Monday 17 February 2014

Outrageous Industry Transformation: Cell phones doom phone revenue for hotels



When was the last time you used a pay phones? How often you have used a pay phone in the last year?

Typically a  payphone  is a coin-operated telephone located outdoors for public use. They are placed in a telephone booth or a privacy hood, designed with coin slot for inserting money (usually coins) or have magnetic swipe for making payment using credit card, debit card, or a telephone card.   There is also the Prepaid Calling Cards to facilitate calls by first calling the Toll-free telephone number, entering the card account number and pin, then the desired connection telephone number.  An equipment usage fee may be charged as additional units, minutes or tarif fee to the collect/third-party, debit, credit, telephone or prepaid calling card when used at payphones.
How the pay phone or public phone system is built to connect one another during calls are made?  The system is called public switched telephone network (PSTN), which is the aggregate of the world's circuit-switched telephone networks that are operated by national, regional, or local telephony operators, providing infrastructure and services for public telecommunication. The PSTN consists of telephone lines, fiber optic cables, microwave transmission links, cellular networks, communications satellites, and undersea telephone cables, all interconnected by switching centers, thus allowing any telephone in the world to communicate with any other. Originally a network of fixed-line analog telephone systems, the PSTN is almost entirely digital in its core and includes mobile as well as fixed telephones.
The PSTN adheres to the standards created by the ITU-T (International Telecommunication Union-Telecommunication)1.  These standards allow different networks in different countries to interconnect seamlessly. The E.163  and E.1642 standards provide a single global address space for telephone numbers. The combination of the interconnected networks and the single numbering plan make it possible for any phone in the world to dial any other phone.
In Britain during late 1990s, the Government backed service provider has seen a declined in public phones usage. This is due to the mobile technology that is taking place among the users. More decline in popularity of payphones is most obvious in Jordan during 2004, it became the first country in the world not to have telephone booths generally available. The mobile/cellular phone penetration in that country is so high that telephone booths have hardly been used at all for years. The two private payphone service companies, namely ALO and JPP, closed down, and currently there's no payphone service to speak of.
In some countries, there are few private service providers that still provide pay phone services however for a limited number and or order basis.  In the US today, APCC Services, a subsidiary of the American Public Communications Council, Inc., is the premier provider for billing and collection services of dial around compensation for independent payphone service providers (PSPs) and local exchange carrier (LEC) payphone service providers 3.  These independent Payphone Service Providers (PSPs) operate some 450,000 of the nation's 1.5 million (according to industry sources) payphones. They range in size from small providers who own one or two phones to a publicly-traded company that operates about 70,000.
Q1.   If you were to ask your self  when was the last time we all used payphones (public phones), we could not recall exactly when.  But those who were the students in the universities during 1997 to 2002 who also been studying abroad, remembered well that how to use and very frequently.  Those during those years, the moment we graduated and entered working life would definitely use mobile phones. Since, then payphones are hardly seen around and in Malaysia we could not be bothered to find or even use pay phones.
Q2.  If you needed to use a pay phone, would you know immediately where one was located?
In Malaysia, most of us have been using mobile phones. Due to the intensive mobile technology developed, most mobile providers such as Maxis and Celcom provide stable and good coverage network. This has increased the use of mobile users. Hence, public phones now are rare to find even in public places like train or bus stations.   
Q3: When was the last time you used your cell phone? How often you used your cell phone in the last day?
The last time pay phones were seen was during late 90s (about 1997) and it is about this time that the last time I used the pay phones. I did not use pay phones much as I and most of us subscribed to the fix-line on rental basis.  Only when I was out and about.
 References


3.   http://www.apcc.net/i4a/pages/index.cfm?pageid=39