AT&T Is Exiting The Pay Phone Business After 129 Years
AT&T announced today that they are exiting the pay phone business, and will be phasing out 65,000 pay phones in 13 states, according to Bloomberg.
From AT&T:
The company plans to phase out both public pay phones and phones provided under contracts at government correctional facilities through the end of next year. All customers will receive advance notification of specific plans as well as information on other potential providers and product options.The phone company cited "significant pressure" from "reduced pay phone usage" as a result of cellphones as the reason for the phase out. AT&T installed the first coin-operated pay phone at a bank in Hartford, CT in 1889.The move affects AT&T pay phones in the company's traditional 13-state service area only. BellSouth Corp., which was acquired by AT&T Inc. in late 2006, had previously exited the pay phone business in its nine-state service area. AT&T's wholesale pay phone services are not affected.
Public Communications will honor all existing customer contract terms and conditions while continuing to provide excellent customer service throughout the withdrawal process.
"This is the right time for us to take this step on behalf of our customers, employees and stockholders," said David Huntley, senior vice president for Customer Information Services. "We expect that independent providers will pick up much of this business, and, as we exit the business, we will be able to refocus our resources to areas that offer stronger growth potential and greater opportunity for the company."
AT&T Announces Intention to Withdraw from Pay Phone Business by End of 2008 [AT&T] (Thanks,Josh!)
AT&T to Disconnect Pay-Phone Business After 129 Years (Update1) [Bloomberg]
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Comments:
Nothing so nefarious - the fact is, pay phone use is low enough that they don't bring in enough revenue to cover the cost of maintaining them. Only place that isn't true is New York City, where you're allowed to put ads on them, and the street advertising space makes them profitable even if nobody ever actualy calls.
Seems silly, but I'm a sucker for small bits of trivia.
You guys are saying the first pay phone was in Hartford, Engadget says Chicago. Who's right?
@hapless: As the quote from the article stated, AT&T's wholesale payphone service will not be affected. By wholesale payphone that means companies that pay AT&T for the phone line and maintain the phones themselves.
All this really does is open a cottage industry of non teleco payphones. Also, there's nothing stopping communities from putting up their own payphones if they feel they are in need of one.
@BillyShears: It also says that the first pay phone was in 1889, which if my calculations are correct would be 118 years ago, not 129. I'd go for Chicago.
I work for Verizon in New York City on municipal jobs. Any phone booth that might be in the way of a city job is thoroughly studied to see if the money the phone booth makes is worth it enough to keep the phone booth in operation and allow the contractor to preserve it during construction (i.e. Verizon pays the contractor money to do so).
If the cost incurred to Verizon is more than what the phone booth makes, guess what? It's taken out.
The verdict? Most pay phones are removed.
@Angus: Oh does that bring back memories...I built a red-box in college using the guts of a hallmark recordable greeting card and the audio file of a quarter tone. Packaged it into a red Bubble Tape container.
It worked. Well. I tried it a few times to be sure. I did a "how to" speech in my communications class on how to build one.
Never worked on the COCOTs though... only the Michigan Bell payphones.
If they're removing pay phones that are unprofitable or vandalized often, that's one thing, but to remove all pay phones (as the text seems to suggest) is incredibly short sighted.
What about tourists or business travellers who don't have a cell phone or are on another network or in another country? What about unemployed people? People who need to call home? What about emergencies and 911?
There is benefit to having pay phones in a few key places such as hotels, supermarkets and government buildings.
Am I the only one who thinks this really sucks? Not only that, who thinks this is really foolish? If I'm stuck in the middle of some area...I would like to be able to find a pay phone. Oh well, I guess that's the way the cookie crumbles...Even my mom has a cell phone and it's gotten her out of a few inconvienient situations and she was totally against getting one. I just hope that there is'nt a huge EMP pulse that knocks out all the cells. At least there will be a few left for the vandals to beat the shit out of. lol.










It's been so long since I've found a working pay phone I assumed they were [i]already[/i] out of the business.