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Starbucks Expands Wireless Internet Offering

Coffeehouse chain partners with T-Mobile, HP to offer wireless broadband Internet access in 1200 locations, with more to come.

Yardena Arar, PC World

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Starbucks customers will find high-speed wireless Internet access on the menu at more locations than ever, thanks to a new partnership between the nationwide coffeehouse chain, Hewlett-Packard, and T-Mobile.

Executives from the three companies on Wednesday announced immediate availability of T-Mobile Hotspot's WiFi service at 1200 Starbucks locations, including some 500 that were equipped for such access by MobileStar Network before it filed for protection from creditors last fall under Chapter 11 of the Bankruptcy Code. (MobileStar's assets were acquired by VoiceStream Wireless, which, like T-Mobile, is owned by the German telecommunications giant Deutsche Telekomm.)

Most of the 1200 locations are in North America, with a handful participating in a pilot project in London and Berlin. By the end of 2002, the executives said, some 2000 of Starbucks' 6000 locations worldwide are expected to offer WiFi access. Starbucks chairman Howard Schultz said he eventually expects the service will be available in 70 percent of the company's "worldwide footprint," which is slated to encompass 10,000 locations by 2005.

The WiFi (802.11b) networks in these locations will be connected to T-Mobile's Internet backbone via a T-1 line, fast enough for most users to view streaming video or download a PowerPoint presentation in seconds. After an initial free trial of the service, users will have to pay via one of several plans, ranging from unlimited national access for $49.99 a month to a flat fee of $2.99 for a 15-minute session. Prepay plans are also available: $20 for 120 minutes nationwide, $50 for 300 minutes.

HP Kicks In Software

HP's contribution to the service (aside from its ongoing role in providing Starbucks' technology infrastructure) includes an application that will facilitate accessing the network for non-Windows XP PCs. (Windows XP already automates much of the hassle in finding and logging on to wireless networks.) The HP Wireless Connection Manager, a free download from either Starbucks' or HP's Web site, is available now for Windows 2000 and Windows CE devices (such as WiFi-capable IPaq PDAs), with support for other versions of Windows due by year's end.

You'll have to bring your own WiFi hardware to Starbucks: The stores won't sell them. But you can buy a card at a T-Mobile store.

"Our vision is very much to replace the wired network," said T-Mobile U.S.A. chairman John Stanton, who notes that T-Mobile Hotspot also plans to offer WiFi access in airports and hotels.

Starbucks' Schultz said the service addresses "the sweet spot of the needs and aspirations of our customers," who number some 20 million a week, and who visit a Starbucks store an average of 18 times a month.

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