asked the Assistant Postmaster-General what was the cost of issuing his letter giving notice of termination agreements; and what useful purpose it will serve.
§ Mr. Gammans
Telephone service is at present provided under a mixed system in which charges for all calls and general conditions of service are laid down in statutory Regulations, while rental charges, minimum term of service and certain other conditions are specified in agreements with individual subscribers. Under the new telephone regulations, all standard types of service are to be provided completely under those Regulations, without any agreements. It is necessary, therefore, to terminate existing agreements with subscribers (by due notice under those agreements) in order to transfer their service to the new basis. The change calls for no action on the part of existing subscribers and the new Regulations will not affect present charges.
Detailed costs are not available of sending the letter to subscribers but the total cost of the change-over to the new 110W system is estimated at about £300,000. If the old system were maintained, the making of fresh agreements, whenever a change became necessary in the charges or conditions of service, would have cost much more than this. The new system will make it possible to avoid all such expenditure in future.