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AT&T Wi-Fi at Starbucks

AT&T subsidiary AT&T Wi-Fi is buying long-time partner Wayport for $275 million in cash. After the acquisition, AT&T Wi-Fi will operate 20,000 hotspots in the United States and have a presence at 80,000 hotspots around the world (that includes roaming locations).

This move officially merges the number-one and number-two U.S. hotspot providers, but it won't change much for the companies. Wayport has been the behind-the-scenes manager for all of AT&T's hotspots since 2005.



AT&T has expanded its Wi-Fi footprint for a while now, and took a major jump to number one this year when it took over the wireless networks found in Starbucks Coffee Shops from rival T-Mobile. AT&T Wi-Fi also operates hotspots in Barnes & Noble and several airports, hotels (including 600 Motel 6 locations), and convention centers.

Wayport operates hotspot networks for hotel chains including Wyndham, Marriott, and Four Seasons--even at Hertz rental counters and a few healthcare facilities. It gets the most ink for running the hotspots found inside the nation's McDonald's restaurants, however. AT&T also claimed McDonald's as their own, through the previous partnership.

Beyond Wi-Fi, Wayport provides back-end services at Mickey D's, using the network to keep restaurants in touch with the main office and to operate credit card point-of-sale systems: That's right, when you buy a Big Mac on your credit card, it goes over Wayport's managed network.

Access at AT&T Wi-Fi hotspots is free for current customers of AT&T High Speed Internet or U-verse and subscribers to the AT&T LaptopConnect service (which uses HSDPA/EDGE cards for 3G connections). Otherwise it's $3.99 to $7.99 a day depending on the hotspot location, $9.99 per month for High Speed Internet customers in certain states, and $19.99 a month for anyone. AT&T emphasizes the benefits to business customers as well.

Last month, AT&T finally began to give its iPhone and other smartphone customers free access to Wi-Fi at AT&T hotspots (following a false start this summer). You need to activate Wi-Fi on your iPhone, find an "attwifi" network listed, and enter your 10-digit mobile phone number; after that, a text message is sent with a secure link that provides 24 hours of free access. This gets around a hack from the summer that let laptop users get free access.

AT&T's acquisition of Wayport should close before the end of 2008; Wayport will become an indirect, wholly-owned subsidiary.

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