The last AT&T pay phone, as a chapter of history closes

With cellular phones becoming ever more popular, most companies in the pay phone business are deciding maybe its a good idea to get out now.

AT&T is the latest to announce its exit. In a statement Monday, it said that it would honor all customer service and contracts for the time being, but would exit completely from the market by the end of next year.

The company says with reduced usage of the phones, it is in turn putting 'pressure' on AT&T's bottom line. Both the pay phone business as well as the contracted phones the company places in correctional facilities would be phased out.

Customers wouldn't be left high and dry, however. The San Antonio, Texas communications company would attempt to find alternate service providers for customers that may still need service.

AT&T's announcement is the latest in a string of companies abandoning the market. Bellsouth, which was acquired by the company, shuttered its pay phone in late 2006. Verizon has also made overtones that it was phasing out its pay phones across its service area in recent years.

"This is the right time for us to take this step on behalf of our customers, employees and stockholders," customer information services chief David Huntley said. He expected that independent providers would pick up much of the business.

Approximately 1 million pay phones are in service today, down more than half from a high of 2.6 million phones in 1998. The first public coin telephone in the US appeared in Hartford, Conn. in 1889.

An online memorial to the public telephone has already been established, at PhoneBooth.org.