Despite likely pleasing coffee-lovers aplenty last week with its offer of free Wi-Fi access courtesy of leading American service provider AT&T, beverage specialist Starbucks now finds itself facing the prospect of legal action for allegedly breaking a service transfer agreement it had in place with T-Mobile USA.
T-Mobile launches legal action against Starbucks following free Wi-Fi offer with AT&T. Image: DavidThePimpDaddy/Flickr.
Filed late last week in a New York state court, the lawsuit claims that Starbucks has violated a transitional partnership contract agreed with T-Mobile back in February. Deutsche Telekom-owned T-Mobile USA is seeking unspecified damages on the grounds of breach of contract and unfair competition.
According to the outline of the agreement, T-Mobile was positioned to retain the exclusive rights to “sell, market and promote its services” through Starbucks establishments until all of the Seattle-based coffee giant’s stores were fully converted to host AT&T’s replacement system.
The newly announced extension of the Starbucks consumer Card Rewards scheme, which offers up to two hours of daily free AT&T Wi-Fi access, has resulted in T-Mobile USA further suggesting that Starbucks and AT&T “secretly developed a promotional plan under which they would offer ‘free’ AT&T/Starbucks Wi-Fi” in stores still delivering wireless Net access based on T-Mobile’s established infrastructure.
“T-Mobile had made a very significant investment in the technology and equipment necessary to provide Wi-Fi service in the many thousands of Starbucks stores in the United States,” the lawsuit said, whilst also noting that AT&T subsequently benefited prematurely at T-Mobile’s expense.
The filing also notes that T-Mobile’s existing Wi-Fi system remains in place across all-but two of Starbucks’ markets in the United States -- namely San Antonio, Texas, and Bakersfield, California, which have been transitioned to AT&T.
While not offering direct comment on the looming legal proceedings, a Starbucks spokeswoman insisted that the company’s ongoing goal is “to ensure Wi-Fi access at all Starbucks locations.” She was also keen to stress that “steps are being taken” so that such availability arrives as a benefit to store Card Rewards members as well as AT&T subscribers.
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