Starbucks Expands Internet Program

Expanding on a pilot program begun more than a year ago, Starbucks Corp. introduced a $50 monthly plan that will allow high-speed wireless access to the Internet from 1,200 coffeehouses.

By year’s end, 2,000 restaurants, or about a third of the Seattle chain’s total, will offer access using the Wi-Fi protocol and shared space on powerful T1 lines from the VoiceStream Wireless subsidiary of Deutsche Telekom.

Some newer notebook and hand-held computers already are equipped for Wi-Fi connections, also known as 802.11b connections. Hewlett-Packard Co. will sell $79 cards to modify older machines.

The three companies didn’t give financial terms for the project, but observers said it would be hard to generate much profit.

A VoiceStream employee said each T1 connection would cost about $400 a month to maintain, so Starbucks must sign up more than 10,000 subscribers.

Joseph Menn