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From the News Desk
Tuesday, 10. June 2008
Free Access to Wi-fi Lands Starbucks Into Trouble
T-Mobile USA has recently filed a lawsuit suing Starbucks over a new Wi-Fi plan that allows AT&T customers to allegedly take credit onto T-Mobile’s bandwidth. Starbucks recently began switching over its Wi-Fi service from its 7-year partnership with T-Mobile to AT&T; along with the switch in service, AT&T and Starbucks began offering free wireless access as part of its customer loyalty program.
According to T-Mobile, free access was not part of its handover agreement with Starbucks and AT&T and that it will be bearing the cost burden of providing the free services. Although Starbucks and AT&T hope to switch all 7,000 coffee shops to AT&T’s network by the end of this year, all but two locations are still on T-Mobile’s network. The carrier also said that the free promotion violates the transition agreement in that T-Mobile still had exclusive rights to market and sell Wi-Fi services at Starbucks until January 2009.
“Since T-mobile provides the resources and equipment to support Wi-Fi service in non-transitioned stores, it is T-Mobile alone that is bearing the cost and burden associated with this free Wi-Fi offer,” T-Mobile writes in the lawsuit.
T-Mobile is seeking unspecified damages, legal fees and an order preventing Starbucks from breaching the transition agreement.
According to T-Mobile, free access was not part of its handover agreement with Starbucks and AT&T and that it will be bearing the cost burden of providing the free services. Although Starbucks and AT&T hope to switch all 7,000 coffee shops to AT&T’s network by the end of this year, all but two locations are still on T-Mobile’s network. The carrier also said that the free promotion violates the transition agreement in that T-Mobile still had exclusive rights to market and sell Wi-Fi services at Starbucks until January 2009.
“Since T-mobile provides the resources and equipment to support Wi-Fi service in non-transitioned stores, it is T-Mobile alone that is bearing the cost and burden associated with this free Wi-Fi offer,” T-Mobile writes in the lawsuit.
T-Mobile is seeking unspecified damages, legal fees and an order preventing Starbucks from breaching the transition agreement.
