Heinl radio business letter (Jan-June 1946)

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Heinl Radio News Service 1/3/46 FGC ORDERS NEW REDUCED RADIOGRAM PRESS RATES APRIL 1 The Federal Communications Commission Wednesday requested American international telegraph carriers to report by January 18, 1946, on their plans for instituting the sharply reduced rates in¬ cluding those of the press, between the United States and British points agreed to at the recent Bermuda Telecommunications Conference, The reductions must go into effect as soon as possible and not later than April 1st, The new maximum rate for ordinary messages between all points in the United States and all points in the British Common¬ wealth is to be 30 cents per word and six-and-a-half cents per word for ordinary press messages. Existing rates between gateway cities in the U. S. and British points are as high as $1.05 per word for ordinary messages and 41^ cents per word for ordinary press messages. British carriers will put similar reductions into effect simultan¬ eously. Existing rates which are now below these maximum rates sue, as the 20 cent ordinary rate and the 3 cent press rate from New York to London are not to be increased. The Commission also announced steps to authorize the establishment, on a permanent basis, of certain direct radio cir¬ cuits to British points, as provided for in the Bermuda agreement. British policy has been to permit communication with Empire points, with the exception of London, only over British circuits. As a war measure, the British permitted the establishment of direct radiotelegraph circuits between the United States and various Brit¬ ish points, but restricted the operation of these circuits to the duration of the war plus six months. At present, R. C. A, Communications, Inc., and Mackay each operate circuits to Australia, New Zealand and India under this arrangement, and Press Wireless is similarly authorized to communi¬ cate with Australia, but has not established a circuit. According to the Bermuda Agreement, one circuit to each of the foregoing countries is to be retained on a permanent basis. The Commission has ordered an investigation and a public hearing to determine which company shall be authorized to operate each circuit. The order also provides that any radiotelegraph carrier desiring to establish and operate radiotelegraph circuits from the United States to Ceylon, Hong Kong, Jamaica, Palestine, Singapore, South Africa, Greece and Saudi Arabia may file appropriate applica¬ tion showing why the applicant is best qualified to operate the cir¬ cuit. In the latter two nations, the British have heretofore had exclusive arrangements which under the terms of a separate protocol at Bermuda have been renounced. The Bermuda. Agreement provided for the possible establishment of direct circuits for the U. S, to each of the foregoing points, which at present are served only by indirect cable facilities. 9