AT&T: Mobiles killed the pay phone

It should come as no surprise that AT&T has announced its intention to exit the pay phone business by the end of next year because most consumers don't use them anymore: they use their mobile phones. The announcement affects pay phones in AT&T's traditional 13-state service area, which includes California in Texas. BellSouth, which AT&T acquired late last year, exited the pay phone business before the acquisition took place. AT&T said existing contracts will still be honored as it phases out the business. Existing independent pay phone providers are expected to take over once AT&T pulls out. AT&T said that pay phones have declined from about 2.6 million phones in the US in 1998 to about 1 million pay phones today.

For more on AT&T pay phone exit:
- read this press release

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