News

Report says Web Payphone biz growing

March 24, 2002

ROCKVILLE, Md. -- A new report claims that Web payphones are the second fastest-growing segment of the Internet kiosk marketplace, behind Retail Kiosks, but that it will take time and patience to make a profit from them.

The study, by Summit Research Associates Inc., warns that making money in the Web payphone business will require showing value to customers and may take some time.

The report predicts that the number of installed units will jump dramatically in 2003 to 150,000 units internatinoally, from less than 50,000 this year. U.S. growth should mirror that of the world, reaching 100,000 units in 2003. By 2005, the report says, the number of installed Web payphones will approach 150,000 in the U.S. and surpass 250,000 internationally.

"The growth is occurring, but not as fast as once predicted," said Francie Mendelsohn, president of the research company. "The gloomy economy and the lack of venture capital have stalled some projects, not just in the U.S. but internationally. The initiatives have not been cancelled, but their timelines and completion dates have stretched longer and longer."

Average per-unit statistics worldwide show that today, the payphones have about 20 daily users who are charged .21 cents per minute. They spend 10 minutes, or $2.13 per session, and the average daily revenue for the units is $41.38.

Copies of the report, "Kiosk Industry Sector Report -- Web Payphones," are available through Summit. The list price is $750.