T-Mobile filed suit in New York state court against Broadcom, seeking a declaration that the company was contractually obligated to renew support services for VMware perpetual licenses the mobile carrier purchased. According to the complaint, T-Mobile operates more than 303,000 CPU cores running tens of thousands of virtual machines using VMware software across its infrastructure.
T-Mobile originally purchased perpetual VMware licenses in 2023 along with two years of support and an option to extend for a third year. After Broadcom’s acquisition of VMware, the company discontinued sales of perpetual licenses in favor of subscription models and reorganized its product offerings into higher-priced bundle configurations. When T-Mobile attempted to renew its third year of support for approximately $5.3 million, Broadcom declined, citing an end-of-availability policy for perpetual product renewals.
A court granted T-Mobile an interim injunction providing support services from October 2025 through August 3, 2026, for $5.28 million, contingent on posting a $500,000 undertaking. T-Mobile has indicated it is working to migrate away from VMware but emphasized the extensive technical complexity involved, citing the need to transition more than 1,000 applications. The company previously offered $20 million for two years of continued support and updates, citing potential network security risks and business interruption costs.
Broadcom has countered that it has incurred $24 million in support costs for six VMware products and assigned three dedicated account managers to T-Mobile, though T-Mobile responded that it does not use three of those products and has opened only two service cases during the current year. Similar disputes have arisen with other major customers, including a privately settled case with AT&T and an ongoing lawsuit involving Tesco. Neither party has made public statements regarding the litigation.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI