Kyle Matthies

Death of the Pay Phone  RIP – 1878~2009

June 11, 2009 -

Overall, the pay phone had a good run. Well over 100 years of public service, putting up with all kinds of abuse and germs, faithfully offering its services at all hours of the day or night. But, as with all things, its run is finally coming to an end.

It's no secret that wireless devices have lead to the downfall of public telephones. It's interesting to think that just a decade ago, it was not uncommon to be unconnected for hours at a time. My grandfather, Ellsworth Erickson, drove water trucks with the Teamsters from 1950-1975, and we were discussing just that recently. (It's interesting to note that he is no more connected today than he was when he retired in 1975.)

My grandfather told me that it was not uncommon for him to be completely unconnected from the time he left the yard in the morning until the time he returned often 12 hours or more later. In the event that something happened at home, his boss would have a message waiting for him when he returned. I realized I can’t relate to that given that I got my first pager in 8th grade (unless you’re a doctor, a completely useless piece of technology) and my first cell phone a few years later. By the time I was driving I was always just a phone call away.

My dad wrote about this on his blog in December 2007. I remember thinking at the time that I would never miss pay phones, yet just a couple weeks ago I found myself missing them quite a bit.

Although most of the time, my marathon training goes well, there are times where I get myself 10 miles away from home and have to stop. A few weeks ago I found myself about 17 miles into a 21 mile run when I ran into some serious pain. I stopped at about 4 pay phones, all of which were out of order.

My thoughts immediately turned to wondering whether this lack of service presents a meaningful business opportunity. Although I can think of some niche consumers such as myself, the reality is the need for public phones has largely gone away.

There will, however, continue to be a need (albeit a small one) for public phones, and I think this presents a unique opportunity for certain retailers to catch those of us who are too young, old, or sweaty to have a cell phone. Fast food chains are a good example. Had I been able to go into a McDonalds to make a quick call, I may have bought a burger (…well, maybe a salad). The same is true for gas stations where I would probably grab a Gatorade on my way out the door.

While the market for public phones has largely disappeared, there are new opportunities for retailers to convert the need to make a call into increased sales. On the other hand, maybe this market is just too small to worry about. If that turns out to be true, I’ll just have to become a better runner.

Who needs 'em?