AT&T to eliminate pay phone service

The San Antonio, Texas-based telecom giant has continuously experienced reduced pay phone usage, largely due to the growth of wireless phones and personal communication devices, according to a company news release.

Pay phones in the United States have declined across the industry to about 1 million, less than half the 2.6 million phones that were in operation in 1998.

AT&T will phase out both public pay phones and phones provided under contract at government correctional facilities. Existing contracts and customer service commitments will continue to be honored through 2008, according to the release. All customers will receive advance notice and information about other options.

The decision will spell the end of the estimated 65,000 pay phones in the former SBC Corp. territory, which includes Missouri and 12 other states, according to company spokeswoman Chelsey Ilten. AT&T merged with SBC in 2005.

Pay phones in AT&T’s nine-state service area formerly under BellSouth Corp., which AT&T acquired in 2006, were previously discontinued.

AT&T’s wholesale pay phone services are not affected.

“This is the right time for us to take this step on behalf of our customers, employees and stockholders,” said David Huntley, AT&T senior vice president for customer information services, in the release. “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.”[[In-content Ad]]