TELEPHONE SERVICES

Press, Volume XCIV, Issue 28158, 22 December 1956, Page 13

TELEPHONE SERVICES

OUTLYING AREAS DEVELOPMENT

ALTERNATIVE CHARGE SYSTEM

An alternative system of charging will be introduced for telephone services in outlying areas served by local telephone exchanges, said the Post-master-General (Mr T. P. Shand) in a statement yesterday. “Under the new system, in areas where there is general agreement among the subscribers about the matter, they will be able, for a higher flat-rate rental, to make calls to their town centre, and to receive calls from the town centre, without toll charges being incurred,” the statement said. Mr Shand said that the telephone service in country districts was being improved by installing small automatic exchanges. More than 90 exchanges of this type had been put in since World War 11, but some hundreds more would be necessary before the whole country was catered for. The rate of future progress would depend upon the resources available.

“Under the rating system associated with this development, subscribers served from one of these outlying exchanges pay a low flat rate rental to cover unrestricted calling within their own area, and toll fees are paid for calls to and from other exchanges, including the exchange serving the town ; centre. This arrangement means that subscribers who make much use of the connecting circuits between exchanges pay more than those who make few calls beyond their own immediate locality.” said Mr Shand. He said that experience had shown this method of charging to be subject to one drawback. With calls to and from the town centre charged for as toll calls, some subscribers felt that a barrier had been created between them and their social and business centre and they were losing that freedom of inter-communication they desired for their business and social activities. The result had been a fairly widespread desire for some form of flat rate charging which would enable toll fees on calls to and from the town centre to be replaced by an over-all levy added to the basic rentals. Option for Subscribers “What is proposed is that in each area in which it is intended to install one of these exchanges the subscribers as a body will be given the option of paying on the present basis of low rental plus toll fees or paying a flat rate rental to include free calling with the town centre. In the case of any area in which one of these exchanges has already been established and in which there is general agreement in favour of the all-in service, it will be arranged as soon as practicable. In some instances where substantial additional plant would be required there could be considerable delay in changing over,” he said. Mr Shand said that subscribers in areas adopting this type of rating

would pay rentals on the basis applying in the town centre, plus 10s a mile for the distance between the town exchange and the outlying exchange. The subscriber connected to the outlying exchange would have the same free calling range as those in .the town centre and so should pay at least as much.

“Because of distance from the centre, it costs much more to provide service in outlying areas, and the extra cost increases with increasing distance. For this reason, an additional charge is being made proportionate to the distance between the exchanges. The additional charge will not cover the additional cost, but will be a contribution towards it.

“The effect will be that at a small exchange. eight miles, say, from its town centre, individual subscribers will get service for a charge comnarable with what is paid by subscribers in the main cities. The cost of providing the service will, however, be very much greater in the, country areas,” said the statement.