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T-Mobile USA Sues Starbucks Over Free Wi-Fi

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T-Mobile USA is finally taking offense to Starbucks’ continued move towards AT&T: it is suing the coffee chain for a breach of contract by allowing AT&T (NYSE: T) to provide customers with free two-hour Wi-Fi access in its stores. At contention: T-Mobile says Starbucks “secretly” developed a plan with AT&T to provide Wi-Fi at its cafes, despite an exclusive partnership with T-Mobile, and the fact that those stores were still reliant on T-Mobile’s infrastructure.

SEE ALSO: Starbucks Turns On Free Wi-Fi For Everyone (Purchase Necessary)

It alleges that AT&T and Starbucks are not living up to an agreement the three companies reached over how Starbucks should transfer from its T-Mobile partnership to a new partnership with AT&T announced earlier this year, reports Reuters. According to the agreement reached in February, T-Mob was given the exclusive right to “sell, market and promote its services” in Starbucks stores until those stores were fully converted to the AT&T system..for now, only two markets (San Antonio, TX & Bakersfield, Calif.) have been converted over to AT&T.

Keep in mind T-Mob is only suing Starbucks, not AT&T…wonder how long that will last.

The full lawsuit (courtesy of Gigaom) is embedded after the jump…

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Jun 7, 2008 1:17 PM ET

Posted In: Companies, AT&T, T-Mobile, starbucks

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