AT&T and Broadcom near settlement in VMware support dispute

If the hearing cannot take place within the requested timeline, both companies have requested a virtual scheduling conference to discuss alternative dates. This move underscores both companies’ commitment to settling the dispute outside of court, avoiding prolonged litigation that could affect their broader business dealings.

Background of the dispute

This development marks a turning point in the dispute that began in early September, when AT&T filed a lawsuit against Broadcom, VMware’s new parent company, claiming that VMware was refusing to honor a prior contract to extend support services. AT&T argued that Broadcom had attempted to push the telecommunications giant into purchasing expensive new subscription services instead.

“Broadcom is attempting to bully AT&T into paying a king’s ransom for subscriptions AT&T does not want or need, or risk widespread network outages that could cripple the operations of millions of AT&T customers worldwide,” the company then stated in the filing​.

Besides, AT&T also claimed these aggressive tactics are jeopardizing vital support services for VMware software that powers its operations, including services essential to national security and emergency response.

Broadcom immediately hit back at AT&T claiming that the service provider is resorting to “sensationalism” and had long intended to stop using VMware software but delayed the move.

Broadcom, through a previously filed affidavit, confirmed it offered AT&T a discounted five-year VMware Cloud Foundation (VCF) subscription but acknowledged it would still be more expensive than AT&T’s previous support contract.