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February 11, 2008 7:28 AM PST

Starbucks ditches T-Mobile for AT&T

by Caroline McCarthy

Ubiquitous caffeine conglomerate Starbucks has ended its Wi-Fi partnership with T-Mobile in favor of one with AT&T.

Under the earlier plan with T-Mobile, Starbucks customers needed a paid subscription to access the in-store Wi-Fi service, and T-Mobile HotSpot subscribers will continue to have access to Starbucks Wi-Fi thanks to an agreement between AT&T and T-Mobile. But the new AT&T plan allows all customers 2 free hours per day, with a $3.99 fee for additional 2-hour chunks of time. Monthly subscriptions will cost $19.99 and will enable access to other AT&T hot-spot locations in addition to Starbucks.

In addition, AT&T broadband customers will be able to surf at the more than 7,000 Starbucks locations in the U.S. for free. The new Wi-Fi partnership is expected to be introduced gradually at Starbucks locations this spring.

It's an understandable move on Starbucks' part; the coffee chain has a number of deals in place with Apple and its iTunes Store. Apple uses AT&T as the mobile service provider for the iPhone. Rumors of a Starbucks mobile ordering interface for the iPhone have been circulating for months.

The new partnership also extends to the business side of Starbucks: AT&T will also power an "enterprise class" network for internal operations.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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