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Background
With the widespread use and availability of
wireless telephones, the use of payphones has diminished. In
1996, in order to encourage competition and the availability of
payphones, Congress 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.
Emergency and Toll-Free Calls
Calls made to emergency numbers, such as 911,
and local calls to Telecommunications Relay Services (TRS) -- a
service that enables 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 subscriber, calling
card service, or credit card company generally pays this
compensation, but, in some cases, may pass this cost on to users
in the rates charged.
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How PSPs Are Compensated
FCC rules require that long distance
telephone companies pay PSPs for each call they complete
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
establishes 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. Long distance companies have significant leeway
on how to compensate PSPs. The FCC allows each long distance
company to determine how it will recover the cost of
compensating PSPs. |
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
company and ask for instructions on how to place a call
using that company from a payphone. Also, ask what the rates
or charges are for calls placed from payphones. Let the
company know if you believe its rates are too high.
Filing a Complaint with the FCC
If the PSP is not responsive and you think
that any FCC rules have been violated, you can file a complaint
with the FCC. There is no charge for filing a complaint. You can
file your complaint using the on-line complaint Form 2000B found
on the FCC Web site at
www.fcc.gov/cgb/complaints.html. 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 the FCC needs to
process your complaint is to complete fully the on-line
complaint Form 2000B. If you do not use the on-line complaint
Form 2000B, 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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the telephone and account numbers that are the subject of
your complaint;
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the names and phone numbers of any companies involved with
your complaint;
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the 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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the details of your complaint and any additional relevant
information.
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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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