A method and apparatus for providing prepaid local telephone services is provided. The method includes determining if a subscriber is making a qualified local telephone call, checking to see if a maximum number of calls have been made by the subscriber and decrementing a call counter if a telephone call in connected. The system includes a switch for receiving telephone calls and identifying subscribers and qualified telephone calls. In addition, the system includes a telephone network element in communication with the switch, the telephone network element having logic for identifying local telephone calls, a notification timer configured to remove the telephone network element from a telephone call after a predetermined period of time, and a call counter for monitoring a number of local calls permitted to a subscriber.