Wifi Revolution

 

Starbucks located in the UK and Ireland will notice a slight change in the Wi-Fi service to which they have become accustomed. BT (News - Alert), a British telecommunications operator, has announced that it has reached an agreement with Starbucks to provide in-store Wi-Fi access at coffeehouses throughout the UK and Ireland.

Chris Williams reported in The Register that while this win is significant for BT, it does trigger bad news for T-Mobile (News - Alert). The incumbent will lose out on revenue from more than 650 hotspots.

BT says that it will begin to install service in some stores as early as this week. Complete rollout of the new services is expected to be completed by the end of the summer. The deal between Starbucks and BT covers five years. No financial details have been disclosed.

The agreement dictates that BT customers, including those with BT FON (News - Alert) Wi-Fi minutes and BT Openzone users to access the Internet at any Starbucks location. Others who can benefit from this arrangement include O2 iPhone users as access is included in their contract, and millions of customers from iPass, Boingo (News - Alert) and other BT Openzone roaming partners will also be able to use the service.

Starbucks plans to use the network to support both its public customer hotspots and store operations systems. BT Openzone customers will also have access to the Internet in any Starbucks store located in the US as a result of a separate roaming agreement.

As the incumbent provider, T-Mobile has operated Starbucks hotspots for the last six years on a subscription or pay as you go basis. It is possible that this structure made T-Mobile the weaker competitor in going up against BT.

 

The Register reported that a spokesman for the mobile firm confirmed that the company will now focus on improving its mobile broadband network. T-Mobile does plan to allow Wi-Fi to remain as a “complementary” service in high demand areas such as airports.

Hotspots located in Starbucks will become part of BT’s Openzone network. The company’s home broadband packages include bundled Openzone minutes. The company also partners with O2 to extend service offerings to iPhone (News - Alert) users.

BT is working to try and expand its own Wi-Fi reach in the market, even as mobile companies are taking better aim at their target markets. Through strategic partnerships and thoughtful positioning, BT is helping to ensure its strength goes beyond just standard telecommunications and encompasses the areas of greatest growth. This latest contract is another positive step in that direction.

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