Payphone Hotspots Add Revenue to Cities

With a goal of generating $17.5M in new revenue, NYC recently released an RFP for a provider to turn its unused pay phones into WIFI hot spots

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What Happened?

New York City has issued an RFP to private companies interested in building a citywide Wi-Fi network and information hubs around payphones. The communication points will span the five boroughs and provide residents with access to internet, as well as911 and 311 connections to generate $17.5 million in annual revenue to the city.

The Goal

The New York City Department of Information Technology and Telecommunications put out an RFP for an elaborate network of internet hotspots to help get all residents connectivity while navigating the city. The information hubs will center around crumbling payphones, replacing the infrastructure with state-of-the-art public connection points. Because payphones still have a presence in the city but serve a minimal purpose, they are good starting points for officials looking to making broadband connectivity more readily available.

The new payphone spots will have large touchscreens that enable users to access the internet or contact public services. Residents will also be able to use the old payphones to charge their mobile phones or peruse an online platform that facilities business transactions. If there is an emergency, important information will be easily disseminated to the public through the kiosks as well as other channels.

The information hubs will add convenience and connectivity for residents, while construction of the kiosks will increase jobs and revenue flow. The new kiosks will also add a different dimension to the city’s streetscape with a more modern feel. Within four years, the city hopes to have all the information hubs up and running. By June 2026, officials expect the new kiosks to produce $17.5 million in annual revenue for New York City.

This RFP will be one in a series of new initiatives to make the city more wired and connected while improving efficiency. The network will become one of the largest Wi-Fi spots in the country, and will work seamlessly through existing infrastructure.

The winning design company will be in charge of installing, operating and maintaining up to 10,000 public communication points citywide. The information hotspots will replace 7,300 public payphone installations, and funding for the project will be generated through digital advertisements in the new kiosks.

Original Pilot in Boston

About one year ago, Boston officials announced the launch of a Wi-Fi payphone pilot program that would eventually expand to replace about 400 antiquated payphones by this coming summer. The pilot will test the free Wi-Fi connectivity in repurposed payphones at 16 sites across the city.

The city set up four temporary demo sites to advertise the free signal and test the technology and public demand. After about 24 hours of piloting, officials reported 18,000 devices connected to the network, and more than 200 people spent an average 17 minutes using the internet hotspot.

After realizing there is significant demand for Wi-Fi connectivity through the pilot trial, Boston officials and private partners plan to extend the service to the 400 designated locations this summer. The Wi-Fi connectivity would be accessible to pedestrians at a range of up to 200 feet from the payphone kiosks.

Advancing Connectivity

Gov1 has reported on a growing trend of cities innovating their communication channels by making Wi-Fi more readily available.