University Daily Kansan, August 26, 1983
Page 13
KU considers buying phone equipment
By BRUCE F. HONOMICHL Staff Reporter
With telephone rates expected to soar after the breakup next year of American Telephone and Telegraph, the University of Kansas is considering the purchase of its own telecommunications equipment.
An 18-member faculty committee studying the feasibility of KU's buying its own telephone hardware is preparing its conditions for bids and will examine whether the university office early next year to ask whether the University can accept bids.
William Hogan, associate executive vice chancellor and chairman of the committee, said yesterday that because of the pandemic, many of the present system during the next 10
to 15 years, KU wanted to have an independent telecommunications system.
The University pays $1.6 million a year in base rates, Hogan said, and the AT&T divestiture and other levying charges would mean an increase of about $108,000 a year in base rates. He said telecommunications costs in 1993 were projected to increase to about $8 million.
"WEST WE TO entertain bids for a free-storing telephone system," Hogan said. "We're trying to set up a pay-as-we-go type of system, leasing to own, that won't bankrupt us. The telecommunications system will be telecommunications system over the next 12 or so years will be staggering. A one-time buying package in 1985 or 1986
He said he did not know how much the University planned to spend on an independent system.
would cost about $8 million, according to the research we have done."
"Local costs for telephone service will go up and up and up because long-distance rates have been subsidizing them for so many years, he said. You can be cheaper for us to do your hardware and to pay for it over several years."
"A good lease agreement would allow us to acquire a new system, hold down the costs and still live within our means."
AT&T will continue to control long-distance rates after the breakup in early 1984. Its present regional subsidiaries, such as Southwestern Bell, will become independent of AT&T and
will assume independent responsibility for local rates.
THE UNIVERSITY'S agreement with Southwestern Bell for telephone service will end Dec. 31, 1984, Hogan said.
A prospectus that Hogan prepared for the committee late last year said that "new systems need to be evaluated for us to contain costs and to provide efficient and user-friendly telephone service."
Hogan said, "Our system also has to be compatible with the state plan for telecommunications in the future. The state has said it wants to use digital technology in conjunction with light-wave cables. Now, you're getting into things like telecopying and video transmissions for off-campus classes."
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