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Mr Muscat said trade has fallen by 30 per cent, and his store is now more or less "invisible" to pedestrians and motorists.

"All this fencing appeared, with black screening all around it. There was no consultation, it all just happened," he said.

Key points:

While the council fights a broader battle, Mr Muscat said he'd found the perfect solution for his own individual struggle — moving the booth about 40 metres south along the footpath, so it is right outside a Telstra shop.

"We've never actually seen anybody use the phone booth. I feel that that booth is there just to generate an income from the big giant screen attached to it."

Compensation negotiations stall

A Melbourne cake shop owner fears his business may soon go under because of a giant Telstra payphone and billboard recently installed right outside his store.