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AMATEUR TRANSMITTING-- AND RECEIVING-STATION LICENSES: ANNUAL EEES. On the Ist April, 1930, the regulation fee of £2 2s. in respect of amateur transmitting- and receivingstation licenses will be reduced to £1 10s. ABOLITION OF FORM OF APPLICATION FOR RADIO LICENSE. The form of application previously required before a receiving-station license or a radio-dealer's license was issued has been abolished. These licenses are now issued in response to oral applications. TELEPHONE-EXCHANGE SERVICES. TELEPHONE-EXCHANGE RENTAL PAYMENTS. As mentioned on page 13 of this report, in the article dealing with the establishment of the Commercial Branch, it has been arranged to introduce a system by which telephone subscribers may pay their telephone rentals monthly in advance, instead of half-yearly as at present. DEVELOPMENT OF TELEPHONE-EXCHANGE SYSTEMS. Notwithstanding that the conditions were somewhat unfavourable for telephonic development, the local exchange systems continued to show the steady development which has been evident for some years past. The number of new connections (main stations) joined up during the year was 12,781, which is a record. Taking into consideration the telephones of all kinds relinquished as well as new telephone-stations connected, 9,087 additional telephones were put into service, making the total at the end of the year 157,023. If to this number is added the private-line telephones connected with toll stations and non-departmental exchanges (4,300) the number of telephones in service on the 31st March, 1930, was 161,323. The number of private-line telephones connected with toll stations and non-departmental exchanges has declined from 4,814 on the 31st March, 1926, to 4,300 on the 31st March, 1930. This decrease is accounted for by the fact, that a steadily increasing number of private-line owners has from year to year requested the replacement of privately-owned lines by metallic circuits owned and maintained by the Department and connected to exchanges operated by the Department. This change-over to the more efficient departmental systems has been accelerated by the rapid and extensive reticulation of high- and low-tension power lines making the operation of private telephonelines impossible or unsatisfactory. Rural dwellers are evidently finding this course more economical than undertaking on their own account the erection and maintenance of new lines on the metalliccircuit principle. While this form of development is profitable in the long - run, the heavy initial costs incurred by the Department for a comparatively small number of subscribers preclude it being so for a number of years, until the capital cost has been fully amortized. The Department, however, regards any lag in this connection as a portion of its contribution towards the general development of rural communities and the fostering of closer settlement. Coincident with the growing popularity of interphone apparatus, which provides a ready method of intercommunicating in business establishments, telephone-manufacturers have recently devoted much attention to improvements in the design of intercommunicating equipment. When replenishing the Department's stocks of interphone equipment, these improvements were taken advantage of and supplies were ordered of a new type of interphone set, in which the key-box and telephone are combined, and in which is incorporated also the hand-microphone feature. It is anticipated that the new type of set fitted with the hand-microphone will prove very popular with business houses, and will result in an increased demand for this type of apparatus, which some years ago was modified by the Department to serve the dual purpose of giving outside automatic-telephone-exchange service as well as the internal intercommunication for which it was originally designed. Experience has shown that many telephone-users have a preference for telephone instruments with a hand-microphone. Until a short time ago the application of the hand-microphone was, for technical reasons, confined to magneto-exchange subscribers. Some two years ago, however, telephone - manufacturers in both Europe and America successfully incorporated the handmicrophone feature in their automatic - telephone sets. Evidence of the universal popularity of these combination sets is the fact that large numbers are being purchased and installed in the United Kingdom, America, and other telephone-manufacturing countries. With a view to making this latest telephone instrument available to telephone-users at automatic and common-battery-exchanges in New Zealand, an order was recently placed for a supply of desk-type instruments fitted with hand - microphones. Although a small additional rental will be payable for the use of automatic hand-microphone telephones, it is anticipated that the general style and increased utility of these instruments will cause a large demand immediately they are available. Owing to the large

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