4 May 2003

Repurposing Payphones

The Washington Post reports on the demise of the payphone:

“In Washington, as in other parts of the country, pay phones are disappearing from the landscape. The number of them across the country has dwindled from a high of 2.7 million in the mid-1990s to about 1.9 million now, supplanted by the more personal wireless phones that fit in a pocket. The small companies that maintain them are pulling out of the business. Even at the higher price of 50 cents a call, many phones run at a deficit — it costs more to clean, maintain and service them — so people like [technician Andres] Castro are yanking them from their sockets, cutting the lines, and pulling them from shopping centers, gasoline stations, restaurants and street corners where they used to turn a booming profit.”

The Globe and Mail reports that instead of dismantling its pay phones, Bell Canada has started adding WiFi capabilities:

“Aimed at business customers, the service is free until late March and available at several sites in Montreal, Kingston, Ont., and Toronto. The project will also include service at Air Canada airport lounges in Calgary, Montreal, Toronto and elsewhere. The pilot project is intended to measure how customers use the service and how much to charge for it, although some observers wonder if service providers will be able to make much money from so-called wireless fidelity or wi-fi hot spots. For Bell’s hot-spot trial, it’s mostly setting up wi-fi nodes where it has payphones, effectively ‘reinventing’ the payphone business.”

In the United States, massive amounts of cash are being thrown at building a nationwide wireless infrastructure. Adding WiFi to payphones is picks up on an exisitng infrastructure. From Bell Canada’s press release:

“The plan calls for payphones in high traffic areas to be fitted with Wi-Fi technology; typical locations include airports, train stations, hotels, convention centers and corporate campuses.”

Adding WiFi to payphones would be a good way of brining WiFi to underserved neighborhoods — the same neighborhoods that rely on pay phones rather than cell phones.

From the Post again:

“It is much easier — and cheaper — to dial from a cell phone for customers who can afford one. However, pay phones are still profitable in the lowest-income areas of a city, said Terry Rainey, president of the American Public Communications Council Inc., an industry group representing independent pay phone operators around the country.

‘There are a great number of people in this country without a phone,’ Rainey said — 4 and 5 percent, which is more than the 1 or 2 percent of the U.S. population that lacks television sets.

‘Some lower-income areas rely on [pay phones] for regular communications, as well as, in some cases, emergency calls,’ said Mason Harris, president of Robin Technologies and of the Atlantic Payphone Association.”

Compare this map of median household income from the 1990 U.S. Census with this 2002 map of WiFi hotspots in Manhattan. From the Public Internet Project:

Map of WiFi vs Income in Manhattan

Click here for a larger version.


Update: On May 10, 2003, the New Jersey Star-Ledger reported that Verizon plans to put WiFi transmitters in pay phones across New York City. No mention of how much it will cost to use.

Also of note is this May 5 article from the International Herald Tribune which describes plans by the city of Paris to build a WiFi network along the subway system. Two or three antennas could be places outside each of Paris’s 372 Metro stations.