Starbucks Expands Internet Program
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Expanding on a pilot program begun more than a year ago, Starbucks Corp. introduced a $50 monthly plan that will allow high-speed wireless access to the Internet from 1,200 coffeehouses.
By year’s end, 2,000 restaurants, or about a third of the Seattle chain’s total, will offer access using the Wi-Fi protocol and shared space on powerful T1 lines from the VoiceStream Wireless subsidiary of Deutsche Telekom.
Some newer notebook and hand-held computers already are equipped for Wi-Fi connections, also known as 802.11b connections. Hewlett-Packard Co. will sell $79 cards to modify older machines.
The three companies didn’t give financial terms for the project, but observers said it would be hard to generate much profit.
A VoiceStream employee said each T1 connection would cost about $400 a month to maintain, so Starbucks must sign up more than 10,000 subscribers.
Joseph Menn
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
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