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AT&T to Quit Pay Phone Business
With an enormous percentage o the American public using mobile
phones, AT&T Inc. announced today plans to exit the shrinking
pay phone business by the end of 2008.
To providers, pay phones are a pain to operate and maintain,
subject to the elements, vandalism, and needing regular service
and collection by way of a real life human being.
The company plans to phase out of the business as pay phone
contracts with both public users and in prisons expire. The
move will affect only AT&T’s own 13-state service
area. BellSouth, which AT&T acquired last year, had already
left the pay-phone business in its nine-state area.
Cell phones played a big role in killing the pay phone, acknowledged
AT&T, which is also the nation’s biggest mobile
operator. The number of pay phones in the U.S. fell from 2.6
million in 1997 to fewer than a million this year, the carrier
said. In the same period, the number of cell phone subscribers
rose from just 55 million to more than 250 million, according
to the CTIA, a cellular trade group.
(December 3, 2007)
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