inCode converts pay phones into Wi-Fi hot spots

SAN DIEGO -- With the rapid growth in mobile phones, the number of public pay phones in the United States has dropped from 2.6 million in 1998 to maybe less than two million today. Just last month, for example, at Eppley Airfield in Omaha, Nebraska, 25 pay phones were removed amid comments that the remaining 80 pay phones were still too many.

But, there may renewed life and a new purpose for the world's pay phones. inCode Telecom, a wireless technology consulting firm, in partnership with Bell Canada, has launched a pilot service that enables North American wire line carriers to transform everyday pay phones into Wi-Fi hot spots.

Starting last month, Bell Canada was the first wireline carrier to implement the new strategy through AccessZone, a Wi-Fi hot spot pilot service that will enable mobile users to automatically connect 802.11b-enabled wireless devices, such as laptops and PDAs, to pay phone access points in high-traffic public locations.

"This new service offering -- a comprehensive strategic business and technical plan -- can help wireline carriers grab wireless market share, leverage their existing pay phone infrastructure in an innovative and resourceful way, and provide enterprise workers easy access to wireless data," said inCode Telecom CEO John Donovan. "We expect U.S. carriers to follow in Bell Canada's footsteps very soon." 

Existing infrastructure

inCode's uses of existing wireline infrastructure to create an area of up to 300 feet around pay phone locations where business travelers can access the Internet to download data. inCode's plan calls for pay phones in high traffic areas to be fitted with Wi-Fi technology. Typical locations include airports, train stations, hotels, convention centers and corporate campuses.

"Wireless service providers, manufacturers, carriers and customers dream of a day where numerous Wi-Fi networks span the nation," Donovan said. "Today, we are one step closer to making that dream a reality."

"inCode's solution for using our pay phone infrastructure to provide Wi-Fi services to our customers in high-traffic public locations is an example of resourceful and innovative thinking," said Kerry Eberwein, General Manager Cable & Wireless Solutions, Bell Canada.

inCode stays one step ahead of technology and business challenges that stymie the speed of wireless evolution, Donovan said. inCode's technology lab, which the company calls "smallest wireless carrier in the world," serves as a real-world testing ground for the next generation of wireless services, technologies, support systems and applications that are shaping the wireless future. inCode is based in La Jolla, California.

Bell Canada, Canada's national leader for communications in the Internet world, provides connectivity to residential and business customers through wired and wireless voice and data communications, high speed and wireless Internet access, IP-broadband services, e-business solutions and local and long distance phone services. Bell Canada is owned by BCE Inc. of Montreal. 

Pay phones declining

Since 1996, the average number of local calls made on individual pay phones has dropped from 449 per month to an estimated 109. With the cost of a local call now averaging 35 cents, coin calls will generate about $38 each month per phone this year.

"Two-thirds of the pay phones today are being operated by companies that are either bankrupt or in serious financial distress," said Vince Townsend, president of the North Carolina Pay Phone Association. "The industry is truly on its last legs. We are in a state of crisis here."