T-Mobile USA Suing Starbucks Over Wi-Fi

June 7, 2008 11:43 a.m. EST

Bellevue, WA (AHN) - T-Mobile USA is suing popular coffee chain Starbucks Corp. for allowing AT&T to provide customers free Wi-Fi access using T-Mobile's lines and equipment.

The company is accusing Starbucks of breach of contract, interference and unfair competition.

In its complaint filed June 5 in New York State Supreme Court in Manhattan., T-Mobile said Starbucks deal with AT&T is in violation of a contract that gives T-Mobile exclusive Wi-Fi Internet access rights to at Starbucks until Jan. 4, 2009.

``The conduct of Starbucks has caused T-Mobile monetary damages and such damages will continue should Starbucks continue its breaching conduct,'' Bloomberg quoted the court document

The company added that it has been bearing the cost and burden of Starbucks free Wi-Fi service offer, having invested in the equipment and technology at some 7,000 Starbucks stores in the U.S.

In 2002, T-Mobile agreed to provide Wi-Fi Internet service at Starbucks.