RSSLeft with the short end of the croissant, T-Mobile sues Starbucks
By Michael Hatamoto | Published June 9, 2008, 4:06 PM
After Starbucks pleased its customers by announcing it will give away two hours of AT&T Wi-Fi access per day, former Wi-Fi partner T-Mobile took exception and has filed a lawsuit.
T-Mobile last week filed a lawsuit claiming Starbucks and AT&T colluded to offer free Internet to Starbucks customers, even though most Starbucks retail locations are relying on T-Mobile network infrastructure. That forces T-Mobile to bear the cost and burden of the free Internet offering, while reaping none of the benefit.
The free Wi-Fi promotion "violates T-Mobile's rights to exclusively sell, market and promote wireless Internet service within all but two markets of Starbucks' US stores," the carrier alleges, in its lawsuit filed in New York State Supreme Court.
Only stores in Bakersfield, California and San Antonio, Texas have fully transitioned from T-Mobile to AT&T hardware, with most retail outlets still under the T-Mobile exclusivity rights, according to the lawsuit.
Before announcing a new Wi-Fi deal with AT&T, Starbucks, and T-Mobile had a seven-year relationship where T-Mobile offered service for hourly or daily rates. AT&T and T-Mobile had reportedly been working together to ensure an easy transition. T-Mobile's service had already been rolled out in more than 7,000 Starbucks locations across the US.
The two companies had agreed that, until next January 4, Starbucks customers could still use T-Mobile service, though they would have to pay $3.99 per session or $20 for a monthly subscription. AT&T broadband consumers will have unlimited Wi-Fi access at each of the Starbucks locations, along with 70,000 other international hotspots.
T-Mobile believes the free Internet offering violates the deal all three companies agreed to earlier in the year.
"Starbucks and AT&T...secretly developed a promotional plan under which they would offer 'free' AT&T/Starbucks Wi-Fi even in stores" where T-Mobile's network infrastructure is used, giving AT&T an unfair advantage, the lawsuit also claims.
T-Mobile is seeking unspecified damages and for Starbucks to stop its free Internet service.
Coffee drinkers interested in the free two hours of Wi-Fi Internet access must purchase a prepaid Starbucks card with at least $5 credit or register online before a deadline of July 14.
I believe in any location that an activity occurs serves as a proper venue. (And in some cases can a venue be changed due to probable prejudice) Considering the high amounts of Starbucks and traffic therein in New York, it is only to T-Mobiles benefit to push at New York and intelligent decision. ;]
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|I bet this is just a novel new form of advertising. Set yourself up to get sued so you can ride the publicity.
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|Oh yeah, and I almost forgot, both Starbucks and T-Mobile are incorporated and headquartered in Washington state, yet T-Mobile chose a New York State court as the venue through which to sue T-Mobile. Does New York state even have jurisdiction in this case?
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|Meanwhile virtually every other coffee shop I've been to in the last few years offers free Wifi with purchase. Starbucks can suck it.
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|Amen. Its a joke that u need to pay for it, when u are sitting in a starbux cafe drinking and eating stuff you bought in the store and you still gotta pay for useage. Seems to me though that its not cool of starbux and att to offer free internet over tmo infastructure.
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|SB can suck it, but they provide reliable, predictable wifi, and to many people that is far more important than fiddling with settings every time they visit a new shop. Then you have devices that latch onto the wi-fi like the iphone, and you can easily see how this is a great idea and win/win for apple/at&t. 3g is incredible slow compared to wifi, and if you have 17 attachments you need now and a sb a block away, it's worth it.
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|So, I am curious why even news outlets such as Betanews keep perpetuating the myth that the AT&T wifi at Starbucks as "free" when it clearly is NOT free.
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|It's free, absolutely to ATT dsl/internet users and free for 2 hrs per day if you buy and keep active a starbucks card. For MOST starbucks clients, that's as free as it can get.
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|I'm sure there's just some confusion here. T-Mobile obviously had a contract for the low-fat Internet Grande, while AT&T has the contract for the hazelnut Internet Venti. Happens to me all the time.
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