Starbucks says T-Mobile collusion case being resolved

But phone operator keeping very quiet

12 June 2008 12:02 GMT / By Katie Scott

Starbucks is fighting to resolve a court case filed against it by T-Mobile.

T-Mobile had accused the cafe company of secretly colluding with AT&T to offer free Wi-Fi access in its shops stateside, despite having an exclusive deal with itself.

Way back in September last year, all seemed to be rosy between T-Mobile and Starbucks with the two companies teaming up for "Wi-Fi Friday" when free access to T-Mobile WiFi HotSpots was offered in 496 UK stores.

But now relations have deteriorated with T-Mobile filing a lawsuit in New York claiming that Starbucks has cosied up to rival provider AT&T before the agreement with itself had run its course.

AT&T has won the new contract with the coffee chain, but in the meantime, T-Mobile is accusing it of breach of its contract and unfair competition, and wants unspecified damages.

However, Starbucks seems confident it can resolve matters and says that the three companies "have entered into a memorandum of understanding to resolve their disputes".

AT&T and T-Mobile are keeping quiet.