The battle over Starbucks is heating up — and we’re not talking about coffee temperature. Late last week, T-Mobile USA sued the high-end coffeehouse chain for violating its exclusive agreement when AT&T Internet Services began offering free Wi-Fi service.
According to the Reuters news service, the lawsuit was filed Thursday in New York state court for breach of contract, interference with a contract, and unfair competition. It contends that AT&T and Starbucks failed to abide by an agreement between the three companies concerning the transition to the partnership with AT&T. T-Mobile seeks unspecified damages, legal fees, and an order that will stop Starbucks from breaching its agreement.
Starbucks Card Worth Free Wi-Fi
Early last week, Starbucks announced that new and existing members would be able to use their Starbucks Card to get as much as two consecutive hours of complimentary AT&T-provided Wi-Fi each day in U.S.-based, Starbucks-operated stores. There are more than 7,000 Starbucks locations in the U.S.
The coffeehouse chain said it had joined with AT&T to undertake a national rollout that would bring Wi-Fi to every Starbucks-operated location in the country by the end of this year. The lawsuit indicated that only two markets — San Antonio, Texas, and Bakersfield, Calif. — had made the move to AT&T.
Customers can use their Starbucks Card to receive various discounts or freebies for beverage selections, and, if the card has a minimum of $5 credit on it, the user can get the free Wi-Fi. To stay active, the card must be used at least once a month.
San Antonio and Bakersfield
The chain’s seven-year partnership with T-Mobile concluded in February when Starbucks signed a new agreement with AT&T. Under the previous T-Mobile arrangement, customers could buy Wi-Fi by the hour or the day.
A transition agreement was reportedly reached between T-Mobile and Starbucks in February, which T-Mobile…