T-Mobile, AT&T and Starbucks make peace and go into business together

Jun 12, 2008 20:16 GMT  ·  By

Yesterday we were reporting that T-Mobile was angry with Starbucks for starting to show off with its new friend, AT&T. On the terms of a previous agreement signed with T-Mobile, the coffee giant was supposed to wait a little longer before advertising its new campaign. T-Mobile sued but, before anyone knew it, the trio shook hands and made up, all for the benefit of the customers.

I don't think I've ever heard such a touching story in my life, especially in the case of lawsuits and year-long agreements being "breached." For those who didn't get a chance to learn about T-Mobile's lawsuit filed against Starbucks, here's a small update:

Back in 2002, T-Mobile and Starbucks signed an exclusive deal to provide Wi-Fi in Starbucks coffeehouses. The network operator claimed that, on the terms of their agreement, Starbucks was not supposed to advertise Wi-Fi services from other providers in its stores, in any market, until all the stores switched from T-Mobile to the new provider.

Starbucks, however, "breached" the contract by starting to advertise its new Wi-Fi campaign with AT&T, while just two of its coffeehouses had been transitioned to AT&T. Users of an iPhone, iPod touch, MacBook or any other Wi-Fi enabled device, were offered a reward for registering and using the Starbucks Card consisting of complimentary access to AT&T Wi-Fi for up to two hours per day in any U.S. Starbucks store that offers Wi-Fi.

T-Mobile also alleged the violation of another part of an agreement, this time with AT&T. A while back, the two network operators agreed to provide in-store services to each other's existing customers. This included AT&T's broadband Internet users who may use the Wi-Fi access, without charging T-Mobile. BUT... since Starbucks had already kicked off its new campaign on June 3rd, T-Mobile was forced to carry the costs of new customers who were Wi-Fi-ing through AT&T, since T-Mobile was still operating most of Starbucks' Wi-Fi.

Most recently however, all three companies are happy to inform that the lawsuit filed with the Supreme Court of the State of New York on Thursday has been settled.

"The companies have entered into a memorandum of understanding to resolve the dispute and are 'committed to providing a high quality Wi-Fi experience for customers, including Starbucks Rewards Customers, at Starbucks locations nationwide', Starbucks said in a statement issued on Wednesday," Macworld reports. Neither company has been willing to provide specifics on the new agreement so far.