F.—l.

The number of telephone-stations (main and extension) connected with each of the fifteen principal exchanges on the 31st March, 1939, was —Auckland, 30,607 ; Wellington, 28,810; Christchurch, 16,445; Dunedin, 10,756; Hamilton, 4,253; Palmerston North, 4,132; Wanganui, 4,003 ; Invercargill, 3,740 ; Hastings, 3,251 ; Grisborne, 3,190 ; New Plymouth, 2,886; Napier, 2,521; Timaru, 2,426 ; Masterton, 2,340 ; Nelson, 2,295. The number of party and rural lines on the 31st March, 1939, was 14,827, to which were connected 57,497 main stations —an increase of 688 and 3,224 respectively on the figures for the previous year. The following table shows, for each class of exchange, the respective percentages of business and residential stations, also the respective percentages of individual and party-line stations, on the 31st March, 1939 : —

OVERSEAS RADIO-TELEPHONE SERVICE. A further highly satisfactory increase was shown in the number of overseas radio-telephone conversations during the year. The total number of calls handled was 2,645, an increase of 992 calls, or 60 per cent., over the number handled during the previous year. The greatest number of calls was exchanged between New Zealand and Australia, there being 1,093 calls from New Zealand to Australia and 1,272 calls in the opposite direction. There were 220 calls from New Zealand to the United Kingdom and beyond, and 60 calls from those places to New Zealand. It was possible during the year, with the co-operation of the British and Australian Administrations, to effect reductions in the rates for overseas radio-telephone calls to Australia, the United Kingdom, and other countries. The charge for calls to Australia was reduced on the 25th July from 15s. a minute to 10s. a minute, with a minimum charge of £1 10s. For calls to the United Kingdom the charge was reduced on the 21st November from £1 14s. a minute to £1 10s. a minute, with a minimum charge of £4 10s. The charge for calls to other European countries also was reduced by 4s. a minute. As in previous years, a specially reduced charge was available for calls to Australia and the United Kingdom during the period 23rd December to 4th January. The radio-telephone service with the trans-Tasman vessel " Awatea " continues to be popular, 800 calls to and from the vessel being handled during the year. BROADCASTING SERVICE. RADIO-RECEIVING LICENSES. The total number of licenses at the 31st March was 317,523, an increase of 32,516, or 11-4 per cent., on the number in force at the end of the previous year. The following figures indicate the progressive growth in the number of licensed listeners since the earliest stage of radio broadcasting in the Dominion :— 31st March, 1924 .. .. .. • • • • ■ • 2,830 31st March, 1929 .. .. .. • • • ■ 44,810 31st March, 1934 ■ • • • .118,086 31st March, 1937 . . .. • 241,308 31st March, 1938 •• 285,007 31st March, 1939 .. .. .. .. •• 317,523

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| Class I Class II Class III Class IV Dominion ercentage ol Exchanges. Exchanges. Exchanges. Exchanges. Percentages. "* T "' P i I, v i I I Business stations .. .. 33 30 24 | 17 27 Residential stations .. .. 67 70 76 83 73 100 100 100 j 100 100 Individual-line stations .. .. 87 73 46 27 63 Party-and rural-line stations .. 13 27 54 73 37 100 100 100 100 100