End to free calls?

Press, 16 June 1988, Page 1

End to free calls?

Many New Zealand businesses are likely to have to pay 2c a minute for local telephone calls from July next year.

The Telecom board is expected to vote in favour of this and other proposals at its meeting next month. The 2c a minute charge will apply during business hours but after that calls will become cheaper, according to Telecom’s managing director, Dr Peter Troughton, yesterday. A charge of half a cent a minute outside business hours is expected. The charge will apply to businesses with more than one line.

Telecom will find whether residential customers would pre-

fer to pay for calls by length in exchange for cheaper line-rental charges. Kapiti Island residents will be the first New Zealanders to get this option. Other proposals before the board next month are increases in line-rental charges for residential subscribers and a reduction in the cost of inland toll calls. Rental charges would be kept within the rate of inflation, Dr Troughton said. Inland toll calls should become cheaper because Telecom was making an "excess profit” of $4OO million a year on inland tolls, he said. That money was used to subsidise the less profitable local services.