In 1999, you could still plunk a coin into one at 2 million phone booths in the United States. Only 5% of those are left today. About a fifth of America’s 100,000 remaining pay phones are in New York, according to the FCC…
But pay phones remain a steady business for some of the 1,100 companies operating them across the country.
Pay phone providers reported $286 million in revenue in 2015, according to the most recent FCC report. They can still be profitable, particularly in places where there isn’t cell phone or landline coverage, said Tom Keane, president of Pacific Telemanagement Services. Keane’s company operates 20,000 pay phones around the country.
Yet, even if pay phones help serve the need for calls in certain circumstances, the article says the future of pay phones is “bleak”:
More low-income Americans, once a steady revenue stream for pay phones, have turned to prepaid phones or receive subsidizes on cellphones through the federal government’s Lifeline program. Ironically, providers contribute to the Lifeline fund on their phone bill taxes.
Four quick thoughts:
- What is most intriguing to me here is not that pay phones are dwindling – the rise of smartphones in everyone’s pockets may be just as remarkable – but that there may still be a market for a limited number of pay phones. Is there still a business opportunity in the remaining phones?
- Imagine something drastic happens to the cell phone network. How would people communicate over long distances with the decline of pay phones and landlines?
- What other features of physical spaces are still around but are also anachronistic like the pay phone? Perhaps the water tower on top of some buildings or the occasional hitching post.
- Last thought: it takes some work to have sufficient change to regularly use pay phones. I realized again recently that I rarely make cash purchases and this means I generate a lot less spare change than I did before. If I really needed to use a pay phone, it would take some work to get some change.