Compaq Computer Corp. and Starbucks Coffee Co. today announced a five-year,
$100 million deal in which Compaq will equip the Seattle-based coffee shop
chain’s customers with wireless Internet access.
In a mid-morning conference call, Houston-based Compaq said it would supply
Starbucks with iPAQ handheld computers and other equipment to give customers
high-speed, wireless Internet access in its North American stores.
“Almost 90 percent of our customers are compatible for this kind of
partnership which offers a true enhancement to the lifestyle of our
customers,” said Howard Schultz, Starbucks chairman and chief global
strategist.
Schultz said his company approached Compaq regarding the deal.
While Cyber cafes have only recently sprouted up across the metropolitan
landscape as hip hang-outs for Net starved users, Starbucks is intent on
retaining its image as a one stop shop for busy, upper-level educated
consumers who spend hours lounging and drinking high priced java between
newsprint lines.
During the conference call Schultz denied the partnership would create a
cyber cafe. “It will be the antithesis of that,” he said.
Michael Capellas, Compaq’s chairman and CEO, said users could expect a
high-tech open platform where streamed audio and video play-back would be
available on-demand in the near future. “This is not your standard cup of
tea,” he said, unaware of the pun.
Compaq, in partnership with Microsoft, has equipped 100 Starbucks stores in
Dallas, San Francisco, New York and Seattle and plans to hook up 500 more by
summer.
As a part of the deal, Compaq will provide Starbucks with computers at
their headquarters and in all 4,100 stores.
On April 12, 2001, InternetNews.com reported that Richardson, Texas-based MobileStar Network Corp., which is providing wireless infrastructure for Starbucks, would use two spread
spectrum technologies: the older Frequency-Hopping (FHSS) and the recently standardized 802.11b Direct-Sequence (DSSS).
The company’s CTO, Ali Tabasssi told InternetNews.com that when the company
started in 1996 they deployed with Open Air FHSS wireless systems. But with
the 802.11b standardization by the Institute of Electrical and Electronics
Engineers Inc., the company started deploying both after March, 2000.
“We chose to be technology agnostic and provide service on the network to
both caps,” Tabassi said. “We are seeing that 802.11b is definitely taking a
huge step as far as acceptance goes in the enterprise environment.
Corporations are using 802.11b to go wireless in their buildings and those
same users are demanding that the card they are using in the office be used
at home and on the road,” he said in the interview.
