T-Mobile, AT&T, Starbucks Resolve Wi-Fi Dispute

NEW YORK -(Dow Jones)- T-Mobile USA, a unit of Deutsche Telekom; AT&T and Starbucks have resolved their differences over how the coffee house operator should transfer its Wi-Fi access from T-Mobile USA to AT&T.

"T-Mobile, AT&T and Starbucks have entered into a memorandum of understanding to resolve their disputes and are committed to providing a high quality WiFi experience for customers, including Starbucks Rewards Customers, at Starbucks locations nationwide," Starbucks spokeswoman Stacey Krum said. Spokesmen from AT&T and T-Mobile USA also confirmed the resolution of the dispute.

The resolution comes less than a week after T-Mobile USA filed a 13-page lawsuit in New York state court accusing Starbucks of breaching a contract by allowing AT&T to provide customers with free Wi-Fi access while using T-Mobile USA's equipment.

T-Mobile USA alleged that Starbucks used its equipment and technology while secretly developing a plan with AT&T to provide free Wi-Fi service.

Starbucks shares were recently down 0.5% at $17.75, while shares of AT&T fell 6 cents to $37.16. American depositary shares of Deutsche Telekom were up 1.6% at $16.11.

-By Steven Russolillo, Dow Jones Newswires; 201-938-2205; steven.russolillo@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 11th June 2008