Posted: 10/1997
The Automated Route
Software Giving IPPs Flexibility, Earning Power
By Damon Gross
Will the payphone route of the future be a route at all? The day may come when payphones are managed entirely from a single location, able not only to track calls and coin revenue, but also somehow deliver that cash, be self-cleaning and able to roam from site to site depending on traffic flow.
OK,so the last half of that vision is part independent payphone provider's (IPP's) pipe dream and part science fiction movie. But with technology moving nearly as fast as an intraLATA telephone call, one can never be too sure what kind of help is on the way. Through payphone software, IPPs can instantly see which phones are profitable and when they are profitable, and the software can even help them generate more profit. Software can also let route owners know when something is wrong with the phone, where the phone's calls are going and how to secure prime locations.
In short, the software that accompanies the phones an IPP chooses to use, along with any software he might select to accompany it, has become every bit as important as the phone itself. The pending per-call compensation only accentuates the significance of automation. "It's clearly important to have a solid, flexible tool so you can manage your payphones and manage your business," says David Scarlett, director of product marketing and support for Mobile, Ala.-based Omniphone Inc.
"Over the years, payphone software has become more sophisticated to serve a much more sophisticated industry," says Keith Grams, product manager for Lakeland, Fla.-based Protel Inc. "For example, in the early days, payphone management systems captured simple coin box data to help schedule collections." Grams says payphone software systems have evolved to offer a wider range of features, including:
Data analysis
Call detail records
Call accounting
Payphone alarms when out of service
Download rates and options
Multitasking application
Polling
Detailed coin reports
Tracking maintenance history
When Cornelia, Ga.-based TriNet sought management software for its 430-phone route, it wanted a solution that could, well, do a lot--"something that can do everything for the payphone industry," says Chris Boseman, manager of installation and maintenance for private payphone operations for TriNet, "keep track of parts, inventory, what I'm spending on service calls." The software TriNet has implemented also allows Boseman to monitor how much money is in each phone, what types of calls are being made (toll-free or 1-plus), or whether the handset alarm is on, signaling that a frustrated caller has perhaps ended his call in a not-so-gingerly manner.
If Boseman's reports tell him that a particular phone hasn't taken in any coin for an extended period of time, an educated guess tells him there is probably a coin jam. "In 24 hours if (a payphone) hasn't made a phone call and it's at a convenience store or a bus station or something like that, there's no way that phone can go 24 hours without a coin passing through the trigger switch."
Of course anyone even somewhat familiar with the Payphone Compensation Order knows coins are but a fraction of the revenue IPPs must keep track of. Fritz Range, president of Argyle, Texas-based Oakbarn Software, notes his company's software can tell the user just about any figure concerning a call, but most importantly, Range says it computes the varying ways IPPs compensate site owners. "The basis for any of these payphone programs is to pay commissions," says Range, who got into the industry by writing a payphone software program for a friend who managed a route. "And that's quite complicated."
While most IPPs pay according to a percentage of total coin revenue, Range says payphone service providers often pay their site owners in more unorthodox manners. For example, one of Range's clients pays the site owners along his route based on the phone's local exchange carrier (LEC) bill. "Basically, it's important to pay your commission your way," he says. "That's a very important feature of any payphone software. If you're limited in ways you can pay your bill, you're going to have to maybe rewrite contracts with existing people or do commissions by hand after the fact."
Commission reports can be customized. A payphone service provider may not want the site owner to see exactly how many calls are made from the phone at his location or how much total revenue is being brought in. Reports can be tailored to show exactly what the IPP wants the site owner to see, even if that varies from site to site. Range's software also writes checks with an address that fits in the window of the envelope.
In addition to accounting for revenue, payphone software can help generate it. In its software package, Omniphone offers a feature that allows speed-dial numbers to be programmed into the phone. This is ideal for cab companies, tow trucks and locksmiths--businesses that are often called from payphones. For example, a sign on the phone says ABC Taxi can be reached by pressing *12. The call is free to the customer, and the cab company reimburses the IPP for steering business his way.
"Of course shopping centers like that because they are now providing an additional service to customers," says Omniphone's Scarlett. "The locksmith likes it because he gets more than his share of business because, chances are, if it was up to people finding him in the Yellow Pages, he might get one out of 10 calls as opposed to eight or nine. And the provider likes it because he's able to have his phone there because the mall wants that feature."
In addition to helping IPPs increase their revenue, payphone software can help ensure they are getting money due them. The hot topic in the industry still is the Federal Communications Commission's Payphone Compensation Order. Once a fair rate is re-established for toll-free calls and per-call compensation kicks in (it was originally scheduled to begin in October, but the order was remanded in July), IPPs are surely going to require some way to ensure they are being properly compensated by interexchange carriers. "Once we have to keep track of our dial-around calls, there is going to be more talk about it," Boseman says.
In addition to growing sophistication, the market also demands efficiency as competition increases and, in some cases, profit margins narrow. "Deregulation has made the environment more competitive," Grams says. "Therefore, PSPs need more features in their software that allow them to operate their businesses more efficiently." This means the ability to know which locations are the most or least profitable so that phones aren't kept in locations where they aren't making any money.
Scarlett gives the example of an airport, with as many as 300 payphones. Detailed call reports can give an IPP an indication of where these phones should be placed for optimal return.
In addition to more payphones, there are more phones in general, which in turn requires additional area codes. In just a couple of minutes, an IPP can activate a new area code for whichever phones require it, according to Diloue Barker, director of operations for Universal Communications Inc., in Cornelia, Ga.
Whether payphones are placed in an airport, at a strip mall or convenience store, there are some factors IPPs must consider when selecting their software package. "Look at how you run your business," Grams advises. "Define your needs and shop for software solutions that best meet those needs."
Cost obviously will be a factor, but Scarlett recommends considering cost-effectiveness. An intricate system might be worth the money if it helps manage a 1,000-phone route, or if it helps secure some of those locations. Some small routes may require only a minimal software system. "IPPs need to look at each location and determine which phone provider or platform vendor they should use," he says. "What's going to bring the biggest return for the lowest cost?"
Scarlett says it is quite common for IPPs to utilize software from several different manufacturers, which brings up the next question: Will payphone software ever be written to interface automatically with that of the competitors? Scarlett says most payphone software companies could do so, but it would require companies exchanging information, much of which is confidential. "Why is it proprietary? Because you feel it gives you an advantage over competitors," he says. "You're just not going to be too apt to share your competitive information."
