Payphone

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GTE Automatic Electric 120-type single-slot coin phone in Santa Monica, CA (2004)
GTE Automatic Electric 120-type single-slot coin phone in Santa Monica, CA (2004)
A picture of a payphone that still accepts money
A picture of a payphone that still accepts money
A lady talking to a payphone in Tallinn, Estonia.
A lady talking to a payphone in Tallinn, Estonia.
Rural Telstra phonebox in New South Wales, Australia
Rural Telstra phonebox in New South Wales, Australia
AT&T payphone signage.
AT&T payphone signage.

A payphone or pay phone is a public telephone, with payment by inserting money (usually coins) or a debit card (a special telephone card or a multi-purpose card) or credit card before a call is made. Some telephone companies have termed them, and tried (unsuccessfully) to get the public to identify them as "coin phones", because the term "pay phone" may imply that other phones are free[citation needed]. Payphones were once very common in the industrialized world, the rise of mobile phones has meant fewer payphones are available, and that those still in place are often poorly maintained.

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[edit] Locations

Payphones are often found in public places, transportation hubs such as airports or train stations, and on street corners. By agreement with the landlord, either the phone company pays rent for the location and keeps the revenue, or the landlord pays rent for the phone and shares the revenue. In some cases, particularly at gas stations, payphones are mounted in drive-up structures in which people in automobiles can make calls while still in their vehicles. The abandonment of payphones by telephone companies due to widespread mobile phone usage has angered some people who consider them a communication staple for low-income and low-credit consumers.

[edit] Additional services

Payphone providers have tried to reverse the decline in usage by offering additional services such as SMS and Internet access.

[edit] United States

In recent years, deregulation in the United States has allowed payphone service provided by a variety of companies. Such telephones are called customer-owned coin-operated telephones (COCOT), and are not always kept in good condition as compared with a payphone owned and operated by the local telephone company. COCOT contracts are usually more generous to the landlord than telco ones, hence telco payphones on private premises have been more often replaced than street phones. One common implementation is operated by vending machine companies and contains a hardwired list of non-toll telephone exchanges to which it will complete calls.

In the United States, the coin rate for a local direct-dialed station-to-station call from a payphone has been 50¢ in most areas since mid-2001, for an unlimited number of minutes. During the 1960s and 1970s, the same call in the United States and Canada typically cost 10¢. In inflation adjusted terms, in 2006 USD, this was 68¢ in 1960, and 28¢ in 1979. While some areas only cost 5¢, smaller companies occasionally charged as high as 15¢ to 20¢. In the late 1970s and early 1980s, this price gradually changed to 20¢, and again rose to 25¢ in some areas between 1985 and 1990 (47¢-39¢, inflation adjusted terms as above). In the late 1990s, the price rose to 35¢ in many areas.

In the United States, a payphone operator collects an FCC-mandated fee of 49.4¢ from the owner of a toll-free number for each call successfully placed to that number from the payphone. This results in many toll-free numbers rejecting calls from payphones in an attempt to avoid this surcharge; calling cards which require the caller to dial through a toll-free number will often pass this surcharge back to the caller, either as a separate itemized charge, a 50¢ to 90¢ increase in the price of the call, or (in the case of many pre-paid calling cards) the deduction of an extra number of minutes from the balance of the pre-paid card.

On December 3, 2007, AT&T announced that they will sell all 60,000 pay phones they operate. They state that they "want to get out of the dwindling (payphone) business as more people are switching to mobile (phones)".

[edit] United Kingdom

In the UK, as in the USA, payphones have been deregulated. The great majority of them are still operated by British Telecom but there are other providers, mostly in urban areas. Birmingham, Leicester, London and Nottingham now have a greater concentration of non-BT payphones.

Japanese Public IC TEL
Japanese Public IC TEL

[edit] Pricing

Currently most (BT) payphones charge £0.40 for the first 20 minutes of any direct dialled national geographic call. Previously (before November 2006) the minimum charge was £0.30, before 2004 it was £0.20 and before 2000 it was £0.10.

[edit] Timeline

[edit] Device

[edit] See also

[edit] External links