The licensed Rother driver was spotted by an off duty police constable taking a booking for a fare while driving a passenger on the busy A20 in London.
He appeared before the Rother Council's Taxi Licensing Panel and admitted talking on his mobile while driving for over 10 seconds and at the same time writing down an 11-digit telephone number.
He explained his hands-free device had not been working.
The Panel Chairman, Councillor Wendy Miers, told the driver he needed to find a safer way of taking bookings.
Drivers who accumulate 12 penalty points in a year are automatically referred back to the Panel for consideration as to whether they are a fit and proper person to continue to hold a hackney carriage licence and run the risk of losing their licence altogether.
Taxi licensing is one of a range of licensing responsibilities that the Council undertakes for the safety of residents and visitors to the area. Anyone who is concerned about the actions of any taxi driver licensed by Rother District Council can call 01424 787528 giving either the registration or licence plate number of the vehicle.