Starbucks being sued over AT&T Wi-Fi takeover

Posted June 8, 2008 at 08:33 PM by Robert Nelson

Section: Communications, Mobile, Computers, Wireless

T-Mobile has decided to sue Starbucks over their recent agreement with AT&T to begin providing free Wi-Fi. The lawsuit claims that both Starbucks and AT&T are not living up to their end of the agreement dealing with the switchover. They are claiming “breach of contract” and “unfair competition” and seeking an unspecified amount of damages.

“Starbucks and AT&T ... secretly developed a promotional plan under which they would offer ‘free’ AT&T/Starbucks Wi-Fi even in stores” that were still reliant on T-Mobile’s infrastructure, the lawsuit said.

The lawsuit goes on to claim that “to date, only two markets—the San Antonio, Texas, and Bakersfield, California, markets—have been transitioned from T-Mobile to AT&T.” However we have used a few and also seen reports from many other Starbucks locations now offering AT&T Wi-Fi. While T-Mobile is understandably upset, the agreement that the stores would be converted “on a market-to-market basis” leaves a great deal of judgment room. It looks like this one could get messy.

Read [Reuters]