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
      South Africa planning big overhaul of public sector IT - State IT Agency Sita

      South Africa planning big overhaul of public sector IT

      23 April 2026
      Charge to switch on first N3 off-grid EV stations in May - Joubert Roux

      Charge to switch on first N3 off-grid EV stations in May

      23 April 2026
      Middle-class South Africa is ditching streaming for AI

      Middle-class South Africa is ditching streaming for AI

      23 April 2026
      Mythos forces South African banks onto high alert - Graham Lee

      Mythos forces South African banks onto high alert

      23 April 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
    • World
      More organic compounds detected on Mars - Nasa Curiosity rover

      More organic compounds detected on Mars

      21 April 2026
      Adobe bets on AI agents to fend off cheaper rivals

      Adobe bets on AI agents to fend off cheaper rivals

      16 April 2026
      Google poised to lose ad crown to Meta

      Google poised to lose ad crown to Meta

      14 April 2026
      Grand Theft Data - hackers hit Rockstar Games - Grand Theft Auto

      Grand Theft Data – hackers hit Rockstar Games

      14 April 2026
      UK PM Keir Starmer declares war on doomscrolling

      UK PM Keir Starmer declares war on doomscrolling

      13 April 2026
    • In-depth
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
    • TCS

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 April 2026
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » WirelessG ‘desperate’, says Vodacom

    WirelessG ‘desperate’, says Vodacom

    By Duncan McLeod18 February 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Vodacom-280

    The legal action brought by Wi-Fi hotspot specialist WirelessG against minority shareholder Vodacom is a “desperate attempt” to save its business, the mobile operator has argued in papers filed at the high court in Pretoria.

    The allegation is a contained in an affidavit signed by Vodacom South Africa business development managing executive Tlhabeli Ralebitso and submitted to the court last week.

    TechCentral reported in January that WirelessG had taken Vodacom, which holds 26% of WirelessG’s equity, to the high court, accusing the operator of reneging on a shareholders’ agreement that grants its partner exclusivity over any Wi-Fi infrastructure Vodacom wants to build.

    WirelessG CEO Carel van der Merwe said at the time that Vodacom had begun to backtrack on the agreements between the parties after it realised that “data offloading” onto Wi-Fi from its mobile broadband network was becoming a significant strategic opportunity.

    Van der Merwe claimed that Vodacom had held discussions with a number of WirelessG’s rivals in the past nine months and also ran pilot Wi-Fi projects late last year, without involving the company, in contravention of the shareholders’ agreement. He said WirelessG originally sold the 26% stake to Vodacom at a 49% discount in exchange for various commercial rights, including exclusivity rights for providing Wi-Fi services and infrastructure.

    In its court papers, Vodacom has denied working with WirelessG’s rivals to provide public Wi-Fi hotspots — although its parent, the UK’s Vodafone, has done so — and has strongly denied that it breached the shareholders’ agreement.

    Ralebitso says that a “first right of refusal” clause in an agreement between the parties does not extend beyond public Wi-Fi hotspots to infrastructure Vodacom may want to build to offset heavy load on its 2G and 3G cellular networks.

    In the affidavit, Ralebitso argues that WirelessG, through its application to the court, is seeking to “impose itself” on the mobile operator and on areas of its business in which it has “no obligation or intention to include WirelessG”.

    Vodacom has served notice on WirelessG that it intends terminating both its “retailer agreement” and its “binding agreement” with the Wi-Fi provider. These agreements will expire at the end of February 2013 and, according to Vodacom, will result in restricted cash flow at WirelessG.

    Under these agreements, Vodacom says it provided a monthly revenue guarantee to WirelessG of R250 000 plus a monthly fee of R50 000.

    “It is this predicament which, in Vodacom’s submission, has caused WirelessG to make this application [to the court],” Ralebitso says. “WirelessG must have come to the realisation that the business is not sustainable without monthly payments [from Vodacom] and on income generated only from its public hotspot business. It is for this reason that this application is made, in a desperate attempt to extend WirelessG’s participation into other areas of Vodacom’s business, areas in which it was never intended that WirelessG would participate.”

    Carel van der Merwe
    Carel van der Merwe

    Ralebitso says that, contrary to expectations, consumer demand for WirelessG’s Wi-Fi hotspots “was not realised” and the sale by Vodacom of Wi-Fi products on the back of the retailer agreement between the parties brought in just R20 000/month — “a turnover which could not sustain this line of business”.

    “Revenues never reached a level that would release Vodacom from paying the revenue guarantee and so this has meant that Vodacom has paid R18m — R300 000 for each month for five years — without being able to generate any net profits in return.”

    Vodacom says, too, that it invested R30m in buying equipment and developing and implementing WirelessG’s in-flight Wi-Fi system on Mango’s fleet of aircraft. However, this initiative is “not generating any positive gross profits”.

    Ralebitso says the first right of refusal clause in the shareholders’ agreement requires Vodacom to offer to integrate the services of other Wi-Fi infrastructure providers with the systems of WirelessG and no more.

    “This obligation cannot — as [WirelessG] is now trying to do — be extended to oblige Vodacom to enter into the Wi-Fi field by contracting only with a Wi-Fi infrastructure provider, let alone to contract only with WirelessG.”

    Ralebitso adds that the clause does not apply where Vodacom itself builds a Wi-Fi service by installing its own physical equipment and conducts its own authentication of customers using its own billing systems.

    “Vodacom has no intention of causing the demise of WirelessG, particularly given the investment it has made in that company, but cannot be compelled to continue pouring money into a business which does not deliver a return on investment,” Ralebitso’s affidavit says.

    Vodacom says WirelessG brought the application because it wants a court order that will allow it to operate its “loss-making business on credit” from the mobile operator.

    Among other things, Vodacom says the granting of any interim relief by the court which ultimately is found not to have been justified could give its rivals a head-start in Wi-Fi offloading services, including in tying up exclusive deals.

    In the affidavit, Ralebitso also denies WirelessG’s claims that it has engaged with Dimension Data’s Internet Solutions and its Wi-Fi partner AlwaysOn.

    “Vodacom has not engaged with Internet Solutions/AlwaysOn or any other provider of public hotspot services. All Vodacom integrations to Wi-Fi infrastructure providers to date have been done by WirelessG,” Ralebitso says. “In 2005, Vodafone engaged Internet Solutions/AlwaysOn as its South African Wi-Fi roaming partner [but] there is no obligation on Vodafone to prefer WirelessG.”

    The high court is expected to hear the case in early April.  — (c) 2013 NewsCentral Media

    • See also: ‘Vodacom walked all over us’ and Ugly turn in Vodacom, WirelessG battle
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    AlwaysOn Carel van der Merwe Internet Solutions Tlhabeli Ralebitso WirelessG
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHTC pins hopes on M7
    Next Article ZATS: Ep 245 – ‘Time is relative’

    Related Posts

    Anton Tkachenko

    Ronnie Apteker to release new film on Ukraine

    15 August 2025
    Ronnie Apteker to release new film on Ukraine

    Make software, not war – Ronnie Apteker’s reflections on life in Ukraine

    15 October 2024

    TCS | The Ronnie Apteker interview – his life in Ukraine

    28 July 2024
    Company News
    Security by design is the channel's strongest pitch - Othelo Vieira

    Security by design is the channel’s strongest pitch

    23 April 2026
    Your brand is invisible to the AI that's choosing your competitor - Michelle Losco

    Your brand is invisible to the AI that’s choosing your competitor

    23 April 2026
    How AnyDesk is redefining remote access for African enterprises

    How AnyDesk is redefining remote access for African enterprises

    22 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

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

    Latest Posts
    South Africa planning big overhaul of public sector IT - State IT Agency Sita

    South Africa planning big overhaul of public sector IT

    23 April 2026
    Charge to switch on first N3 off-grid EV stations in May - Joubert Roux

    Charge to switch on first N3 off-grid EV stations in May

    23 April 2026
    Middle-class South Africa is ditching streaming for AI

    Middle-class South Africa is ditching streaming for AI

    23 April 2026
    Security by design is the channel's strongest pitch - Othelo Vieira

    Security by design is the channel’s strongest pitch

    23 April 2026
    © 2009 - 2026 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}