AT&T To Disconnect Coin-Operated Long Distance

Communications Today, July 24, 2001

The cashless society is a step closer to becoming a reality.

AT&T [T] has asked the Federal Communications Commission for permission to discontinue long distance coin calling from so-called "dumb phones," which require network signaling to track, rate, time, terminate and, when necessary, return coins to customers. The coin-operated long distance feature on the payphones is no longer economically feasible for the nation's largest long distance carrier, according to AT&T spokesman Jim McGann.

"The phones were money-losing for AT&T, and very few people used them," McGann told Communications Today. All of the approximately 800,000 affected payphones would still accept phone cards for long distance, which are less expensive to use than coins, he added.

In a filing with the FCC last month, AT&T pointed out that coin-operated long distance calls cost consumers at least $4.65 for a three-minute call, whereas the same call using a pre-paid phone card would cost $3.45.

Michael Balmoris with the FCC said the comment period on the matter ended July 20 and the issue is still under review. However, barring any action by the commission, AT&T's request would be automatically granted on Aug. 6.

AT&T said that it won't discontinue coin operated LD all at once, and would inform consumers via recordings on the affected phones for 60 days prior to ending the service. The company would also have to get approval from the public utilities commissions in the states involved.

The Telecommunications Research and Action Center, a Washington - based, non-profit consumer interest group is asking the FCC to deny AT&T's petition so that the matter can be reviewed further. Although they represent a small portion of telecom consumers, some people still prefer to use coins to make long distance calls, said TRAC spokeswoman Karen Wall.

"While that may be a small population, we feel that it's a needy population. It should be studied a little more, and the service shouldn't be halted so abruptly," Wall told Communications Today. >TK Qwest Communications International [Q]: Citizen Communications [CSZ]: