SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 1, 1997
PEOPLES TELEPHONE COMPANY, INC.
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(Exact name of registrant as specified in its charter)
NEW YORK 0-16479 13-2626435
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(State or other juris- (Commission File (IRS Employer
diction of incorporation) Number) I.D. No.)
2300 N.W. 89th Place, Miami, Florida 33172
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (305) 593-9667
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Item 5. Other Events
On July 1, 1997 the United States Court of Appeals for the District of
Columbia rendered its decision (the "Court Order") in Illinois Public
Telecommunications Association, v. Federal Communications Commission (the
"FCC"), et al., on petitions for review of the FCC Payphone Orders, issued
pursuant to Section 276 of the Telecommunications Act of 1996 (the "Act"). The
Court Order represents a disposition of 20 consolidated petitions seeking review
of various aspects of the FCC's plan to revamp the regulatory regime for the
payphone industry, in accordance with the provisions of the Act.
The Court Order grants in part and denies in part the petitions for review,
and makes the following relevant findings:
1. The deregulation and institution of "market based" pricing for local
coin calls, as ordered by the FCC to be effective on October 7, 1997, was
upheld by the Court as within the authorized jurisdiction of the Commission.
2. The Court reversed and remanded for further proceedings the FCC's
decisions regarding:
A. The interim ($45.85/phone/month) and prospective ($0.35/call)
payment systems established to provide "fair compensation" to Payphone
Service Providers ("PSPs") for access code and subscriber 800 calls
(so called "dial-around compensation").
B. The failure to provide any interim compensation to PSPs for
so-called "0+" calls and calls from inmate payphones.
C. Prescription of "fair market value" for payphone assets
transferred from the Bell Operating Companies to their respective
separate affiliates.
Although the Company is still reviewing the Court Order, the Company
believes that the Court Order is on balance favorable because it affirms the
majority of key features contained in the FCC's Payphone Orders, and in
particular the local coin call rate deregulation. However, because the FCC will
be required to consider further its order with respect to dial-around
compensation, the Company cannot predict with any certainty the effect of such
further consideration on the Company's previously disclosed estimate of the
impact of such compensation upon the Company's annual financial results. While
the Company, based upon its best current information and belief, does not
currently anticipate that ultimately a material adverse effect on the Company
will ensue as a result of the Court Order or the reasonably anticipated
disposition of the issues remanded to the FCC for further consideration, the
Company cannot definitively predict the final outcome of these proceedings at
this time and therefore cannot determine with any certainty whether and to what
degree the final impact upon the Company will be positive or negative in the
aggregate.
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The foregoing contains forward looking statements which, given the
uncertainties of the regulatory process and the potential for court challenges
to any further FCC rulemaking, may not ultimately be realized.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PEOPLES TELEPHONE COMPANY, INC.
Date: July 10, 1997 /s/ Bonnie S. Biumi
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Bonnie S. Biumi
Chief Financial Officer
