Starbucks, AT&T claim settlement in Wi-Fi dispute with T-Mobile USA

Starbucks Corp. and AT&T Mobility said they’ve agreed to settle T-Mobile USA Inc.’s lawsuit regarding free Wi-Fi access in the coffee chain’s cafes.
The brouhaha stemmed from an agreement earlier this year when Starbucks announced a deal with AT&T Mobility for the carrier to become the Wi-Fi provider for the coffee house. AT&T Mobility would be replacing T-Mobile USA, which has been the provider of the service since its launch. However, this transition was estimated to take up to five years to fully complete, and until markets were converted, T-Mobile USA was to continue as the exclusive Wi-Fi provider and to market their services in those stores.
T-Mobile USA filed a lawsuit on June 5, stating that a recently launched promotion by Starbucks and AT&T Mobility that provides two free hours per day of Wi-Fi Internet access at Starbucks stores to qualifying Starbucks Loyalty Card members breaks the terms of the transition agreement. T-Mobile USA noted that to take advantage of the two free hours of Wi-Fi, customers have to sign up for AT&T Mobility’s Wi-Fi service offering. T-Mobile USA also stated that since it’s still the Wi-Fi provider in 95% of Starbucks stores, those cards being offered by Starbucks and AT&T Mobility would most likely be using T-Mobile USA’s Wi-Fi access.
“Starbucks is giving away something for free that isn’t theirs to give,” a T-Mobile USA representative said. “We provide the service, yet we weren’t consulted.”
T-Mobile USA’s litigation came on the heels of a lawsuit from AT&T Mobility claiming that T-Mobile USA reneged on a reciprocal Wi-Fi roaming agreement between the two carriers that AT&T Mobility said has led to the degradation of the Wi-Fi service it provides to its customers.
AT&T Mobility and Starbucks, however, issued statements claiming the three parties “have entered into a confidential memorandum of understanding to resolve their disputes,” indicating the legal claims may be put on hold while they hash out their differences.
T-Mobile USA representatives were not immediately available to comment on the deal.