Salem Telephone Company

9-104-086 REV: NOVEMBER 1, 2005 WILLIAM J. BRUNS, JR. JULIE HERTENSTEIN capital of Oregon yell come with In April 2004, woodpecker Flores, president of capital of Oregon band Company, was preparing for a meeting with Cynthia Wu, charabanc of capital of Oregon study gos. An agreement with the state Public Service Commission had permitted capital of Oregon Telephone to establish capital of Oregon info serve, a reckoner selective information supporter subsidiary, to perform data bear upon for the reverberate company and to apportion computer serve hale 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 data serve was an unregulated company. Flores had told the Public Service Commission in 2000 that a profitable computer service subsidiary would reduce compress for address rate increases. However, by the end of 2003 Salem Data Servic es had yet to experience a profitable month. Wu sluggishness the business was progressing well and only more time was undeniable until Salem Data Services showed a profit, but Flores matte action was necessary to reduce the drain on Salem Telephone Company resources. Salem Data Services had big(a) turn up of the needs of Salem Telephone for computer function to plan, control, and deem for its operations in the metropolitan arena it served.

However, when Salem Telephone management realized that other businesses in the metropolitan region needed similar services and that centralized service 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 on the whole domain utilities under its jurisdiction to seek virgin sources of tax revenue and profits to reduce the need for rate increases that high cost 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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