Telstra is lifting the payment from phone boxes from December 24 all the way to January 1.

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Head of the Telstra Foundation, Jackie Coates said distance was an intrinsic part of this year's Christmas season but the separation shouldn't mean people can't connect with family and friends.

"We know this year has been hard because of lockdown and closed borders, and at Christmas, feelings of isolation and loneliness can peak," she said.

"It's important that we help in any way we can so that people can have a vital feeling of connection and hope at this time of year."

If you want to see loved one's faces, selected Telstra Air Wi-Fi access points at their payphones and stores will also be free to use if you prefer video calling.

While it might seem everyone own's a mobile phone, there are still more than 11 million calls made each year on payphones, including 200,000 to the national emergency services line.

The Telco ran the initiative last year which saw almost half a million calls placed for free on Telstra's payphone network during the Christmas period. That represents almost 1.2 million minutes of calls between family, friends and loved ones.

"If you're out and about during the Christmas to New Year period and you spot one of our payphones - even if you don't need a free call - then make sure to get in touch with your loved ones when you can," Ms Coates said.

"We hope you have a great break and some well-deserved relaxation after a tough year."