At this year's AT&T stockholders meeting in San Antonio, Chairman and CEO Randall Stephenson announced that the companies have started deploying AT&T Wi-Fi at Starbucks locations in San Antonio.
As of May 1, qualifying AT&T high-speed Internet and Wi-Fi customers will have complimentary Wi-Fi access at more than 7,000 Starbucks locations nationwide. For millions of AT&T customers, that means more speed in more places — for free — is on the way. Analysts said this gives the telecom giant an advantage over competitors like T-Mobile.
Catering to Wired Cappuccino Drinkers
Stephenson said AT&T is moving to strengthen its ability to meet the needs of mobile consumers virtually everywhere.
“Expanding our reach across company-operated Starbucks locations nationwide helps us bridge the gap between our wired and wireless offerings and affirms AT&T's commitment to connect people with their worlds, everywhere they live and work,” Stephenson said.
Qualifying AT&T subscribers will be able to select “ATTWiFi” after powering up their mobile devices. Free AT&T Wi-Fi service is currently offered with AT&T's three higher-speed residential broadband packages, all small business broadband packages, and all AT&T U-verse offerings with high-speed Internet service.
For other customers, AT&T Wi-Fi will reach company-operated Starbucks locations throughout the year. The experience will include a mix of free and paid connection options for both frequent and occasional Wi-Fi users and qualifying Starbucks customers. Once AT&T Wi-Fi service is available, customers will be able to shop and surf both Starbucks' and AT&T's Web pages for products and services.
“We continue to build on the experience we know our customers expect from us,” said Chris Bruzzo, chief technology officer for Starbucks. “By partnering with AT&T as our U.S. Wi-Fi provider we aim to deliver a better value, greater convenience and seamless connectivity in a mobility-centric world to our customers.”
A Coup for AT&T
Mike Disabato, a wireless analyst at The Burton Group, called the Starbucks partnership a coup for AT&T. It's all about bringing more value to wireless customers with data plans that allow tapping into hot spots. AT&T offers Wi-Fi access from more than 17,000 hot spots in the U.S. and more than 71,000 hot spots around the world, including roaming locations.
“If T-Mobile had done something along those lines with Starbucks, you'd probably see a heck of a lot more people over on T-Mobile. It is a huge value proposition,” Disabato said. “AT&T managed to knock T-Mobile out of Starbucks and take away a lot of mindshare in the process. Where is T-Mobile left now in the U.S. for hot spots? Mostly airports and hotels. Where do you think AT&T is going to go next?”
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