Analysts say payphones will not completely disappear despite their declining numbers and revenue challenges faced by payphone service providers. While only 2.2 million payphones remain in service, down from 2.6 million a few years ago, some analysts believe the decline could stabilize or even reverse as not all Americans own wireless phones and many homes and inner cities still lack traditional phone service. Payphone service providers are pulling some phones due to lower revenue from wireless substitution and free dial-around options, but some are staying in business while awaiting potential enforcement of laws requiring compensation for all phone calls, not just 911 calls.

1. Analyst Don'texpectpayphonesto disappear- 2001-03-19- AtlantaBusinessChronicle PageI of 2
Atlanta BusinessChronicle- March 19'2001
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FromtheMarch16,200'tprintedition -r Mqr,eitt q!_E_dtli-on-$!or1qs
Analyst: Don't expectpayphonesto disappear
Annelrefi
A teenagerleansagainstapayphone,hercell phoneclampedto her ear,asymbolofjust onebig
challengeto adecliningindustry.
Will a familiariconsoondisappear?BellSouthCorp.maybegivinguponpayphones,butindustry
analystsinsisttlratthey'rehereto stay.
"There'salwaysgoingto beaplacein Americafor thepayphoneindustry,butit'sgoingto beamuch
smallerversionof itsformerself,"saidtelecomindusty analystJeftey Kagan.
Therewere2'6miltionphonesinserviceinearlylggS;now'only2'2millionareinsewice'downmore
than 15percent.Manypayphoneserviceproviders(PSPs)arein distress.
Thestockof TampapSpDavelCommunicationsInc.tradedat$26asharetwo ycarsago,but_todayit's
around4 centsashar".ETSPayphonesInc.,thethird-largestPSPin thecountry,hasdeclaredChapter
11.
Not all PSPsarehavingsuchdiffrculty.Forexample,PhonetelTechnologiesInc.of Cleveland,in
bankruptcyproceedingitwo yearsago,hasrecovered,saidVincentSanduskv,presidentof theAmerican
Publiccommunicationscouncil,whichboasts1,600PsPmembers.
"Thedeclineof payphonescouldstabilizeandcertainlyreverseitself,"Sanduskysaid."Only40percent
of Americanshavewirelessproducts- thatleaves200millionwithout Five-and-a-halfmillion
householdsdon'tevenhavei phoneandonly 60-70percentof inner-cityhomeshavethem."
Kirk Reaves,presidentof EastCoastPhonesInc.of Georgia,sawa35percentto40percentdropin
revenueandpulled 100of hisphonesduringthepastthreeyears.flrg declqe wasduenotonly to
wirelessphonesbutto "dial-around"strategieslike ptrongcardsor 800numbers,whichallowa
*rrru111eito usethepayphonefor free.In general,thePSPandthebusinessprovidingtherealestatefor
thephonemakenothingonthosecalls.TheTelecommunicationsAct of 1996mandatedcompensation
for attcallsbut9l l, buithemandatehasnotbeenenforced,saidBarrySelvidge,executivedirectorof
theGeorgiaPublicCommunicationsAssociation,aPSPorganization.
',We'r9geltiry-hammere4butwe'rehangingin there,"Reavessaid."We'retakingarilait-and-see

2. ;L.U-,.
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Downsizeddot-comworkersfind newemployersquickly- 2000-12-18
Still, thoughrecruitersseeplentifulmanagementopportuni_ties,job-seekersmayfacechallenges.
',Managerientis havingmoreof adiffrculttimebecauseof theircompensationhistory,"Mulling said.
"They'reperceivedattoohighanetworth."
Thedot-comeconomyischangingfromonebasedoninvestorsto onebasedonearningsandrealprofit.
It,sanewball gamewith boardsof directorsdernandingthatcompaniesbemoreaccountableto
stockholders.
"Sixty public CEOswererelievedof dutyin Octoberalone,"Koblentzsaid."Theissueof employee
disloiahon is goingto continuebecauseeconomiesarechangingfast."
Thedynamicclimateof this labormarkethasbecomebusinessasusual.Theaveragetenureof top
,*"ruiiurt is lessthanthreeyears,Koblentzsai4 downfrom eightyearsin the'80sandthreeyearsin
'99,callingfor constantflexibility.
"IT professionalstendtochangejobs,stayingfor a 13-to^16-monthtimeframein permanentpositions,"
saidshannonBrandon,vicepiesidentof field operationsfor Matrix Resourceslnc., anAtlantaIT
placementfirm. "Thegapis itrinting betweenthetenureof apermanentpersonandaconsultantas
consultantsstaylongei onassignments.Welike to representtheearningsprognosisasaccuratelyas
possiblesopeoplestayaslongastheycan."
Most dot-comemployeesarein their20sandhaveonly workedin adot-comculture.Theonly economy
theyknow is upandupsince1990.As theylook atmoresecure,traditionalcorporatecultures,theywill
traveto adjustio hierarchicalstructureandslower,moreconservativedecision-making,Multing said.
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