TV Schedule

T-Mobile sues Starbucks over Wi-Fi deal


  3. Hawkmang
  4. related topics
T-Mobile USA is suing Starbucks, accusing the coffee behemoth of a breach of contract by allowing AT&T to provide customers with free Wi-Fi access in its cafes.

In a complaint filed Thursday in New York State Supreme Court in Manhattan, T-Mobile says Starbucks "secretly" developed a plan with AT&T to provide Wi-Fi at its cafes, despite an exclusive partnership with T-Mobile. T-Mobile, which is seeking unspecified damages, alleges the companies broke an agreement over how Starbucks should transition the service from T-Mobile to AT&T, according to Reuters.

T-Mobile said that, under the agreement, it had the exclusive right to "sell, market, and promote" its services in Starbucks up until the stores were completely transitioned to AT&T's system, according to the lawsuit. T-Mobile says it is currently bearing the brunt of the cost of the service because it is providing the technology and equipment in all but two of Starbucks' U.S. markets--the San Antonio, Texas, and Bakersfield, California, markets.

In February, Starbucks ended its seven-year partnership with T-Mobile in favor of an agreement with AT&T. Under the old partnership with T-Mobile, customers would sign up for Wi-Fi for hourly and daily rates.

Under the new partnership, Starbucks in June began offering two hours of free Wi-Fi Internet service via AT&T to customers who purchase a Starbucks Reward Card with a minimum $5 credit on it. To keep the card active, customers must use their Starbucks Card at least once a month. New members of the service also get a voucher for a free drink.

By Desiree Everts// CNET Tech news blog
Hawkmang

10 responses // T-Mobile sues Starbucks over Wi-Fi deal

  • SBUX should dump T-Mobile
    hyperbrand
  • T-Mobile has no one to blame but themselves. They lost a great opportunity becuase of their outrageous wifi rates at sbux.
    jefftego
  • T-mobile does charge a lot for nothing. Their services suck. I really cant blame Starbucks for allowing AT&T to do this. More business for the Bucks. Welcome to the world.
    amrcnjckjosh
  • stupid corporations suing eachother because they want our monies.
    Soap
  • It is evident people do not know the telecommunications market. The less market share is available to small companies like T-Mobil the less competition on services , technology and prices. AT&T controls 60% percent of the communication market in America and dips into 40% left controlling routes of communication, cable lines and switches. Telecommunications market is consolidating too much, leaving fewer choices for consumers. Maybe tomorrow may not be a T-Mobil to switch too when the only option is the screen touch phone at $599 and $225 a month service with WIFI.
    cjmor
    1 response to this
  • should be an epic sumo battle fo sheezy!
    kingtsohg
  • The genie is out of the bottle. Patrons are never going to go back to paying for Wi-Fi access at establishments that provide it. And establishments like Starbucks have no business charging for Wi-Fi access. The longer I stay in their store the greater the chance that I buy a $5 scone or $6 cup of coffee. They should happily pay the cost for this comfort. I mean, the chairs and tables are free, right? Why not the Wi-Fi?
    GreenScreenCinema
  • in the end i am sure the consumer are gonna end up paying for the lawsuit.

    starbucks wins, tmobile is gonna charge me more for mintues.
    if tmobile wins, i pay for a damn frapp.

    lose lose for the people,
    great, go make more money evil corps
    ZiaHacker
  • "It's become appallingly clear, that our technology has surpassed our humanity." Albert Einstein
    danitassin

Add your response

Login/Registration is required to add a response.