Video: Starbucks to serve up free Wi-Fi

  1. Transcript of: Starbucks to serve up free Wi-Fi

    LESTER HOLT, anchor: Starbucks announced today it will start offering free unlimited wireless Internet access at nearly 7,000 US locations beginning July 1st . As of now, you either need a Starbucks card or you have to pay $4 to use the store's Wi-Fi for a couple of hours. McDonald's dropped its Wi-Fi charge earlier this year as the companies battle to be the destination to hang out, surf the Web and, they hope, buy some coffee. When we

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updated 6/14/2010 4:23:59 PM ET 2010-06-14T20:23:59

Starbucks Corp. will begin offering unlimited free Wi-Fi at all of its company-operated U.S. locations next month, part of an ongoing effort to bring more customers in the door.

The free wireless Internet will be available July 1 at about 6,700 locations.

The coffee house, which recorded its first quarterly increase in customers in 13 quarters earlier this year, had previously offered two free hours of Web access each day to registered customers.

After that, consumers at the Seattle chain were charged a small fee.

Access will continue to be offered through AT&T. But it won't require a Starbucks loyalty card, according to the announcement Monday by CEO Howard Schultz, who spoke at a conference in New York.

The move comes six months after Starbucks' competitor McDonald's Corp. began offering free Wi-Fi at 11,500 U.S. locations.

The two companies have sparred in recent years at McDonald's revamped its coffee and rolled out a successful McCafe line offering everything from drip coffee and lattes to cappuccinos to icy coffee drinks.

Along the way, Starbucks struggled as it was hit by the recession and overwhelmed by its own rapid expansion.

As business soured, it brought back Schultz, who helped build the company, to lead the day-to-day operations. And it shut hundreds of locations and laid off thousands of workers to scale back its spending.

Also Monday, Starbucks said customers will get free access to certain online content through its Wi-Fi this fall. Called the Starbucks Digital Network, the program will give Starbucks Web surfers free access to paid sites like the Wall Street Journal, along with exclusive content and free downloads from other organizations such as Apple Inc.'s iTunes, The New York Times, Patch, USA TODAY, Yahoo and Zagat.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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