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

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

Is the end of paying for Wi-Fi near?

Michal Lev-Ram
By
Michal Lev-Ram
Michal Lev-Ram
Special Correspondent
Down Arrow Button Icon
Michal Lev-Ram
By
Michal Lev-Ram
Michal Lev-Ram
Special Correspondent
Down Arrow Button Icon
February 12, 2008, 2:51 PM ET

By Michal Lev-Ram

You know the feeling: You just ordered your caramel machiatto (extra foam), sat down at a table and opened up your laptop. You log on, hoping to quickly check your e-mail, when all of a sudden a screen pops up asking for your name and credit card information. That’s when you realize that hopping online won’t be as quick — or as cheap– as you’d hoped.

Say goodbye to all of that. On Monday Starbucks (SBUX) announced it was dropping T-Mobile’s ‘ s $6-an-hour Wi-Fi service for AT&T, which will provide coffee- house customers with two free hours of Internet access a day. With about 7,000 Starbucks locations in the United States, that’s a major boon for AT&T . Now the question is, how long will hotels, airports and other venues be able to continue charging sky-high fees for a service that many people see as essential as running water and electricity.

“This is something that people want,” says Morningstar analyst John Owens. “I think customers will embrace this move.”

Of course, Starbucks’ hopes free Wi-Fi will convince coffee drinkers to not only opt for Starbucks but also to stick around longer and buy more lattes. To log onto the company’s new Internet service, customers will need to have an active Starbucks card.

“This is what customers have been asking for,” says Starbucks spokeswoman Sonja Gould. She says a typical Starbucks Internet customer uses one hour of Wi-Fi a day. The company will begin rolling out the new service at select locations this spring. By end of 2008, it will be available at all Starbucks’ U.S. stores.

When Starbucks first introduced its fee-based Wi-Fi service in 2002, it seemed like a novel idea. But today, when many consumers have become accustomed to getting their Wi-Fi for free, the model seems outdated. Last October the Seattle-based coffee chain began providing free Wi-Fi access for iPhone users to buy music on iTunes.

Put simply, people don’t want to pay for Wi-Fi — let alone deal with signing up for it. That’s why JetBlue has begun testing a free in-flight Wi-Fi service that gives limited online access to its passengers.

Jupiter Research analyst Julie Ask says the Wi-Fi offered in hotels, restaurants, airplanes and coffee shops like Starbucks never needs to be completely unlimited and free. But most consumers — who just want to check e-mail or get a quick read of the news — do expect some form of free access.

“It’s a tool that builds loyalty for companies,” says Ask.

Many of Starbucks’ competitors already offer limited free Wi-Fi. Minneapolis-based Caribou Coffee gives customers a free hour a day. Those who don’t will probably need to if they want to compete.

About the Author
Michal Lev-Ram
By Michal Lev-RamSpecial Correspondent
Twitter icon

Michal Lev-Ram is a special correspondent covering the technology and entertainment sectors for Fortune, writing analysis and longform reporting.

See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

America’s emergency oil reserve is about to hit its lowest level since Reagan was in office
EnergyIran
America’s emergency oil reserve is about to hit its lowest level since Reagan was in office
By Jordan BlumJune 10, 2026
11 minutes ago
Mortgage rates today, June 10, 2026
Personal Financemortgages
Mortgage rates today, June 10, 2026
By Glen Luke FlanaganJune 10, 2026
16 minutes ago
Current refi mortgage rates report for June 10, 2026
Personal FinanceReal Estate
Current refi mortgage rates report for June 10, 2026
By Glen Luke FlanaganJune 10, 2026
16 minutes ago
Current ARM mortgage rates report for June 10, 2026
Personal FinanceReal Estate
Current ARM mortgage rates report for June 10, 2026
By Glen Luke FlanaganJune 10, 2026
16 minutes ago
A $7 billion horse race: Goldman Sachs and Morgan Stanley battle for ‘lead left’ position ahead of OpenAI and Anthropic IPOs
Startups & VentureFinance
A $7 billion horse race: Goldman Sachs and Morgan Stanley battle for ‘lead left’ position ahead of OpenAI and Anthropic IPOs
By Shawn TullyJune 10, 2026
17 minutes ago
Visa’s CFO downplays the importance of stablecoin and agentic commerce to the U.S. payments giant—at least in the short term
Bankingdigital and mobile payments
Visa’s CFO downplays the importance of stablecoin and agentic commerce to the U.S. payments giant—at least in the short term
By Angelica AngJune 10, 2026
17 minutes ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
15 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
18 hours ago

© 2026 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.