Telstra Pay Phones Now Free

It is not 1 April. However you need to find one :wink:

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I heard this story on the radio news at 06:30. I had to pinch myself to make sure that I wasn’t dreaming. Telstra providing a free service ? I’m gobsmacked. :astonished:

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Yes, I read in one article about this move that Telstra would be forgoing $5 million a year in call revenue. That is a tiny amount for a company like Telstra.
But as they will now be providing a free service for the benefit of the communities, I well expect the Government to cover the costs of maintaining these public phones.

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You wonder how much it costs to collect the cash component of that revenue - and what the added cost of vandalism is because there are coins within.

As @PhilT says, you need to find one …

Anyway, kudos to Telstra.

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Are there any left that take cash?

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Good question. You would have to find one first. I haven’t used a payphone in like centuries.

The ABC article is framed as if there are but that could have been poetic licence.

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Not hard so long as you have internet service, but if you have internet service do you need one excepting if the NBN is down or your fully charged mobile is about to shut down?

image

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A lot of Telstra’s payphones double as WiFi hotspots so there may be places without a mobile signal but with wireless internet if one can access a payphone nearby.

Probably another reason for Telstra to want to keep the payphones operating as, in addition to their USO, they will boost their wireless internet usage without theft and vandalsim by persons trying to steal money from them.

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Telstra is paid to meet the Universal Service Obligation.The money it is paid comes from all licensed telecommunications carriers (including Telstra), based upon their eligible revenue. Licensed carriers that earn less than $25 million in eligible revenue in the reporting period do not contribute to the USO.

And in case you are curious, there is a register of licensed telecommunications carriers. There are currently 328 active carriers, from 568 total licenses granted. Active carriers range from 5G Network Operations Pty Ltd to ZNX Pty Ltd (formerly National Power Services Pty Ltd).

Enjoy :slightly_smiling_face: .

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I believe payphones are part of the ($300 million per annum, IIRC) USO.

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But if a ‘payphone’ service is now free, is it still a ‘payphone’ under the laws governing the USO that Telstra was tasked to provide both before and after privatisation?

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Whether or not there’s a charge for making calls the device doesn’t change what it is.

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No. It has been upgraded to a freephone.

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I believe I get what you mean ie they were paid to provide the service under USO, so the phones are still termed payphones even though the calls are free (I would guess not free International though so maybe payphones regardless of free Australian calls)…is that correct?

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Interesting question. My first thought was that Telstra’s business decision not to charge the amount to which is entitled has nothing to do with whether it is required to meet its USO. That said, having looked at the legislation I think you may have a point.

The Act defines the USO:

9 Universal service obligation

         (1)  For the purposes of this Act, the  ***universal service obligation***  is the obligation:

                 (a)  to ensure that standard telephone services are reasonably accessible to all people in Australia on an equitable basis, wherever they reside or carry on business; and

                 (b)  to ensure that payphones are reasonably accessible to all people in Australia on an equitable basis, wherever they reside or carry on business.

         (2)  The obligation mentioned in paragraph (1)(a) includes the obligation to supply standard telephone services to people in Australia on request.

      (2A)  The obligation mentioned in paragraph (1)(b) includes the obligation to supply, install and maintain payphones in Australia.

It also defines payphones:

9C Payphones

               For the purposes of this Part, a  ***payphone***  is a fixed telephone that:

                 (a)  is a means by which a standard telephone service is supplied; and

                 (b)  when in normal working order, cannot be used to make a telephone call (other than a free call or a call made with operator assistance) unless, as payment for the call, or to enable payment for the call to be collected:

                          (i)  money, or a token, card or other object, has been put into a device that forms part of, is attached to, or is located near, the telephone; or

                         (ii)  an identification number, or a code or other information (in numerical or any other form) has been input into a device that forms part of, is attached to, or is located near, the telephone; or

                        (iii)  a prescribed act has been done.

The Minister and the ACMA do have broad powers. The Minister, for instance, can set out standards relating to “the characteristics of a payphone” (12EE(1)(a)). Whether this enables changing the definition of a payphone I have no idea - you would need to talk to Telstra’s lawyers.

Regardless of Telstra effectively deciding that payphones will no longer require payment, I suspect it would not try to argue that. Firstly, it would mean that Telstra would be required to roll out a new set of payphones. Secondly, it would be a relatively simple matter to change the legislation to encompass the now free public phones - and such a change would almost certainly sail through Parliament.

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As International calls may still need to be paid for the definition of what is a free call may be the easiest change to make. The fact that all local, national and national mobile type calls are made free means the phones may still fit within the definition of a payphone as long as some types of calls require a payment.

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My initial reaction was: about time. I haven’t paid for national or certain international calls from my mobile phone for years.

Public telephones (“payphone” is an Americanism) are still an essential public service. They cost Telstra to maintain, though they are compensated for that as others have commented. They also make money from advertising, to the point that public phones near me are really billboards with a telephone somewhere behind them.

I suspect Telstra will remove the coin mechanism from them now, which will save a lot of money. They will justify that by saying that while national calls are an essential service, international calls are not, so it is OK to restrict them to those who have a card.

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These days with mobile phones, you pay for data, and get the voice calls thrown in for ‘free’.
So you are paying for local and national call facility as part of your monthly charge. Whether you make calls or not.

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It was reported that the CEO said that whilst the revenue collected was $5 million, the cost of collecting all of those coins and processing them was $6 million. As he said, the decision was a no brainer and also has societal benefits insofar as the homeless people can now get easy access to a phone.

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How will we find a public phone if we don’t have a mobile phone with Google Maps, If I need one if I am in dire straits?
I can imagine these free public phones are working properly would be useful as long as they are working properly.

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