$250 is a lot of money for a phone; that may have included the monthly bill for a year or two. I think Radio Shack use to sell something like a Go Phone where the phone was cheap, but the person just bought their minutes. It use to be that the phone company maintained pay phones but over time they have all disappeared. So if you dont have a phone it is a bit difficult to call the police.
I cant say that really believe with the cost, but there are even some federal programs where people on state aid can get a free phone. So there is some need for people to have a phone.