Credit: Anucha Cheechang/Shutterstock.com.Russian Telecom Sues Hewlett Packard Enterprise Over 'Cascading Catastrophic Failures' in Network Upgrade
"At no time did HPE disclose that it would be largely building the system for MegaFon from scratch. Nor did HPE disclose that it had never previously built such a system," the Russian company's lawyers at Winston & Strawn wrote. "Had MegaFon known the truth, it would not have selected HPE."
October 24, 2018 at 03:02 PM
3 minute read
Russian telecom company MegaFon PJSC has sued Hewlett Packard Enterprise Co. claiming that the Silicon Valley tech company oversold its ability to complete a nationwide upgrade of MegaFon's cellular network.
The lawsuit, filed Tuesday by MegaFon's lawyers at Winston & Strawn in the Northern District of California, claims that MegaFon's system has experienced a series of “cascading catastrophic failures” that have resulted in the “near shutdown” of service to its 80 million customers because of HPE's “faulty system.”
“Imagine a similar shutdown of any large cellular company in California and the corresponding impact on its business and reputation,” wrote MegaFon's lawyers. “HPE knew that it did not have experience with or the necessary expertise to successfully handle a project of this scope, scale, and purpose; it also knew that its proposal was unproven, untested, and there was no basis in fact for the assurances that it would meet MegaFon's contracted-for technical requirements.”
A spokesman for HPE said that the company as a policy does not comment on ongoing litigation.
According to the complaint, HPE was part of a crowded field of companies that included Alcatel, Ericsson, Huawei, NSN, Oracle, Tekelec and ZTE who responded to MegaFon's 2011 request for information about creating a new user data repository, or UDR, to integrate its eight regional networks into a single national network. MegaFon was seeking to allow its customers to use a single federal SIM card to monitor and bill services across its entire service area, and to enable signal routing that didn't have to go through a customer's home node.
MegaFon said it chose HPE for the assignment based on the Silicon Valley company's misleading statements. MegaFon claims that it was led to believe that HPE had handled similar projects in the past and that it was essentially buying an off-the-shelf product.
“At no time did HPE disclose that it would be largely building the system for MegaFon from scratch. Nor did HPE disclose that it had never previously built such a system,” the Russian company's lawyers wrote. “Had MegaFon known the truth, it would not have selected HPE.”
The lawsuit claims that MegaFon has lost customers due to HPE's failures and that it ultimately spent more than $28 million to completely rebuild the user data repository system it hired HPE to develop. Megafon claims it will cost at least that much to repair, reconfigure or replace its still faulty UDR system.
Read the complaint:
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