BT has begun rolling out new digital street units in London, which offer ultrafast Wi-Fi speeds of up to 1Gbps.
Known as InLinks, the units will replace many of the existing payphones across the capital and will be rolled out in other major UK cities before the end of the year.
Users of the units will benefit from what BT is billing as "the UK's fastest free public Wi-Fi service available", as well as free phone calls and a range of new digital services.
This includes mobile device charging, access to maps, directions and local services and a BT Phone Book app that enables users to search for individuals and businesses.
Each digital display will also provide real-time information relating to the area, such as the weather forecast and public transport service updates.
Since each unit will be funded by advertising revenue, they will be free for people to use.
Gerry McQuade, Chief Executive of BT Wholesale & Ventures, commented: "This is the phone box of the future.
"InLinkUK from BT brings the payphone up-to-date and gives people the services they need and use every day in the 21st century - and the bonus is it’s all for free."
Matt Bird, General Manager of InLinkUK, added that the units will introduce the technology that is needed to create "a better urban environment".
Indeed, he said that in the future, they will feature sensors to capture real-time environmental data, such as traffic conditions and pollution, which has "never been seen before in the UK at such a micro level".
The first InLinks have been activated at Camden High Street in London. BT has noted that the units take up less space on the street than traditional payphones, while they will be installed in smaller numbers than the payphones they are replacing.
As a result, space on pavements in busy urban areas should be freed up.