SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
_________________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of earliest event reported: September 16, 1997
PEOPLES TELEPHONE COMPANY, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 0-16479 13-2626435
(State or other juris- (Commission File (IRS Employer
diction of incorporation) Number) I.D. No.)
2300 N.W. 89th Place, Miami, Florida 33172
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (305) 593-9667
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Item 5. Other Events
On September 16, 1997, the United States Court of Appeals for the District of
Columbia (the "Court") granted a motion for rehearing and clarification (the
"September 16 Clarification") in Illinois Public Telecommunications Association
v. Federal Communications Commission (the "FCC"), et al., in connection with its
July 1, 1997 decision on review of the FCC Payphone Orders, issued pursuant to
Section 276 of the Telecommunications Act of 1996. The Court stated that it did
intend in its July 1 decision to vacate, as part of its remand to the FCC for
further consideration, those portions of the Payphone Orders setting at $.35 the
interim and prospective per call compensation rate interexchange carriers must
pay to payphone service providers for subscriber 800 and carrier access code
calls ("dial-around compensation"), as well as the composition of the carrier
group which must pay the flat rate interim compensation.
Because the FCC is 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 nor the impact of the Court's September 16
Clarification upon the Company's 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 FCC's disposition of the issues which were remanded to it pursuant to the
July 1 Court Order as clarified on September 16, the Company cannot predict the
final outcome of the FCC's 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.
Also, the Court reaffirmed the FCC's decision to deregulate the local coin
calling rate charged at payphones, effective October 7, 1997. While the Company
views this as a positive development, the Company cannot currently predict the
precise impact of market based local coin rates on the Company's financial
condition.
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 thereunto duly authorized.
PEOPLES TELEPHONE COMPANY, INC.
Date: September 24, 1997 /s/ William A. Baum
William A. Baum
Chief Financial Officer
