TELEPHONE SERVICE

Evening Post, Volume CX, Issue 46, 22 August 1930, Page 7

TELEPHONE SERVICE

WHAT, FNCREASES^EAf f£j

KECORD iLi:ST;:YEAfe.:E

The development in telephone-ex-

change service during' the year constituted a record, the number of new connections (main stations) being 12,781. The increased demand manifested it very gratifying, and indicates that, tha public appreciate the efforts the De-.. partment has made' to ' improve ■ lbc'sij telephone-service-and to make, availl"-" able the benefits of long-distancezcoaj- , ; mu'nication (states the annual report of :, the Postmaster-General, the Hon.' J. B. ■£ Donald). • : -■:::. 3 In an expanding telephone system it ■ • is an axiom that to maintain telephone- ■; exchange rentals at tho same level-is actually to reduce them or to render ;; service at a lower rate. ; Tlie result;©!* .'• growth in the number of 'telephones - connected to an exchange' is tthat>>thq telephone-user receives more valuable ' and extensive service for the same rental. AlO per cent, increase in the number of telephones in a local exchang* area means that a subscriber may at this same price talk to 10 # per cent., more' people. "Unlike many, other business uAdertakings, where increased production or turnover means a decreasing cost-of production per unit, or a proportionate- ■ ly decreasing overhead cost, the tele- ' phone business is one in which, the fae- .- tor.of growth and.the resulting compli-. ,■ cation, cause the cost of giving lodal } service to increase almost'in direct proportion to the increase in the extent'6f the service. This may seem paradoxical, but' when it is considered that: in-< ; creases in service in large areas necessitate the acquisition of land, the provision; of buildings to house satellite or branch, exchanges, the installation of separate • exchange > equipment, -the installing of juriction apparatus at ;air3exchanges in the area, the laying pi? special cables between the exchanges, as well as the establishing of separate maintenance or operating staffs, it will ~, be realised that the problem of main- j taining existing^rentals in the face of .'■• extending service is a'very real one. H - is only by studying the -constant ad- • yances in the telephone art, and developing improvements in operating and • maintenance methods, that continually, ■ increasing service in local areas can b<? furnished without increases in. rental^