THE TELEPHONE.

Taranaki Daily News, 18 January 1923, Page 5

THE TELEPHONE.

REVISION OF CHARGES. DETAILS OI PROPOSALS. CHARGE BASED ON SERVICE. FACILITIES IN BACK-BLOCKS. By Telegraph.—Press Assoa’atlon. Wellington, Last Night. The question of altering the rating system for telephone connections was the subject of a lengthy statement issued by the Postmaster-General (Hon. J. G. Coates, to-night. The Minister says the rates for telephone service proposed in thd new schedule will, it is estimated, just about recoup the loss on telephone business. It is recognised in most countries that Government telegraphs are generally run at a loss, and he is looking forward to the loss on the telegraph service in New Zealand being reduced if the people make greater use of the service at the recently-reduced rates. The position as regards the ’phone branch is entirely different, and the present ’phone charges must be increased so that the users of the ’phone will pay subscriptions which will permit of this branch becoming self-support-ing. The proposed charges are designed to reduce the ’phone deficit as revealed in the accounts, and they are further designed with ft view to being a reasonable charge against, the User instead of the general taxpayer bearing a portion of that loss, and at the same time to encourage the use of telephones. The proposed tariff will be lower than that of any other country. Referring to the use made of the telephone, the Minister draws a comparison between the charges made to town subscribers and suburban subscribers. Amongst various centres quoted is Hawera. The annual rental of a business subscriber at Hawera is £7, and the annual rental of a private residence subscriber is £l3 15s. The business subscriber makes 6000 calls per annum for £7, equivalent to ,3d per call, while the private residence subscriber makes 1095 calls per annum for £l3 15s, equivalent to 3d per call. This is obviously an anomaly and an injustice to the residential subscriber, and in the proposed new rating schedule the residential rates ■<t the larger exchanges are approximately 50 per cent, less than the business rates. COUNTRY TELEPHONES.

The question of telephones in country districts is dealt with. The cost of providing a telephone service in country districts is relatively higher than that in the cities. This is due largely to the fact that in the cities, where the telephone system is highly developed, one pole line carries a great number of wires, whereas iq the country districts there are numbers of pole lines each carrying only one pair of wires. It is not expected that the ordinary and rural line rates under the new scheme will be sufficient to meet the cost of establishing, maintaining and operating long-distance connections in country districts, but development in rural areas will considerably enhance the value of and the demand for the telephone service in the cities and, towns, the proposed new rates for which have been computed on a remunerative basis. The furnishing of a telephone service to country and backblock subscribers at less than cost also represents a policy towards which town and suburban subscribers, to whom telephones are not only a convenience but ofttimes a luxury, should contribute by paying higher rates, as the department must continue the development of the telephone service in the backblocks, where telephonic communication is essentially a first necessity.

Under the new system the prospective urban subscribers will be relieved within certain limits of the necessity of providing capital for constructing lines, as, in other words, the department will go much further out with its lines than it hitherto has done. Provision is also made for what may be termed the further back backblock settlers, where they may construct their own lines leading them to a suitable centre within their block, and the Government will provide them free with a truntc line to the nearest telephone exchange or the nearest bureau connected with an exchange. This class of service is designed to meet backblocks and longdistance subscribers who are able to construct telephone circuits and maintain the same and the telephone more economically than can the department.

The following table will give a fairly clear indication of the charges under the new system—

MONTHLY RATE FOR SUBSCRIBER

No. 1 class, multi office exchanges ■Wellington, Auckland, Christchurch, and Dunedin, and exchanges within multi office areas.—Business (one party) 30s; business (two party) in same town block. 20s; residential (one party), 15s; residential (two party). 12s 6d; residential (four party), Ils 3d. No. 2 class of subscribers, single office exchanges with continuous attendance; examples Gisborne, Hamilton. Hawera, Napier, Wanganui, Dannevirke. —Business (one party), 21s 8d; business (two party) in same town block, 15s; residential (one party), 13s 4d; residential (two party), Ils; residential (four party). 10s. No. 3 class, single office exchanges with restricted attendance; examples, Foxton, Grey mouth, Levin, Milton, Paeroa. Wa ; hi.—Business (one party), 15s; business (two party) in same town block, 12s 6d; residential (one party), 10s; residential (two party), 7s 8d; reridential (four partv), 6s Bd. In addition to the above there will be a small monthly rental for miscellaneous services and extra equipment. Under the now scheme it is proposed to collect subscriptions monthly in a wav similar to, say, the gas and electric, light accounts. In addition to the subscription an account, will he rendered for the amount due for toll calls. Tn the event of the toll account for the preceding month not being paid with the amount for the current month’is rental the telephone will bo disconnected. Tn other words, credit for one month will be given for toll calls, but the amount due therefor must be paid at the same time as the current subscription. or the subscriber will be deprived of the use of the telephone. It is desired to bring about the altered conditions at an early date.