T-Mobile filed a lawsuit in the Supreme Court of the State of New York in August 2025 against Broadcom, seeking a declaration that the software company was contractually obligated to continue supporting its VMware perpetual licenses. The mobile carrier operates over 1,000 applications across approximately 303,140 CPU cores using VMware software, making a complete migration technically complex and time-consuming.
T-Mobile purchased perpetual VMware licenses with two years of support in 2023, with the option to extend for a third year. However, after Broadcom acquired VMware, the company discontinued sales of perpetual licenses in favor of subscription models and reorganized its product offerings into more expensive bundled packages. When T-Mobile attempted to renew support for an additional year at a cost of $5,288,398.45, Broadcom declined and stated it was discontinuing renewals for all perpetual support products.
A judge issued an injunction in T-Mobile’s favor, allowing the company to receive support services from October 2025 through August 3, 2026, at a cost of $5.28 million plus a $500,000 undertaking. T-Mobile has indicated it would pay as much as $20 million for two additional years of software updates and support services, citing litigation expenses and risks to network security and business operations.
Broadcom has countered that it has spent $24 million providing support to T-Mobile and assigning three dedicated account managers, though T-Mobile disputes using three of the six products cited. The dispute is part of a broader pattern, with Broadcom having previously settled a similar case with AT&T and currently facing an ongoing case with Tesco. Broadcom argues that T-Mobile is an outlier, claiming that thousands of customers have successfully migrated to subscriptions under similar circumstances without litigation.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI