AT&T’s public communications unit has continued to experience pressure from reduced pay phone usage, primarily as a result of the growth of alternative communications choices, such as wireless phones and personal communication devices.

The company plans to phase out both public pay phones and phones provided under contracts at government correctional facilities through the end of next year.

David Huntley, senior vice president for customer information services at AT&T, said: This is the right time for us to take this step on behalf of our customers, employees and stockholders. We expect that independent providers will pick up much of this business, and, as we exit the business, we will be able to refocus our resources to areas that offer stronger growth potential and greater opportunity for the company.