SD7 - The Feasibility of Installing Pay Telephones in Certain Areas
Executive Summary: Introduction Senate Joint Resolution No. 45, adopted during the 1986 General Assembly Session, requested the State Corporation Commission (SCC) to study the feasibility of installing pay telephones in certain areas where telephone service is crucial to the public's safety and convenience, and the oversight thereof. The Commission appointed a task force to study the issue and collect data concerning the present status of coin telephone service in Virginia. Background Historically coin telephone service was a fully regulated monopoly service provided by telephone companies under the jurisdiction of the State Corporation Commission. The companies provided both public and semipublic services as defined herein. By providing these services in such a manner, telephone companies have placed coin telephones in locations where revenues were good, average, and occasionally poor. As a general rule, coin telephones were removed where revenues were deficient. Importantly, exceptions were made where such installations were important to the public safety. Small airports and lonely stretches of highway are examples of where this has occurred. The overall revenue stream from coin service was thereby steady and the business generally profitable, although it was necessary to increase charges twice over the last dozen years. Coin telephones provided by telephone companies are linked to the network via a special central office line called a "coin trunk." This enables the companies to control the operation of their coin telephones from central switching offices. On June 25, 1984, the Federal Communications Commission (FCC) released a Memorandum Opinion and Order allowing the registration of coin telephones. (*1) This document (1) provided for FCC registration of coin telephones containing circuitry necessary to execute all coin related functions normally associated with coin telephone service, and that such telephones be attached to regular telephone company lines instead of central switching office coin trunks; (2) established certain requirements that customer provided coin telephones must meet to be registered; and (3) permitted individual states to establish guidelines or rules for the connection of customer provided coin operated telephones (COCOTs). The SCC undertook an "Investigation of Customer Provided Pay Telephones" on February 28, 1985 (Case No. PUC850008). A list of issues concerning the offering of COCOT service were outlined in the Order, and interested parties were invited to submit comments. In connection with the SCC's investigation of COCOTs, the 1985 Session of the General Assembly added Virginia Code Section 56-241.2, which relates to approval of rates for the resale of telephone service. This legislation provided for coin service not furnished by the telephone company to be based on number of calls. As a result of this legislation, comments received in Case No. PUC850008, and a staff investigation, the Commission developed guidelines for COCOT connection and use. These guidelines, shown below, were given to all Virginia telephone companies to use in developing appropriate terms, conditions, and rates for the accommodation of customer-owned coin telephones. The companies were not, however, required by the SCC to file COCOT tariffs, since the service was not required by either the FCC or Virginia law. Nevertheless, the major telephone companies filed tariffs for COCOTs service, which effectively puts coin telephones in the competitive market. ____________________________________ (*1) In the Matters of Registration of Coin Operated Telephones under Part 68 of the Commission's Rules and Regulations, et. al., CC FCC 84-270 34994 (Memorandum Opinion and Order, Adopted June 15, 1984, Released June 25, 1984). |
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