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T-Mobile said to be suing Starbucks over WiFi

SEATTLE Communications giant T-Mobile USA has sued Starbucks Corp. for allegedly colluding with AT&T to offer free wireless internet access at the coffee chain’s cafes, according to published reports.

In the lawsuit, reportedly filed June 5 in a New York court, T-Mobile alleges that Starbucks and AT&T are not living up to an agreement among the three companies over how the coffee bran would switch from its T-Mobile partnership to the arrangement with AT&T, which was announced earlier this year. T-Mobile is seeking unspecified damages from Starbucks for breach of contract and unfair competition.

Under the transition agreement reached in February, T-Mobile was given the right to sell, market and promote its services in Starbucks stores until they were fully converted to the AT&T system, according to the filing. Starbucks stores would be converted on a market-to-market basis.

According to the lawsuit, only Starbucks units in San Antonio, Texas, and Bakersfield, Calif., have switched to AT&T. However, some outlets elsewhere are offering free WiFi through AT&T to holders of Starbucks’ frequent-guest preference cards. 

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