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Growing Availability of Alternative Communications, Especially Wireless, Has Led to Decline in Demand for Pay Phone Services

AT&T announced today plans to exit the shrinking pay phone business by the end of 2008. Existing contracts and customer service commitments will continue to be honored during the period that the business is being phased out.

AT&T’s Public Communications unit has continued to experience significant pressure from reduced pay phone usage, primarily as a result of the growth of alternative communications choices, such as wireless phones and personal communication devices.

The company plans to phase out both public pay phones and phones provided under contracts at government correctional facilities through the end of next year. All customers will receive advance notification of specific plans as well as information on other potential providers and product options.

The move affects AT&T pay phones in the company’s traditional 13-state service area only. BellSouth Corp., which was acquired by AT&T Inc. in late 2006, had previously exited the pay phone business in its nine-state service area. AT&T’s wholesale pay phone services are not affected.

Public Communications will honor all existing customer contract terms and conditions while continuing to provide excellent customer service throughout the withdrawal process.

Source: AT&T press release

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