TELEPHONE INSTALLATIONS

Press, Volume LXXIII, Issue 22251, 16 November 1937, Page 13

TELEPHONE INSTALLATIONS

10 THE EDITOB OF THE PBESS. Sir I think that the Government is to be commended for the publicity it ,-c riving the working of the various Government departments, both through the newspapers and its broadcasting news sessions. The information supplied gives the public an opportunity for study and comment. Lately we have been given quite a lot pt useful data about our telephone system, "The Press" on Saturday giving a further instance when it was stated that the number of toll calls now runs into more than 1,000,000 monthly. A few weeks ago you published an article about the English system, wherein it was stated that the number of subscribers was on the 3,000,000 mark and that the capital invested in the system was £150,000,000. This makes an average capital cost a subscriber of £SO. For the cheapest form of installation, the ordinary town residence, the capital cost would probably be under £3O, but if to be on the safe side we take _ it at £35, then an interest charge of 31 per cent, and a sinking fund of 1 per cent, would make an annual standing charge for each residential subscriber of £1 lis 6d. Allowing for exchange and extra costs, a similar standing charge in this country would probably run into £2 10s. Once the automatic telephone is hanging on the house wall, the only other expenses should be maintenance and administration, and a further £2 15s should cover these and leave a handsome profit This would mean a charge for the cheapest installations of approximately 2s a week. In addition to this the revenue which the department secures from more than 12,000,000 toll calls annually should also leave a very respectable profit after paying all the expenses incidental thereto. The present rate for a single town residential connexion is £8 10s per annum. So from the above it will be seen that there is a prima facie case for a reduction from the present excessive rates. As pointed out before, a subscritpion rate of 2s a week would be an attractive selling point in getting new subscribers. English authorities found that reduced rates brought in a large number of new subscribers. They are how looking into the future and making their plans as far ahead as 1960, and it would be a good idea if the Government here were to take the matter in hand at once and see what can be done in the way of re- - duced rates td place.this benefit of civilisation in more homes.—Yours, etc.,'

ONE OF THE PUBLIC. November 15, 1937.