Pursuant to House Joint Resolution No. 104 of the 1976 Session of the General Assembly, the State Corporation Commission secured cost and revenue information from each operating telephone company in the Commonwealth in order to analyze the impact on Virginia ratepayers of the change from 10 cents to 20 cents are for local calls made from coin telephones. Data was received representing 99% of the Virginia ratepayers.

Analysis

1) Best available estimate of the cost of a local coin phone call is 21¢.

2) The revenue requirement per Virginia subscriber was reduced 18¢ per month due to the 20¢ rate.

3) Although some subscribers used the coin phone often and some never used the service, the average subscriber made less than one coin call a month so on the average the Virginia subscriber spends 13¢ per month on coin phone calls.

4) An estimated 28% of coin phone calls were made by non­Virginia ratepayers (visitors, transient and others) with an estimated decrease in revenues required from Virginia subscribers of $1,100,000.

5) Although there was a 27% reduction in coin phone calls there was a net increase in revenue.

6) A survey by the Attorney General's Office indicates that the majority of Virginia subscribers (57%) never use coin phones and 94% would object to the increase in their bill that would be necessary if the State were to revert to the 10¢ call.