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University Daily Kansan, September 28, 1984
CAMPUS AND AREA
Private businesses may get phone service rights
By CHRIS BARBER Staff Reporter
Local private businesses soon may be able to sell telephone service to customers and operate their own pay phones at a profit, depending on the results of a Kansas Corporation Commission study.
The KCC is making a general investigation into the resale of local telephone service and the operation of pay phones by parties other than local telephone companies, such as Southwestern Bell.
The KCC will decide on the legality of service resale and private pay phones within the next two to four weeks. A public information director for KCC
MINNESOTA RECENTLY became the first state to allow private pay phones. Haden said. Northwestern Bell, which serves Minnesota, receives 10 cents for each 25-cent call placed from a Minnesota office. The callunder goes to the owner of the phone.
Resale of phone service means that 'a local business offers phone services such as switchboards and intercoms to its customers, Haden said.
Resale of phone service is legal in some states, Haden said, and some companies would like to see it legalized in Kansas.
The private companies support reselling telephone service because it would allow them to sell service to customers at a lower local phone company, Haden said.
"The opinion of supporters of resale is that a small, local business can better serve a particular area than a large company like Southwestern Bell," Haden said.
BUT A SOUTHWESTERN BELL representative said yesterday that the company feared small businesses would not be able to offer adequate service to customers.
"We believe there would be public disadvantages," said Donna Johnson, district manager of public information for Soutwestern Bell. "There would be customer confusion, an overall threat to quality and reliable service and possibly higher local rates."
Allowing resides of service would be the beginning of the end of what Bell likes to call "universal service." Johnson said. This term refers to Bell's ability to offer consistent, low-cost service to all customers.
"Resaleers are not interested in the everyday consumer." Johnson said. "We believe that with the privilege to serve, there is an obligation. You
can't hand-pick your customers."
THE ISSUE HAS COME into focus recently because of a case involving the Wichita Airport Authority and Southwestern Bell.
The airport authority devised a telephone system that provided the latest technological advancements to Wichita's Mid-Continent Airport, said John Dekker, Wichita city attorney representing the airport authority.
"We're providing the best service for everyone at the airport." Dekker to
The system provides weather reports, Federal Aviation Association information and control-tower signals, he said.
Dekker called the airport's system "shared usage," which, through the combined efforts of the group, provided individuals with better
technology at rates they could afford. But he said Bell considered any shared usage to be a resale of telephone service, thereby requiring licensing and approval by the KCC.
"WE HAVE A CERTIFICATE from the KCC to provide local telephone exchanges," Johnson said. "Anyone who sells local service violates our franchise."
But Dekker said the Bell system did not have the advantages of the airport's new system.
"Bell says they can provide the same service, but they can't," he said. "They're so behind in technology it's not even funny."
Dekker said Bell's claims that locally operated phone systems would cause confusion and higher rates were not true.
"Those are scare tactics, and that's a crock," he said. "Bell is just
Haden said that although local companies might provide better service, resale of telephone service was technically illegal now. He said that this summer the KC gave Bell the opportunity to suspend service to anyone found reselling telephone service.
saying that if you don't use their equipment, you'll have to pay more."
THE KCC HAS OPPOSED resale, Haden said, because any loss of revenue to Bell would probably be accounted for with higher rates.
The KCC conducted a study session July 18 to give all concerned parties an opportunity to present their views on the matter.
OCTOGINTA`84
About 12 parties have since prepared legal briefs on the two questions, Haden said.
October 12-14, 1984
Start training rides now to get ready for Oct. 14th! For entry forms & info: SUA Office,864-3477.
TO HAVE YOUR YEARBOOK PORTRAIT TAKEN
Stop by 121 B Kansas Union
12-5 or call 864-3728
Photographers hours:
12-8 Thurs.
9-6 Fri.
Shooting is taking place in
Student Organizations & Activities Office
403 Kansas Union
THE LITTLE HUMPBACK HORSE
PRESENTED BY THE UNIVERSITY OF KANSAS THEATRE FOR YOUNG PEOPLE
A NEW PLAY BY LOWELL SWIZELLZET BASED ON PYOTER VERSHENY PECRIC RUSSIAN POEM
SATURDAY, SEPTEMBER 29 1984 2:30 PM CRAFTON-PREEY THEATRE
TICKETS ON SALE IN THE MURPHY HALL BOX OFFICE
ALL SEATS RESERVED TICKETS $15.00 OR GARDLESS OF AGE
FOR RESERVATIONS CALL 913-8484-3882
OF COURSE IT'S GOING TO LAST
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