Dial N for Nostalgia: Is Anyone Still Using Pay Phones?

There used to be more than 2 million pay phones in the United States, according to the American Public Communications Council, a trade association. Fewer than 500,000 are left.

Of California's 27,000 pay phones, most are concentrated in Los Angeles County, the San Francisco Bay Area and along the Interstate 5 corridor, according to the Public Utilities Commission. Pay phones used to be operated by major companies such as AT&T and Verizon; now the industry has been left to smaller businesses. Pacific Telemanagement Services has become the largest pay phone provider in the country. It owns almost 30% of California's phones, 2,100 of which are in L.A. County. Most phones can be found in high-traffic areas such as airports or in low-income communities, said Mike Zumbo, the company's cofounder and president. Though it appears to be a dying industry — with 18% to 20% erosion a year — pay phones are still profitable, Zumbo said. His company buys dial tones from providers for about $30 per pay phone per month. At 50 cents a call, 100 calls a month would result in a $20 profit. The company earns additional money when users make collect calls or use prepaid cards.