Starbucks Partners with AT&T

March 3, 2008 · Filed Under Recent News

Customers win better Wifi!

Nothing is cozier and yuppier than sitting and sipping your espresso while surfing the internet in Starbucks.

Cool. Starbucks is the ultimate symbol of an internet cafe. Unlike many “Internet Cafes” that do not really sell coffee, Starbucks has integrated Wi-Fi technology into their stores and all you need is your laptop or a mobile device capable of internet access to enjoy the many rewarding experiences of technology.

People’s hunger for internet connection 24/7 at the comfort of a coffee shop fueled this initiative by Starbucks. It is easy to figure out that coffee plus internet is equivalent to relaxation.

Starbucks, being a coffee house, also launched their music concept called Hear Music. With this in mind, Starbucks partnered with Apple to reach out to another market of individuals who wish to have music available anytime they visit any Starbucks store.

The idea was that any consumer accessing the T-Mobile Hotspot was given access to the i-Tunes Store. Apple created a wireless connection for consumers between Apple and Starbucks which allows users to download track from the i-Tunes Music Store. Part of the promotion was for baristas to give out download cards for a song which the consumer may in turn download from the i-Tunes Music Store.

After a 3 year partnership Starbucks has ended its partnership with T-Mobile and as a replacement, Starbucks is now partnering with AT & T, as announced in February 11, 2008.

AT & T is the largest provider of Internet access to the United States. Aside from Internet, AT & T provides both local and long distance telecommunications services.

With T-Mobile, customers of Starbucks needed to pay a subscription to have access to Wi-Fi. The subscription was not cheap ($30/month or $9.95/day). At&T’s prices are much more bearable then Tmobile.

Starbucks customers only have to purchase a subscription of $19.99 USD per month, Starbucks customers may access Wi-Fi in Starbucks stores plus other AT & T hotspot locations. As a concession all customers will get 2 hours of access for free. As well Tmobile customer will be able to continue to use the service.

Starbucks is aware that laptops and phones give people the online mobility they crave for. And with its $19.99 USD subscription, customers get two extra hours free of WiFi connectivity per day. AT & T subscribers to remote access may also enjoy unlimited, flat rate web connection in more than 7000 Starbucks stores in the U.S. At&T has allowed its home dsl customers to access its WIFI connection for some time now - mostly rolled out in Mcdonald’s franchises across the nation. Starbucks will greatly increase that network footprint.

The downside is that the AT & T Wi-Fi internet connection at Starbucks stores will not be fully available in all stores at once. This will be available in a market strategy but is expected to be complete by the end of this year.

This decision by Starbucks is very easy to understand. Considering that Apple is in partnership with AT & T when the released i-phone, it is a wise move for Starbucks to shift Wi-Fi providers from T-Mobile to AT & T as Starbucks is also in partnership with i-Tunes Music Store.

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