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Starbucks and Microsoft Join Forces to Offer Wireless Internet Access

Strategic Insights

— 1 min read

In a significant move, Starbucks Coffee Company and Microsoft Corporation are partnering to provide wireless access to the Internet from Starbucks coffeehouses. The companies will work with MobileStar Network Corporation to install high-speed wireless connections in approximately 70% of their 4,000 stores within one to two years. This initiative will allow customers to connect to the Internet from their laptops or other devices for a fee, and Microsoft will create content and services for Starbucks customers through its online service, MSN.

Key Takeaways:

  • The partnership will enable wireless Internet access in approximately 70% of Starbucks' 4,000 stores within one to two years.
  • The service will allow customers to connect to the Internet from their laptops or other devices for a fee.
  • Microsoft will create content and services for Starbucks customers through its online service, MSN.
  • The deal will be a proving ground for Microsoft's new Internet strategy, known as .Net, which aims to move the company away from its desktop computer business.
  • The partnership will utilize the 802.11b wireless data networking standard, which uses the 2.4-gigahertz radio band and permits communication at speeds of up to 11 megabits.
  • The .Net strategy will offer a series of services distributed and managed through the Internet, marking a shift in Microsoft's business focus.
  • Starbucks is not the only company exploring in-store wireless networks to build customer relationships and to market to visitors on premises; McDonald's is also considering a similar initiative.

Statistics:

  • Approximately 70% of Starbucks' 4,000 stores will offer wireless Internet access within one to two years.
  • The 802.11b wireless data networking standard permits communication at speeds of up to 11 megabits.
  • Microsoft's .Net strategy aims to move the company away from its desktop computer business.

Sources:

- "Starbucks, Microsoft to Join Forces on Wi-Fi", New York Times, [No date specified]

- "Microsoft and Starbucks Partner to Deliver Wireless Internet Access to Coffeehouses", Microsoft PressPass, [No date specified]

- "MobileStar Network", MobileStar Network Corporation, [No date specified]

- "Smart Money", Fortune Magazine, [No date specified]

- "802.11b Wireless Local Area Network (WLAN)", Wikipedia, [No date specified]

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