WIRELESS TELEPHONES

Otago Daily Times, Issue 20290, 24 December 1927, Page 11

WIRELESS TELEPHONES

TRANSATLANTIC SERVICE. WORKING COSTS COVERED. (British Official Wireless.) (Frees Association—Ej Telegraph—Copyright ) RUGBY, December 22. (Received Dec. 23, at 10 p.m.) Replying to a question in the House of Commons regarding the transatlantic wireless telephone service, Lord Wolmer, assistant Postmaster-general, said that the revenue of the service covered the working costs, but not yet depreciation and amortisation. Asked whether a reduction of the present rate of £5 per minute would not result in more traffic. Lord Wolmer replied that the traffic was steadily growing, and the Postmaster-general, as at present advised, was not prepared to reduce the rate. He hoped that as business men more and more realised the great advantages which were to be obtained from using the service, they would realise how extremely cheap it was. Answering a further question whether the Postmaster-general would consider a reduction of the rate at certain hours ot the day Lord Wolmer said that the Post, master-general had this and other suggestions before him. This matter raised, not only in this country but also in America, questions of agreement between the two countries. As soon as he was so advised he would vary the rates as be thought fit.

AMERICAN COMPANY’S LOSS

NO REDUCTION IN RATES

NEW YORK, December 22. (Received Dec. 23, at 10 p.m.) The American Telephone and Telegraph Company announces that, although it has been operating the transatlantic telephone service at a loss relatively greater than that sustained by the British Post Office, the service will continue. Officials are inclined to treat lightly the complaints in the British Parliament that the experience proved it too costly to be continued. They say it is untninkable that the British authorities should refuse to continue co-operation with the company. It is pointed out that transatlantic telephony is in the experimental stage, and, like the transcontinental telephone, is initially not self-supporting, but ultimately will become so. The rate is, perhaps, prohibitive but a reduction is not yet justifiable.—A. and N.Z. Cable.