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June 3, 2008 2:27 PM PDT

AT&T offers free Wi-Fi at Starbucks

by Marguerite Reardon

AT&T's free Wi-Fi access for Starbucks coffee shops is finally here.

Starbucks on 29th Street and Park Aveneue in New York City.

(Credit: Marguerite Reardon/CNET Networks)

Starting Tuesday, Starbucks coffee shops across the country are offering two hours of free Wi-Fi Internet service through AT&T. In order to get the free service, customers must buy a Starbucks Reward Card with a minimum of $5 credit on it. Customers also must sign up for the free Wi-Fi online at Starbucks.com. To keep the card active, customers must also use their Starbucks Card at least once a month.

The free service is only for two hours and must be used in a single session. New members will also get a voucher for a free drink.

The free AT&T Wi-Fi offer comes as Starbucks phases out a seven-year relationship with T-Mobile, which had provided its customers Wi-Fi under hourly and daily rates. While existing T-Mobile account holders will still be able to sign on and use the T-Mobile service, AT&T has officially taken over all of Starbucks' hot spots.

Free Wi-Fi in Starbucks is part of AT&T's broader effort to give customers more choices using Wi-Fi. The company is also enabling its broadband and wireless data users to get free Wi-Fi at any of AT&T's 17,000 hot spots around the country. Under this program, subscribers aren't limited to the amount of time they can access a hot spot. These AT&T broadband and wireless data subscribers can also use their existing AT&T account information in the Starbucks hot spots. But unlike non-AT&T customers, they don't need to purchase a Starbucks Rewards Card and there is no time limit.

"Our philosophy is that we want broadband to be on demand," said Mike Woodward, vice president of business mobility for AT&T. "People don't think that they want to connect to the network using DSL or 3G cellular or Wi-Fi. And now we've lined up our assets to deliver all these various flavors of broadband."

The free service is part of Starbucks Reward card program, which started in April. Under this program, members can get free syrup and milk options with drinks as well as free refills of hot and iced brewed coffees. They can also get a free drink when they buy a pound of coffee beans. And now they'll be getting two hours of free Wi-Fi Internet connectivity courtesy of AT&T.

Adding free Wi-Fi to the mix is supposed to help lure customers, who may be forgoing their tall lattes in an effort to save money. While the idea is certainly a nice one, it seems like Starbucks and AT&T haven't done a great job promoting it.

I went to the Starbucks right around the corner from the CNET office on 29th Street and Park Avenue in Manhattan on Tuesday expecting to see a packed house of free Internet users. But instead, the patrons I spoke to sipping coffee and tapping away on their laptops weren't even aware that they could get free Wi-Fi.

Laptop users at Starbucks in New York City.

(Credit: Marguerite Reardon/CNET Networks)

Even the Starbucks employees didn't know or understand the ins and outs of the new program. When I asked how I could get online, the Starbucks employee who was helping me said she thought I could just sign up for the free service on the Starbucks Web site from a connection at my home or office. She wasn't aware that I needed a Starbucks Reward Card. And she was unaware of the two-hour time limit on the free service. Still, as an employee who was given access to the service with no strings attached, she said she is excited to have free Internet access. Previously, Starbucks employees were only offered discounted T-Mobile access.

"The discounted service just wasn't worth it to me," she said. "And it certainly is about time that we offered free Wi-Fi. Every other cafe and coffee shop around here seems to offer complimentary Internet."

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services, broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the phone companies. E-mail Maggie.
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by GlennF June 3, 2008 4:15 PM PDT
That's Starbucks Card, not Starbucks Rewards Card, at least according to all their site's material and images. It's the Starbucks Card Rewards Program. I don't blame you for being overwhelmed by the marketing terminology of a company that produces lots of it.
Reply to this comment
by stalexone June 3, 2008 5:02 PM PDT
This whole program sounds very confusing. Why is Tully's able to do this so easily, giving any customer free access for any number of hours while Starbucks must nickel and dime with Reward Cards and 2 hours access, etc? Sounds like a mess and I dont see why anyone would be so excited by this to run to Starbucks and use the service. Also how do you get more hours beyond the first 2 free hours? Do you keep refilling the card? Maybe its just this CNET story that makes this sound so confusing.
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by dsstroud June 3, 2008 11:06 PM PDT
It doesn't sound very free to me if I have to buy that card and use it after a certain amount of time. Sounds confusing to me. Can't decide if it is the story, the program or both. I thought iphone customers were suppose to get free wifi at Starbucks and other ATT locations. What happened to that? Maybe it will be announced at WWDC next week.
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by mbjr June 4, 2008 10:44 AM PDT
I think it's the story that's confusing everyone. I checked the starbucks website and, unless I'm missing something obvious, I don't see them using the word free when referring to the Wi-Fi access. The story on the other hand is using it all over the place.
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by mbjr June 4, 2008 10:54 AM PDT
...also found this on their website regarding this WiFi access:

<snip>
# Is Wi-Fi free?

While the Wi-Fi offer with AT&T and Starbucks allows up to two hours of complimentary access per day, you must continue to use your registered Starbucks Card to maintain the benefit.
</snip>

So I guess the answer is NO it's not free.
Reply to this comment
by theantibush June 8, 2008 12:09 PM PDT
The idea of charging for something freely available just about anywhere
when having it keeps your customers around for your overpriced products
makes me want to vomit.

Starbucks management needs to be taken behind the woodshed,
tire-iron in hand.
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by benjaminstraight July 27, 2008 3:34 PM PDT
Nice of AT&T
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by gadawgsfan19 September 23, 2008 9:23 PM PDT
i read it twice but if something is confusing to someone, they're going to go elsewhere where things arent confusing like dunkin donuts or anthonys pizza. starbucks coffee is good, but umm dunkin donuts and waffle house is cheaper and better. from what i read, the wi-fi is free, but to be able to actually use it, ur required to buy starbucks products at some point each month. so pretty much its not free even tho ur going there to get coffee anyways. but what if u dont want the card but will go there and buy the coffee with cash or ur debit/credit card. when i went to dunkin donuts for the first time after i built my laptop, i walked in there to make sure they did have free wi-fi and when they said yes, i thought well, i cant walk in here use their connection and not buy anything. i guess im too nice of a person, figured it was a nice trade. i got to check emails and finish my badges on pogo. we got hit by lightening at home so my laptop that wasnt plugged in at the time was my saving grace at a public place. thats when i got to use it for the first time.

its just easier to go elsewhere! period! ill still get starbucks coffee every now and then cuz money is tighter than it used to be, but wont see me walk in with my laptop. take care everyone. stay blessed.
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