AT&T and VMware have reached a settlement in principle in their high-profile lawsuit, indicating that both parties have agreed on terms but have not yet signed a legally binding contract. This development comes after AT&T filed a lawsuit against VMware in August, alleging that Broadcom, VMware’s owner, attempted to breach their contracts by imposing subscription requirements prematurely. AT&T claimed this move could cost them hundreds of millions of dollars and jeopardize critical services. A New York Supreme Court judge has agreed to extend the deadline for further procedural discussions to December 13. VMware has countered AT&T’s claims, accusing them of sensationalism and failing to renew support services in a timely manner. This case arose less than a year after Broadcom completed its sixty-one billion dollar acquisition of VMware.
The Federal Communications Commission has granted a license to T-Mobile and SpaceX’s Starlink unit, allowing them to provide supplemental internet coverage from space to remote areas in the United States. This landmark approval is the first of its kind, enabling a satellite operator to collaborate with a wireless carrier to extend coverage and eliminate so-called “dead zones.” T-Mobile estimates that over 500,000 square miles of the U.S. are inaccessible by traditional towers due to various geographic and regulatory challenges. The initiative follows a partnership announcement between the two companies in 2022, and the first satellites supporting this collaboration were launched earlier this year.
The Securities and Exchange Commission has charged four companies, including Unisys and Avaya, with misleading disclosures about cybersecurity incidents, resulting in fines ranging from approximately one million to four million dollars. Acting SEC Director Sanjay Wadhwa emphasized that public companies must not mislead shareholders regarding cyber threats. Legal experts predict increased scrutiny from regulators on corporate claims about cybersecurity. The SEC aims to understand all breaches experienced by public companies since October 2019, suggesting more investigations may follow. Companies are advised to ensure consistent and truthful communications regarding their cybersecurity measures to avoid penalties and reputational damage.
Why do we care?
Not everyone has AT&T’s legal power. Vendor management is significant value for smaller customers, and cases like this highlight why.
The ability to eliminate “dead zones” creates new business opportunities for IT providers, particularly in rural and remote regions. Satellite-based networks could disrupt traditional telecom infrastructure models, lowering barriers for emerging service providers to compete.
Providers managing client security must ensure transparency in incident reporting to protect themselves and their clients from similar scrutiny. The retroactive investigation of breaches since 2019 underscores the importance of maintaining detailed documentation of all incidents.