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Starbucks Drops T-Mobile For AT&T
stoolpigeon writes "Ars reports that Starbucks is replacing T-Mobile with AT&T as their Wi-Fi provider. AT&T broadband customers will be able to access the service for free. Starbucks card users will get 2 hours a day free. 2-hour, daily, and monthly rates will be lower than they were with T-Mobile. Starbucks says that their previously announced deal to tie in with iTunes will continue under AT&T. For now AT&T isn't offering free Wi-Fi to iPhone users, but says it expects to accommodate them soon. Quoting the article: 'The companies didn't specify exactly when the rollout would begin, only saying that it would take place this spring... [The company plans] to install all new equipment at Starbucks as part of this agreement, so the changeover won't be as simple as flipping a switch.'"
T-Mobile has been running a free six-month Hotspot campaign for PSP users since mid-2007...still in effect thru end of March I believe.
I work from "home" and often head out for a change of venue. I normally go to Barnes & Noble because they have AT&T Wifi which has partnered with Boingo. The nice thing about Boingo is that it is only $20/mo, month-to-month. Both AT&T or TMobile are about $40/mo, month-to-month. Unfortunately, I still ended up paying some nasty fees to TMobile for the few times I've chosen to, or had to work from Starbucks. Now, I'll be able to use both, and thats a great thing, as where I am there isn't a whole lot of other choice. With a typical month including over 40 hours of coffee-shop patronage, a change of venue is much appreciated.
For the 'just use free hotspots' crowd, my area generally has no coffee shops other than at Barnes & Noble and Starbucks. Both charge for their Wifi. We also have Burger Kings and Panara Bread with free internet. Unfortunately my area Burger King's don't have open power outlets and smell like burgers; Panara Bread requests that patrons limit their sessions to 30-minutes, and at least where I am, have had sub-par connectivity.
For quite a while AT&T has offered access to their network to their DSL customers for $2.99/month, but recently they announced that they were dropping that to "free for our DSL customers." So, in addition to McD's, Barnes & Noble and some other locations, you can now get effectively free access at Starbucks as well.
Handy, that.
If I was still paying $20/month to T-Mobile this'd sure be the end of it. What's left in their network besides Borders bookstores?
fencepost
just a little off
Honestly, I was not even aware that there were still wifi coffee shops that you had to pay for internet access. Is that a Bay Area thing? In the Fort Collins CO area, most coffee shops I have been around have free wifi with no time limits.
Seriously.. small shops have been doing this for years. DSL is down in the $20/month range and a wireless router is cheap. I suspect that the administrative overhead of managing a system like this one for Starbucks is not really worth the effort. Starbucks may have made their money on the T-Mobile deal, but I doubt it. IIRC, it was a $500 mill contract. And, a quick websearch shows a series of price cuts.
Here's one from 2003:
http://www.wi-fiplanet.com/news/article.php/1855971
"In the original story regarding the price drop, Starbucks New Ventures Director Lovina McMurchy is quoted as saying that even the busiest Starbucks shops get about 20 Wi-Fi devices on the network per day. While T-Mobile doesn't release cost information for providing the hotspot, the revenue generated from so few customers is probably not enough to cover costs of a high speed line -- the T-Mobile Hotspots are served by costly T1 lines -- and the revenue sharing between T-Mobile, Starbucks, and HP, which provides some software for the services."
http://www.lockergnome.com/mobile/2006/03/09/t-mobile-answers-the-cries-of-starbucks-owners/
"All the mom-and-pop coffee shops offer free Wi-Fi. In fact, most everyone does except Starbucks. The Seattle-based coffee house gets its hotspot piped in by T-Mobile. It's been reported for years that store managers at Starbucks has been complaining to upper management for a while about losing business because customers don't want to pay for their Internet after forking out $4 on a foo-foo drink."
Here's my favorite:
http://www.forbes.com/2007/02/23/fonbucks-wifi-starbucks-ent_cx_mc_0226fonbucks.html
"FON, a community WiFi provider headquartered in Madrid, Spain, is offering wireless Internet access to Starbucks' latte-sipping surfers for just $2 a day--versus the $10 users pay to sign onto the 5,100 T-Mobile hotspots at U.S. Starbucks (nasdaq: SBUX - news - people ).
Just how does FON plan to steal away Starbucks Internet users? By offering FON wireless routers, also known as "La Foneras," free to anyone who lives above or next to a Starbucks. The routers, which usually cost $40, split an Internet broadband connection into two wireless signals--one for personal Internet use and the second for public use, which can be accessed by anyone within range for $2 per day. The routers' owners get to pocket half of the sign-on fee, and FON takes home the rest."
I work at a Starbucks, and have for 4 or so years. It's a great job, provides insurance for us on the treadmill of bachelors/masters programs when the school insurance plain stinks. We get lots of benefits, and a lot of latitude in how we do our job (make people happy above all else).
Now, when it comes to that occasional "I need to check my email" or what have you, the T-mobile price and 'service' is just disgusting. 10$ a day, or 30$ a month?! Yeah, it's that bad. It's not like they have any choices here, do they? Well, yes, they do. All our Subways offer free wifi, as does a popular pizza chain, as does ALL the hotels in our area, as does other coffee shops, as does even the bar.
Yeah, Starbucks is premium and all, and I can understand that. However, what seems simple is to print off the WEP key on a receipt so paying customers have free access. Our server could be easily tied into that kind of setup, in that it would provide no impact on us partners: we see this kind of integration in the drive thru stores, along with the "Bean Screens", and some stores the sticker machines.
And I wouldn't see customers get disgruntled over paying 2$ for a cup of coffee then immediately going to Subway for their email.. We simply don't have the complete package that other coffee houses do.
The headline is essentially accurate. T-Mobile and AT&T have made an agreement to allow T-Mobile users to continue connecting at Starbucks. They are being "grandfathered in," so to speak. Thus, T-Mobile users don't get hosed, but it still remains the case that Starbucks is no longer working with T-Mobile.
I'm a subscriber to a pretty substantial package of T-Mobile services. I have been happy with their service offerings, and their customer service has been outstanding. I can't help but wonder, though, as they fail to get the iPhone and start losing valuable partnerships like Starbucks, whether the benefits of their excellent service will start to mean less if they don't provide offerings with major partners like Apple. When these kind of alliances create unique opportunities, it is a path to monopoly - think Microsoft.
It could be architectural that there are no outlets, or it could be strategic ultimately.