[comp.dcom.telecom] New California PUC Rules for Pay Phones

"Steven W. Grabhorn" <grabhorn@marlin.nosc.mil> (03/20/90)

 From the Los Angeles Times, March 19, 1990 

             PUC IS ABOUT TO WRITE NEW RULE BOOK FOR PAY PHONES

     A  new era in the pay-phone business in California is expected to  dawn 
later  this  year when the Public Utilities Commission completes work  on  a 
two-year  study  of  the former monopoly that it opened  to  competition  in 
November, 1985.

     The centerpiece is a "settlement agreement" that reconciles the differ-
ences  of  all parties: consumer groups, the PUC's  consumer-support  staff, 
local  phone  companies, long-distance carriers and owners  of  private  pay 
phones.   If it works as intended, the agreement would have  these  benefits 
for each group:

CONSUMERS:  There will be a uniform 20-cent rate for local coin  calls  from 
any  pay  phone, guaranteed for five years.  (While pay phones  operated  by 
local  phone companies charge 20 cents for these calls, private  owners  may 
charge  25 cents.)  There will also be minimum equipment standards and  uni-
form information posted at the pay phones, including the name and  toll-free 
number  of the telephone's owner.  There also will be no charge for  dialing 
toll-free  numbers to reach a preferred long-distance carrier, whether  that 
carrier had a prescribed five-digit code (10-XXX) or a number starting  with 
a  prefix  of 950 or 800.  A phone's owner could no longer block  access  to 
carriers other than the one subscribed to.

LOCAL  PHONE COMPANIES: The PUC would authorize and set out  procedures  for 
these companies to enforce prices and "get rid of the bad actors" by discon-
necting those guilty of persistent overcharging.

PAY PHONE OWNERS: The new owners agreed to trim their basic coin rate to  20 
cents  but in exchange will receive a 30-cent payment from  phone  companies 
and  long-distance  carriers for all non-coin calls the private  pay  phones 
transmit to their networks.  This provision can spell the difference between 
profitability and loss for the pay phone's owner.  Owners also will  eventu-
ally be able to buy additional network services from local carriers that are 
not now available, offering such advantages as correctly identifying when  a 
call is answered and billing should begin.

LONG-DISTANCE  CARRIERS: So-called interexchange carriers are  assured  that 
their  customers  will always be able to reach them from any  pay  phone  in 
California.   Owners will no longer be able to force customers to  use  only 
the carrier the owners selected for their phones.

PHONE  MAKERS: Manufacturers of telephones equipped with automated  operator 
and  billing  services that meet certain standards set by the  PUC  will  be 
allowed  to install their equipment and compete with the local phone  compa-
nies' operators for dial-O calls.


Steve Grabhorn, Code 645, Naval Ocean Systems Center, San Diego, CA, 92152
Phone:619-553-3454 Internet:grabhorn@nosc.mil UUCP:..!sdcsvax!nosc!grabhorn