Background
In order to encourage competition and the
continued availability of payphones, Congress in 1996 required
that payphones no longer be regulated. The Federal
Communications Commission (FCC) determined that deregulating
local payphone rates and allowing the market to set the price of
local payphone calls was an essential step to achieving the
goals set by Congress. Nevertheless, with the widespread use and
availability of wireless telephones, the use of payphones has
decreased.
Emergency and Toll-Free Calls
Calls made to emergency numbers, such as 911,
and local calls to Telecommunications Relay Services (TRS) --
services that enable calls to or from persons who are deaf, hard
of hearing, or speech disabled -- are free of charge at
payphones. You can also reach an operator without depositing a
coin.
Toll-free calls, including calls billed to
calling cards or credit cards, also do not require a coin. The
Communications Act, however, requires the FCC to establish a
per-call compensation plan to ensure that all payphone service
providers (PSPs) are fairly compensated for every completed
intrastate and interstate call using their payphones -- except
for emergency calls. The toll-free number provider, calling card
service, or credit card company generally pays this
compensation, but they may pass this cost on to users in the
rates charged.
How PSPs Are Compensated
FCC rules require that long distance
telephone companies compensate Payphone Service Providers
(PSPs) for each call completed from payphones, except those
calls for which the PSPs already collect compensation under
a contract. The per-call compensation rate can be reduced or
increased at any time through an agreement between the long
distance company and the PSP. In the event the parties
cannot agree, the FCC has established a default rate. The
FCC encourages long distance companies and PSPs to contract
with each other for more economically efficient compensation
rates.
Some long distance companies are
falsely advising consumers that the FCC requires consumers
making calls from payphones to pay a per-call charge to
compensate the PSP. The FCC has not imposed such a
requirement. Instead, it allows each long distance company
to make a business decision about whether to pass its cost
of compensating PSPs on to its customers or not. |
Tips for Consumers
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Numerous states continue to regulate
the rates for local collect calls. Check with your state
public utility commission or local phone company for rates
in your area.
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If you think that the rate for placing
a call from a payphone is too high, a less expensive
payphone could be around the corner. Also, let that PSP know
that the rates are too high. It is in a PSP’s best interest
to meet the needs of its customers. The PSP’s number should
be on the payphone.
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Contact your preferred long distance
provider and ask for instructions on how to place a call
using your provider from a payphone. Also, ask what your
long distance provider charges for calls placed from
payphones. Let the company know if you believe its rates are
too high.
Filing a Complaint with the FCC
If you have a problem with payphone service
and cannot resolve it either with your long distance company or
the PSP, you can file a complaint with the FCC. There is no
charge for filing a complaint. You can file your complaint using
an FCC on-line complaint form found at
http://esupport.fcc.gov/complaints.htm. You can also file
your complaint with the FCC’s Consumer Center by e-mailing
fccinfo@fcc.gov; calling
1-888-CALL-FCC (1-888-225-5322) voice or 1-888-TELL-FCC
(1-888-835-5322) TTY; faxing 1-866-418-0232; or writing to:
Federal Communications Commission
Consumer & Governmental Affairs Bureau Consumer Inquiries and
Complaints Division 445 12th Street, SW Washington, DC 20554.
What to Include in Your Complaint
The best way to provide all the information
needed for the FCC to process your complaint is to complete
fully the on-line complaint form. When you open the on-line
complaint form, you will be asked a series of questions that
will take you to the particular section of the form you need to
complete. If you do not use the on-line complaint form, your
complaint, at a minimum, should indicate:
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your name, address, e-mail address, and phone number where
you can be reached;
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telephone and account numbers that are the subject of
your complaint;
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names and phone numbers of any companies involved with
your complaint;
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amount of any disputed charges, whether you paid them,
whether you received a refund or adjustment to your bill, the
amount of any adjustment or refund you have received, an
explanation if the disputed charges are related to services in
addition to residence or business telephone services; and
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details of your complaint and any additional relevant
information.
For More Information
For information about
other telecommunications issues, visit the FCC’s Consumer &
Governmental Affairs Bureau Web site at
www.fcc.gov/cgb, or contact the FCC’s Consumer Center
using the information provided for filing a complaint.
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