Title 47Telegraphs, Telephones, and RadiotelegraphsRelease 119-73not60

§276 Provision of Payphone Service

Title 47 › Chapter 5— WIRE OR RADIO COMMUNICATION › Subchapter II— COMMON CARRIERS › Part III— Special Provisions Concerning Bell Operating Companies › § 276

Last updated Apr 5, 2026|Official source

Summary

Bell operating companies must not pay for their payphone service out of their regular local phone or access service revenues. They also must not give their own payphone service special treatment or favor it over others. Within 9 months after February 8, 1996, the Federal Communications Commission must write rules to encourage competition and more payphones. The rules must set up a fair payment plan so all payphone providers get paid for completed interstate and intrastate calls (but not for emergency calls or telecommunications relay service calls for the hearing disabled). The rules must end the carrier access charge payphone payments and payphone subsidies that existed on February 8, 1996, and replace them with the new payment plan. The rules must include nonstructural safeguards at least as strong as those in the Computer Inquiry-III (CC Docket No. 90–623). The rules must give Bell companies the same right as independent payphone providers to negotiate with the place that hosts the payphone about which long-distance carriers to use for interLATA calls (unless the Commission finds that would harm the public interest), and all payphone providers the same right for intraLATA calls. The Commission must also decide if public interest payphones should be kept and how to support them fairly. Existing contracts in effect on February 8, 1996 stay in force. Federal rules override any inconsistent state rules. Payphone service here means public or semi-public pay phones, inmate phone service and certain advanced prison communications, and related services.

Full Legal Text

Title 47, §276

Telegraphs, Telephones, and Radiotelegraphs — Source: USLM XML via OLRC

(a)After the effective date of the rules prescribed pursuant to subsection (b), any Bell operating company that provides payphone service—
(1)shall not subsidize its payphone service directly or indirectly from its telephone exchange service operations or its exchange access operations; and
(2)shall not prefer or discriminate in favor of its payphone service.
(b)(1)In order to promote competition among payphone service providers and promote the widespread deployment of payphone services to the benefit of the general public, within 9 months after February 8, 1996, the Commission shall take all actions necessary (including any reconsideration) to prescribe regulations that—
(A)establish a compensation plan to ensure that all payphone service providers are fairly compensated, and all rates and charges are just and reasonable, for completed intrastate and interstate communications using their payphone or other calling device, except that emergency calls and telecommunications relay service calls for hearing disabled individuals shall not be subject to such compensation;
(B)discontinue the intrastate and interstate carrier access charge payphone service elements and payments in effect on February 8, 1996, and all intrastate and interstate payphone subsidies from basic exchange and exchange access revenues, in favor of a compensation plan as specified in subparagraph (A);
(C)prescribe a set of nonstructural safeguards for Bell operating company payphone service to implement the provisions of paragraphs (1) and (2) of subsection (a), which safeguards shall, at a minimum, include the nonstructural safeguards equal to those adopted in the Computer Inquiry-III (CC Docket No. 90–623) proceeding;
(D)provide for Bell operating company payphone service providers to have the same right that independent payphone providers have to negotiate with the location provider on the location provider’s selecting and contracting with, and, subject to the terms of any agreement with the location provider, to select and contract with, the carriers that carry interLATA calls from their payphones, unless the Commission determines in the rulemaking pursuant to this section that it is not in the public interest; and
(E)provide for all payphone service providers to have the right to negotiate with the location provider on the location provider’s selecting and contracting with, and, subject to the terms of any agreement with the location provider, to select and contract with, the carriers that carry intraLATA calls from their payphones.
(2)In the rulemaking conducted pursuant to paragraph (1), the Commission shall determine whether public interest payphones, which are provided in the interest of public health, safety, and welfare, in locations where there would otherwise not be a payphone, should be maintained, and if so, ensure that such public interest payphones are supported fairly and equitably.
(3)Nothing in this section shall affect any existing contracts between location providers and payphone service providers or interLATA or intraLATA carriers that are in force and effect as of February 8, 1996.
(c)To the extent that any State requirements are inconsistent with the Commission’s regulations, the Commission’s regulations on such matters shall preempt such State requirements.
(d)As used in this section, the term “payphone service” means the provision of public or semi-public pay telephones, the provision of inmate telephone service and advanced communications services described in subparagraphs (A), (B), (D), and (E) of section 153(1) of this title in correctional institutions, and any ancillary services.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2023—Subsec. (b)(1)(A). Pub. L. 117–338, § 2(a)(1), struck out “per call” before “compensation plan” and “each and every” before “completed intrastate”, inserted “, and all rates and charges are just and reasonable,” after “fairly compensated” and “or other calling device” after “their payphone”, and substituted “communications using” for “call using”. Subsec. (d). Pub. L. 117–338, § 2(a)(2), inserted “and advanced communications services described in subparagraphs (A), (B), (D), and (E) of section 153(1) of this title” after “inmate telephone service”.

Reference

Citations & Metadata

Citation

47 U.S.C. § 276

Title 47Telegraphs, Telephones, and Radiotelegraphs

Last Updated

Apr 5, 2026

Release point: 119-73not60