Once, a Local Call Was Two Bits
The only sure thing about the new federal rules on pay phones is that the 25-cent call could be an endangered specie. Under regulations that went into effect Tuesday, pay telephone operators are free to charge whatever the market will bear for local coin and directory assistance calls.
How much? The California Public Utilities Commission notes in its consumer advisory: “We don’t know yet because pay phone providers want to keep competitors guessing about their prices.” Rates will vary depending the location of the phone and which company operates it. There are currently 6,000 providers operating 277,000 pay phones in California. The consensus among consumer groups and industry analysts is that the price of a local call will rise from 25 cents to 35 cents in many places. (Emergency 911 phone calls will continue to be free of charge.)
The Telecommunications Reform Act of 1996 was intended, in theory, to unleash competition and deliver savings to pay phone users. But as the Federal Communications Commission began weaning the industry from regulation, confusion and higher prices have resulted for some services, including pay phones.
To address concerns that pay phone operators will abandon poor urban and rural areas where pay phones may not be profitable, the FCC permits states to make special accommodations to maintain these so-called “public interest” pay phones. It is up the state PUC to figure out how to fund such phones, which are a needed service. Statewide there are about 1,000 “public interest” pay phones supported in part by surcharges paid by pay-phone operators. The PUC has a year to devise a public- interest phone policy and to seek evidence of price gouging and under-served areas.
Consumers should beware. Look for signs listing local rates as well as a toll-free number for complaints or lost money; these are required to be posted on each pay phone. Dissatisfied users may also call the FCC at 1-888-225-5322, or write to Pay Phone Service Providers Enforcement, 2610 Crow Canyon Road, Suite 150, San Ramon, CA., 94583.
