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Chambers, Nebraska Fights to Keep Their Last Pay Phone
$1,500 to Maintain, $3.35 in Annual Revenue
by Karl Bode Thursday 12-Apr-2012 tags: business · wireless · alternatives · telco · municipal · wireless
With the world headed forward to cellular, VoIP and other technology, the pay phone is very obviously starting to become a relic in many locations -- but regulations require many locations to keep some pay phones in service for emergencies. The K & M Telephone Company in Chambers, Nebraska is seeking permission to disconnect the town's last remaining pay phone, which they claim costs them around $1,500 to run annually but netted them only $3.35 last year in change.

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K & M isn't alone since Nebraska's Public Service Commission requires each town in the State to have at least one 24-hour public pay phone. While the companies probably don't like eating these costs, the source article omits the fact that most of these telcos (small and large alike) have been subsidized billions for years for services they may -- or may have not -- ever actually provided.

Combined with the bevy of obnoxious fees and the amount of overcharging that goes on for POTS service (like charging $10 for services like callerID that cost pennies to provide), you have to think K&M and others will somehow survive as the pay phone gasps its last breath for a few more years.

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Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Headline wrong - no one fighting to keep pay phone

Nothing in either of the linked news stories mentions anyone in Chambers trying to keep the pay phone in place. The story is really about the state PUC still enforcing an archaic rule that is no longer needed, just like rules requiring hitching posts for horses outside post offices was no longer needed.

Rob
In Deo speramus.
Premium
join:2001-08-25
Kendall, FL
kudos:3

Re: Headline wrong - no one fighting to keep pay phone

said by Linklist:

just like rules requiring hitching posts for horses outside post offices was no longer needed.

Hold your horses there for a minute.. the way gas prices are going, we may need hitching posts for horses!
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WhyMe420
Premium
join:2009-04-06
kudos:1
Truthful headlines don't get views though. You should know by now that this site is full of pseudo-news, eye-catchers, and half-editorials. It's sort of entertaining to me, but pretty annoying that most of the articles seem to be more opinion-based than fact-based.

thegeek
Premium
join:2008-02-21
right here
kudos:2

$1500?

how the hell does it cost that much to have a phone that just sits there unused?

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: $1500?

said by thegeek:

how the hell does it cost that much to have a phone that just sits there unused?

From the linked story:
quote:
The company told the commission it spent $1,469 maintaining them that same year. That includes checking the coin boxes, repairing damage and paying for dial tones, surcharges, fees, taxes and phone books, Woods said.

nothing00

join:2001-06-10
Centereach, NY

Re: $1500?

Checking the coin box? How many trips out there did they make to collect $3.35 in change? Wouldn't you *know* how much money was in a coin box as well and schedule your trips accordingly? (OK, maybe this technology is too old for something like that.)

But ~$1500 to maintain is definitely the reason large corporations don't pay taxes. There's no way this actually cost them this much but I'm sure that's what they're writing off as an expense thanks to creative accounting and favorable tax loopholes.

Edit: Still they should just get rid of this thing.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: $1500?

said by nothing00:

But ~$1500 to maintain is definitely the reason large corporations don't pay taxes.

OT, but large corporations do pay taxes. One might argue that they shouldn't
elray

join:2000-12-16
Santa Monica, CA
said by nothing00:

Checking the coin box? How many trips out there did they make to collect $3.35 in change? Wouldn't you *know* how much money was in a coin box as well and schedule your trips accordingly? (OK, maybe this technology is too old for something like that.)

But ~$1500 to maintain is definitely the reason large corporations don't pay taxes. There's no way this actually cost them this much but I'm sure that's what they're writing off as an expense thanks to creative accounting and favorable tax loopholes.

Large corporations do pay taxes. Not that they should.

You obviously have never been required to maintain a public facility, be it a drinking fountain, restroom, bus shelter, trash receptacle, parking, lighting, fire protection, alarms, vending machines, or payphones. Public / commons facilities are always vandalized, and they cost real money to repair or replace.

nothing00

join:2001-06-10
Centereach, NY

Re: $1500?

Large corporations do pay taxes? Well, yeah, they file taxes. They don't pay nearly what they should having had loopholes written into the tax code for themselves. Take GE who "pays taxes" to the tune of $0 and in fact receives government money (that would be money that you and I pay in taxes to go directly to their shareholder's pockets) as subsidies.

But sure, they shouldn't pay taxes. Because they're the job creators. All of the low labor cost countries they're shipping jobs off to. And we pay them to do it. Wonderful.

As for the phone booth vandalism. Let's see the bill before assuming anything OK?
Desdinova
Premium
join:2003-01-26
Gaithersburg, MD
"paying for dial tones, surcharges, fees, taxes and phone books"

Hmmm. How much for a dial tone? What does that involve? What surcharges and who's charging them? Is the phone company billing itself for these? Same questions for the "fees". What fees? To whom? For how much? Same for the taxes. What taxes? How much? State? Federal? Local? One phone book a year is probably pretty inexpensive, even if they occasionally get stolen (which I suspect is not the case).

Based on the long history of fraud and abusive billing practices on the part of the telco industry, I confess to being overly suspicious of any claim that they make. $1469 is a pretty specific amount which suggests that someone has done the math on a per cost basis. It seems to me that they'd have a bit more credibility for their case if they'd release the actual numbers and sources. But as it stands right now, in my eyes, their vagueness undermines their claim.

I won't even get into how we have only their word that it was only $3.35 in revenue. Once again, considering their deceptive history, it could be earning a lot more than that and they're misreporting the numbers to support their position (but there's no direct evidence for that and it's only speculation).

Linklist
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join:2002-03-03
Longport, NJ
kudos:5

Re: $1500?

said by Desdinova:

Once again, considering their deceptive history, it could be earning a lot more than that and they're misreporting the numbers to support their position (but there's no direct evidence for that and it's only speculation).

And what makes you think K & M Telephone Company has a history of being deceptive? This isn't Verizon or AT&T here.

deeeer

@sbc.com

Re: $1500?

said by Linklist:

said by Desdinova:

Once again, considering their deceptive history, it could be earning a lot more than that and they're misreporting the numbers to support their position (but there's no direct evidence for that and it's only speculation).

And what makes you think K & M Telephone Company has a history of being deceptive? This isn't Verizon or AT&T here.

Now, now. Karl has an axe to grind and your messing it up. He linked his own op-ed as his supporting article to show his statement as fact.
BiggA

join:2005-11-23
EARTH

Re: $1500?

LOL. That and who cares? Considering people made 13 phone calls all year, I don't think anyone cares about it.
Desdinova
Premium
join:2003-01-26
Gaithersburg, MD
Sorry, I should have been clearer. I was referring to the overall perceptions of the telco industry (in what I perceive to be most folks' opinion) and not K & M Telephone Company specifically. I have no specific reason to accuse them; it's simply a kneejerk reaction to all representatives of the telco industry. Kinda like how the majority of people get nervous when they see a cop in their rear view mirror; you'll go into a defensive mode (check speed, maybe do a quick mental inventory of how they've been driving over the past few miles to think if they might have done anything to attract their attention).

But I still think their position would be more sympathetic if they could have tossed in those numbers when they mentioned the categories of cost.
openbox9
Premium
join:2004-01-26
japan
kudos:2
said by Desdinova:

I won't even get into how we have only their word that it was only $3.35 in revenue.

You can always ask K&M to look at their audited books if you'd like.
Desdinova
Premium
join:2003-01-26
Gaithersburg, MD

Re: $1500?

True. But that defeats the fun of being paranoid and seeing conspiracies everywhere.

Smith6612
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North Tonawanda, NY
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Reviews:
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Nailed it. I've seen many Payphones that were taken out of service smashed by someone looking for money days after the phone stopped working and before the Telephone company came out to collect it. See the same thing in many locations if the phones haven't been removed. Someone just comes by and smashes the phone to try to get the cash. Then of course there are those who smash the pay phones to get back at Telephone companies.
BiggA

join:2005-11-23
EARTH

Re: $1500?

They could also just get vandalized or hit by a car or something. I wouldn't be surprised to see a lot more than that in damage in a year to one of those things.

IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7
$1500 for to maintain the physical phone, pay any costs to have it located on the property and empty the money from it i suppose.
i remember the days where a Bell/AT&T phone was every 1/16 of a mile.
these days, any phones you find are third party rip-offs, they typically have a regular restricted POTS line entering a computerized phone, easy enough to just tap into the incoming line and make free calls.
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ArrayList
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Evanston, IL
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·Comcast
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Re: $1500?

said by IllIlIlllIll:

these days, any phones you find are third party rip-offs, they typically have a regular restricted POTS line entering a computerized phone, easy enough to just tap into the incoming line and make free calls.

please continue. I want to hear more about this.

battleop

join:2005-09-28
00000

Re: $1500?

Since the payphone is operated by a 3rd party the LEC isn't going to terminate the POTS line into the payphone it's self. They will place a NID next to the payphone, very often at a height you can reach. All you need is a screwdriver or torx bit to open the NID and a buttset to make a call.
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Crookshanks

join:2008-02-04
Northeast PA
Reviews:
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Re: $1500?

Of course you're risking theft of service charges over a $0.50 phone call. Probably doubtful that you'd get caught but even so...

My favorite bit of telco "hacking" was when I was on an extended hike and discovered Cat3 lying on the ground. There was nearly three miles of the stuff, clipped together every so often. It ended in a junction box for buried cable. I followed the other end and discovered it also ended in a burial junction box. Naturally when I got home I had to get my buttset and drive back out there to see if there was dial tone on either of the pairs. Low and behold there was.

A friend of mine who works for Frontier noticed the pictures I put up on FB and checked it out for me. Come to find out a 25 pair segment of buried cable failed and they left the Cat3 lying on the ground next to the road to provide dial tone service for the ONE customer that had a phone on that road. I wonder if they ever fixed that buried cable or if the Cat3 is still there?

ArrayList
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Evanston, IL
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quote:
While the companies probably don't like eating these costs, the source article omits the fact that most of these telcos (small and large alike) have been subsidized billions for years for services they may -- or may have not -- ever actually provided.
I could care less how much it costs if they have been getting subsidized for services that they may or may not have ever provided.

They can suck it up and just keep the phone there.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: $1500?

said by ArrayList:


I could care less how much it costs if they have been getting subsidized for services that they may or may not have ever provided.

They can suck it up and just keep the phone there.

Why? If no one is using it. Payback? Getting even with the man? Yes, that would be really productive.

ArrayList
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Evanston, IL
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Re: $1500?

said by Linklist:

said by ArrayList:


I could care less how much it costs if they have been getting subsidized for services that they may or may not have ever provided.

They can suck it up and just keep the phone there.

Why? If no one is using it. Payback? Getting even with the man? Yes, that would be really productive.

No. They are being paid for it. Either way they are going to get the subsidy, they should provide the phone.
openbox9
Premium
join:2004-01-26
japan
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Re: $1500?

What is the company getting paid? What's the subsidy for this one unused, unneeded phone?

ArrayList
Premium
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Evanston, IL
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Re: $1500?

said by openbox9:

What is the company getting paid? What's the subsidy for this one unused, unneeded phone?

quote:
K & M isn't alone since Nebraska's Public Service Commission requires each town in the State to have at least one 24-hour public pay phone. While the companies probably don't like eating these costs, the source article omits the fact that most of these telcos (small and large alike) have been subsidized billions for years for services they may -- or may have not -- ever actually provided
it was conveniently left out of the article.
openbox9
Premium
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japan
kudos:2

Re: $1500?

You're right, Karl Bode See Profile conveniently didn't quantify his opinion.

ArrayList
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Evanston, IL
Reviews:
·Comcast
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Re: $1500?

said by openbox9:

You're right, Karl Bode See Profile conveniently didn't quantify his opinion.

And yet we all continue to eat it up.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: $1500?

Some do. Others try to point out some of the facts surrounding various opinions thrown around here.
BiggA

join:2005-11-23
EARTH

Re: $1500?

Excuse me, I am not doubting that it costs $1500, or that it made $3.25 in a year. I am simply making commentary on that. So don't go around blaming me for saying things that I clearly and obviously didn't say.

battleop

join:2005-09-28
00000
Why do you care about a pay phone that's in a town you will probably never visit?

ArrayList
Premium
join:2005-03-19
Evanston, IL

Re: $1500?

Are you trying to imply that I'm selfish enough to not care about the citizens of Podunk, Nebraska?

firephoto
Facts hurt
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Brewster, WA

Re: $1500?

"I have mine, who cares about them."
-- Conservative America

battleop

join:2005-09-28
00000

Re: $1500?

"They have something I don't, where's mine?"
--Liberal America

battleop

join:2005-09-28
00000
I'll be honest. I don't care about what's going on in Podunk, Nebraska.
openbox9
Premium
join:2004-01-26
japan
kudos:2

1 edit
According to the article, the ~$1500/yr covers two payphones separated by around 25 minutes of travel time.

said by Journalstar.com :

The two pay phones generated a total of $19.58 in 2011, with less than half of that coming in as quarters and dimes for local calls. Long-distance carriers paid the rest.

The company told the commission it spent $1,469 maintaining them that same year. That includes checking the coin boxes, repairing damage and paying for dial tones, surcharges, fees, taxes and phone books, Woods said.

In all, a $1,450 hit.


ArrayList
Premium
join:2005-03-19
Evanston, IL

Re: $1500?

I'd be curious to see how much they cost to maintain over 5 years.

any individual repair on the devices can be costly. If they need frequent repairs, they may have a problem with the repairman.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: $1500?

said by ArrayList:

If they need frequent repairs, they may have a problem with the repairman.

Or the equipment may be antiquated, kind of like this requirement for a payphone. Regardless of the cost, the fact that one phone had, at best, six calls placed over the course of 365 days, is wasteful. With today's technology and availability, this standing requirement for unused payphones is ridiculous.

deeer1

@sbc.com
said by ArrayList:

I'd be curious to see how much they cost to maintain over 5 years.

any individual repair on the devices can be costly. If they need frequent repairs, they may have a problem with the repairman.

You would be surprised how many handsets have to be replaced due to someone feeling the need to tear them off the phone.

I have seen many that the armadillo cord was cut with shears just to remove the handset. It is not about the repairman not doing his job, it is about people destroying stuff that is not theirs.

IllIlIlllIll
EliteData
Premium
join:2003-07-06
Hampton Bays, NY
kudos:7

Re: $1500?

rip it out, take the coins and cash the metal at a local recycle joint -
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
They probably are billing the entire shift of the tech that day to check on the phone, at their retail tariffed "special construction" rate of $120 per hour, minimum 4 hours.

Scatcatpdx
Fur It Up

join:2007-06-22
Portland, OR
Union wages, transportation and equipment, usage and maintenance cost, taxes.. etc..

ScottMo
Once in a Lifetime
Premium,MVM
join:2000-12-15
Stony Brook, NY
My company has several payphones (for various reasons). We pay about $92 per month to have them (per phone). Works out to about $1100 per phone per year. I think we get something like $10-12 per year in revenue, mostly from one phone.
GraysonPeddi
Grayson Peddie

join:2010-06-28
Tallahassee, FL

Prepaid Cell Phone Service With Unexpired Minutes

As pay phones are going away, wouldn't there be cell phone service that offer pay-as-you-go service with minutes that do not expire?

Suntop
Premium
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Choteau, MT
Reviews:
·3Rivers Communic..

The reason payphones are a dead species

Because now everyone can get a cellular phone (pre-paid from several providers nationwide for those with atrocious credit) the pay phone's only useful areas are at bus stops, airports, train terminals, and malls. Back in 1985, in Tacoma, Washington at an apartment complex I lived in had a row of 8 payphones. Now these same apartments today do not have any payphones.

All of the area's that had payphones dwindled down to next to nil. Only transit centers, convenience stores, malls, and very few gas stations still have phones. And a great many of them have the private payphones which are not too much of a rip-off with the exception of the operator service that charge more than AT&T to make a collect call. (Of course the owner of the said phone gets a cut, that is why it is so damned expensive.)

That is in Washington, now in Montana you only see pay phones in the larger cities. My hometown here used to have 2 pay phones but since are now gone. When I was reading the article, the main cost is not providing a dial tone, not collecting the money, it is the fact that people get mad, are destructive, or thieves and yank the handset off the phone. With enough force they rip that cord right out of that phone which in turn requires the provider to come out with a new handset that probably costs them like 20-30 bucks to have repaired. However, it is not a good idea to not have a payphone for 911, unless you have a cellphone without service (which required by the FCC to all calls to 911) there is no way you can call 911 unless you happened to be by the phone booth.
The fine print follows: Disclaimer: This is just my view and opinion, your mileage varies, blackout dates apply, and other restrictions applies there will be no replies to trolls, flaming or spammers. Have a Nice day.
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Madness
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join:2000-01-05
Quincy, MA
kudos:1

Number?

Too bad they didn't post the number. I'd ring it just to give it something to do. Someone answers, I'd be like, "save me" in some solemn voice!
norbert26

join:2010-08-10
Warwick, RI

Re: Number?

said by Madness:

Too bad they didn't post the number. I'd ring it just to give it something to do. Someone answers, I'd be like, "save me" in some solemn voice!

back in '82 when the pay phones were in their heyday around here an old favorite was to FIND a pay phone you could call into. An added bonus was if you found one in a vintage booth with a door that still closed. Many pay phones in popular locations like malls , colleges , airports did NOT accept incoming calls. If trying to call its number you would get a recording the number you have reached XXX-XXX-XXXX is not in service for incoming calls. The operator could call into it to request more change be deposited .

RARPSL

join:1999-12-08
Suffern, NY

Re: Number?

said by norbert26:

An added bonus was if you found one [Pay Phone] in a vintage booth with a door that still closed.

Every time I rewatch the first Superman movie, I get a laugh about of the "What do you mean I am supposed to change into my Super-Suit in THAT!" look on his face when Clark Kent runs up to the Pay-Phone-On-A-Pole (followed by having to use a revolving door as a backup changing location).
PX Eliezer
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said by norbert26:

back in '82 when the pay phones were in their heyday around here an old favorite was to FIND a pay phone you could call into. An added bonus was if you found one in a vintage booth with a door that still closed.

Well, back in '62 when I was 7 years old, the added bonus was to walk on the boardwalk in Atlantic City, NJ or in Lake George, NY (lots of pay phones) and check the coin return for dimes. THAT was a bonus, to find those dimes!!

Cjones

@rogers.com

I wish to vomit while saying this

but I think the telco has a point. If the argument is that the poor won't have access to the phone, which I have often heard, then I would respectfully suggest a method by which minutes which never expire could be purchased for a SIM card or handset, with a SIM being the better option. Now, if you'll excuse me, I need to wash my hands, agreeing with a telco has made them dirty.

aaronwt
Premium
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Woodbridge, VA
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·Verizon FiOS

They said they netted $3.35..

So doesn't that mean after all their fees, that was their profit? If they lost money their net would be negative.
So the phone brought in close to $1500. It might be different if they were losing money on it, but they made a few bucks. As long as they make money or break even there should be no reason to remove the pay phone.
InvalidError

join:2008-02-03
kudos:5

Re: They said they netted $3.35..

They might have meant "netted" as in catching something with a net... in this case, coins.

Even if it was net income after expenses, $3.35 out of a $1500 is 0.2% return on investment and companies usually axe projects that perform below 8-10%. The $1500 that goes in the phone booth to generate $3.35 profit would have generated ~$150 if the company had invested it elsewhere so... so, although the phone itself may be profitable, the company is still eating a ~$146.25 opportunity loss from maintaining it.
Bananas21ca

join:2008-09-29
Revenue is not Profit.

$3.35 is probably what was in the coin box.
openbox9
Premium
join:2004-01-26
japan
kudos:2
Nope. Two phones separated by around 25 minutes of travel time lost just over $1450 during 2011.
said by Journalstar.com :

The two pay phones generated a total of $19.58 in 2011, with less than half of that coming in as quarters and dimes for local calls. Long-distance carriers paid the rest.

The company told the commission it spent $1,469 maintaining them that same year. That includes checking the coin boxes, repairing damage and paying for dial tones, surcharges, fees, taxes and phone books, Woods said.

In all, a $1,450 hit.

It sure we be nice if Karl Bode See Profile quote more relevant portions of these sources.

IowaCowboy
Want to go back to Iowa
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Springfield, MA
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The last time I used a Payphone

The last time I used a Payphone was in a Hannafords supermarket in Biddeford, Maine and I used it for nostalgia purposes as I had my iPhone in my other hand. The Payphone is owned by FairPoint and is tied into the Hanafords phone system as it showed Hanafords on the receiving end's caller ID. I called grandma and it cost 50 cents. The last time my mother used a Payphone was within the last year and she called my cell phone while we were at the Holyoke Mall and she forgot her cell phone.

Some uses for payphones these days is forgetting your cell phone or a dead cell phone battery.

I once used a Payphone because I had broken my cell phone earlier that day and I made the call collect. A three minute call costed us $15 when we got the phone bill. This was back in 2002 and the cell phone was a prepaid Verizon Nokia 5185 and all I had to replace was the battery pack. The Payphone was owned by Qwest.
GraysonPeddi
Grayson Peddie

join:2010-06-28
Tallahassee, FL
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Re: The last time I used a Payphone

Ah, the days of 1-800-COLLECT or 1-800-CALL ATT!

And how sweet is that? You can use a payphone if you've forgotten or broke your cell phone.

Of course, there aren't that many payphones in the US, especially in Florida.
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wahoospa

join:2006-03-23
Charleston, SC

Caller ID

"charging $10 for services like callerID that cost pennies to provide"
that is 1 of the reasons I got rid of AT&T completely.

Chester2

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Menlo Park, CA
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Re: Caller ID

said by wahoospa:

"charging $10 for services like callerID that cost pennies to provide"
that is 1 of the reasons I got rid of AT&T completely.

Me too!!! I switched to a VOIP service that costs way less per month for the entire phone service than than the $9.95 that AT&T was gouging me for just Caller ID!
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IowaCowboy
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Springfield, MA
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Re: Caller ID

Unless you have an alarm system, which is dangerous because VoIP can reduce the reliability of the alarm system. I had Comcast Digital Voice and I checked the call logs from when I sent test signals to the central station and it was dialing out like 3-4 times per alarm test and I posted it on the DSLR home improvement forum and they confirmed it was the VoIP causing it to corrupt the signals so the alarm panel had to retry until it successfuly sent the signal. That takes enough time for an intruder to sabotage the panel. I switched my phone to Verizon Landline to maximize the reliability of the security panel.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Caller ID

I ran into that problem, but I solved it easily.

I got the radio backup option. Now nobody can cut the lines, the alarm still works... plus the extra $10 a month is way cheaper then a POTS line.
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IowaCowboy
Want to go back to Iowa
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Springfield, MA
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Re: Caller ID

The Verizon tech that came out to my house said many people were switching their home phone back to Verizon after the October snowstorm as the Comcast phone modems died later the same night the power went out and many were without power a week or more. People with Verizon had service provided that the lines between the subscriber and the CO were not disrupted and that the CO remained online.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Caller ID

Yes, any VOIP solution is doomed in a widespread power outage.... and in a serious weather event, even cellphones and wireless will go down as the backup batteries and generators are drained of energy and fuel at the various cell sites.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

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