Starbucks

AT&T Sees Wi-Fi, Starbucks as a Growing Competitive Tool

Bernie — Mon, 11 Feb 2008 17:12:07 -0500

Starbucks has inked a deal that replaces T-Mobile with AT&T for their company store Wi-Fi hotspot service. T-mobile customers will still be able to access the network through a roaming agreement with AT&T. AT&T’s broadband and U-verse customers will have access to the Starbuck’s Wi-Fi networks free of charge. This latest move expands upon AT&T’s growing use of Wi-Fi as a competitive tool. They recently opened up their nationwide Wi-Fi network free of charge to existing broadband customers.

AT&T is leveraging Wi-Fi for several reasons. Giving it away to broadband customers creates additional value for an AT&T subscription. AT&T also has millions of newly minted iPhone subscribers, who are hungry for broadband access to utilize their smart phone’s full potential. Additionally, AT&T may be making some pre-emptive moves against Sprint. It’s widely known that Sprint is attempting to launch a nationwide WiMAX network. Assuming that get’s done (which might be a big assumption), Sprint conceivably will be in a position to provide a better broadband wireless experience than their competitors. With widescale access to Wi-Fi, AT&T customers may feel like they have enough and not be tempted to try Sprint’s new Xohm network.

AT&T Steps up Bundling Wars – Launches Free Wi-Fi Roaming

Bernie — Mon, 02 Jul 2007 16:10:17 -0400

AT&T launched a free roaming program to nearly 10,000 Wi-Fi hotspots for qualifying broadband subscribers. According to AT&T, the hot spot network includes “…leading airports, McDonalds restaurants, Barnes & Noble bookstores, coffee shops and popular sporting venues.” Of course, the venerable Starbucks and its thousands of accompanying hot spot locations are not included. Starbucks is the domain of T-Mobile, who also recently launched their own hot spot initiative. In order to qualify for the free hot spot service, consumers and businesses must subscribe to certain AT&T broadband products.

Timing this announcement closely with the recently launched and fanaticized Wi-Fi capable iPhone is no mistake. In addition, AT&T announced that these same qualifying broadband subscribers can receive a free wireless Wi-Fi router for their home. Both maneuvers hope to encourage bundling of broadband and wireless service by existing and potential AT&T customers. And while you’re at it, why not take U-verse video and home phone service to boot. It is a shrewd bundling tactic. One that is somewhat difficult for cable MSOs to match. Not as difficult for Verizon Wireless and Sprint, but nevertheless, a nuisance that will need to be addressed.