Okay yesterday I passed a GTE phone (I didn't have my recording equipment with me, though) so I decided to try it. I managed to place 3 out of 3 long distance calls (within the state), and I attempted to place an out of state call the operator said I needed to get a long distance operator. So I hung up and dialed 00, I got AT&T, they said that they don't accept coins. So I hung up and dialed the local operator again, I don't got an older man, he placed the call for me with coins, I called again got somone else and they didn't place it for me. Called again after that and got somebody else and they didn't place it for me. So I guess your right about the out of state thing, but Local and within the state calls still work.
But you can still redbox Long Distance calls. You just need to get a confused old guy.