BT is consulting with South Kesteven District Council and Rutland County Council on plans to remove 59 payphones across Stamford, Rutland, Bourne and the Deepings and surrounding villages.
The communications company says a decline in the number of calls made from telephone boxes and a rise in the use of mobile phones mean there is no longer a need for as many payphones.
A spokesman said: "BT is committed to providing a public payphone service. However, over the years as usage has declined BT has been constantly reviewing and where necessary rationalising its public payphone estate in order to meet demand.
"Almost 60 per cent of our payphones are unprofitable, with almost 6,000 phones making less than one call a month. Payphone usage has halved in the last two years and calls are still declining at 20 per cent year on year.
"In all instances where there is not another payphone within 400 metres we need the local authority's consent to remove the kiosk and if there is a clear social need for those phones then they won't be removed."
Stamford Town Council discussed the proposals at its meeting on Tuesday.
Coun Clem Walden (Ind) said: "I think it important to let BT know we have a lot of people in the town that don't have a cell phone, older people that don't have that facility. The phone boxes are used and I hope they can leave them there."
It decided to ask for more information from BT on the usage of the five affected payphones in Stamford.
Deeping St James Parish Council faces losing three payphones in its area. Parish clerk Sheila Kostyrka said: "We have asked if the one in Church Street can be retained as an emergency telephone. We have got a population of 8,000 and we felt that in such a busy area we would like to keep that one. We would be prepared to clean and maintain it.
"With regards the other two payphones, we do appreciate the fact that they have been making a loss, but we would like to keep one emergency telephone in the area."

The payphones set to close are in Main Street, Caldecott; opposite telephone exchange, New Road, Belton In Rutland; Top Street, Wing; Uppingham Road, Gunthorpe; opposite post office, Uppingham Road, Preston; opposite Seaton Post Office, Main Street, Seaton; near Ashwell Prison, Burley Crescent near Oakham; A606 Main Road, Barleythorpe; by telephone exchange, Main Street, Thistleton; opposite church, Main Street, Cottesmore; Stamford End, Exton; Main Street, Greetham; Main Street, Bisbrooke; Main Street, Ridlington; Pickworth; opposite telephone exchange, Audit Hall Road, Empingham; Main Road, Whitwell; The Crescent, Ketton; Ketton Crossroads, Luffenham Road, Ketton; Main Street, Belmesthorpe; New Road, Ryhall; Little Casterton Road, Little Casterton; Essendine; near post office, Main Street, Tinwell; near post office, Main Street, Great Casterton; near post office, High Street, Colsterworth; Billingborough Road, Horbling; Elizabeth Drive/Pointon Road, Billingborough; West End, Langtoft; Locks Close, Deeping St James; Church Street/Eastgate, Deeping St James; Frognall, Deeping St James; Godsey Lane, Market Deeping; The Green, Thurlby;
West Road/Churchill Ave, Bourne; Northfields, Bourne; Grinders Lane, Rippingale; Fen Road, Dowsby; Main Road, Dunsby; High Street, Rippingale; near Rippingale Road, Kirkby Underwood; Wilsthorpe; Greatford; Barholm; Main Street, Baston; Hanthorpe Road, Morton; High Street, Carlby; near hotel, Toft; Bottom Street, Witham On The Hill; Bulby; Stamford Road, Careby; Clipsham Road, Castle Bytham; High Street, Little Bytham; Main Road, Tallington; St Martins Without, Barnack Rd, Stamford; Ryhall Road, Stamford; Lincoln Road, Stamford; Holland Road, Stamford; Casterton Road/Vence Close, Stamford.