my version, we were using what we had already paid for

    Both sides are spitting fire, with Huge Group CEO James Herbst telling TechCentral on Wednesday that the mobile operator received a “windfall gain of R60-million at my expense”, while Cell C chief executive for wholesale Björn Flormann accused Huge of getting a free ride on the company’s infrastructure for over a year without paying what was due for the services rendered.

    Cell C is now claiming about R60-million from Huge Group through arbitration (the dispute resolution mechanism agreed to in the contract). Huge Group, meanwhile, argues that, rather than owing R60-million to Cell C, the mobile operator owes it R4-million. This, it said, is because, in its view, it had already paid upfront for wholesale airtime purchased that hadn’t been used when an “enterprise supply agreement” (ESA) between the parties was terminated in February 2019. Cell C argues Huge Group forfeited that airtime when the contract ended – a point Huge Group lost in an earlier phase of arbitration.

    Withering judgment

    The courts have taken a dim view of Huge Group’s claims, with the high court last week issuing a damning and withering judgment against an urgent application brought by the company, accusing it of wasting the court’s time.

    Huge brought the application to try to stop Cell C from terminating its services after it lost the first phase of arbitration in April. In an earlier judgment, the high court had issued an interdict in favour of Huge Group, but only on the basis that the company had agreed to pay for services rendered by Cell C if it lost the arbitration.

    The judge found that, “put simply”, Huge Group “advanced no legally viable basis to avoid paying the amount which it undertook to pay for the interdicted period”.

    The court dismissed the application with costs.

    Cell C chief executive for wholesale Björn Flormann

    Herbst told TechCentral that Huge Group will now withdraw another legal challenge at the high court and seek to resolve the remaining dispute – over who is owed what – through the arbitration process.

    The company has concluded a new agreement with Cell C rival MTN South Africa and will endeavour to port all of its affected customers across to MTN by 17 October, the date on which Cell C has said it will terminate its relationship with Huge Group for good.

    That’s going to prove tricky, though, given that more than 45 000 Sim cards deployed in devices around the country will have to be swapped out manually and their numbers ported to the MTN network. Herbst said MTN is being highly supportive in the move.

    Huge Group made deliberate choices with full regard to the impact of those choices on our relationship

    The contract between Cell C and Huge Cellular was originally signed in February 2017. The five-year agreement was made up of an initial two-year period followed by a renewal period of three years.

    According to Herbst, Huge agreed in the first period of the contract to pay R125-million, broken up into unequal, or “sculpted”, monthly payments. Under the agreement, unused wholesale airtime purchased would be carried forward in perpetuity, he said. This unused airtime quickly built up, to the extent that Huge had R60-million worth of it by the time it was cancelled, Herbst said. Given this, it would have been irresponsible for the company to commit to the second phase of the agreement, which would have involved paying R250-million over three years. The parties failed to reach an agreement over new terms.

    Arbitration

    Huge, fearing losing access to Cell C’s network, then went to court and secured an interdict to allow it to continue to use the network, and the accrued airtime, until such time as arbitration between the parties was concluded. Huge Group lost the arbitration in April 2020, and Cell C now wants the company to cough up for the airtime provided between March 2019 and March 2020, saying that the unused airtime fell away when the contract was terminated.

    “On Cell C’s version, we operated on their network for free. On my version, we were using what we had already paid for,” Herbst said. Even though Huge Group lost the arbitration, he argues that “at a moral level”, Cell C should have honoured the fact that Huge had paid for the airtime. Huge has continued to pre-pay Cell C an amount of R3-million since April, when it lost the arbitration process, to ensure continued access to the network. Cell C, however, is adamant that, following last week’s high court judgment, the arrangement will be terminated fully on 17 October.

    Cell C chief legal officer Zahir Williams told TechCentral on Wednesday that Huge Group “made deliberate choices with full regard to the impact of those choices on our relationship”.

    “The way they have conducted themselves – those choices reflect badly on Huge. It eroded the minimum level of trust and goodwill that must be in place to continue to do business. It not only eroded it, it destroyed it.”

    Williams said Cell C always seeks to build “lasting, fruitful and harmonious relationships with its customers”. This he said, became impossible with Huge Group.

    Flormann, the wholesale chief executive, said the company could have terminated Huge Group’s access to its network in April, when it lost the arbitration, but opted not to in an effort to salvage the relationship. But the dispute over the R60-million could not be resolved.

    He emphasised that Huge Group explicitly stated in its initial application to the high court that if it was successful in its interdict that it would pay for the services during the interdicted period if it lost the arbitration. It has gone back on its word, Flormann said, even after Cell C offered it a “massive discount”, offering to settle the matter for R30-million.  — © 2020 NewsCentral Media



    Björn Flormann Cell C Huge Cellular Huge Group James Herbst top Zahir Williams
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleIcasa delays spectrum release until 2021
    Next Article Eskom suspends plant managers as power cuts deepen

    Related Posts

    Cell C rockets higher on second day of public trading

    Cell C rockets higher on second day of public trading

    28 November 2025
    Cell C makes long-awaited JSE debut

    Cell C makes long-awaited JSE debut

    27 November 2025
    iOCO names former Cell C CFO to its board - Lerato Pule

    iOCO names former Cell C CFO to its board

    26 November 2025
    Company News
    Beat the summer heat with Samsung's WindFree air conditioners

    Beat the summer heat with Samsung’s WindFree air conditioners

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Beat the summer heat with Samsung's WindFree air conditioners

    Beat the summer heat with Samsung’s WindFree air conditioners

    5 December 2025
    Netflix, Warner Bros talks raise fresh headaches for MultiChoice

    Netflix, Warner Bros talks raise fresh headaches for MultiChoice

    5 December 2025
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}