T-Mobile sues Starbucks over Wi-Fi

From IDG News Service
T-Mobile claims that Starbucks agreed not to advertise Wi-Fi services from AT&T in its stores in any given market until the entire market had switched its stores from T-Mobile to AT&T. T-Mobile had an exclusive deal to provide Wi-Fi in Starbucks stores, dating back to 2002, but earlier this year Starbucks signed a deal with AT&T to take over the Wi-Fi service in the coffee shops.

However, Starbucks and AT&T have begun marketing a new Wi-Fi service in all Starbucks stores, even though so far stores in only two markets, Bakersfield, California, and San Antonio, Texas, have fully switched to AT&T, the lawsuit alleges.

On June 3, when Starbucks launched the promotion that offered two hours of free Wi-Fi access from AT&T in its stores to users of a new affinity card, so many people tried to sign up that they overwhelmed Starbucks’ Web site, the coffee company said.

T-Mobile is claiming loss of revenue and reputation due to the new promotion, and is looking for damages and for Starbucks to comply with its agreements with T-Mobile.

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