This story sits a little close to home as I have been personally been installing T-Mobile HotSpots for nearly two years nearing 200 stores installed in Northern California in that time period. With Starbucks’ announcement yesterday (and I had an install for Sacramento called off minutes before pulling into the Starbucks parking lot), AT&T customers have much to benefit starting this spring. Those with AT&T broadband services will have unlimited Internet service at any of 7,000 Starbucks stores. Starbucks Card holders will receive 2 hours a day free with an option to purchase a “session” for $3.99. Unfortunately the statement does not explicitly state if AT&T cellular (formally Cingular) customers will obtain free or discounted Wi-Fi access. The statement did say, “AT&T will soon extend the benefits of Wi-Fi at Starbucks to its wireless customers.” Hopefully that means smartphone users, i.e. iPhone. If you do not fit any of the above described users, than you can pay $19.99 per month and have access to an additional 70,000 other hotspots world-wide.

Analysts are a bit surprised as to why Starbucks has left T-Mobile for its Wi-Fi access but having spoken to many “partners” (Starbucks terminology for employees) myself, it’s obvious why T-Mobile lost a great contract. The number one complaint I heard from partners was why did customers have to pay for the access? The second major complaint was that partners also had to pay for the access. Now both of these complaints are answered with the AT&T deal with more than 100,000 partners and, again, all AT&T broadband customers receiving unlimited free Internet access. Chris Bruzzo, chief technology officer of Starbucks Coffee Company, echos this in his statement released Monday, saying, “This is what our customers have been waiting for — free Starbucks-quality Wi-Fi.”

What does this mean for iPhone users? Outside of the unclear statement for free Wi-Fi access, it does open a world of possibilities for Apple’s smartphone holders. AT&T has provided point-of-sale systems for Starbucks for ten years and now with a public Internet connection in all Starbucks’ locations by year-end, it will make for a perfect synergy to let Apple exploit its already golden relationship with Starbucks. Apple’s free iTunes use at many locations today could expand to the ability to order a Latte or pound of Komodo without even being in the store. Based on Starbucks statement of “comprehensive communications agreement”, it’s easy to see Apple adding the capability to iPhones and Wi-Fi enabled iPods to make an order without having to walk up to the register. The user would simply make payment via their iTunes account and walk over to the Barista and pick up their drink. What market potential for both Apple and Starbucks to offer its customers. This would aid Apple in future sales and help Starbucks increase traffic to its stores. With T-Mobile, a competing carrier of AT&T, this would have been a bit difficult for Apple to work out. Now, it seems it’s just a matter of sending Steve Jobs down to San Antonio and speaking to some of the brass at AT&T corporate.

Other incentives for iPhone and iPod users could come from this deal with AT&T and Starbucks which may not make Apple’s rumored five year exclusive contract with AT&T so bad after all.

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