Media Contact: 
Mark Wigfield, (202) 418-0509
mark.wigfield@fcc.gov
For Immediate Release
FCC ELIMINATES OUTDATED PAYPHONE AUDIT RULES
Changes in Technology, Marketplace Render Rules Unnecessary
  -- 
WASHINGTON, February 22, 2018—The Federal Communications Commission today lifted 
outdated rules related to the payphone industry that are no longer justified as payphone 
revenues have plummeted due to a changing communications marketplace.
The Commission eliminated costly payphone audit requirements as part of an FCC effort to cut 
unnecessary and wasteful rules so that industry resources can be put to more productive use. 
Technological and marketplace changes have made these expensive audits unnecessary to 
ensure that the few remaining providers are compensated fairly.
Payphone use in the U.S. peaked in 1999, when over 2.1 million payphones were in service. In 
2003, the FCC adopted audit rules to make sure that long-distance and other providers that 
handled calls originating on payphones compensated payphone providers as required.
But due to the rise of mobile service, the number of payphones by the end of 2016 had 
decreased dramatically to fewer than 100,000. At the same time, no complaints over improper 
compensation have been filed in recent years as clearinghouse vendors act as intermediaries 
between payphone providers and connecting carriers.
While no longer necessary, the audits cost one provider 18 times as much as its payments to 
payphone providers. Today’s elimination of the audit rules does not change the amount of 
compensation due to payphone providers or their ability to seek redress for compensation they 
believe they are due.
Action by the Commission February 22, 2018 by Report and Order (FCC 18-21). Chairman 
Pai, Commissioners Clyburn, O’Rielly, Carr and Rosenworcel approving and issuing separate 
statements.
WC Docket Nos. 17-141; 16-132; CC Docket No. 96-128
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This is an unofficial announcement of Commission action.  Release of the full text of a Commission order 
constitutes official action.  See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).