Bhaapataheg Gia

January 17th, 1977

further mentioned his personal difficulty in calling from Burnaby (where
he works) to his home in Port Coquitlam due to connection problems.
Alderman Ranger pointed out that sewer, water, and hydro rates in the
Lower Mainland are uniform, while the Telephone Company has some 16
different classifications, and Mr. Bain advised this was the result of
borrowing and other costs. Alderman Ranger mentioned the purchasing of
equipment from the parent Company at very high prices, and Mr. Bain

advised that this aspect has been dealt with in considerable detail;

however, it has been found that there is no negative financial impact on

‘subscribers. Alderman Mabbett inquired as to where the greatest portion

of shareholders in the Company were - the United States or Canada - and

Mr. Bain advised that a large number are in Canada, but these are controlled
by the American Company. Alderman Mabbett inquired whether the installation
of automatic equipment has reduced the number of employees required, and
Mr. Bain advised that although telephone service has increased, it is,

in fact, being maintained by fewer employees. Alderman Laking inquired
why telephone service in the State of Washington costs less than in

British Columbia, and Mr. Bain pointed out that other items such as
housing, food, clothing, etc., also cost less in Washington than they do

in British Columbia. To his query on the difference in telephone rates,
Mr. Swabey advised Alderman Ranger that basically, Hydro, water, etc.

are selling a commodity, while the Telephone Company sells a service,

and the charge reflects the number of stations that can be called on a

flat rate. Mr. Swabey also advised that where a toll charge has been
removed and replaced with a flat rate, there is a loss of revenue and
increased capital expenditure to provide additional circuits. Alderman
Traboulay again referred to the problem of frequently being unable to
complete a connection when calling to or from his home, and Mr. Swabey
advised this would be alleviated somewhat when the existing equipment is
replaced with automatic switching. Alderman Traboulay inquired as to

the cost for removing a telephone pole from a traffic island at Shaughnessy
Street and Pitt River Road, and Mr. Swabey advised this would depend on
whether only one pole, or a series would be involved. Alderman Mabbett
referred to the "weighting factor" and commented that although Vancouver
can call toll-free to the White Rock-Crescent area, Port Coquitlam

cannot. Mr. Swabey explained that the distance is calculated in airline

miles multiplied by the number of exchanges involved, and as the distance