Toll free extension unlikely

Waimarino Bulletin, Volume 6, Issue 248, 28 June 1988, Page 1

Toll free extension unlikely

Telecom has been asked by the Army to review its policy on extended free calling areas, but Telecom says a review would be unlikely to result in an extension of toll free calling.

In a letter to Telecom Lieutenant Colonel C.P. Sinclair said the

change in toll free policy would do little to promote the image of Telecom in the Waimarino/Rangitikei. The letter asked what extra costs would be incurred by subscribers if the local free calling area was extended. The Waiouru exchange and the RaetihiOhakune exchange are fed from separate bearers from Palmerston North, but there are 'diversity circuits* linking the towns, according to Lt Col Sinclair. With Ohakune off the Taihape-Waiouru bearer he suggests there should be enough capacity to provide free dialing circuits to Taihape from Waiouru. Telecom's response to this has been that if a free calling area is extended the number of calls is greatly increased. Lt Col Sinclair challenged this argument saying the rnaiorTurnpage2

Toll free area

From page 1 ity of calls from Waiouru to Taihape and Ohakune are of a business nature and therefore the number of calls is unlikely to increase.

A further point on behalf of the area's subscribers was that STD callers into the area paid the same toll charge rate whether calling T a i h a p e , Waiouru or Ohakune, who shared the code 0658. Lt Col Sinclair suggested s e r i o u s consideration of the matter would "give Telecom the opportunity to enhance its reputation" in the area. In answer to the letter the area manager, Mr M.S. Odell said Telecom was in the process of reviewing telephone charging. Mr Odell said the review would probably include lower rentals and a charge per call for business subscribers. He said it was most unlikely the review would result in any extension of toll free calling areas, though he said the Army representation would b e

taken into account when plans for this area are considered. Mr Odell went on to point out that there was no such thing as "free calling", that telephone networks were expensive to provide and operate. "The costs have to be recovered one way or another from t h e users," he said in his reply to Lt Col Sinclair. There is a high level of cross subsidization between services, particularly between toll and iocal telephone systems. "Free calling could only be introduced at considerable cost both in equipment provision and toll revenue lost," said Mr Odell in his reply. He also pointed out that the charges to each of the towns under code 0658 are charged separately, based on the distance from the calling exchange area.