Why Pay Phones Continue to Exist

On February 16, 2025 By newsroom Topic: Technology Buyers Guide

Despite the near-ubiquity of cellphones, pay phones persist in some corners of America. Here's why they remain relevant and what keeps them going.


1. Pay Phones Still Exist

  • While their numbers have declined sharply, pay phones are still operational across the U.S.
  • Statistics:
  • California has seen a 70% drop since 2007, with only 27,000 pay phones remaining.
  • Missouri experienced a 97% reduction, from 56,645 pay phones in 1999 to just 1,345 in 2015.
  • Nationwide, fewer than 500,000 pay phones exist, with 1.7 billion calls annually, per the American Public Communications Council.

2. Pay Phones Can Be Profitable

  • Operators maintain pay phones because they can be economically viable.
  • A pay phone that averages three $0.50 calls daily (1,095 calls yearly) can sustain itself.
  • Major telecom players like AT&T and Verizon exited the pay phone market, selling off their assets to smaller firms like Pacific Telemanagement Service.

3. Pricing Is Set by Operators

  • There's no universal rate for pay phones; owners set their own prices.
  • The typical cost is $0.50 for a local call, with additional fees for long-distance or out-of-area-code calls.
  • Rates must be displayed on the phone or available via a toll-free number, ensuring transparency for users.

4. Pay Phones Are Regulated

  • Public utilities commissions oversee pay phones to ensure functionality and compliance with regulations.
  • Example: The California Public Utilities Commission checks for operational issues, giving operators deadlines to address deficiencies.

5. Pay Phones Are Useful in Emergencies

  • 911 calls are free from pay phones, making them valuable in emergencies when cell service is unavailable or if you're without a phone.
  • Pay phones offer a reliable, landline-based connection, particularly in areas with poor wireless coverage or during disasters.

Why They Persist

  • Niche Use: Pay phones serve communities without widespread cellphone access and are lifelines during emergencies.
  • Cultural Legacy: They symbolize a bygone era while still providing utility in specific scenarios.

While pay phones may not be as common or necessary as they once were, their continued presence highlights their enduring relevance for certain use cases.


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