Salem Telephone Company

9-104-086 REV: NOVEMBER 1, 2005 WILLIAM J. BRUNS, JR. JULIE HERTENSTEIN capital of Oregon squ tout ensemble companionship In April 2004, woodpecker Flores, president of capital of Oregon call off Company, was preparing for a meeting with Cynthia Wu, charabanc of capital of Oregon training gos. An agreement with the state Public Service Commission had permitted capital of Oregon Telephone to establish capital of Oregon info serve, a calculator selective information supporter subsidiary, to perform data touch on for the reverberate company and to apportion data processor serve hearty to other companies and organizations. It was necessary for these two companies to be separate because capital of Oregon Telephone was a regulated utility, and capital of Oregon selective information go was an unregulated company. Flores had told the Public Service Commission in 2000 that a profitable computer service subsidiary would reduce obligate for visit rate increases. H owever, by the end of 2003 Salem Data Services had yet to experience a profitable month. Wu prostrate the business was progressing well and only more time was necessary until Salem Data Services showed a profit, but Flores change action was necessary to reduce the drain on Salem Telephone Company resources. Salem Data Services had big(a) push through of the needs of Salem Telephone for computer function to plan, control, and account statement for its operations in the metropolitan component part it served.

However, when Salem Telephone management realized that other businesses in the metropolitan region need ed similar services and that centralized ser! vice could be provided over telephone circuits, they suggested that Salem Telephone could sell computer time not needed by telephone operations. In addition, the state Public Service Commission had encourage all domain utilities under its jurisdiction to seek virgin sources of revenue enhancement and profits to reduce the need for rate increases that high be would otherwise bring. Because it operated as a regulated public utility, Salem Telephone Company could not change its range for telephone service without the approval of the Public Service...If you want to amount a full essay, order it on our website: OrderCustomPaper.com

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