Verizon May Equip Pay Phones with Wireless Links

[Dave Farber <dave () farber net>]

Verizon May Equip Pay Phones with Wireless Links

May 9, 2003
By REUTERS 




 

Filed at 5:42 p.m. ET

NEW YORK (Reuters) - Verizon Communications wants to
provide a new purpose for a declining business by using
street corner pay telephones to wirelessly link its
broadband customers to the Internet, President Larry Babbio
said. 

At a Stevens Institute of Technology conference in New York
on Friday, Babbio told attendees that Verizon (VZ.N) would
begin to put gear around pay phones that would allow laptop
computer users to connect to the Internet via a wireless
technology popularly known as Wi-Fi.

In response to a question about the possibility of setting
up so-called ``Wi-Fi hotspot'' areas around pay phones,
Babbio suggested that Verizon could announce such a plan
soon. 

``That probably will be the vehicle we'd use,'' he said.


The New York-based company, which will at least initially
offer the service as a free add-on to high-speed Internet
subscribers, could reveal the plan in the next week, Babbio
suggested. 

Pay phones have faced huge competition from cell phones in
recent years. 

As previously reported, Verizon also is expected to unveil
price cuts for its high-speed DSLInternet access mid-week,
as part of a broader announcement regarding new features
and offers for online customers.

Babbio noted Verizon could not charge for the Wi-Fi service
as it cannot convert all of its pay phones to hotspots
immediately because many have no electric power supply.

``We don't yet see the ability to charge,'' Babbio said,
explaining that the company would not be able to build
enough hotspots to justify charging extra, but he added
that Verizon's long-term plans could change.

``I think we'll make money on the wireline side by reducing
churn,'' Babbio said. Churn, which refers to customers who
cancel their subscription or switch to a rival service, is
a huge concern in the highly competitive Internet market.

The phone company has also developed its own security
system for the service to address one of the biggest
concerns related to the emerging technology, Babbio said.

Verizon, which also runs the largest U.S. mobile phone
service, is planning to offer Wi-Fi under different
business models for its cellular phone customers and its
wireline high-speed Internet subscribers, Babbio said.

He said Verizon Wireless, a joint venture with British
operator Vodafone Group Plc (VOD.L), would charge cell
phone subscribers extra to connect to the Internet on their
laptop computers via short-range wireless connections.

http://www.nytimes.com/reuters/technology/tech-telecoms-verizon-payphones.ht
ml?ex=1053517759&ei=1&en=d85ffb9116ac409d



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