• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

How AT&T spilled the Starbucks beans

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
May 10, 2008, 9:07 AM ET

Here’s one thing the folks at Apple could teach their friends at AT&T: how to parcel out the good news.

Case in point: the Starbucks-iPhone-Wi-Fi deal that’s been on and off all week and generating all the wrong kind of headlines (see for example, here).

If Steve Jobs were running AT&T, he would have kept it simple. And a surprise. The first we would have heard about it would be when he announced it, with a flourish, as a fait accompli. Starting today, free unlimited Wi-Fi for every iPhone owner at all 7,000 Starbucks coffee shops and every other AT&T Wi-Fi hotspot — 17,000 in the U.S., 70,000 around the world.

Boom.

What we got instead was the public relations equivalent of second-day coffee, starting with the press release AT&T (T) issued back in February. The 13-paragraph document talks about free Wi-Fi for “AT&T broadband, AT&T U-verseSM Internet [and] AT&T’s remote access services business customers” but never mentions Apple (AAPL) or the iPhone — two hot-button words that would have given the news some real buzz.

Instead reporters focused on the fact that Starbucks (SBUX) was pulling the plug on T-Mobile, which had been providing it with wireless service since 2001.



Then, last week, without warning, AT&T turned the service on. I spotted it on April 30 when I tried to log on to my T-Mobile account and discovered an AT&T link that wasn’t there the day before. I was already thinking about how many extra shots of espresso I could buy with the $39 a month I would save.

And I was not alone. Apple rumor sites that day were flooded with tips from both coasts alerting them that iPhone owners were getting free Wi-Fi at Starbucks by just by typing in their 10-digit AT&T phone number. AT&T had apparently launched a nationwide test without telling anyone.

Then, four days later, the service stopped, as abruptly and mysteriously as it started, setting off waves of confusion and speculation about what the company’s on-again, off-again behavior might mean. (see here)



You might think that AT&T would have learned their lesson. But no. On Thursday, the text on its website was changed to add language about the new service — “access to AT&T’s more than 17,000 Wi-Fi hotspots, including Starbucks* all for use (sic) in the U.S.” — that iPhone owners took as a signal that the game was on for good.

Then the language disappeared, along with the Wi-Fi service, triggering another round of second-guessing. (see here)

Apparently the habit of firing before aiming — not to mention clearing it with publicity — had spread from AT&T’s networking guys to its marketing staff.

Officially, both AT&T and Apple have no comment, but the folks in Cupertino are clearly miffed. They saw the Starbucks deal as big news for iPhone owners, and they had hoped to work with AT&T to package it for high-profile release, probably in a matter of weeks.

They would have done it right.

About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon

Latest in

CryptoBinance
Binance has been proudly nomadic for years. A new announcement suggests it’s finally chosen a headquarters
By Ben WeissDecember 7, 2025
4 hours ago
Big TechStreaming
Trump warns Netflix-Warner deal may pose antitrust ‘problem’
By Hadriana Lowenkron, Se Young Lee and BloombergDecember 7, 2025
8 hours ago
Big TechOpenAI
OpenAI goes from stock market savior to burden as AI risks mount
By Ryan Vlastelica and BloombergDecember 7, 2025
8 hours ago
InvestingStock
What bubble? Asset managers in risk-on mode stick with stocks
By Julien Ponthus, Natalia Kniazhevich, Abhishek Vishnoi and BloombergDecember 7, 2025
8 hours ago
EconomyTariffs and trade
Macron warns EU may hit China with tariffs over trade surplus
By James Regan and BloombergDecember 7, 2025
8 hours ago
EconomyTariffs and trade
U.S. trade chief says China has complied with terms of trade deals
By Hadriana Lowenkron and BloombergDecember 7, 2025
8 hours ago

Most Popular

placeholder alt text
Real Estate
The 'Great Housing Reset' is coming: Income growth will outpace home-price growth in 2026, Redfin forecasts
By Nino PaoliDecember 6, 2025
2 days ago
placeholder alt text
AI
Nvidia CEO says data centers take about 3 years to construct in the U.S., while in China 'they can build a hospital in a weekend'
By Nino PaoliDecember 6, 2025
2 days ago
placeholder alt text
Economy
The most likely solution to the U.S. debt crisis is severe austerity triggered by a fiscal calamity, former White House economic adviser says
By Jason MaDecember 6, 2025
1 day ago
placeholder alt text
Economy
JPMorgan CEO Jamie Dimon says Europe has a 'real problem’
By Katherine Chiglinsky and BloombergDecember 6, 2025
1 day ago
placeholder alt text
Big Tech
Mark Zuckerberg rebranded Facebook for the metaverse. Four years and $70 billion in losses later, he’s moving on
By Eva RoytburgDecember 5, 2025
3 days ago
placeholder alt text
Politics
Supreme Court to reconsider a 90-year-old unanimous ruling that limits presidential power on removing heads of independent agencies
By Mark Sherman and The Associated PressDecember 7, 2025
16 hours ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.