Pac Bell Gets Contract Extension for Pay Phones
Despite several bids that would have lowered the price per call by 10 cents, the City Council has approved a contract extension with Pacific Bell for pay phone service in the city’s downtown business district.
Under the five-year extension approved Monday, Pacific Bell will pay the city a one-time $25,000 signing bonus, as well as a 35% commission on local calls and a 25% commission on long-distance calls.
Pacific Bell currently charges 35 cents for local calls.
The council rejected at least three competing bids that would have lowered phone call prices to 25 cents.
Several council members said they voted for the Pacific Bell extension because the deal gives the city a bigger up-front commission.
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