Starbucks' megabucks Wi-Fi plans slammed

High-street coffee shop giant Starbucks is set to offer paid-for Wi-Fi access to caffeine lovers in Portland, Oregon - directly opposite an outfit offering the same service for free.

Not only that, but Starbucks is intending to use the same channel used by its distinctly uncommercial rival, Personal Telco (which basically comprises a bunch of computer hobbyists), meaning the performance of both services will suffer.

Personal Telco is not amused. Adam Shand, the founder of the outfit, says his group was there first, and claims that in similar disputes in the US, the incumbents have successfully retained their wireless channels when threatened by a newcomer.

"If we take the stance that we're the little guy and start hopping around, what happens when there are no channels left?" Shand told The Oregonian newspaper.

Unlike mobile phone networks, Wi-Fi operates on an unlicensed spectrum, meaning that disputes such as this may become commonplace in the US and in Europe.

Starbucks and its partner, T-Mobile, told the paper that they were "unaware" of any other wireless internet presence in the area and had no comment on Personal Telco's objection. They will charge people $29.99 per month to use the Wi-Fi service in Portland.

In all, T-Mobile has around 500 Wi-Fi locations in Starbucks outlets and in airports throughout the US. Monthly charges to use all of these start at $49.99. The company plans more than 1,500 wireless locations nationwide by the end of the year.

Such wireless net access is also becoming popular in the UK. Wireless LAN specialist Megabeam is launching wireless internet access in 15 railway stations across the UK using Wi-Fi, which is based on the 802.11b wireless LAN standard. Paid-for use of 802.11b equipment became legal in the UK on 1 August.

BT plans to have 70 wireless hotspots active by the end of the year.

But there could be similar problems concerning spectrum usage here, and doubts remain over the commercial viability of any plans to offer free WiFi access to the general public (see Silicon Says box above).