THE TELEPHONE SERVICE.

Otago Daily Times, Issue 18906, 5 July 1923, Page 6

THE TELEPHONE SERVICE.

The increases in telephone charges which have been announced in the Budget will not be regarded as a popular innovation. It was apparent, however, from statements made by the Postmaster-General that an increase to be expected. The agitation winch followed the publication of the proposed rates a few months ago has clearly had its influence on the departmental mind in respect of the rates that'are to be charged for business connections, but it has not equally moved the authorities to modify their proposals as to the charges for residential connections. In the former case the proposed rates have been reduced by £3 per annum, but in the latter case duly 10s has been taken off the rate which had tentatively been proposed for the four cities. Proportionate reductions on the proposed rates have been made for services for other centres of population. It may be suggested that if £ls per annum is a fair charge for business connections £8 10s is too much for residential connections, and the department would probably have been wise in its own interest to fix a lower rate than that proposed for private residences. To the business man the telephone is indispensable. It is not so to many residential subscribers, and those among them who live within two miles from the exchange will not be all disposed to accept the increased rates unmurmuringly. It is claimed, however, by the department that the new rates will still leave the dominion in, the position of being one of the cheapest telephone countries in the world. The telephone rates have been increased twice since the inception of the system. For a period of twentyfive years they stood without alteration. On the average in the past it has been found necessary to scrap a telephone system in fifteen years, and this means that in several of the cities the department is faced with, the need for a very large capital expenditure. The new system will, however, possess a greater element of permanence, and if tbe department’s expectations are well founded a favourable revision of rates may possibly be effected within a few years. An advantage which is looked for under the new policy is an extended field of call. . If the establishment of the new exchange in Dunedin results, as _is officially anticipated, in an increase of some thousands of subscribers, the value of individual telephones will certainly be increased. As we understand the position, the department hopes to increase the proportion of telephone users from the present ratio of one to thirteen of the population to one to seven—the proportion that has been attained in some other countries. It is a fact that as many new subscribers have been placed on the local list during the past eight years as were placed on it during the previous twenty-five years. Moreover, the present large waiting Hstij. furnish evidence of the existence of a keen demand for telephonic communication, and this demand must remain unsatisfied pending the large capital expenditure involved in a change of system to the automatic. It will be unfortunate if the new charges discourage the growth of business in any appreciable degree, but the department apparently believes that the increased and improved service which it will bo in a position to supply on the completion of the new exchanges and the inauguration of the automatic system will attract new subscribers in large numbers. The vigorous extension of the rural telephone system will be much appreciated by residents in the country, who are not over-blessed with the amenities of life that are enjoyed by the urban population. In so far as the new policy provides for the progressive development of a modern necessity it will find general favour, but it must bo recognised that the case for all the proposed increases on existing rates has yet to be fully established by the department.