Starbucks WiFi Price Drop

[bdegroodt]

News.com is reporting that Starbucks/T-Mobile are cutting the price of the WiFi access from $40 to $30/month and day pass down to $6!

I was a user of this service back when it was still MobileStar. I certainly hope the price cut isn't indicative of any financial issues brewing with this partnership. Anyone that's bought a new PPC with WiFi (545x) get a tickler in their box? Is there any cross promotion going on here beyond the little slicks they have in the store?

Story here http://rss.com.com/2100-1039-990487.html

[Janak Parekh]

It's finally getting closer to the sweet spot. Make it $20 and I think you'll appeal to a lot of people. I'm not a coffee drinker, so it'll probably never appeal to me, but I know a lot of people spend a fair amount of time in Starbucks. And you can't walk more than 3-4 blocks in any direction in this city without hitting one...

--janak

[bdegroodt]

It's finally getting closer to the sweet spot. Make it $20 and I think you'll appeal to a lot of people. I'm not a coffee drinker, so it'll probably never appeal to me, but I know a lot of people spend a fair amount of time in Starbucks. And you can't walk more than 3-4 blocks in any direction in this city without hitting one...

--janak

No kidding. I have one that's only 2 buildings over from me. If I was just a little closer, I'd pay up for the monthly and use their access instead of the cable modem

Spring is coming Janak...You can always sit on the Starbucks patio outside and browse while getting some fresh air...Of course, isn't that what Bryant Park is for :D

[Janak Parekh]

Spring is coming Janak...You can always sit on the Starbucks patio outside and browse while getting some fresh air...Of course, isn't that what Bryant Park is for :D
Heh. I'm too far north for Bryant Park... which has free wireless access :cry:

If we didn't have ubiquitous wireless access where we are right now, then I might go for it. Plus now Starbucks has opened in Penn Station -- which brings up an interesting point -- why hasn't T-Mo wired Penn & Grand Central? There's a lot of commuters waiting for and in trains...

--janak

[bdegroodt]

Plus now Starbucks has opened in Penn Station -- which brings up an interesting point -- why hasn't T-Mo wired Penn & Grand Central? There's a lot of commuters waiting for and in trains...

--janak

Yeah- I wonder the same thing myself. I wonder if it's a slippery slope thing. First to establish a beach head in the terminal and then cell service in the entire tube.

Man what a prime spot that would be though. I bet they'd do pretty good. Especially if they added some extra tables. I used to use Laptop Lane when they were around in the airports. Something like that would be a nice deal- Especially in Penn. Maybe Amtrak could add it to their club area there.

[Gremmie]

bdegroodt, ever thought about paying their monthly fee and hooking up an AP with an antenna booster? A directional antenna could reach it :lol:

[Janak Parekh]

First to establish a beach head in the terminal and then cell service in the entire tube.
You do know that Verizon has service in the East River tunnels, right?

bdegroodt, ever thought about paying their monthly fee and hooking up an AP with an antenna booster? A directional antenna could reach it :lol:
In New York, "2 buildings over" usually means death. Even with a powerful directional antenna. NY is reception hell. ;)

--janak

[bdegroodt]

First to establish a beach head in the terminal and then cell service in the entire tube.
You do know that Verizon has service in the East River tunnels, right?

--janak

No. I didn't know that. Figures! Verizon sure does have it together when it comes to comparing the wireless carriers.

[Janak Parekh]

No. I didn't know that. Figures! Verizon sure does have it together when it comes to comparing the wireless carriers.
Well, all the carriers are working on it, but VZ has a head start due to the fact that they were one of the first carriers to build out the NE. I think most of the carriers now have coverage in the Lincoln Tunnel as well... (at least, Verizon and T-Mobile do).

It'll be a major change when someone wires up the subway. It's not hard to do (leaky coax, as they use in the LIRR/NJT/Amtrak tunnels), but there are ongoing negotiations with NYCT, plus it's quite expensive to do.

--janak

[bdegroodt]

It'll be a major change when someone wires up the subway. It's not hard to do (leaky coax, as they use in the LIRR/NJT/Amtrak tunnels), but there are ongoing negotiations with NYCT, plus it's quite expensive to do.

--janak

I'm sure the negotiations are interesting to say the least. If Mayor Mike gets wind of it, it'll get REAL expensive. What a goldmine that deal could be for the city.

[don dre]

Hey, why don't you establish a WiFi hotspot in Penn Staton? could make some bank. I have ATTWS and got service in the holland tunnel last time I drove (2 yrs ago.) I find the train or a little bus service called dragon coach to be cheaper and less of a headache. why wait for the big guys? I've heard about Bryant Park but I'm not sure how such a thing is feasible on a broad scale. I have nop problems paying but I would like to see more reasonable rates. GPRS is just way too expensive. I'm thinking about scrapping my T68i for an unlocked S105. the T68's battery life rocks and BT is nice for the headset but I think that Wifi is the way to go for internet.

[Janak Parekh]

Hey, why don't you establish a WiFi hotspot in Penn Staton?
Well, that's the thing -- T-Mo must have a HotSpot in the new Starbucks there. However, I can't imagine the range would be that great, considering the amount of steel around. Wiring Penn Station properly would perhaps 20 base stations, and that's no cheap proposition.

--janak

[hulksmash]

News.com is reporting that Starbucks/T-Mobile are cutting the price of the WiFi access from $40 to $30/month and day pass down to $6!

I was a user of this service back when it was still MobileStar. I certainly hope the price cut isn't indicative of any financial issues brewing with this partnership

I think the price drop merely reflects what I have felt from the start: namely that their price was too expensive and that there would be little demand for their wifi service until they brought the price down a bit. I think it is still pretty expensive, and agree that $20 would be ok, but I think that $10 a month would be more appropriate if someone is willing to commit to a year of service with them. Especially since it is a win/win for them, the wifi does not cost much to run, operate, nor to maintain, so the fee for the service is pure profit. Additionally, everyone that uses it is more than likely to purchase their over-priced coffee, which is also a very high margin product, say around 90% profit.

I myself have been on the lookout for a crack to access their wifi, which I would not entirely take advantage of (I would pay for my one minute of use). I think that with as many cafes that offer wifi access for free, that for starbucks to be charging such an exorbitant amount is pretty greedy on their part. I wouldn't worry about the partnership, since it is potentially a lucrative market, I am almost certain that the issue is merely a natural adjustment to the lack of demand for that service at that price, once they reach the appropriate price, they will make out like bandits on that service, even at about $10 per month since after startup their service is pure profit.

[don dre]

20 Access point would run you around $2k right? How many subsribers do you think you could get? that's what makes it expensive. I mean, if you could get enough subsribers for say $10/mo you might be able to make it worth it.Most people in a train station will only use it while they are waiting so there is no need to charge an arm and a leg since they won't be using your bandwidth that much. Who knows. could register with one of the hot spot companies like hotspotz.

[Janak Parekh]

20 Access point would run you around $2k right?
That's not what I mean by cost. :) Where are you going to put it? How do you make sure it's secure from tampering/vandalism? Don't forget - you have to negotiate with the city for "leasing" rights in the station. Plus, wiring it is going to be another challenge entirely, as you may know if you've seen the mess of wires in the station...

--janak

[don dre]

So you're saying that you think the cost outweighs the potential benefits? Wrangling with the city would probably be the biggest headache.

[Janak Parekh]

So you're saying that you think the cost outweighs the potential benefits? Wrangling with the city would probably be the biggest headache.
No, I'm not saying it outweighs the benefits, but it does require a substantial capital outlay, and it's not clear how quickly an investor would recoup the cost. In other words, nothing's simple. :cry:

--janak

[bdegroodt]

No, I'm not saying it outweighs the benefits, but it does require a substantial capital outlay, and it's not clear how quickly an investor would recoup the cost. In other words, nothing's simple. :cry:


Nothing's simple and the city is upside down billions right now. Anybody coming with a request for something like access in Penn better have nice checkbook behind them. I'd be more in favor of seeing a movement like Bryant Park and NYCWireless in Penn or GC.


I think that with as many cafes that offer wifi access for free, that for starbucks to be charging such an exorbitant amount is pretty greedy on their part.

I think what you are really paying for with Starbucks WiFi is the knowledge of a fairly ubiquitous network of spots. As a traveler, I know I can quickly find a Starbucks and get dialed in (In fact, when I moved to NYC, that's exactly what I did for a month while I waited to get the cable installed.). It's a premium you pay for the existence of the network.

I will say though, if they really expect to get people to use it (They do, don't they?) they better go back to the drawing board on the seating. When the stores were designed, I'm sure some calculation of traffic and seating vs an average visit time was made to determine the amount of seating needed for each store. Well, WiFi should increase the amount of time each butt is in a seat, thus causing me anxiety when I get there for my coffee and net and no place to sit. Good thing for the handheld!

[bdeli]

News.com is reporting that Starbucks/T-Mobile are cutting the price of the WiFi access from $40 to $30/month and day pass down to $6!


That is way too expensive for some net access. I have a 1.5MB cable connection (was 3MB before it got capped) and I only pay $45 - CAD or $30 US/month + I have wifi access throughout all my place - cannot seem to justify why T-mobile charges between $400-$1000 per month for this type of setup to the coffee shops.

If they get down the day pass to 2-3$ and a monthly pass for $15 they might get some more customers. Here in Toronto the main subway/train station has free wi-fi access and there are some coffee shops as well - not starbucks - offering free wi-fi.

[bdegroodt]

...cannot seem to justify why T-mobile charges between $400-$1000 per month for this type of setup to the coffee shops.


I'm not sure how to figure out your numbers. What's T-Mob charging $400-1000 for?

[CoreyJF]

I was on t-mobile site. I couldn't find anything about a day pass. they also seem to have dropped some of there other pricing plans. You used to be able to do smaller time chunks then 300 minutes. And they dropped there 2.99 for 15 minutes plan. There pay as you go is horrible. While only 6 cents a minute there is a 60 minute minimum.

[PetiteFlower]

That's still only $3.60 for an hour, much better deal then $3 for 15 mins...what's the problem?

[karen]

That is way too expensive for some net access. I have a 1.5MB cable connection (was 3MB before it got capped) and I only pay $45 - CAD or $30 US/month + I have wifi access throughout all my place - cannot seem to justify why T-mobile charges between $400-$1000 per month for this type of setup to the coffee shops.

If they get down the day pass to 2-3$ and a monthly pass for $15 they might get some more customers. Here in Toronto the main subway/train station has free wi-fi access and there are some coffee shops as well - not starbucks - offering free wi-fi.

That's because your home wireless set up is, I'm guessing, a single office solution. It's not a more robust managed network solution that has true remote management, commercial equipmement, etc.

BTW, the 'free' Toronto wi-fi is only free to get everyone hooked, just like crack. There will be charges coming soon and I'd guess they are going to be in the same range as the Starbucks stuff.

Karen

[don dre]

I'm always skeptical about free things. nothing is free. at the same time i don;t want to pay exorbitant rates and if htis is really costing them that much then they are taking the wrong tack. i think true wireless might be closer than we think. why have free hotspots? why not jsut have one broadband connection you can take everywhere with you? at least locally. boingo has a better idea. maybe it's b/c i hate starbucks coffee. reminds me of gasoline. if you live in a city like ny (or even philly) you know you can get better coffeee than that.

[karen]

[quote="Karen
That's because your home wireless set up is, I'm guessing, a single office solution. It's not a more robust managed network solution that has true remote management, commercial equipmement, etc.

BTW, the 'free' Toronto wi-fi is only free to get everyone hooked, just like crack. There will be charges coming soon and I'd guess they are going to be in the same range as the Starbucks stuff.

Karen[/quote]

FWIW, today I used a t-mobile connection at a Starbucks near Portland, OR. I have to say that it worked out really well. New customers get a free day pass, so that's what I used (am using). My laptop died while on the road, so I ran out an bought a new one (ugh) and now I'm busy re-installing everything and updating to current patches. I can't imagine what it would have been like out of my hotel room via dial-up....

All I saw on T-mobile was the monthly, monthly no contract, and per minute hour minimum rates. No day passes or 'packages'. I'd have to say that if I can pay $40 for an emergency fast connection while I'm on business (for a month!) -- that's a bargain.

Karen

[TheNewSteve]

Sheesh. Every coffee shop here in Nashville EXCEPT $tarbuck$ has FREE wifi. Like 10 of 'em. Better coffee, too.

-Steve