Verizon Raises Pay Phone Rates To 50 Cents

By Pradnya Joshi - Staff Writer - March 11, 2002, 5:40 PM EST

Verizon Communications Inc. is raising the rates on pay phones in New York to 50 cents, up from 25 cents  starting today.

As part of the change, callers will be able to talk for  an unlimited amount of time for 50 cents, while previously, 25 cents only paid for a three-minute call.

Executives at Verizon said it's the first  increase in pay phone rates in the state since 1984.

"Nobody likes to raise prices, but the reality is that we need to replace revenue lost to competing technologies. We need to operate at the new market price of 50 cents  here in New York so we can maintain the business and keep pay phones in the  communities where our customers need them," said Paul V. Francischetti, vice  president of marketing and business development for Verizon Public Communications.

New York is one of the last states where Verizon has increased the rates to 50 cents. Last summer, Verizon raised most of its pay phone rates in Northeast states such as New Jersey to 50 cents.

However, because of an agreement with state regulators, certain rates including payphone rates were frozen or decreased in New York state. Last month, New York regulators did away with the old agreement allowing Verizon flexibility to change its prices.