Blog Directory

Monday, February 11, 2008

Starbucks gets [slightly] smarter.

The details are extremely arguable at this point and, per my reading, everyone seems a bit confused, but Starbucks announced today its deal with AT&T to replace T-Mobile as the exclusive internet service provider. It's still not entirely free, but with a Starbucks card customers are alloted two hours per day to browse, after which you either pay up or your connection is terminated. If you are not a card-user, you can pay $4 for two hours, which is $1 less than the deal that was offered under T-Mobile for the same increment of time. In addition, more extensive packages are available, including daily and monthly.

Many of the articles on the deal are flimsy, leading readers to believe that Starbucks and T-Mobile have severed their ties; the truth is that T-Mobile subscribers will still have access to their accounts and connections and the roll out will take some time.

As much as I would love to argue for free WiFi at all Starbucks locations, it's clearly a smart business move on their part to charge a small fee while their competitors offer their connections for free; Starbucks has, by far, the most locations and you're paying for that convenience. Yes, Caribou Coffee does offer free WiFi [with purchase, at most locations], but how many Caribous do you pass on your way to work? They offer it because it gets you there, despite going out of your way. Starbucks doesn't need to offer up a service they can charge for because they're in your face, all the time: some coffee shops offer internet, Starbucks offers convenience (obvious in the growing number of locations with drive-thrus).

No comments: