T-Mobile Sues Starbucks

By Alexander Toldt
14:38, June 7th 2008
64 votes
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T-Mobile Sues Starbucks

Starbucks Corp. is being sued by Bellevue-based T-Mobile USA Inc.; it seems that the coffee chain has breached the contract and allowed AT&T to offer its wireless Internet service inside the stores through T-Mobile’s equipment.

The two companies’ collaboration began back in 2002 and was supposed to end this year, as both parties had agreed to this. But now, the situation just got a bit more complicated, as T-Mobile is accusing Starbucks of secretly having granted AT&T to provide a free Wi-Fi service in no less than 7,000 U.S. Starbucks stores. According to their deal, T-Mobile had the exclusive right to "sell, market and promote its services" in Starbucks stores until the conversion to the AT&T system would be complete.

Valerie O’Neil, a Starbucks spokeswoman, has yet to return the voice-mail message that was left at her office.

The partnership with AT&T was announced on February 11 along with a few pointers on how the new system would work. The customers who buy the Starbucks purchase card would receive two hours of free wireless access. Those who want more than two hours have two options: they could buy another additional two hours for $3,99 or a monthly membership which costs $19.99 and includes access to any of AT&T's 70,000 hot spots in 89 countries around the world.

As an added benefit for the more than 100,000 Starbucks partners in the U.S., all Starbucks partners will receive free AT&T Wi-Fi accounts allowing them to use the network in Starbucks company-operated locations offering Wi-Fi access.

Before all this can start, the three companies must solve the uncomfortable situation in which they’ve unwillingly(?) entered.



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