Read The Times Australia

Daily Bulletin

Telstra's new high-tech payphones are meeting resistance from councils, but why?

  • Written by: Mark A Gregory, Associate professor, RMIT University

Australia is witnessing the first major redesign of the payphone booth since 1983. But Telstra’s new vision is meeting resistance from some councils, and the matter is in the courts.

In an effort to make payphones relevant to the needs of modern Australians, Telstra’s revamped payphones feature mobile charging, Wi-Fi access through Telstra Air (free or via a Telstra broadband plan, depending on the area), and large digital advertising displays.

Sydney’s Lord Mayor Clover Moore described the new booths as “a craven attempt” to profit from “already crowded CBD footpaths”, and a “Trojan horse for advertising”.

Read more: Will Australia's digital divide – fast for the city, slow in the country – ever be bridged?

Under existing Universal Service Obligation (USO) agreements, Telstra has to provide payphones as part of its standard telephone service. The USO is a consumer protection measure that ensures everyone has access to landline telephones and payphones, regardless of where they live or work. Telstra is the sole provider of USO services in Australia.

The USO is funded through an industry levy administered by the Australian Communications and Media Authority. This means registered carriers with revenues over A$25 million per year contribute to the levy, including Telstra.

The face of the new Aussie payphone

In a blog post last March, a Telstra employee said the new “smart payphones” provided emergency alerts, multilingual services, and content services including public transport information, city maps, weather, tourist advice, and information on cultural attractions.

The booths are 2.64m tall, 1.09m wide, and are fitted with 75-inch LCD screens on one side. In 2016, 40 payphones were approved by City of Melbourne planners and installed over the following year, marking the start of Telstra’s plans for a nationwide rollout.

Telstra’s submission to the city claimed the booths were “low-impact” infrastructure and therefore planning approval was not required, in accordance with the Telecommunications Act 1997 (Cth).

In 2017, Telstra and outdoor advertising company JC Decaux announced a partnership to “bring the phone box into the 21st century”.

Read more: Better public Wi-Fi in Australia? Let's send a signal

It would initially have 1,860 payphones upgraded in Sydney, Melbourne, Brisbane, Adelaide and Perth. These five cities represent 64% of the country’s population and 77% of advertising spend.

Taking matters to court

Earlier this year, Telstra’s application for 81 new booths was blocked by the City of Melbourne, and the city commenced proceedings in the Victorian Civil and Administrative Tribunal to have the booths redefined as not being low-impact.

Given the council allowed 40 booths to be installed in 2017, it’s unclear why its position has since changed.

In May, Telstra hit back by starting federal court proceedings against the council in an effort to overturn prior proceedings. In June, the Brisbane and Sydney city councils joined the City of Melbourne as co-respondents.

Melbourne Councillor and Chair of Planning Nicholas Reece said the new payphones would create congestion on busy footpaths, describing them as “monstrous electric billboards masquerading as payphones”.

He said the booths were “part of a revenue strategy for Telstra”.

But Telstra claims the new payphones are only 15cm wider than previous ones. A company spokesperson said the extra size was necessary to accommodate fibre connections and other equipment needed to operate the booth’s services.

Who pays for, and profits from, payphones?

In 2017, a Productivity Commission inquiry into the USO reported an average annual subsidy of A$2,600-50,000 per payphone, funded through the industry levy.

But the levy doesn’t cover the cost of installing and providing advertising on booths. Also, Telstra’s advertising-generated revenue doesn’t directly offset the cost of installing and operating the payphones.

Telstra has advertised on its payphones for the past 30 years. But display screens for advertising on new booths are 60% larger than previous ones.

The City of Melbourne is concerned because commissioned research by SGS Economics and Planning estimates a 10% reduction in pedestrian flow because of the new booths. This would happen as a result of people getting distracted by the payphone advertising, and would cost the city A$2.1 billion in lost productivity.

Read more: Optus' apology on coverage highlights multi-network problem

That said, federal legislation doesn’t prevent Telstra from placing advertising on payphones. So the existing court case could hinge on Melbourne city council’s argument that by increasing the size of digital displays, Telstra’s new payphones are no longer low-impact.

The outcome should be known early next year.

Do we still need payphones?

At a time when consumers and businesses use about 24.3 million mobile handsets, it’s reasonable to question whether payphones are still required.

The number of payphones in operation today is sharply down compared with the payphone’s heyday in the early 1990s, when more than 80,000 could be found across Australia.

But there’s strong evidence they continue to supply a vital public service.

Telstra's new high-tech payphones are meeting resistance from councils, but why? Telstra’s payphones operate in many small regional communities such as Woomera, South Australia. It has a population of less than 200 people. georgiesharp/flickr

Currently, Telstra provides more than 16,000 public payphones. Last year, these were used to make about 13 million phone calls, of which about 200,000 were emergency calls to 000.

So regardless of the verdict on the Telstra case, the public payphone is and will continue to be an iconic and integral part of our telecommunications landscape.

Authors: Mark A Gregory, Associate professor, RMIT University

Read more http://theconversation.com/telstras-new-high-tech-payphones-are-meeting-resistance-from-councils-but-why-125815

Business News

Reducing Sales Friction Through Centralized Content Delivery

Sales friction appears whenever buyers or sales teams face unnecessary obstacles in the buying journey. It can happen when information is hard to find, when messaging feels inconsistent, when product ...

Daily Bulletin - avatar Daily Bulletin

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

Why More Aussie Tradies Are Moving Away From Paid Ads

Across Australia, a lot of tradies are busy. There’s no shortage of demand in industries like plumbing, electrical, landscaping, and building. But being busy doesn’t always mean running a smooth or...

Daily Bulletin - avatar Daily Bulletin

Why Careers In The Defence Industry Are Growing Rapidly

The defence sector has evolved far beyond traditional roles, opening doors to a wide range of opportunities across technology, engineering, intelligence, and operations. This is where defense industry...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...

Why Premium Coffee Matters in Modern Hospitality Venues

In hospitality, details shape perception long before a guest consciously evaluates them.  Lightin...