T-Mobile sues Starbucks over Wi-Fi deal
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- Hawkmang
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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
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danitassin
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"It's become appallingly clear, that our technology has surpassed our humanity." Albert Einstein
- 4 years ago
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danitassin
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ZiaHacker
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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 - 4 years ago
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ZiaHacker
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GreenScreenCinema
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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?
- 4 years ago
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GreenScreenCinema
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kingtsohg
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should be an epic sumo battle fo sheezy!
- 4 years ago
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kingtsohg
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cjmor
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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.
- 4 years ago
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cjmor
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GreenScreenCinema
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cjmor:
I don't know that I'd call Deutsche Telekom a small company. Huge pan-galactic monopoly, yes. Small, no.
- 4 years ago
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GreenScreenCinema
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Soap
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stupid corporations suing eachother because they want our monies.
- 4 years ago
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Soap
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amrcnjckjosh
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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.
- 4 years ago
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amrcnjckjosh
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jefftego
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T-Mobile has no one to blame but themselves. They lost a great opportunity becuase of their outrageous wifi rates at sbux.
- 4 years ago
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jefftego
