T-Mobile Sues Starbucks Over Wi-Fi Deal

Yes, T-Mobile has sued Starbucks, and it's over wi-fi, but it's not over the fact that Starbucks is dropping T-Mobile in favor of AT&T. It's over their new "free wi-fi" plan that was just unveiled this week.

In fact, it's only been a few days since Starbucks and AT&T outlined their new plan that allows customers using Starbucks Card Rewards program - if they use the card at least once every 30 days - to get two hours of free wi-fi access daily. While I have to say two hours of wi-fi ain't all that much to someone like me, for many it would be plenty.

However, T-Mobile says that Starbucks jumped the gun. According to a complaint filed late Thursday in New York state court, T-Mobile had the exclusive right to "sell, market and promote its services" in Starbucks stores until those stores were fully converted to the AT&T system.

The plan had been for the AT&T switchover to complete by the end of this year.

The lawsuit further said:

"T-Mobile had made a very significant investment in the technology and equipment necessary to provide Wi-Fi service in the many thousands of Starbucks stores in the United States.

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.

To date, only two markets -- the San Antonio, Texas, and Bakersfield, California, markets -- have been transitioned from T-Mobile to AT&T."

So what's being debated here is that T-Mobile's hardware and resources are still being used - at least until the switchover is complete - and AT&T and Starbucks are making some money off it. Obviously, a settlement of some sort will most likely derail this before it gets to a judge.

Meanwhile, me - I'll stick to local coffee shops with unlimited free wi-fi, thank you very much. I like their coffee better, anyway.