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T-Mobile Sues Starbucks For Over Eager Switch To Free WiFi
from the that-wasn't-what-we-bargained-for... dept
Back in February, Starbucks surprised an awful lot of people by signing up to use AT&T's WiFi offering, ending the exclusive deal it had for many, many years with T-Mobile (and Mobilestar before T-Mobile purchased that company). Part of the AT&T deal was that it would offer some amount of free WiFi -- something T-Mobile/Starbucks never did. There was some early confusion about the deal concerning whether T-Mobile would continue offering service and how the two services would overlap. It turns out that it wasn't just confusing to us reading about it -- it was confusing to T-Mobile as well.
T-Mobile has now sued Starbucks over the transition, saying that the company has gone well beyond what the two companies had agreed to. The original plan was that T-Mobile would gradually transition the network to AT&T, and the companies would work together to make sure things worked well for customers of each company. However, just recently, Starbucks pushed forward with the plan to offer some number of "free" WiFi hours to AT&T customers -- much to the annoyance of T-Mobile, who says most of the WiFi equipment in use is still T-Mobile's, and the company isn't getting paid at all for the free hours (an interesting question could be whether or not AT&T is getting paid for that usage).
Basically, the infrastructure transition has barely begun, and Starbucks is already acting as though it's complete, shifting over to the business model provided by AT&T, without having that work within the parameters of T-Mobile's model. While the legal result will almost certainly come down to contractual terms, the real issue may be that this suggests the promised "smooth transition" from T-Mobile to AT&T may not be very smooth at all. T-Mobile is going to have less and less incentive to make sure that the network really works all that well, especially if it feels that it's being cheated out of money for the use of its network.
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Reader Comments (rss)
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Get with the times
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Get with the times
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it's called karma
Three years ago the pair of them screwed me out of $10 for a day pass that didn't work because the router went down seconds after I paid. No refund. Not even a credit.
As a result, I've not spent another penny on either of them.
I estimate that the money I have have not spent at Starbucks is about $300. And, I've paid roughly $1,900 to another carrier for their wireless card service.
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Starbucks seems to be trying
It sounds to me like T-Mobile had it good for a very long time and is now bitter it is losing that position. And the idea that T-Mobile would not do the best they could for Starbucks sounds like bridge burning to me.
Finally, I heard that the AT&T "free" wifi is not that great of a deal either, just better than T-Mobile "pay as you play".
Keep trying, Starbucks. You may get it right if you do.
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Re: Get with the times
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McDonald's wifi
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Re: Re: Get with the times
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Re: McDonald's wifi
http://www.mcdonalds.com/wireless.html
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Re: McDonald's wifi
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Re:
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Re:
That sounds like a real backwards strategy. Will we learn more later today at WWDC? Is Apple involved?
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problem with outsourcing
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wifi
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Re: Re:
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starbucks has to get in bed with AT&T
since starbucks practically frisks you at the door for a macbook, it only makes sense that you would switch to the provider that most of your customers have already switched to.
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Re: it's called karma
Usually Starbucks is very good about making a customer happy. When I worked for them you would have at least gotten a couple of drink coupons to compensate you. Could have been the particular store you were at as well.
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All stores have a broadband data connection right?
Wireless AP's are cheaper than dirt right?
SO... give the customer free service all the time as a value added bonus.. it costs you nothing and the customer appreciates it.
How much do you spend on 'charging for wifi'? Are more and more or fewer and fewer customers willing to pay?
Is there more in pocket wifi out there than ever before?
DUH!!
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Noah/Starbucks
Even Subway provides free wifi.
About time Starbucks got with the program.
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It's all business and Starbucks is hurting!
Starbucks is making the change because they know they need to for the sake of competition. Starbucks isn't that Holy and Green company it used to be. It's just another fighter looking for the Holy Dollar. Anyone working for Starbucks who thinks they are working for some altruistic company needs to step out of their hemp underwear and start reading corporate reports.
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Re: Re: Re: Get with the times
And still have not seen one that had FREE WiFi.
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Re: Re: Re: Re: Get with the times
Check http://www.mcdonalds.com/wireless.html
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StarSchmucks
Folks... wherever you get your coffee, please use local 'Mom & Pop' vendors... act (and keep your $$$'s) local. They'll really appreciate it.
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Re: It's all business and Starbucks is hurting!
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Re: Get with the times
Watch their profits the month in which a court sides against them.
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Re:
???
What f*&^ing planet do you live on moron?? You pay $4.50 for a $0.50 cup of coffee... oh, wait, but the WIFI is FREE!
I bet you whine paying $4.00 for a gallon of gas while purchasing a pint of bottled water for $2.
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Re: Re: It's all business and Starbucks is hurting!
Is this a common sentiment, or just this one guy? Or is he just making stuff up and I've been trolled?
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Bikini Baristas
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Typo/Grammaticall error in article?
While the legal result will almost certainly come down to contractual terms, the real issue may be that this suggestions the promised "smooth transition" from T-Mobile to AT&T may not be very smooth at all.
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Coffee master
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Re: Re: Re: It's all business and Starbucks is hurting!
it's easier under a number of circumstances to get free access without touching the router:
http://thomer.com/howtos/nstx.html
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Re: Bikini Baristas
W00f W00f!
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