City Considers Joining State’s Pay Phone Contract
Teaming up with the state, the city of Los Angeles could make some money off its pay phone service without increasing the costs to users, officials said Wednesday.
A City Council committee recommended Wednesday that the city join with the state’s MCI contract to provide public phone service at 700 locations around the city. That proposal, heard by the council’s Information Technology and General Services Committee, could bring the city between $400,000 and $617,000 a year. Pay phone costs, however, would remain between 20 cents and 35 cents per call.
“This is a good deal for the city,” said Councilman Mark Ridley-Thomas, who chairs the committee. “We could get some good profits here.”
By signing onto the same contract as the state, the city will benefit from the rates and terms negotiated by the state, which received a more favorable contract because of its size. The city could receive 44% of all revenues generated from the pay phones located on city-owned property. The city now receives no more than 15%.
The full council is expected to review and vote on the proposal within the next couple weeks.