TELEPHONE RATES

Hokitika Guardian, 23 September 1931, Page 3

TELEPHONE RATES

DEPARTMENT UNABLE TO MAKE REDUCTION.

According to the Postmaster-General (the Hon. J. T>. Donald), no reduction is contemplated in the rentals for business or residential telephones. “The De-partment-is expected, as a commercial concern, -to pay its way,” says the Mir is ter, adding that although he appreciates the present economic situation he is unable to give favourable consideration to any proposal for a reduction of charges.

’“The telephone service is at present operated ort the- lowest possible basis of

rental consistent with a small margin of

profit over working expenses. In respect of country exchanges the Department is already showing a loss, as in many cases the annual interest and depreciation charges alone considerably exceed the revenue derived. COSTS OF AUTOMATIC SERVICE.

“The Department is expected, as a

commercial concern, to pay its way, and ithir would not be possible if the charges for telephone service were reduced to £iny appreciable extent. In this connexion it has to be remembered that any loss %, incurred would ultimately have to be borne by the taxpayers in

general. ‘‘ln regard to 'the relative costs of operating the manual and the automatic services, it is desired to point out that the. automatic apparatus is much more'costly than the» manual and requires more expert and highly paid attention in order’to maintain the service at the high standard of efficiency laid down by the Department.’' FLAT RATE RENTALS.

In the different countries of the world telephone rentals are assessed in two ways—a fiatratej’ where the num.tier of times the telephone is used is not $ taken into account ; and a message rate,

where the rental of a telephone depends 'on the extent of its use. New Zealand, ' Canada, arid parts of ,the United States have tile flat rate ; South Africa, Aus- . tralia, the United Kingdom, and other parts of; the United States the message rate. The telephone subscribers of New .Zealand are relatively in a fortunate position. For business connexions the only rates cheaper than that in New \ Zealand necessitate a limit of five calls . a day or 1500 calls a year, a limit which very few business firms could accept. .Taking the extreme cases of 30 calls a day or 9000 calls a year, the New Zealand firm, . with the flat rate of £ls, pays very much less than firms in De- • troit '(£80), South Africa (£6O), Australia „(£52), or London (£37 IDs). Fifteen calls a” day and 4500 a year would perhaps represent the average case. Here,

too, the New Zealand flat rate has the advantage, compared with Detroit l '(£42), South Africa (£3l 10s), Australia (£29), and London (£27). The same observations are in general true of the rates for residential con-v-nexions. Few householders limit the number of their calls to two a day or 600 -a year. Yet even at three calls a day or 900 a year the New Zealand rate is cheaper; and to take the extreme case of .10 calls a day or 3000 a year (a number exceeded by many private su.iscribers), the New Zealand rate (£8 10s) compares more than favourably iyith those of Detroit(£2s), South Africa (£22), Australia (£2l), and London (£l9),