Making Pay Phones Pay
By Stephanie N. Mehta

(FORTUNE Magazine) – When was the last time you used a pay phone? Like many folks you probably long ago ditched quarters in favor of a cellphone. Which helps explain why Bell Canada recently started converting public pay phones in Toronto, Montreal, and Kingston into terminals for "Wi-Fi" Internet connections. Some U.S. phone companies may soon follow suit.

Wi-Fi, short for "wireless fidelity," is a wireless local area network that uses unlicensed airwaves to link laptop users. The service is the hottest thing in telecom these days, and Wi-Fi antennas and radios are popping up in Starbucks cafes, city parks, and shopping malls. The ideal location? A high-traffic area with a wired, high-speed connection to the Net.

Pay phones are a perfect solution. Phone lines can be sped up using DSL technology. Plus the phones are already installed in airports, hotel lobbies--the very places people want to communicate, notes Martin Dunsby of wireless consultancy InCode Telecom, which is working with Bell Canada.

Right now Bell Canada is offering a trial service free to users with Wi-Fi-enabled laptops. But you can bet that once phone companies start charging for access, those now overlooked pay phones may once again be raking in quarters. -- Stephanie N. Mehta