Starbucks to Offer Free Wi-Fi Service

• By PAUL ZIOBRO

Starbucks Corp. will make wireless Internet service free at all U.S. stores starting July 1, eliminating a previous fee of $3.99 for two hours of access.

The move comes after McDonald's Corp. earlier this year dropped all access fees on wireless Internet service, as the fast-food chain sought to make its restaurants a more suitable place to hang out.

Starbucks had offered wireless Internet service at its stores through provider AT&T Inc. under an array of options.

Customers who had a registered Starbucks loyalty card could get two hours of free wireless Internet service a day, while users of AT&T mobile devices that had Wi-Fi capabilities received unlimited access to the service.

Customers who subscribed to AT&T's DSL service could also use Starbucks wireless Internet service free of charge. All other Starbucks customers were charged $3.99 for two hours of access.

Starbucks Chief Executive Howard Schultz disclosed the changes Monday at the Wired Business Conference in New York. Starbucks customers using the in-store Internet will also, starting in the fall, be able to have free access to various paid sites, including WSJ.com, through a network developed with Yahoo Inc.

News Corp. owns Dow Jones & Co., publisher of The Wall Street Journal.

Write to Paul Ziobro at Paul.Ziobro@dowjones.com