At the present time, 35 synchronous broadcast networks are operating in the
Soviet Union. In the near future it is intended that quantum frequency
standards '-- rubidium or cesium, which ensure very high stability of the
carrier frequency -- be employed as reference oscillators. Through their
application the operational quality of the synchronous network will be raised,
since the necessity for receiving frequency reference signals will become
superfluous.

The condition of radio broadcasting which had come about by 1974 - 1975 in
the long and medium wave bands led to the need to develop a new plan for
distribution of frequency channels in these bands. In 1975 in Geneva, at
the Regional Conference on Long and Medium Wavelengths a long-range plan,
which will go into effect on 23 November 1978, was adopted for the allocation
of frequencies in these bands over the next 11 years. According to the plan,
there has been established a network of frequencies whose carriers are sep-
arated by 9 khz. This is most important for reducing mutual interference
which exists with differing magnitudes of carrier frequency separation. In
our country under this plan, the creation of new synchronous broadcast net-
works, the use of directional antennae to avoid mututal interference, the
reduction of night time power by the radio broadcasting stations, etc. are
all envisaged.

The long-wave (DV) frequency ratings for radio broadcasting stations remains
unchanged, but the frequency ratings for medium-wave (SV) stations shift.by
1-8 khz. Radio broadcasting station workers in the USSR must perform the
necessary preparations and ensure that the new frequency ratings are smoothly
instituted by 23 November 1978.

To improve the hearability and raise the quality of radio broadcasts on long
and medium wavelengths during the tenth quinquennium, there will be brought
into operation significantly more powerful radio stations compared to those
which were constructed earlier under strict adherence to separated frequency
channels and transmitter power limitations which had been established for
USSR radio broadcasting stations under the 1975 Geneva plan for radio fre-
quency allocation. .

New radio stations will be built in Siberia, the Far East, in Kazakhstan and
in Central Asia. Transmitters with a power rating of 1,000 kw, ensuring high
electroacoustic properties and having a high industrial KPD (efficiency), as
well as frequency stability and secondary emissions in accord with MKKR
(International Radio Communications Advisory Committee) norms will be in-
stalled at these stations.

Industry is already producing an SV (medium-wave) radio broadcasting trans-
mitter RV-1000S, with 1,000 kw rated power, permitting transmission on two
fixed frequencies in the 525.- 1605 khz band and the’ 1,000 kw DSV (long-to-
medium wave) "Tayfun" transmitter which is being adopted for central radio
broadcasts. .

58



BULGARIA

COMMUNICATION TECHNICIANS COMPLAIN OF LOW QUALITY MATERIALS
Sofia IMPULS in Bulgarian 28 Mar 78 pp 1, 3

[Article by Gerasim Balabanski, group technical manager in Blagoevgrad:
"The Origin of Mistakes"]

[Text] High quality goods may not be made of unsuitable materials.

Frequently construction workers have been blamed for delays in the comple-
tion of the projects, poor quality of the work, inconsistency, higher costs,
and others. Unfortunately, in many cases such charges are legitimate. Facts
are facts, arid no one could deny them. I do not wish to justify myself or
my comrades for our errors. We try to avoid them and not to repeat them

and we are largely successful.

However, we find it difficult to surmount obstructions created by institutes
and services whose entire purpose is to help us. Their errors are such that
they inevitably effect both our deadlines and quality of work. This implies
to the laying of intrarayon cables, urban cable grids, and telephone and
telegraph and radio grids. Weaknesses in all three types of work are al-
most identical in the preparatory period: The initial planning data are
compiled formally, hastily, without the necessary study by the people who
issue the assignment. Above all, designs are rough, without the necessary
details for the installation of the cables in premises, and without con-
firmed prices. Frequently we find in the blueprints unerased names of re-
drafted parts. The prices do not correspond to those on which the plan is
based. For this reason in the case of five projects in Blagoevgrad Okrug
the Bulgarian National Bank did not recognize a single one of the prices in-
dicated in the draft estimates.

Frequently the project is designed in two or three days and the tracks are
measured from the car rather than with a tape. The only exception is the
work of Comrade Leteyski. This, however, can not amend the faceless flow of
draft estimates made by Isproekt and the okrug administrations.

24



NOTE

JPRS publications contain information primarily from foreign
newspapers, periodicals and books, but also from news agency
transmissions and broadcasts. Materials from foreign-language
sources are translated; those from English-language sources
are transcribed or reprinted, with the original phrasing and
other characteristics retained.

Headlines, editorial reports, and material enclosed in brackets
{] are supplied by JPRS. Processing indicators such as [Text]
or [Excerpt] in the first line of each item, or following the
last line of a brief, indicate how the original information was
processed. Where no processing indicator is given, the infor-
mation was summarized or extracted,

Unfamiliar names rendered phonetically or transliterated are
enclosed in parentheses. Words or names preceded by a ques-
tion mark and enclosed in parentheses were not clear in the
original but have been supplied as appropriate in context.
Other unattributed parenthetical notes within the body of an
item originate with the source. Times within items are as
given by source.

The contents of this publication in no way represent the poli-
cies, views or attitudes of the U.S. Government.

PROCUREMENT OF PUBLICATIONS

JPRS publications may be ordered from the National Technical
Information Service, Springfield, Virginia 22151. In order-
ing, it is recommended that the JPRS number, title, date and
author, if applicable, of publication be cited.

Current JPRS publications are announced in Government Reports
Announcements issued semi-monthly by the National Technical
Information Service, and are listed in the Monthly Catalog of
U.S. Government Publications issued by the Superintendent of
Documents, U.S. Government Printing Office, Washington, D.C.
20402.

Indexes to this report (by keyword, author, personal names,
title and series) are available through Bell & Howell, Old
Mansfield Road, Wooster, Ohio, 44691.

Correspondence pertaining to matters other than procurement
may be addressed to Joint Publications Research Service,
1000 North Glebe Road, Arlington, Virginia 22201.


satellite. Most effective are the satellite systems in transmitting circu-
lar information such as television and radio broadcasts, and newspaper pages
This is explained by the fact that the satellite is the more expensive ele-
ment of the system, is used simultaneously by all the stations which are
receiving the very same information, and therefore its cost is divided
amongst all the communications routes. Therefore, the transmission of cir-—
cular traffic is the most important function of satellite communications.

Satellite systems can be economical in the transmission of telephone-tele-
graphic traffic if the communications are carried out over great distances.
Considering that the cost of a satellite channel is independent of its length
(in contrast to a ground channel), satellite telephone lines become compar-
able in cost with highly efficient ground cable and radio relay lines when
the communications distance exceeds 1,000 - 5,000 kilometers. Future im-
provement in the satellite systems will allow them to become econmomically
efficient over lesser communications distances.

The television distribution networks have achieved greatest growth and dis-
semination. The "Orbita" ground station network, which has been operating
since 1967 through the "Molniya" satellites, has provided for the reception
of television programs at more than 70 locations. The "Orbita" stations

are presently operating within three different networks providing zonal tele-
vision (TV) broadcasting (the programs of "Orbita I, II and III with time
shifts of 9, 6 and 3 hours relative to Moscow time). At the present time,
these networks are being serviced correspondingly by "Molniya-3" satellites
in elliptical orbit and two "Raduga" ISZ located in geosynchronous orbit.

Special stations were created to bring television broadcasting to the people
living in the less populated areas, and in 1976 a trial run was introduced
for the "Ekran" television broadcast system which consists of satellites in
geosynchronous orbit and a network of a new type of ground receiving stations
operating in the 700 mhz band.

The frequency modulated signal of the ground tarnsmitter (the program source)
is retransmitted by the spaceborne station's phased array antenna. The equip-
ment for two types of ground stations is designed for high quality reception
(figures 1 - 3). The received signal proceeds to the television retransmit-
ter which services the local television receiving network. The number of
"Ekran" receiving stations is already approaching 150, and by 1980 their
number will exceed 1,000.

Future development of the television broadcast receiving system is being di-
rected towards creating a system in the 12 ghz band.

During the Olympic Games, 20 different TV programs will be transmitted from
Moscow throughout the entire world. The majority of them are intended mainly
for countries on other continents and will be disseminated through satellite
systems.

The advantages of satellite systems for providing transmission of circular
information apply in equal measure to the supplying of radio broadcast pro-

67


Postal Checking Accounts

CHEQUES POSTAUX Avoir des comptes au 31 décembre.
en milliards de francs -~Assets in billions of

francs on 31 December

1

100

Ad

80

60

— —y

332

I ee
DP Ad ad °

FM PS oP or gn th

comptabies pubes --Of ficial cults = _

accountants official [seus =~ private |

CNE

The CNE's [Postal Savings Bank] activities remained at a very constant level
even though the rate at which traffic increased was lower than during the pre-

ceding year: 16 percent as opposed to 23 percent.
Ordinary Savings

Beginning 1 January 1976:

The interest rate paid on A and B pass books was reduced from 7.5 percent to
6.5 percent.

Maximum deposits allowed A pass books rose from 25,000 francs to 32,500 francs.

78


to be used for scientific calculations,
Processing control, medical and other
wide purposes.

The company is also developing
peripheral and terminal equipment.
Mitsubishi's display equipment and
Kanji (Chinese character) processing
equipment are gaining broader
demand, It is also accepting for its
units line-printers and other peripheral
and terminal equipment made by Oki
Electric,

Mitsubishi is widening the floor
space of the Computer Works at
Kamakura, southwest of Tokyo, by
6,000 square meters. The company's
computer department chalked up sales
of some ¥40,000 million in 1977
business year and plans to boost the
annual sales to ¥100,000 million in
five years. Mitsubishi intends to make
the computer department, which is
now barely making ends, a stable and
profitable business section by boosting
business scale.

Under the MITI _ instruction,
Mitsubishi is developing VLSIs (very
large scale integration) through Com-
puter Development Laboratories Ltd.
a joint firm with Fujitsu and Hitachi,
Enjoying sales increases in office com-
puters, Mitsubishi concentrates its
efforts on the development of system
controls for industrial purposes to re-
organize its structure to catch up with
the global development of computer
technology.

Nippon Electric Co.,Ltd.

Nippon Electric Co., Ltd. (NEC) is
a member of the Sumitomo Group,
one of the major industrial concerns in
Japan, and has long been well known
at home and abroad as a leading
manufacturer of telecommunications

14

equipment. More than 45 percent of
the turnover accrues from the sales of
products in this business line.

But NEC also has a history of com-
puter production which it can boast
of. The company first started research
of digital computers in 1954 and com-
pleted Japan’s first all-transistor-type
computer, NEAC-220], and a Para-
metron type computer in 1958, These
were medium-size computers at that
time. Next year, the company com-
pleted the NEAC-2203 computer
(medium-size), the first success in
Japan in computer production on a
commercial basis.

In 1962, the company introduced
the technology of Honeywell Inc. of
the United States and produced NEAC
Series 2200 computers in 1965, The
machines of this series later became
the main products of the company.
They were the first domestically-
produced “one-machine” computers
(which could convert programs, even if
the machines’ processing capacity
became large).

The recent product worthy of
special mention is the ACOS Series 77
completed in May, 1974, The com-
puter, jointly developed by NEC and
Tokyo Shibaura Electric (Toshiba)
under a technical tic-up, was a rival of
the IBM 370. Ever since, NEC’s main
products have been ACOS Series com-
puters, which now include the System
200 (small-size), Systems 300 and 400
(medium size), System 500 (medium/
large size), Systems 600 and 700 (large
size) and Systems 800 and 900 (ultra-
large size). The System 900 is a rival of
the [BM 3033.

What cannot be overlooked in
NEC’s computer division are the so-
called office computers (small business
machines). They are simple machines
with NEC’s “ready-made” programs,
which can be handled easily by ordi-


Delivery of Telegrams

The reduction in the traffic of telegrams recorded in 1975 persisted in 1976.
Thus the annual traffic of telegrams, notification of calls and "pneumatiques"
[express letters transmitted in Paris area by pneumatic tubes] decreased from
18,250,000 items delivered in 1975 to 16,500,000 in 1976.

On the other hand, that of special delivery mail remained stable, that is, a
little over 13 million items.

In addition, the number of vehicles available remained virtually the same as
in 1975, that is, 1,900.

CIDEX [expansion unknown]

In 1976, 75,000 boxes were installed. This brings the total number to
510,000.

Motorized Delivery Rounds for the 1967-1976 Period

TOURNEES MOTORISEES Période 1967 a 1976
25 000
_ 24099]
21.000 LO
19 000
17 619)
116 000
13 000_
4 WA
110 000 7
7 000, __}
of 480)
--7
-
4000 Ps
« -
FF Ps? ath gl? oi? G? oe

[ mee {otal wee rurales ge ww urbaines,

73



So it was decided to build the Solt transmitter, The transmitter, which
was put into operation one and a half years ago and which was completed
before the time limit with a significant saving in costs, has proven
outstanding in practice, The antenna tower, higher than a hundred story
building, reaches not only the larger part of the country, as is proven

by measurements, but letters are even received from London and Leningrad
reporting that Kossuth comes in outstandingly. Because of the shaded areas
it cannot achieve greater than 80 percent efficiency within the country,
The final solution can only be a development of the ultra short wave net—
work and the first phase of this program will be completed by 1980.

Is Lakihegy going into retirement? Not at all. For the time being the

two 150 kilowatt transmitters are resting but the 20 and 135 kilowatt trans-
mitters are broadcasting the Petofi programs. The Petofi broadcasts can
still be heard well only in 45 percent of the country. Thus, Lakihegy will
receive an important role in the future in broadcasting the Petofi program.
The two 150 kilowatt transmitters will be broadcasting the Petofi programs.
But this is not a complete solution and so they are planning to place into
operation a 1000 and a 500 kilowatt transmitter of Soviet manufacture in
Szolnok and Balatonszabadi respectively. The number of radio subscribers
exceeds 2.5 million but there are more than 6 million pocket, portable and
table radios in the country. The development of the ultra short wave and
stereo programs will play an ever greater role in addition to the medium
wave, This is the radio of tomorrow because ultra short wave and especially
stereo guarantee perfect quality and reception. A person listening to
stereo feels that he was sitting in the middle of the orchestra. Trade
turnover also shows that even today most people are buying ultra short wave
and stereo sets. Omage in the history of radio has ended but in the shadow
of television it has not only a past but also a more certain and louder
future than ever before.

8984
cso: 5500

31


The need to manage these services like a commercial enterprise had become
obvious. If the Post Office had to function according to commercial prin-
ciples, it was important that it be headed by a president and a board of
directors who would be responsible for the management of the business. It
was necessary to replace the subsidiaries and hierarchy of the civil service,
which gave a certain rigidity to the system, with a more flexible personnel
statute. Therefore, the employees of the Post Office are no longer civil
servants.

Thus, in 1969 legislation was introduced making the Post Office a national
corporation, a "nationalized industry" as we say in England. Henceforth,
the daily management of the Post Office was no longer in the hands of
Parliament, but in the hands of the national corporation.

The Current Situation

The new president and his board of directors are responsible for four
sectors:

- Postal Service: the oldest sector, which requires a great deal of man-
power (78 percent of its expenditures are personnel expenditures) and is

in decline;

- Telecommunications: a large capital consuming sector, in the process of
rapid expansion;

~ Postal Money Orders and Data Processing: two young sectors in the process
of expanding.

The reasons behind the separation of the sectors were the following:

1) Each sector had very different management characteristics;

2) Each of them had a different growth rate;

3) Each of them had its own requirements to achieve successful management.

The general management is carried out by the president and by the board of
directors of the Post Office, the members of which are appointed for a
certain number of years. The various sectors are’ run like commercial enter-
prises, distinguished by directors general responsible to the board of
directors, of which they are also members. Thus, the "Postal Service" is
managed by a director general; another director general is in charge of
"Telecommunications" as well as the "Data Processing" sector, three-quarters
of the activities of which are related to telecommunications. A third
director general concerns himself with "Postal Money Orders."

The four sectors do not mutually subsidize each other.
Following are the manpower figures for the four branches of activity.

"Telecommunications" has overtaken the "Postal Service" and is now far
ahead.

102


Fron the strictly technical standpoint, all the existing systems transmit much
more than the necessary and essential information. From our simple telephone
conversations to the already codified data, all the present transmissions are
inefficient. Condensing the data transmitted by the present transmission sys-
tems is one of the current efforts.

[Question] You have mentioned several times your collaboration with young re-

Searchers and students. Do you still encourage this today?

/inswer/ Certainly. I would like to stress the fact that all my collaborators
Have been and are young, some of them just out of college. The students have
also been helping me, and my office is always open for any problem. I am quite
convinced that students should be intensively used in research along with ex-
perienced researchers. My own experience tells me that this can be done very
successfully. Students of today are very interested in intensive study of the
basics of electronics and particularly the basics of data transmission. These
disciplines open up extensive possibilities for implementing the data proces~
sing and transmission systems. In the present developmental stage of the tech-
nology, the problems of electronics have become so complicated that they can
no longer be solved by experiments alone. Whole theoretical disciplines are
required, especially mathematics, but I say again that the students of today
are better prepared than ever.

/Question7 You have many other functions besides that of department head at
The institute. Please name them.

/inswer7 My main function is at the institute, but I have been active in the
National Council for Science and Technology since it was founded. I am now
the deputy chairman of this council and chairman of the Romanian Commission
for Space Activities, which coordinates all space activity in Rorania and our
international relations concerning space problems.

[Question/ Can you give us a few details concerning these activities?

[Enswer] It seems strange for a country with limited economic resources to be
‘active in this field which, as you know, is reserved for the great powers, but
I should tell you that outer space is now considered international (See the UN
Charter), and it has been denonstrated that major economic benefits can be ob~
tained from these activities. Short of overlooking the scientific aspects,
our main space effort is to apply space technologies to our national economic
development. For instance, the space telecommunications station I mentioned
has been built, data transmitted by meteorological satellites is being proces~
sed to improve weather forecasting, and we have begun to use data transmitted
by long-distance detection satellites to discover underground resources in ge-
ology (ores, thermal waters etc.), in agriculture (to evaluate the strength of
the harvests), and in other fields as well. But Romanian space activity is in
full progress, a fact that will be proved true in the near future.

5186
cso: 2700

38


central television programs has been sharply broadened and in 1978 encompassed
territory in which 83% of the nation's populace resided.

Central television, as well as radio broadcasting, has gone over to round the
clock transmission of television programs. At the present time, the Central
Television broadcast out of Moscow is conducted with 7 programs, three of which
are transmitted through communications satellites. They are called "Orbita-1",
“Orbita-2" and “Orbita-3", and are phase shifted in time. Now residents in the
eastern regions of the Soviet Union can watch television transmissions from Moscow
at a time convenient for them on the very same day as residents of the capital.
To provide Central Television programming transmissions, engineering and techni-
- cal complexes which are some of the biggest in the world are under construction
in Moscow. In the union and autonomous republics, krays and oblast's, aside from
Central, there are local television programs with the accompanying audio in the
native languages of the people of the USSR.

The most important step in the development and refinement of television broad-
casting was the qualitative jump which enabled us to see the world in its natural
colors -- the introduction of color television. Routine color television trans-
missions using the joint Soviet-French SECAM system began in 1967. At the pre-
gent time, already more than 80% of the Central Television programs are trans-—
mitted in color. In the near future, a total transfer by the All-Union Techni-
cal Television Center in Moscow to color television equipment is envisaged. The
necessary technical foundation for preparing republic and local color television
programs in all the capitals of the union republics and many of the major cities
of the nation has also been created. Presently, color television transmissions
can be received with high quality imaging in more than 800 of our nation's cities
and in numerous populous rural communities.

It should also be noted that to handle the Olympic Games which will be held dur-
ing 1980 in Moscow, alongside the existing All-Union Technical Television Center
at Ostankino a new special structure is being built. With its equipment, as well
as satellite and ground communications facilities, television and radio broad-
casts will be transmitted to foreign countries in as many as 20 television and
100 radio broadcast programs.

A tremendous achievment in scientific and technical progress was the activation
of the "Orbita" system which provides Central Television broadcasting to the more
remote and inaccessible regions of the country, where by utilizing the customary
technical means television would not have arrived for many years. Presently, 80
“Qrbita" stations are operating in the country. By the end of the tenth quin-
quennium, the number of stations in the "Orbita" space system will exceed 90.

An exchange of television programs is underway amongst cities in the Soviet Union
on the branched intercity television channel network which has been created, as
well as on the "Intervision" network (with socialist nations) and "Eurovision"
(with the west European capitalist countries). Through communications satellites,
an exchange of television programs with nations located on other continents of
the earth is possible.

63


A Few Minutes for Information

Although it is not a literary work it is worth devoting a few minutes to
the chapter titled "Information" which can be found at the beginning of the
book for a reader perusing it can learn everything worth knowing about all
areas of the postal service. He can learn when the post offices are open
ard how to make telephone calls at home and abroad. We can find in this
chapter a detailed drawing to speed up the repair of faulty telephone sets,
giving the name of the parts and the way in which various problems appear.
No set should break down but this is only a dream. Never mind, only page
through the book to the appropriate place and the diagnosis can be worked
out. When 03 knows this he can send out a repairman.

There is no limit to the useful information. We can find sample addresses,
time zone maps, telephone bill information and where to turn in postal matters.
The telephone book contains zip codes for the towns throughout the country,

a directory of Budapest streets which have been repaired, a list of box
renters and a precise copy of a sample letter. This chapter, containing 64
pages, provides orientation in more than postal matters. It reports on
district medical offices, pharmacies,councils, police stations and shopping
services, The 200-page professional guide aids everyday orientation and it

is especially interesting that for the first time it contains the name and
address of artisans who do not have telephones.

It Will Appear in the Fall

The editors will complete their work in a few days and the compiled pages
are going on film to the Athenaeum Press. The cover has already been pre-
pared, designed by the artist with a musical name, Crescencia Zelenak.

“The presses will start in a few days," Antal Kiraly production director
for the Athenaeum Press, said. "The book will be in two volumes of 800
pages each on thin but long lasting Finish paper. No telephone book has
ever appeared in Hungary with such a swift press time; we will finish
160,000 copies in five months. The chief credit goes to the post office,
a few years ago they purchased abroad film transfer equipment which makes
superfluous the time-consuming composition. Transportation and storage
could cause problems, But we are prepared for this. For a while we will
store the finished books here in so-called stage form and when the Budapest
International Fair closes we will ship a thousand "stages" from here and
from our site on Kozma utca to a rented pavillion."

The new telephone book will be obtainable this fall. And the experts

promise that it will not be necessary to wait a decade for a new one
because we will receive fresh ones every three or four years,

8984
cso: 5500

34



USSR

PRACTICAL APPLICATIONS OF SOVIET COMSAT SYSTEM
Moscow VESTNIK SVYAZI in Russian No 4, Apr 78 pp 5-7

{Article by V. M. Tsirlin, Candidate for Technical Sciences, and V. P.
Dmitriyev, Candidate for Technical Sciences and staff member of NIIR
(Scientific Radio Research Institute): "Satellite Communications"]

[Text] Satellite communications offer a brilliant example
of a practical application of modern scientific achieve-
ment in space research for the needs of the national
economy. Within the Soviet Union, communications via
artificial earth satellites (ISZ) have long since gone be-
yond the scope of experimental research and have become a
powerful long distance communications medium which pro-
vides television broadcasting to our vast territories with
a population of many millions. "To provide for the broader
utilization of artificial earth satellites primarily to
supply television broadcasting to the regions of western
and eastern Siberia and for telephone-telegraph communica-
tions with remote areas of the country" ~- these lines were
written in the "Primary Development Trends For the National
Economy During 1976 - 1980" and represent the programmed
“activity of scientists, engineers and technicians in the
area of future development and introduction of this newest
mode of communications during the tenth. quinquennium.

Satellite communications, which originated only recently, are unthinkable
without the use of modern day achievements in electronics, especially in the
area of reliable and miniaturized components, noise free amplifiers, antenna
systems, computers, etc. Actually the power output of a satellite retrans-
mitter is approximately the same as a retransmitter on a radio relay line,
although the radio path distance is 1,000 times greater. The difference in
signal attenuation must be compensated for by the most complex technology
-- large sized antennae, noise free input units, etc.

The efficiency of the satellite systems is based on their high carrying
capacity which consists of hundreds and thousands of channels on a single

66



Table 1.

Post Office Personnel on 31 March 1976

seveeevevecees 237 693
seeeee 174 287

Telecommunications..
Postal Service....

Postal Money Orders. » 3 339
Data Processing... 4 446
Central Administration.... 4 230

420 665

The "Postal Service" Branch

We are going to talk about the "Postal Service" branch. As a matter of
fact, "Telecommunications" are very profitable. This year, telephone sub-
scribers will be given a refund in order to reduce the level of profits.
The problems come from the Postal Service, not only in the United Kingdom,
but in most other countries as well, notably in the United States and in
the Federal Republic of Germany. It is difficult to prevent deficits, but
in the course of last year (1976-1977) we have discovered a formula which
has enabled us to show a profit.

Organization -

The organization of our ‘Postal Service" branch is as follows:

- a national management comprised of a director general and specialized
directors (marketing, operations, mechanization and construction, personnel,
finance);

- a regional level: there.are 10 regions, among which that of London is the
largest and the most important. Each one is headed by a director, who is
accountable to the director general;

- local management units; there are approximately 180 of them, each of
which has been placed under the authority of a head postmaster. Each one
of them is responsible to his regional director.

There are numerous subordinate units in each main postal district.

For example, when I was head postmaster in Brimingham*, I controlled:

- a large mechanized body which handled 2.5 million letters a day;

- a large mechanized parcel sorting center which handled 750,000 parcels a
day;

- 20 distribution centers;

- 54 windows, which were the property of the national corporation;

- 420 secondary offices;

- a car pool with 520 transportation vehicles;

- 6500: employees;

* M.D. Loosemore ~

103



CONGO

SATELLITE TELECOMMUNICATIONS GROUND STATION OPENED
Brazzaville LA SEMAINE AFRICAINE in French 7 May 78 pp 6, 7, 16

[Excerpt] On Friday morning, 28 April, a satellite telecommunications
ground station was opened in Brazzaville, at a pleasant site away from

any radio interference. To reach it, one leaves National Highway 2 at kilo-
meter 17 to follow a road built expressly for that purpose that crosses the
Tsieme River over a specially built bridge.

It seemed to us that it would be of interest to all our readers--beyond the
solely Congolese interest of the event that we shall report--to go into
the technical aspects of a satellite telecommunications ground station.

In fact little by little our African countries are all going to be connected
to this telecommunications system. Gabon, Zaire, and Cameroon, to mention
only our immediate neighbors, already have their ground station, Chad's
station is under construction, and one is planned as well in the Central
African Empire (which had one temporarily at its disposal for the Bokassa I
coronation festivities).

The first part of our report will therefore be technical in nature. The
second part will deal with the dedication ceremony.

Questions of Waves

Up until a relatively short time ago, international telecommunications
traffic was routed by radio using decameter waves, that is to say, having
a length of several tens of meters--think in terms of the 16-m, 19-m, 25-m,
31-m, etc. bands of our radio receivers.

These short waves are peculiar in that they are reflected by layers of the
earth's upper atmosphere and return to earth, where they again bounce sky-
ward. After several successive ricochets between sky and earth, they may
reach receivers that the roundness of the earth completely shuts off from
the horizon of the transmitting station. In that way we receive the broad-
casts of Radio-France, the Voice of America, or Moscow.



Telephones--Density of principal telephone subscriptions per 100 inhabitants

Amiens

Rouen

’\Chalans

Dijon

nt

Ferrand ~~
Bordeaux ~ ae
Toulouse

moins de 12 Ensemble de ta provineg 13,2)
 entr Haute-Normandie 13,3 §
entre 12 et 13 Basse-Normandie 12:1
= ene ves Franche-Comté 10g 8
—— pus dots jourgogne 13.5,

1. Less than 12 5. Provinces as a whole: 13.2
2. Between 12 and 13 6. Upper Normandy: 13.3
3. Over 15 7. Lower Normandy: 12.1

8. Franche-Comte: 10.0
9. Burgundy: 13.5

86


COMPUTER MAINFRAMERS IN JAPAN

JAPAN

Tokyo INDUSTRIA in English Vol 8 No 5, May 78 pp 12-19

[Text]

Fujitsu Ltd.

Fujitsu has walked its own course
without relying upon foreign technol-
ogy, and now holds the position of the
top computer producer in Japan. Sales
earned by the computer business ac-
count for about 70 percent of its esti-
mated annual sales of ¥390,000 mil-
lion in fiscal 1977 which ended on
March 31, 1978. Nineteen percent of
computers installed in Japan by the
end of March, 1976, were of Fujitsu
models,

The company was established in
1935 as a telecommunications equip-
ment manufacturer. In the early stage,
it enjoyed brisk business, turning out
mainly telephone sets and telephone
exchanges, In 1954, it developed
Japan’s first electric computer,
FACOM 100, based on relay, Fujitsu
drew attention of concemed circles in
1961 when it introduced a transistor
type computer, FACOM 222, with the
largest processing capacity at that
time among the domestically made
computers,

The company’s computer produc-
tion got into gear in 1964 when it an-

nounced FACOM 230-30. This model
was the first machine of FACOM
Series 230, the mainstay of Fujitsu
computers, As general purpose com-
puters, more than 10 types of FACOM
Series 230 machines were marketed,
ranging from small to medium and
large scales, Above all, FACOM 230
“8” Series computers (large- and
medium-scales) are popular among
users, Since their introduction in
1973, the company received orders for
more than 2,060 such units.

In 1974, Fujitsu developed large-
scale computers, “M” Series, jointly
with Hitachi, Ltd., under the guidance
of the Ministry of International Trade
and Industry, to compete with IBM’s
370 Series. The company has so far
developed various types of ‘““M” Series
computers of which FACOM M-190
corresponds to IBM’s 3033 and M-200,
the latest model, exceeds them in
terms of processing capacity.

The “M” Series computers feature
advanced LSI technology, including
600 gates/chip logic circuits and
16,000 bit/chip main storage, and ad-
vanced architectural functions such as
distributed processors and channel
DAT. It was the first attempt for a
computer producer to employ LSIs for
its computers,



CONTENTS (Continued)

Briefs
New Television, Radio Station

WESTERN EUROPE
FRANCE

PIT's 1976 Activities, Finances Reviewed
(REVUE DES PTT DE FRANCE, No 1, 1978) csccececceccece

SWITZERLAND

. Swiss Participation in Weather Satellite Planned .
(NEUE ZUERCHER ZEITUNG, 10 May 78) cescecsccenceccece

UNITED KINGDOM
Business Policy, Organization of Post Office Detailed

(K. Gowen, D. Loosemore; REVUE DES PIT DE FRANCE,

No 1, 1978) seccscceccecccsecccccrccecccecccscconsees

Page

70

71

99

101



electronics production because it is a product that opens new opportunities
to all economic and social activities.

At a time in SR Slovenia when we are intensively concentrating on achieving
the concept of our planned information processing and computational system
it is appropriate to ensure society's cost effectiveness in all areas by
coordinated action and at the same time achieve compatibility of the entire
system. Accelerated development of communications traffic and the profes-
sional electronics industry, ihcluding production of data processing equip-
ment, is certainly the foundation on which we are basing one of the most
important development principles which will in future years ensure the
greatest possible participation of domestic expertise in the joint Yugoslav
projects," said Zvone Dragan.

Efficient Production of Computers

"In the agreement on the foundations of the 1976-1980 social plan for SR
Slovenia SOZD Iskra assumed the specific obligation of mastering the produc-
tion of computer hardware, At the same time it set as its goal to develop
its capability for providing service to users of all kinds and sizes with a
full spectrum of complete data-processing systems including both hardware

and software. If SOZD Iskra with its telephone exchanges of Metaconta 10-C
type demonstrated its ability in mastering the most intricate technological
processes we can consider the year 1977 in which the contract on cooperation
in business and technology and on acquisition of production rights was signed
with the American firm Control Data Corp as the beginning of a new era in
the technological development of Iskra.

Iskra decided on a partner whose equipment has been installed and tested in
the republic computer center which represents practical assurance of its
effectiveness primarily because it makes possible a rational and flexible
buildup of society's information-processing system with, of course, substan-
tial investment of domestic labor and know-how. This is why we feel that
any duplication of computer production and promotion in SR Slovenia based on
trade relations and domestic assembly, particularly if it were without sig-
nificant contributions of domestic know-how would be inefficient from
society's point of view and hence unnecessary.

Development That Also Represents a Firm Foundation for a Modern Telephone
Network

Production of computer hardware is, accordingly, one of the important deve-
lopment objectives. Therefore we expect that a program involving estab-
lished research institutions such as the Jozef Stefan Institute and the
Electrical Engineering Faculty will lead to integrated domestic production
of hardware and software for data processing and business information sys~
tems which will be the starting point for the development of an information
and computer network interconnected with remote terminals, that is, a
network in which modern communications are assuming an exceedingly important
role and place. Communications network, data-processing equipment, and

41



POSTAL TRAFFIC

Categories of items * m Variations
(in millions of items) 1975 1976 1976/1995
in 4.

Paid traffic

Letters up to 20 gms and special

delivery postcards...... seeeeeeeeee 3,576.6 3,610.6 + 0.95
Letters over 20 gms..... seneee 453.4 447 63 - 1.27
Registered letters................. 88.0 88.9 + 1.04
Ordinary letters at regular rates., 1,775.1 2,009.3 413.19
Ordinary ‘letters at special rates** 1,067.1 1,056.8 - 0.97
Periodicals........ seeeeees 2,195.0 2,186.1 - 0.4
Ordinary nonurgent parcels......... 174.4 179.2 + 2.75
Ordinary special delivery parcels.. 41.2 40.24 - 2.33
Registered parcels..........ccceeee 38.6 39.7 + 2.85
Items of declared value............ 2.9 3.03 + 4,48
Total..... Sheer ee eee e eee sees sees 9,410.3 9,659.50 « 2.65
Official and franked mail

Ordinary letters up to 20 gms...... 1,756.9 1,831.4 44.24
Ordinary letters over 20 gms....... 175.6 197.04 412.21
Ordinary parcels........ o 25.3 37.8 + 9.88
Insured and registered mail........ 58.1 62.47 4+ °7.52
Total... tence eee ee eeeeeeeee 2,015.9 2,118.71 + 5.1

*Including overseas departments
Not including printed matter or catalogues not addressed to specific indi-
viduals: 506.7 million in 1976

Traffic

The traffic, which increased by 3.08 percent as opposed to that of 1975 may be
estimated at 12.3 million items carried,

Delivery ,
Motorization and Centralization of Postal Delivery to Addressees

In 1976, 731 motorized rounds (340 urban and 391 rural) and 12 motorized dis-
tribution centers were put into service.

72


Again in 1976, 2.6 million shares (-29.4 percent) were redeemed in the amount
of 4.1 billion francs (-22.9 percent).

The increase in transactions was attributable to the issuance of bonds with
gradually mounting interest rates.

Loans
Two PTT loans were issued in April and November 1976.

The PTT's cashiers also took in 1,548 million francs in subscriptions out of
an over-all total of 1,749 million francs.

Equipment

Buildings

As of 31 December 1976 the number of business premises "managed" by the
postal and financial divisions came to 16,490 of which 4,208 state-owned and
comparable business premises and 12,282 premises rented or provided rent free,
Program permits for 1976 amounted to 310 million francs for post office build-
ings, administrative offices and warehouses, and to 202.5. million francs for
the implementation of the mail sorting centers building program. [See p 12]

Transport

As of 1 January 1976 and 31 December 1976, the inventory of vehicles available
to the postal and financial divisions consisted of the following

No of Vehicles Growth in No of Vehicles Percentage
1 January 1976 1976 31 December 1976 1976/1975
Light vans 26,568 + 890 27,458
Other vehicles 3,528 + 300 3,828
Total No of Cars* 30,096 +1,190 31,286" +3.95
MotorcyclesTM 4,253 + 230 4,483"* +5.40
Trailers 7 17 =

*Including 29,417 light vehicles of which 27,288 light vans assigned to the
delivery and collection of mail, 1,899 vehicles for carrying telegrams and
postmen, 68 vehicles for personnel transport (connecting vehicles and buses)
and-17 traveling post offices.

**Intended particularly for the telegram delivery service.

As for the program permits granted under the financial law of 1976, they are
as follows:

81



JPRS 71289

13 June 1978

TRANSLATIONS ON TELECOMMUNICATIONS POLICY,
RESEARCH AND DEVELOPMENT

No, 40

DISTRIBUTION STATEMENT A

roved for Public Rete;
Distribution Unlimited

Reproduced From |
Best Available Copy |

la
|
|
|
|
i

“20000621 002

US. JOINT PUBLICATIONS RESEARCH SERVICE

‘REPRODUCED BY

NATIONAL TECHNICAL
INFORMATION SERVICE

| U.S. DEPARTMENT OF COMMERCE

SPRINGFIELD, VA. 22161 DTC QUALITY IngPECYED 4

zt



distribution is at 0700 hours for the first delivery and at 0930 hours for
the last (0915 hours in London). Eighty-two percent of the letters are
delivered during the first distribution. There isa daily parcel post de-
livery, Monday through Saturday, and we guarantee delivery everywhere.

Financial Questions -

At the time when the national corporation was established, the objective set
for the postal service was to yield 2 percent of the total amount of the
expenditures. It should be remembered that there is no system of subsidy
among the four’ branches which make up the present Post Office. There would
be neither financial discipline nor any stimulation in the area of manage-
ment if one of the branches could count on subsidies. Thus, the postal
service can only count on itself.

During the first years of the existence of the national corporation, we did
not have the commercial freedom we had expected. To avoid showing a deficit,
any enterprise must be able to decide on the economic price of the product
or service it supplies. In the beginning we did not. have that freedom,
pecause the government was trying to control inflation and. to slow down the
cost of living increase. We were prevented from invoicing an economic price
for our services at a time when emoluments for our personnel were rising
very rapidly.

Under those circumstances, we could not hope to carry out our activities
with a profit and our losses had to be compensated by the taxpayer. Table 5
shows the unfavorable evolution of this situation.

Table 5.

Financial Results of the Postal Services (in millions: afb)

1971-1972 1972-1973 1973-1974 1974-1975 1975-1976

Receipts..seeeee 515.5 559.7 630.3 770.8 1088.6
Expenditures... 528.1 602.2 687.8 880.0 1097.8
LOSSssseeeeeonee 12.6 42.5 5765 109.2 9.2

In millions of

francs 106.4 357.9 484.2 919.5 7765

Later on, in 1975, the government altered its policy. We were asked to
limit our deficit to a maximum of & 70 million (590 million francs) for
1975-1976 and to produce a profit as of 1976-1977. At the same time we were
given greater freedom in matters of rate structure. You may note that for
the year 1975-1976 we brought our deficit down to & 9.2 million (77.5 million
francs), which was totally within the limits of the 70 million set by the
government. Last year (1976-1977), we made a profit of b 24.3 million

(205 million francs).

107



CONTENTS (Continued)
ROMANIA

Electronics Expert Discusses TV Transmission by Satellite
(Alexandru Spataru Interview; VIATA STUDENTEASCA,

22 Mar 78) ccccccccccccccccncccccnccscccncccsccncssces

YUGOSLAVIA

New International Telephone Exchange Opened in Ljubljana
(DELO, 26 Apr 78) scacccccecccccacccccccccccccnccsceee

Metaconta 10-C Automatic Exchange in Operation,
by Ilija Bregar
Dedication Speech by Zvone Dragan
Metaconta 10-C Operating Details
SUB-SAHARAN AFRICA

CONGO

Satellite Telecommunications Ground Station Opened
(LA SEMAINE AFRICAINE, 7 May 78) cecscccccccccccccccce

GHANA

Briefs
Pan African Telecommunications

SOUTH AFRICA

Computer Industry Developments, Future Detailed
(SUNDAY TIMES, 21 May 78) .scccccccccccccccccccccccces

Competitive Market, by Peter Godsell
Staff Shortage
Sanctions Ineffective

Briefs
Record Sales for ICL

USSR

Current Broadcasting Developments and Goals Discussed
(Ye. Ye. Dobrovol!skiy; VESTNIK SVYAZI, Apr 78) ....6-

Practical Applications of Soviet Comsat System
(V. M. Tsirlin, V. P. Dmitriyev; VESTNIK SVYAZI,

APL 78) secccccccccccccccccccccccccscaccccessscccccccs

-~b-

Page

35

39

46

50

51

55

56

66



The postal service no longer needs to be a burden on the taxpayers in our
country. It must function as a commercial enterprise, without a loss,

To increase the rates is not an easy matter to accomplish. We have to per-
suade various bodies, such as the National Council of Post Office Customers,
the Department of Prices and Consumer Protection and the Department of
Industry, of the soundness of our cause. All of this takes a great deal

of time. The transformation of the financial results of the postal service
from a deficit to a profit in the space of 2 years ~~ and 2 years of galoping
inflation -- has been practically a miracle. Rate increases have, only been
part of the success formula used.

What Other Important Factors Intervened?-

The capacity of the leaders to respond to the challenge presented to them
constituted a vital element. The results achieved were satisfactory because
work relationships in the postal service branch are excellent and because
the unions have supported the savings campaign on the condition that reduc-
tions are carried out at all levels, in the central administration, in the
regions, among the cadres as well as among the employees. The amount of
savings thus realized during the last 2 years reached b 55 million (463
million francs) and new savings on the order of & 24 million (202 million
francs) will be achieved in 1977-1978. There is a general desire to respond
to the government's firm injunction to bring the postal service to a finan-
cial situation showing a surplus. The unions accepted the fact that acce-
lerated methods had to be used to adjust the manpower to the volume.

There were two rate increases in 1975, while we were moving toward more
economical prices. Such increases always entail a reduction in volume,
because the depositors try to maintain the level of their expenditures.
But this time, the drop in volume was less than it might have been, due to
the enormous efforts made by our colleagues in the new marketing division
to retain old clients as well as to attract new ones. This marketing effort
has played an important role in that it has contributed to strengthening
the collaboration of the unions and to maintaining good morale. The per-
sonnel could see that we were acting in a very positive manner in order to
attract as much volume as possible. Therefore they gave us their support
in accepting the other unpopular measures we had to take.

The most important of these measures was a reappraisal of the services in
order to determine where savings could reasonably be made.

We decided on several changes which would allow savings of & 13.4 million
(1412.8 million frances), notably:

- no pick up rounds on Sundays;

- no pick up rounds on legal holidays;

- no pick up rounds on 27 December;

- no late pick up rounds (2000 to 2030 hours);

- no shipping of parcel post on Saturdays;

108


These are neither recorded nor collected for 124 radio telephones in
Kurdzhali, and for 5 at the RSS [expansion unknown] in Kostenets; no fees
are collected in Blagoevgrad for a radio system with 74 speakers.

No regular and full records are kept on temporary radio broadcasting instal-
lations in Vidin, the Kostenets RSS, and elsewhere. This has been the reason
for improper billing and loss of revenue. In Kostenets alone fees for six
temporary radio broadcasting installations were not levied.

By the fault of Ginka Georgieva, accountant at the Vidin-Center Post Tele-
graph and Telephone station the proper fees for 33 television sets and 18
radio sets were not collected even though the commercial organization sent
a copy of the sale and purchase receipt.

A number of examples could be cited of erroneous billing for services. The
conclusion, nevertheless, is one: The weaknesses are caused by the respec~
tive officials and as a result of insufficient control on the part of the
proper services of the okrug communications administrations.

All this indicates that the successful implementation of the party's deci-
sions on high effectiveness and quality of services largely depends on the
subjective factor. The main thing now is to involve every worker and
specialist in the field of communications in the implementation of the 1978
counterplan through out work, creative attitude toward the solution of daily
problems, rapid elimination of work weaknesses, and extensive utilization of
leading experience of innovators.and labor champions.

This will be our greatest contribution to the building of a developed social-
ist society.

5003
cso: 5500

29


Over-All Accounts
Analysis of Accounts

The PIT enterprise's turnover for 1976 increased by 21.4 percent by compari-
son with the preceding year. Operational proceeds were affected by the gen-
eral situation of the French economy and if expansion remained fairly strong
during the first 6 months, circumstances became less favorable in the course
of the second 6 months.

Operational proceeds amounting to 2,089 million appear to be clearly more
favorable from the over-all standpoint than those obtained in 1975 (+778
million), but they mask the differences exposed by a sectorial presentation.
The mails recorded losses both in their postal activities (491 million) and
in their financial operations (1,393 million), while telecommunications
showed profits never previously attained of 3,973 million francs.

As for equipment, it was telecommunications which had a more sizable budget
at their disposal; they were provided 9.8 billion from budgetary credits and
4.9 billion from the various financing firms, the most recently created,
Francetel, contributing on its own at the level of 2.4 billion francs.

The value of capitalized holdings when amortizement and depreciation are
taken into account exceed the figure of 53.6 billion francs as compared with
41.6 billion at the end of 1975, that is, an increase of nearly 30 percent,
As for stock, it comes close to 4 billion francs.

Finally, the PTT's primary role in the banking sphere must be emphasized. The
clientele of post office accounts numbers 7,225,000 holders and their 95 bil-
lion franc assets include the assets of the public accountants (38.4 billion)
and those of other holders (57.3 billion) on the basis of which are calcu-
lated the payments disbursed by the treasury to the PTT management for utili-
zation of the funds on deposit. The postal savings bank had 14,997,600
accounts and recorded deposits on the order of 105 billion francs.

Operations
Receipts

Total proceeds came to 45,960 million francs and included the operational re-
turns stricto sensu whose growth was a result of the increase in traffic,

moderate with respect to the postal and financial divisions and higher where
telecommunications and rate readjustments were concerned. They also included
the financial returns, the greater part of which derived from the revenue of
the CNE's portfolio and from the interest paid by the treasury for the funds
placed at its disposal by the postal banking service. Finally, the services
which the three main divisions rendered each other amounted to 3,798 million
and represented the post office's costs for routing all the mail entrusted to
it, the issuing and paying of money orders, telephone and telegraph operations.

88


Telecommunications

Telecommunication activities in 1976 can be characterized by two facets:
Continued efforts to improve the quality of service, especially in the areas
of the flow of traffic and automation of the service provided telephone sub-
scribers;

Speeding up of the rate at which [new] subscribers' telephones are connected.

Traffic

Domestic and international traffic increased by 15.4 percent in contrast to
13.3 percent in 1975.

As for Telex traffic (domestic and international), it rose by 10.7 percent as
opposed to 7 percent in 1975.

Telephones--Rate of Automation by Regions (in percentages)

5

aeeee

. moins de 95! Ensemble de ta province 96.2
—— 95.100 Bosse Normandie 986
= 10 suaascesise*
1. Less than 95 4. Provinces as a whole: 96.2 Upper Normandy: 95.9
2. 95 to 100 Franche-Comte: 86.4 Lower Normandy: 95.6
3. 100 Burgundy: 84.9

83



expand until the beginning of World
War Il when the company had to
suspend operations. But business was

resumed in 1949 under the name of
Japan Inteinational Business Machines

Corp. wih headquarters in Tokyo.
The present IBM Japan name was
adopted in 1959 and IBM World Trade
Com. iwleased technology to IBM
Japan the following year, The ensuing
yearehave seen IBM Japan grow from
66 erspivyees to the present number
of overt 11,530 at the end of 1977.
inM Corp. has been doing business
uy the Americas and the Far East for
¢ than 5O years, For example, the
.empany began operations in Canada
and Brazil in 1927, the Philippines in
1920, Japan in 1925 and Mexico in
1927, Practically all of IBM’s employ-
ees are nationals of the countries in
whxh they work. This has been a long
standing practice and helps to keep
IBM attuned to local requirements and
assures ‘representation of national
views in the decision-making process.
IBM Japan has had to face very few
Problems with its personnel as one

» might expect of a foreign-owned
company operating in Japan with
Japanese management.

The success of IBM in Japan and
other foreign countries can be attrib-
uted to the fact that the company
regards itself as a member of the
society and dedicates its resources to
many projects for the benefit of the
communities where it serves. The
company has been instrumental in
helping many Japanese organizations
increase their productivity and con-
duct their operations in a modern and
more efficient manner. Its customers
cover a broad spectrum of Japan’s
financial, business, industrial and edu-
cational organizations and they can be
found in such fields as agriculture,
communications, public _utilities,
publishing, shipbuilding, storage and

IL

transport. And hospitals, universities,
tesearch and scientific institutions, as
well as government agencies, use IBM
systems.

IBM Japan is involved in practically
all of Japan’s economy by creating a
substantial amount of business for
over 600 Japanese manufacturers who
supply the company with parts for
manufacturing a wide variety of equip-
ment and machines used for social
projects, medical research, education
and environmental protection.

An IBM spokesman points out that
the growth in volume of IBM business
reflects the fact that information is
increasingly being put to work for the
benefit of people. Information tech-
nology is spreading from office to
factory, from the research laboratory
to the local store. And all of IBM's
products in some way are involved in
the handling of information-gathering,
storing, processing and distributing it,
and IBM Japan plans to continue to
expand the capabilities of its products
so that customers can use them to do
more things for more people the world
over.

Additional products are always
being developed for future growth in
IBM laboratories, and the newest tech-
nology will continue to reduce the size
and cost of product components. And
this will provide better performance at
lower cost and, in turn, make possible
many new applications that will make
market expansion for IBM products,

There was a time when customers
used IBM products for only a few
information handling tasks such as
inventory and payroll scientific study
which were out of public sight. But
today, information technology in
some form is visible almost every-
where. It is touching people’s lives
directly in that it provides ease in



Staff Shortage

Johannesburg SUNDAY TIMES in English 21 May 78 p 7

[Text]

SOUTH AFRICA’S computer staff shortage shows no sign
of ending and only an intensive commitment to staff
training and productivity holds any hope of easing it.

That is the warning from Computer personnel of
Johannesburg, the country’s bigest computer staff selec-
tion consultancy.

“The continuing shortage has hamstrung the computer
industry's growth in South Africa, has pushed computer
staff salaries to a point where an investment in data

rocessing has become expensive for many companies and
fis emphasised the need to train and re-train the indus-
try’s people,” says CPL Director Don Gray.

The current shortage in an industry employing more
than 11 000 people is estimated at close to 2 000.

And because of it, Mr Gray points out, the growth of
the industry so far has been just a fraction of its real
potential. -

The continuing development of mini-computer and
micro-computer hardware, and the reduced cost that its
development brings, promises to put computer power
eventually within the reach of even the smallest compan-
ies.

At the same time, the computer's ability to provide
business management with more and more low-cost infor-
mation is as much in demand by companies who want to
capitalise on their success as it is by ailing companies
which want to cure their ills.

Yet, while the industry can readily acquire all the
hardware it wants, it lacks the people it to produce
the software to go with it.

As the industry continues to develop — however
hampered it may be — its staff needs are expect to
distinct y are expected to split

omputer people with an. appreciation of business
strategies will heed to concentrate their talents on
manipulating that ability to the optimum benefit of the com-
pany using it.

. “Companies,” Mr Gray warns, ‘‘must not only devote
a big share of their computer budget to staff training, but
give attention to the professiona management of those

‘ainees.
_ “Shortages will keep pushing salaries up. Data process-

ing will remain nsive. And the chan f i
wh wil rogimain expe ices of its growth

tal ioe immediate need is for, the industry to use the
lent its people as productively as ible,” M
Gray. “‘It can ill-afford anything less.” Poss says Mr

53



uoTzZeN ION Aueotspustsuly,

- O9Z- OES - Oz soueTeg WTpet9
errt Tsy'T LI9‘y¥l 9ETSET Teq0L TereueD =— LT wve°%  BYISST 906°2T TeqIOL Ter98UEed
48280
- SLE- 09 sey -ord [wuoTydeoxg {PUP Tensnun ue
4Ste0h [RTO Jo zo saeak [eto
-ueuTy snotAsiad -ueUuTy snotaead
- 46 - 8@- 69 worz Speecd0rg - TII- @Z 6€- UT Seanjtpuedxy
GST+  €S6°T+ S8S‘°71 ZE9*ZI SuoTavatedo TeI0L S°OT Tel’z 940°ST $%76°ZT suotjzeredo [eR0]
- LEE+ E9Y 901 speesoid 10430
aoTares
s*eIt+ 8zr+ L6S‘E 691SE T}ew eoTzzor|qUT - - T T 481809 12430
spsa0 BOTA
-oad uotqezedo Zieh 9” OST 701 “19s [Tew soTFJOASqAUT
9°69- 8ZI- 9S 181 Teqsod snotzeA ole TL 00€ 67Z quewezTII0Wy
[rew [eto Z'°Z1 6S YS 637 sqsoo [eToueuTy
Lyt £9 007‘T Lee‘ -TFFO powers sqs00
yseo GL Z OOT £6 quaweseuew snoTreA
Z6l+ = TE6 + EBLSS 758% ul pred se8zeyD s'ot 06 876 Bos yeaerq pue qszodsueazy
souta setiddns pue seo
S'Ol+ zee + 90E.E 786°Z -n3Tz JO e1es 6°11 LOT zoO‘T S68 -TAIOS epTs3no ‘syz0M
ispeoo lez 6S TE SZ sexe] pue sojey
-o1d [euoTjeiedo 6°9T z69°T LIL*TL $z0‘OT $3s09 JeuUOsreg
ase oun ese
-quUe0zZeg = sUNTOA
-qusc1eg =-TOA
SuOTIETAEA 9461 9 SLOT adéq, SUOTIETAEA 9161 SLOT ad4y
(Soueay JO SUOT] {TW UT UeATS squnoue) aoTAies [esog

95



Postal Service os

Postal Transport

Air Transport

By 31 December 1976 the air mail fleet consisted of 15 F-27 Fokkers and four
C-160 Transalls. Within the framework of the action plan aimed at improving

the quality of the routing service, the agency had a study made to reorganize
the air mail postal network which at the present time includes 20 stops.

Growth of Air Mail Activities

Year Number of Tons Carried Number of Kilometers Number of Flying
Covered Hours

1974 38,928 4,503,156 16,282

1975 42,750 4,859,203 17,142

1976 45,920 4,849,189 16,987

Rail Transport

The administration has sought out autonomous means of transport responsive to
the concern for rapid connections between the towns that are the headquarters
of automatic sorting centers. With this in mind, mail trains were put into
service in September 1976 on the Paris-Bordeaux, Paris-Toulouse and Paris-
Lille lines.

Within the framework of modernizing the sorting and routing services, it was
decided to acquire multiple unit Diesel trains. Two of them will be in use
by the end of 1978 on the Paris-Caen run.

The putting into service of 59 new 26.50 meter long postal service cars in
1976 must also be noted.

Road Transport
In 1976, 43 new connecting roads built under contract were provided. In ad-

dition, parcel post shipments in containers of the new Container Company were
extended to 18 connecting points between the parcel handling centers.

14


ROMANIA

ELECTRONICS EXPERT DISCUSSES TV TRANSMISSION BY SATELLITE
Bucharest VIATA STUDENTEASCA in Romanian No 12, 22 Mar 78 p12

/interview with Prof Dr Eng Alexandru Spataru, head of the Applied Electronics
Department, Faculty of Electronics and Telecommunications, Bucharest Polytech-
nical Institute, by Dinu Flamand7

[Text7 /Question/ I know you played the decisive part in building our first
Black and white TV station, and so to begin with will you please say a few
words about those pioneer times?

[fnswer] In the 1950's I was the technical director in the Ministry of Posts
and Telecommnications, when I officially recommended the introduction of TV
in Romania. You mst know that the idea met with serious objections. There
were other more important considerations and priority investments for the Ro-
manian economy at the time. There were shortages of clothing, footwear and
foodstuffs. Who should worry about TV? But in the meantime I left the tech-
nical directorate and founded a research laboratory, also in the ministry.
Without anyone's knowledge I and a few enthusiastic young collaborators built
the first TV station in Romania outside working hours, using largely improvised
equipment. This station operated experimentally in Bucharest for almost a year
for the few TV sets in existence at the time, but it hardly demonstrated how
effective TV can be from the standpoints of propaganda and information. When
TV was approved, we were all astonished by the fantastic rate at which the num-
ber of TV sets increased, namely 10 times that of radio sales. Our laboratory
then gave up some of its equipment, which was shipped to the mountains to reach
Moldavia.

[Question] When did your efforts on behalf of color TV begin?

/inswer7 At about the same time. The first studies and experiments on subas-
Semblies were made in 1955, in the course of some doctoral programs I was sup-
ervising. Later on the Bucharest Polytechnical Institute specially formed a
research collective to work on this problem, and the needed equipment for the
first telecasts in color was made there.

Juestion/ I know there are several color TV systems in the world. Which one
Of them do you prefer?

35



(even so, the deficit was enormous...) For example, the retransmission

of a soccer match directly from Europe or America is obviously very expen-
sive. But if. this match is made available on a delayed basis (for example,
if the match is retelevised the next day), the cost is lower. It is, in
fact, proportional to the number of television sets in the rebroadcasting
country.

For the moment, the Moungouni ground station provides direct telephone
connections (telegraph, telex) with France, the Ivory Coast, and Gabon,
and indirect connections, by appropriate relay system, with the rest of
the world. But other direct communications will be opened later.

The Congo can receive all telecasts relayed by satellites situated above
the Atlantic, and therefore telecasts from Africa, Europe, and America.
Later there will be a connection with satellites covering the Indian Ocean
(and therefore Asia).

Who Financed the Ground Station?

In June 1975 President Joachim Yhomby-Opango, then minister of national
defense as well as post office and telecommunications, had opened negotia—
tions with France for the financing of a ground station project. These
negotiations proved successful. France granted (through the Aid and Coop-
eration Fund and the Central Fund for Economic Cooperation) loans at
advantageous rates of interest, repayable in 13 years. It was in that way
that it was possible to find the Fr 2.5 billion CFA {African Financial
Community] that the ground station cost.

The station was built through a "keys-in-hand" order placed with the French
economic interest group TELSPACE. In France there are two large companies
that make electronic equipment--the CGE [French General Electric Company]
and Thomson CSF.

To compete with the American giants and against the monopoly of the two
heavyweights in the space telecommunications domain, the CEG and Thomson

CSF together formed an "economic interest group" which took the name TELSPACE,
with each one holding 50 percent of the capital.

TELSPACE has become the most important company in Europe in accomplishments.
Thomson CSF has a great deal of experience in the domain of electronic
components and complete equipment. Such equipment, highly diversified

and of high engineering quality, includes radio and television transmitters
in particular. Iran, Chile, Tunisia, Algeria, Morocco, Gabon, Zaire, the
Congo, and undoubtedly many others use Thomson CSF television equipment.

The main equipment of the Moungouni ground station comes from CIT-Alcatel
and Alsthom-Neyrtec in addition to Thomson CSF.

The official opening of the ground station took place on Friday, 28 April,
at 1000 hours. “The Congolese chief of state, whose role in the birth of

47


range to cover the small
computer market.

@ Subsidiaries of interna-
tional companies which spe-
cialise in minis.

@ Primarily South African
companies which have ob-
tained franchises or multi-
ple franchises for comput:
ers of overseas origin. The
biggest portion by far of the
mini-computer market is
held by supplying compan-
ies in this category.

In addition, in the past
year, a local manufacture
/assembly industry has be-
gun to develop in the Re
public, spearheaded by the

lessina (Electronic) De-
velopment Company.

le trend towards small-
er and cheaper computers
continues relentlessly. In
the past decade, the costs of
the electronic components
of computer equipment
have plummeted as a result
of mass production and of
miniaturisation.

This trend has created
substantial new opportuni-
ties for the industry by way
of an expanding market of
increasingly smaller. user
companies, as well as the
geographic distribution of
small computers in big or-
ganisations.

It has, however, also at-
tracted to the industry the
very serious problem of
how the support demands of
this bigger market can be

__met economically.

The so-called ‘‘mini-mar- «

ket" was originally devel-
oped by the smaller com-
puter companies which spe-
cialised in terminals and,
growing out of that, mini
computer systems. These
companies enjoyed phenom-
enal growth in the early
years when there was rela-
tively little competition
from ‘‘the biggies’’.

However, in the past two
years, the international
mainframe suppliers have
begun to move into the mini
market with a vengeance.
New products such as the
IBM System 32/34, the Bur-
roughs B80/B800 and the
NCR 8100/8200 have been a

declaration of war by the

big companies. With about
30 suppliers involved in the
struggle for the custom of

: small computer users, this
' will be a war of many bat-

tles.

In the past year, certain
trends have manifestea

-themselves:

@A far greater proportion
of computer users are seek-
ing competitive quotations
from a number of suppliers
before deciding on the pur-
chase of new. equipment.
Hence the competition per
deal is increasing.

@The variation between
prices for comparable sys-
tems from different suppli-
ers has decreased dramati-
cally. Both suppliers and
customers are becoming ex-
tremely price conscious.

of these are merely
indications of the commer-
cial war that is being waged
for the small computer
market.

“Why this market in par-
ticular?

Market research overseas
by organisations such as
Pedder Associates, as well
as research being done by
Leonard Fine Associates, is
highlighting the fact that
both here and abroad the
growth of the mainframe
computer market is begin-
ning to slow down.

On the other hand, the
market for small computer
systems is still in a product
establishment phase and is
enjoying an extremely high
growth rate. Apart from the

52

services market, the ter-
minal/small computer sys-
tems will provide the fas-
test growing segment of the
computer industry in the

- Next few years.

With such a big and grow-
ing market there must cer-
tainly be room for many sup-

liers, but with the hij
level of competitive activity
one wonders whether all the
competitors can survive.

What of the future?

Many people in the indus-
try are prognosticating a
slow-down in the rapid
change of hardware technol-

. However, there is little
fidence to support this be-
lef.

Should this slow-down
happen, it would certainly
be a blessing to the indus-
try, because it would pro-
vide a period of stabilisation
during which some of the
real problems could be at-
tend .

Although the cost of

equipment has continued to
decrease, the costs of
ple-intensive support activi-
ties (such as programming
and equipment mainte-
nance) have escalated with
inflation. Thus, the ratio be-
tween cost of services and
cost of the actual equi
ment is getting increasingly
wider.

A great deal will be need-
ed to either solve this prob-
lem or re-orientate the
marketing and pricing poli-
cies of the computer supply-
ing companies.

When you buy a box of
razor blades you are often
given a razor free of charge;
perhaps one day you will buy
a set of computer program-
mes and a service contract
and the actual computer will
be thrown in as an
afterthought!


this station we have mentioned, was obviously present in person. Gen
Yhomby-Opango was accompanied by the two vice presidentsof the CMP, Col
Denis Sassou-Nguesso and Col Louis-Sylvain Goma. Major Raymond Ngollo,
the chief of staff, was at the ceremony, as, of course, was Minister of
Information and Post Office and Telecommunications Capt Celestin Goma~
Foutou,.

As always on such occasions, there were many speeches-~by Jean-Gabriel
Okeli, director of INTELCO; by Mr Ducros, on behalf of TELSPACE; by
Bertrand Dufourcq, the French ambassador; and by Capt Celestin Goma-Foutou,
minister of information and post office and telecommunications.

We have selected two passages from the address by the minister of post
office and telecommunications that seem to us to sum up very well the two
aspects, policy and economics, of the opening of the ground station:

"With the improvement in international communications between the Congo and
the other countries of the INTELSAT network, cooperation is going to be
strengthened, for a country or a region where communications are easy
attracts more enterprises and investments than a country or a region which
has none. What is true for the foreign investor is also true for the
national investor, who will be able to overcome distance thanks to the ease
of communications.

"The ground station should not be viewed as an instrument aimed essentially
at Europe or the other continents. It is also a tool that will increase
our cooperation with the other African countries which in spite of being
closer to us were alien because of the preference that'was shown for our
ties with our former colonial powers. In fact, it is not frequently true
that mail takes more time to. travel 300 kilometers in the country than to
go 6,000 km between our African capitals and any European provincial city?"

(2.2)

"In fact the acquisition and putting in operation of telecommunications
equipment requires large investments, and the payment and especially
liquidation of these investments within a reasonable time is the only hope
of survival of the investing enterprise." (...)

"Now, what purpose would be served by the heavy financial sacrifices that
the department of post office and telecommunications is agreeing to make
if the benefits and services rendered to the users were not paid back in
just measure?

"That is why I should like to take this solemn occasion to appeal to the
professional consciousness of the INTELCO workers, on the one hand, and
on the other hand to the magnanimous and militant understanding of all
officials of the public and financial services with regard to the need
for doing everything to see to it that the bills for telephone charges are
honored."

48



Post Office Checking Accounts--Monetary assets in France (as of 31 December)
in millions of francs*

*[GHEQUES POSTAUX Disponibilités
lmonétaires en France (au 31 décembre)
jen millions de francs

1500 000 465 230)

-”
90.000, oy
1300 000. La

¢

=~ 703200]

200 000 Pm
ra
. ¢
100000
55.940

20.000
fech. jog

sponibilités monetaires
avoe

ns les banques
heques postaux

. Total monetary assets available
Total deposits payable on demand
Bank deposits payable on demand
Postal Savings Bank deposits payable on demand

PUNE

Post Office Bank Accounts

The increase in traffic noted in 1976 (+3.6 percent) was accompanied on the
part of the post office bank accounts by an over-all growth in deposits pay-
able on demand (16.1 percent as compared with 15.8 percent in 1975) and in
the number of accounts. Thus, on 31 December 1976, the number of current ac-
counts numbered 7,225,000 as opposed to 7,165,000 in 1975, or +0.8 percent.
The total amount of operations (4,916 billion francs) increased by only 12
percent in contrast to 30 percent in 1975.

77



| Telephone

in thousands

16 000

¢ 15 554
l14 000 )

12 000, 4

10.000 ¢

[000 6 ee2i7

7164
{6000 ; > ai

4292
lo

Increase from 1967 to 31 December 1976

Telephone

Increase from 1967 to 1976 of
total proceeds from outgoing
traffic (expressed in millions
of basic rates)

ay DAD AN AV Ad 4b 40 40
FP PLS SSS So

= = = nombre de postes de toute nature »
sm nomore dadcinements omcpaux 2
nombre d'sbonnierments supplementaires

—o
smemmen nombre de deppandes dabonnements nouveaux
en instance

Number of telephones of every
kind

Number of principal subscriptions
Number of supplementary subscrip-

tions
Number of applications for new
subscriptions in process

87



experts represent a triangle in which we wish and must resolve numerous
developmental questions," said, among other things, Zvone Dragan at the
dedication of the international telephone exchange.

Metaconta 10-C Operating Details
Ljubljana DELO in Slovenian 26 Apr 78 p 11

[Text] Introducing Automatic International Toll Telephone Communications
in Slovenia

After the new international and transit telephone exchange in Ljubljana has
been put in operation most telephone subscribers in Slovenia can dial direct
subscribers in the following states:

Greece 99 30
; The Netherlands 99 31
» Belgium 99 32
France 99 33
Spain 99 34
Hungary 99 36
German Democratic Republic -99 37
Switzerland 99 41
Czechoslovakia 99 42
Great Britain 99 44
Denmark 99 45
Sweden 99 46
Norway 99 47
Poland 99 48
Federal Republic of Germany 99 49
Luxemburg 99 352
Finland 99 358
Malta 99 356

The numbers opposite to the states represent the outward dialing number
(from the Socialist Federal Republic of Yugoslavia).

Example: To call the telephone number 12 34 56 in Berne, Switzerland one
dials 99-41-31-12-34-56

--first dial 99--the international outward (from SFRY) dialing code
--next dial 41--the code of the desired country (Switzerland)

-~then 31--the network area code for Berne

--and finally 12-34-56--the telephone number of the subscriber in Berne.

From the above example it is apparent that one must know in addition to the
called party's number

42


Tndiscretions in the press have hinted that the report will advocate a
complete separation of the Post Office into two independent corporations.
It would seem probable that the plan would involve grouping "Telecommunica-
tions" and "Data Processing" (which is a subsidiary activity of the former)
into one corporation, while the "Postal Service" and the "Postal Money
Orders" (which make extensive use of the windows, the systems of monetary
deposits through postal channels and the routing services) would form an-
other distinct corporation. Even though these are nothing but speculations
(many discussions of the report will take place before the decisions are
made and the necessary legislation has been introduced), it is clear that
we are going to work in changing situations rather than in stable ones.

Budgeted Operations Plan -- Control -

The "Postal Service" branch has a long term operations plan based on fore-
casts over a period of 10 years, as well as a medium term operations plan
with forecasts covering 5 years. However, it is subordinate to a plan and
to a yearly operations budget approved by the president and the board of
directors of the Post Office. Firm objectives and maximum expenditures for
the functioning of the routing and window services, the secondary offices,
the premises and all other expenditures concerning the postal service, are
assigned to each region. Each director is strongly urged to economize.

The national total of the budgets lies within the framework of the expected
receipts in terms of the volume level.

Similarly, each head postmaster must prepare a plan for the coming year,
including all the arrangements he has been able to think of to reduce the
operating costs. He must indicate the amounts and the number of manhours
he will need to run his service. In turn, his director will specify the
sums which will be allocated to him for his budget -- these figures are
always calculated at the lowest level so that it is always necessary to
find means which would allow for a reduction of those costs.

This method is known as "downward" budgeting. The head postmasters would
much prefer an "upward" budgeting whereby their estimates would be retained
for the budget, but the prospects for such a change are very slim.

The development of the situation, for each operation or for each secondary
expense item, is verified every 4 or 5 weeks at the local, regional and
national level. The real figures and the anticipated figures are compared
by computer.

Moreover, a goal is stipulated for each director and each head postmaster
in terms of marketing and the level of new activities to be reached during
the year for various categories, such as direct publicity, parcel post
contracts, philately, etc.

At the end of each year, the management of each service head is examined;

the director general meets with each director and the director with each
head postmaster. These meetings are followed by appraisals and suggestions.

112


BIBLIOGRAPHIC DATA |1- Report No. 2 3

}. Recipient's Accession No.

SHEET JPRS 71289

fa. Tile and Subtitle 3. Report Date
TRANSLATIONS ON TELECOMMUNICATIONS POLICY, RESEARCH 13 June 1978
AND DEVELOPMENT, No. 40 6.

7. Author(s) 8.

} Performing Organization Rept.
oO.

9. Performing Organization Name and Address
Joint Publications Research Service

10. Project/Task/Work Unit No.

1000 North Glebe Road
Arlington, Virginia 22201

V1. Contract /Grant No.

12. Sponsoring Organization Name and Address

As above

13. Type of Report & Period
Covered

15. Supplementary Notes

16, Abstracts

computers, and satellite communications.

People's Republic of China, Sweden, and the Netherlands.

This serial report contains translations from the world press and radio relating
to worldwide political, economic and technical developments in telecommunications,|

Coverage will be worldwide with focus
on France, Federal Republic of Germany, United Kingdom, Italy, Japan, the USSR,

17. Key Words and Document Analysis. 7a, Descriptors

Worldwide

Computers

Satellite Communications

Electronics and Electrical Engineering
Telecommunications

Telemetry

7b. Identifiers /Open-Ended Terms

Ve. COSATI Field/Group Q9B, C, F, 17B, 22B

18. Availability Statement 19.. Security Class (This 21. No. of Pages
Unlimited Availability Report) D 12
Sold by NTIS [roms NS LASSIELED 22. Price
Springfield, Virginia 22151 °F CLASSIFIED Pa Ags

FORW NTIS 3s TRE STE

THIS FORM MAY BE REPRODUCED

USCOMM-DG 14952-P72



Services -
The services we render are the following:

- a service for first class letters (93 percent of these are delivered on
day B);

- a service for second class letters, with planned routing but slower (96
percent of these are delivered on day D). Within the framework of second
class service, we are proposing a less expensive service of mailings handed
in in batches and in large quantities, with a 7 day delay between deposit
and distribution. Deposits of more than 4,250 pieces would be given a
discount calculated at a variable rate, and deposits of more than i million
pieces would receive a 30 percent discount. The depositor would have to
comply with several conditions with regard to preliminary sorting, hours

of deposit, period of deposit, etc.;

There is a difference of 2 pence (17 French centimes) between the postage
rates for first and second class letters. The percentage of the deposits
for first and second class are about 36.5 percent and 63.5 percent respect-
ively. The total number of letters being mailed is approximately 31 million
per day;

- a service for special delivery letters --. with hand to hand forwarding
and release at the time of delivery -- which is expensive to manage and
particularly aimed at valuable objects;

- a service for certified letters: this is a less expensive variant of the
above, aimed at documents for which a release at the time of delivery is
required. In this case, the letter is separated from the others only at
the time of sorting after arrival at the distribution office and thé com+
pensation provided for in case of loss is small;

- a service for door to door delivery of printed advertising matter with
no address; the depositors may choose the postal code districts to be
served;

- a so-called "Freepost" service for the benefit of advertising bodies,
whereby the postage is paid by the sender. It is a variant of the prepaid
responses service, which also exists;

- a "Datapost" (Postadex in France) service, a contractual service with
delivery guaranteed on day B, reserved for data processing documents being
sent to computer centers, etc.;

- a service for parcel post, either at the risk of the sender or with the
possibility of compensation with payment of insurance.

Other kinds of special services are meant to fill the particular needs of
the customers (Expresspost, Speedpost. and Exchangepost).

105



In addition to improved retransmitter equipment on board the satellite,
there are a three-axis system for precise earth orientation, a power supply
system with solar batteries which independently point at and track the sun,
an orbital correction system, a radio telemetry system for transmission of
data to the ground concerning the operation of on board systems, and a radio
system for the precise measurement of orbital parameters and satellite con-
trol. The "Ekran" satellite has an international registration index of
"Statsionar-T."

During 1977-1978, 150 ground receiving terminals were equipped for the "Ekran"
system. Reception of the television programs is carried out by equipment of

‘ the "Ekran" system which is tuned to a frequency modulated signal which is
being emitted by the on board retransmitter.

During the tenth quinquennium, the ground technical facilities for television
broadcasting will also receive significant growth. Construction is planned
for nearly 100 new powerful television stations and more than 1,000 low power
retransmitters, including receivers and antenna feed installations for opera-
ting within the "Ekran" satellite television broadcasting system.

The development of satellite and ground technical facilities for television
broadcasting has created realistic conditions for making significant progress
in getting television to the rural communities.

The rapidly developing communications satellite facilities have had a major
impact on the national economy. It has provided telephone and telegraph
communications to remote regions of the USSR, begun transmission of central
newspapers by means of phototelegraphy and has made a decisive contribution
to the organization of television in the country, and has practically made
it possible in the near time frame to reach the entire territory of the
country through television broadcasting.

Our nation is presently proposing the most diversified native communications
satellite system which has the largest network of "Orbita" and "Ekran" ground
stations in the world. During the tenth quinquennium, in concert with the
directives of the 25th KPSS congress, this system will receive even furhter

growth.

Sixty years of development for the communications industry and the vigorous
growth which has resulted from Lenin's decrees and the unflagging concern
of the communist party are inspiring Soviet radio operators to further labor
victories in this third, decisive year of the tenth quinquennium. They are
fulfilling with honor their obligations for an early completion and over-
fulfillment of the tasks which have been provided by the historic decisions
of the 25th KPSS congress.

COPYRIGHT: Izdatel'stvo "Svyaz'", "Vestnik svyazi", 1978

9082
cso: 1823

65


COMPUTER INDUSTRY DEVELOPMENTS, FUTURE DETAILED

Competitive Market

SOUTH AFRICA

Johannesburg SUNDAY TIMES in English 21 May 78 p 7

[Article by Peter Godsell:

"War Looms as Biggies Move into Minis."
director of Leonard Fine Associates, a company specializing in computer con-
sulting and computer market research.]

[Text] MARKET RE-

SEARCH has con-
firmed that there is
burgeoning growth in
the market for small
computers and a level-
ling off in the market
for their bigger coun-
terparts.

And in South Africa,
where there are almost 30
companies supplying as
Many as three makes, a
commercial war is expect-
ed in the small computer
market. This should be
characterised by hardware
price reductions and con-
‘inuing aggressive moves
into the sector by the sup-
pliers of big computers.

The computer market in
this country is constantly
changing, not only in terms
of an increasing flow of new,

better and cheaper products,
but also in terms of the com-

puter supplying companies.

In the past few years we
have seen companies come
and go, franchises change
and various mergers. And
although this tempo of
change is greater in the
smaller computer compan-
jes, it is certainly not re-
stricted to them.

We have seen companies
such as Honeywell and Sie-
Tens enter the inarket and

en depart,
again. The’ glant [cL took
over the Singer Business
Machines market and some
of the big American com-
panies have established

emselves as forces in the
market only recently.

The turbulence in this in-
dustry has not stopped. Al-

51

ready this year a number of
new computers have been
introduced, such as
PRIME, being marketed by
the Institute of Software
Technology, and the Syfa,
which is being introduced
by Data Management Sys-
ms. :

Is this ever-changing in-
dustry likely to begin stabi-
lising soon? Not in my
view. The rapidly changing
technology and continual re-
lease of new products tends
to encourage rather than
discourage the birth and
death of supplier compan-
ies.

The industry can be divid-
ed into three categories: «
‘@ The big international
companies which have been

ipplying- the mainframes.
Many. of these firms have
extended their product

Godsell,



a better assessment in particular of the influence of the Alps on the
weather. This information is also important for weather forecasts.

Contracts for Swiss Industry

Under the "Meteosat Agreement," Switzerland has to date participated only
in the launch phase and the succeeding 6-month test phase at a cost of

22 million francs. For its part, Swiss industry received various develop-
ment and construction contracts as a result of this project. Produced in
our country were mechanical and electronic testing equipment and the proto-
type of a universally adaptable receiving station for secondary data.

Financial Effects

From a purely technical standpoint Switzerland would indeed be in a position
to use the satellite information even without being party to a further
agreement with the European Space Agency. If, however, several states were
to refuse to help finance the utility phase, the satellite and its ground
facilities could no longer be operated following the test phase. Out of
solidarity with the other partners in the Meteosat program and with the
World Meteorological Organization, Switzerland should therefore -- in the
opinion of the Federal Council -- also participate in the utility phase.
Thus, for the years 1978 and 1979 Switzerland would have to make payments
totaling 1.93 million francs to the European Space Agency, which is charged
with carrying out the ambitious Meteosat program. The appropriate amounts
would for the time being be charged to the budget of the Swiss Central
Meteorological Institute and would be included in the new federal financial

plane

For optimum use of the Meteosat pictures, supplementary investments of
approximately 1.41 million francs are needed for the satellite receiving
station in Colovrex and for the analysis and cataloging of information at
the Central Institute in Zurish. These additional costs are to be spread
over the years between 1977 and 1980 and are also broken down accordingly
in the budgets and the financial plan.

7458
CSO: 5500

100



Occasionally it takes years to complete a given project and even more time
is lost as a result of the extended investment process. We would be sent
on a project which stipulates the existence of a highway. Arriving on the
spot, we see that the highway is located in an entirely different area. The
blueprint may indicate an empty lot yet we see huge residential blocks.
Conversely, we would see no markers wherever they should be.

Another disparity is the lack of coordination between allocated funds and
construction deadlines. Thus, in a project 20 kilometers long to be com-
pleted, for example, in 12 months, funds are provided for five years! In
such a case there is no point to take to such projects equipment or provide
housing facilities for the men.

Our turn comes after a cost estimate document has covered the long way from
designing to funding.

Yet, the basic production unit--the technical manager--would not be provided
with a list of the equipment which should be made available to a group in
charge of completing a project worth 500,000 leva or, in the case of a group
such as mine, costing over 2 million leva. This would require a tractor with
a ditch digging machine, a tractor with a bucket for digging the canal net-
work, a bus with up to 25 seats, a truck, and two installation workers who
would immediately tie up loose cables. Yet, what is the situation? The
level of mechanization is low but even if mechanization faciliites are pro-
vided they can not be used fully.

Before undertaking the construction, the project as a whole must be supplied
with at least 70 percent of the necessary materials. Last year we worked
on eight projects for which we waited for cables which we never received.

What about the great variety of installation materials! There are no end
boxes, there is no installation tape or bearing metal and no substitutes.
The use of substandard gasoline led to the breakdown of 50 gasoline lanterns.

How did my group, for example, acquire 6.5 meter high reinforced concrete
poles for the Belmeken-Sestrimo Power System? One side of the allocated 800
pieces was stripped, which made us lose 13,000 leva. The assemblymen had to
use a solder in which there was more lead than tin as a result of which it
kept crumbling. Where were suppliers and purchasers? What could we say
about the different width of the installation tapes? The worker must cut
the tapes to size and lose time. Instead of performing lesser operations
at the site, now we are receiving from the enterprise in Borima lead sleeves
requiring two seams instead of one.

The quality of the cables is below criticism. For the Gotse Delchev Urban
Cable Grid, with a single technical manager, 98 EF boxes had to be redone
due to the low level insulation of the bakelite. The cable ends can not
withstand the humidity. This not only worsens the quality but entails
unfair fines even though the workers in this case are innocent. No system
is presentable if it has to be assembled and disassembled three times
running.

25


1976, by seven corporations of the
Japanese computer industry to develop
VLSI technology, which is the key to
the future development of computer
systems. Association members are
Fujitsu Ltd., Hitachi, Ltd., Mitsubishi
Electric Corp., Computer Develop-
ment Laboratories Ltd. (CDL; a joint
venture of the above-mentioned three
corporations), Nippon Electric. Co.,
Ltd., Tokyo Shibaura Electric Co.,
Ltd. and NEC-Toshiba Information
Systems Inc. (NTIS; a joint venture of
the above-mentioned last two corpora-
tions).

Research is carried out at three
laboratories; Cooperative Laboratories
of the Association is responsible for
fundamental technology, and labora-
tories of CDLand NTIS for application
technology. The total budget for re-

CSO: 5500

21

search and development is approxi-
mately ¥70,000 million. The Ministry
of International Trade and Industry is
to award the Association a subsidy
totaling about ¥30.000 million during
the period between fiscal 1976 and
1979. Electro-Technical Laboratory of
the Agency of Industrial Science and
Technology and Nippon Telegraph
and Telephone Public Corp. are assist-
ing Cooperative Laboratories techno-
logically.

In addition to the above-mentioned
electron beam systems, the Coopera-
tive Laboratories has also developed
a multiple wall self-alignment tech-
nique enabling the production of finer
elements than the conventional meth-
od. Thus the Laboratories is advancing
step by step toward the development
of VLSI.



- and, also, 10 offices of the national corporation in the charge of the
postmasters, but without any other administrative personnel, and of window
and mail sorting employees. Those offices serve the neighboring cities,
the population of which could reach 120,000 inhabitants.

In Great Britain, the number of windows at the disposal of the public is
important. There are a total of 23,660 of them, that is to say 1 per 2,380
inhabitants.

Table 2.
Post Offices Number of inhabitants
per office

Ttalyscsecceseenneeceecereenes 413 672 4 070
Belgium sence eeeeeoene . 2 550 3 838
Denmark. . 1 373 3 712
FLANCCsseeeeseeseeoens a 47 745 2 967
Germany (Federal Republic of). 22 411 2 768
United Kingdom..csssesesseenes 23 660 2 380

Source: UPU [Universal Postal Union] questionnaire. The figures
refer to the year corresponding to the 1974-1975 budgetary
year in the United Kingdom.

In the next table, we have presented the personnel distribution of the
174,287 postal employees of the "Postal Service" branch.

Table 3.

“Postal Service” Branch Personnel on 31 March 1976

Directorate general of the Postal Servicessssscsseeeeeeves 3 464
Regional directorateSssscssssscescuseenes . 3 280
National Office of Television Licensing . 685
Post Offices....- see tener eeeee » 35 685
Mail Routing and Distribution Service +» 124 398
Technical ServiceSs Messessseeveee . 3 724
Automobile Transportationsscrececcecerceeceereneeveessvess 3 054

174 287

Furthermore, there are 21,300 managers of postal agencies working for us.
As a rule, they are businessmen who are paid according to the level of
mail volume which they handle.

104



careful of quality that they are including in the list the assigned numbers
of about 15,000 telephone subscribers who will be changing numbers.

There is much activity in the office of the directory editor; the work
which has lasted a year and a half is coming to an end. They are signing
the work for publication. Their task is not an easy one for the telephone
book being prepared contains 30 million letters and this had to be read
through four times to avoid even chance errors. The members of the techni-
cal staff are retouching, photographing, enlarging, measuring, and inspecting
the saturation of letters. The editors are now dealing only with changes
still arriving and their dark-ringed eyes show that the feat is not an easy
one. The letter A was closed on 2 May, the letter B on 3 May, the letters
C and CS one day later, and the day before yesterday the list began with
the letter D.

So what will the new telephone book be like?

“Qur maximal goal," the leading editor said, "is to provide the public with
a telephone book which can be used more easily than the earlier ones. The
book contains an alphabet for easier use; we have simplified the order of
letters because up to now in existing books we have listed separately
those names which included occupations; we now disregard this. Thus if
someone is looking for a name he does not have to go through one list
after another in vain. In addition, we have emphasized for the sake of
simplicity more than 600 names which have the same sound but which are
written differently. For example, the surname Ag can be written correctly
as Agh or Agg and Kovacs, which is certainly not a rare name, can be written
as Kovats or even Kovach. Those interested will find these versions in
parenthesis. Substantially larger letters than customary will be used to
indicate the beginning and concluding names in the upper corners of each

page."
1,600 Pages, 350,000 Items

Everything for the public and the common cause, It was in this spirit that
the editors of the new private telephone book worked to the end. I twas
for this purpose that they put an end to the jungle of occupations because--
humorous though it may be--we can find in the present book a good number

of names which include a virtual autobiography. These microsociographies
are an indication of the excessive increase in social ranks, But it is

not the primary purpose of the telephone book to be a collection of ranks.
This would only increase the cost of preparing and publishing it. The
telephone book which appeared in 1971 had 976 pages and 280,000 items.

The new book will have 1,600 pages and 350,000 items. Those who asked

that their occupation be indicated could indicate only one, But the editors
did make exceptions in this especially in regard to services.

33


will be integrated into the system within. the next 18 months. Within the
next 2 or 3 years, approximately 50 percent of the "letter" mail will be
sorted mechanically.

The plan for parcel post, like the preceding one, implies a concentration
of the volume flow in vast operational units for handling and delivery.

The plan provides for 27 centralizing offices tied to a system of transporta-
tion services to be handled by road for distances up to 120 miles and by
railroad for longer runs. We will use containers rather than bags. In the
mechanized offices of Bristol and Southampton, the sorting rate for parcel
post has reached 60 units per hour.

The overall personnel reduction due to mechanization should amount to
approximately 6,000 persons between now and the eighties, but it should be
covered by normal departures. We do not expect any surplus problems. The
capital gain resulting from the mechanization will be 10 percent.

Our postal code system is an essential element of our national routing plan.
A particular code is assigned to each important firm as well as to groups
of about 20 delivery addresses. Let us note in passing that we are able to
sell our list of postal codes to other commercial organizations who use it
to set up plans for sales sectors, etc.

Influence of External Factors on Commercial Policy -

But in spite of these successful efforts to make the "Postal Service" branch
profitable, it has to be admitted that our task is and will remain a diffi-
cult one.

Even when the mechanization program is finished, we will still be large man-
power consumers in a period of wage inflation. We will have to fight a
constant battle to maximize our internal productivity in order to keep rate
increases as low as possible and thus to prevent volume reductions. Technical
progress in communication matters, such as the increased availability of
telephone service and the computer systems, will undoubtedly change the
nature and volume of our activities. To be able to tackle this difficult
task, we will need as much commercial freedom as possible and it is only
right to say that in that respect we have obtained less than we had hoped
for when the new national corporation was brought into existence. This is
due in part to the government policy and to social factors relating to
industry as a whole. For example, the freedom to raise salaries and rates
is limited and consumer protection has become a force to be reckoned with.
But nationalized industries and national corporations have had rather less
commercial freedom than the rest of industry. They have had to take into
account the properly set up customers councils as well as the government's
determination in matters pertaining to the setting of financial goals and
of maximum loan amounts in order to slow dow public spending. Moreover,
the Post Office must operate within the framework of the law which set it
up as a national corporation. This limits its ability to perform operations

114


including color, and also the broader use of artificial earth satellites
primarily to provide television broadcasting to western and eastern Siberia
and telephone - telegraph communications with the remote regions of the
country."

At the present time, tremendous successes have been achieved in creating the
most massive and accessible medium for getting comprehensive information to
the populace -- radio broadcasting which encompasses practically all the ter-
ritory of our colossal nation. The Central All-Union Broadcast now carries
eight programs for a total of 160 hours a day.

The organizational characteristics of the Soviet government and its linguistic
structure require the availability of local broadcasting, aside from the cen-
tral one, in the unions and autonomous republics, krays, oblast's and national
okrugs. This is accomplished through numerous local radio broadcasting sta-
tions. At the same time, in each of the union republics there are two or
three of their own republic programs. The total volume of radio broadcast
transmissions in the last ten years has doubled and by 1977 consisted of more
than 10 million hours.

Radio broadcasting represents a method for comprehensive utilization of all
broadcast bands in the radio spectrum -- long, medium, short and meter.

To improve the hearability of radio broadcast transmissions in the long and
medium bands, during the tenth quinquennium the introduction of so-called
synchronous broadcast networks will be pursued. The advantage of such net-
works is the capability to operate many radio broadcasting stations on few
frequencies. In the synchronous method of operation, the transmitting net-
works are organized from a whole group of radio broadcasting stations opera-
ting on a single frequency and relaying the same program.

If while operating on a combined channel (i.e., of broadcast transmitters
working on the very same frequency but transmitting different programs) it
is necessary to have a protective signal-to-noise ration of 30 db, then
while operating on the synchronous network this ratio may be reduced to 8 db
and at the same time the quality of the radio broadcasting transmissions
remains fine. Synchronous broadcasting has permitted us to overcome the
shortage of radio frequency channels and ensure future improvement in the
quality of radio broadcasting in the long and medium bands.

The tangible economic efficiency from the adoption of the synchronous broad~
casting method is very high, because without increasing the number of frequenc
channels being used the zones of population coverage are significantly ex-
panded with insignificant additional expenditures for synchronization equip-
ment. Thanks then to the reciprocal redundancy of the synchronously operating
transmitters, the stability and quality of the operation of the entire net-
work of radio broadcasting stations are significantly improved.

57


The Future

If the last 2 years have been eventful, the next 2 years will be even more
SO.

The Board of Directors -

This summer will see the appointment of a new president of the Post Office,
who will probably come from the industrial or commercial sector. There will
also be changes among the directors general of the different branches.

Industrial Democracy -

The new president will join us at a time when we are getting ready to launch
a 2 year experiment in industrial democracy. The government is very eager
+o see a beginning of worker participation in the management of the large
companies in Great Britain, at the level of the boards of directors. The
extensive use of the method of mutual consultations between management and
the unions has always been a characteristic of labor relations at the Post
Office. The mion officials are all Post Office personnel and they are
conversant with the functioning of the enterprise. They are responsible
and constructive during discussions concerning specific problems. Most
often, the interests of the enterprise and those of the personnel are similar.
It is not surprising that the Post Office has been called upon to play a
leading role in the country with regard.to the application of the new con-
cept of industrial democracy. The new board of directors will be made up
of seven members belonging to the management, seven members appointed by
the Post Office unions and five independent. members, among whom there will
‘be a representative of the interests of the customers, plus a president.

It is expected that this 2 year experiment will begin in January 1978.

In certain regions there are already regional boards of directors which

include up to four non-executive members from industry, commerce, education
and the mions. It is to be expected that soon those boards will also have
to be reconstituted to include members appointed by the Post Office unions.

Talks are also under way to figure out how to apply this new idea at the
level of the local management. In the head postmaster offices, frequent
dialogues have already been set up between managers and representatives of
the personnel on all subjects relating to the daily functioning of the

office. The only change we might consider here is the addition of an orienta-
tion committee whereby union representatives other than those responsible

for the negotiations will join the managers to study the plans on the basis
of which the office must be managed.

Carter Commission -

Soon, the commission appointed by the government to study the organization
of the Post Office will have to hand in its report.

111



Growth of Rail Transport Activities

Year Railway mail cars Vans (millions Number of kilometers

and tenders of TKBR) covered by mail cars
(millions of TKBR*) (in thousands)

1972 1,758 710 40,707

1973 1,785 796 41,221

1974 1,732 750 36,602

1975 1,988 826 45,265

1976 2,036 852 45,930

*Gross kilometric tons hauled

Growth of Road Transport Activities
(Connecting Transport under Contract)

Year Number of Services Number of Kilometers Covered
(thousands)

1972 . 1,669 64,174

1973 1,716 67,278

1974 1,728 70,106

1975 2,055 80,937

1976 2,098 82,929

Dead Letter Office

In 1976 the dead letter office received 6,151,205 items of all types as op-
posed to 7,105,876 the previous year. Of these it was possible to deliver
2,600,519 of them to those entitled to them before claims were initiated.

POSTADEX [expansion unknown]

At the national level, 177 new Postadex liaison points were established in
1976 raising the total number of internal liaison points to 786. In addition,
the regional Postadex was increased by 45 new liaison points.

Financial Services

Post Office [Bank] Accounts

The increase in traffic noted in 1976 (43.6 percent) was accompanied on the
part of the post office accounts by an over-all growth in deposits payable

on demand (16.1 percent as opposed to 15.8 percent in 1975) and in the number

of accounts. Thus, on 31 December 1976, the number of current accounts came
to 7,225,000 as compared with 7,165,000 in 1975, or +0.8 percent. The total

75



BULGARIA

INEFFICIENT MANAGEMENT OF COMMUNICATIONS EQUIPMENT CRITICIZED
Sofia IMPULS in Bulgarian 28 Mar 78 p 3

[Article by Yordan Bezhev: “Once Again on Unused Opportunities; Careless
Work"]

[Text] In the past two five-year plans the material and technical base in
communications developed at a faster pace. Compared with 1970, in 1977 pro-
ductive capital in communications was 2.6 times higher. As a result of the
modernization the handling capacity of automatic telephone exchanges rose
over 2.5 times. The capacity of settlement cable grids also rose over 100
percent.

Modernization was extensively applied to the development of telegraph com-
munications as well. The capacity of automated telegraph centers rose 2.5
times between 1970 and 1977. This enabled 90 percent of the post-telegraph
and telephone exchanges within the automated gentex network to exchange tele-
grams directly.

At the end of 1977 95 percent of the country's territory was covered by the
first medium wave radio channel, while the second channel reached 87 percent
of the territory. The three ultra shortwave radio programs are received

by 80 percent of the country's population. 81 percent of the population en-
joys quality reception on television channel 1 while 60 percent have quality
reception on channel 2.

Along with these positive results in the development and modernization of
the technical base of communications, we should acknowledge that it is not
being used efficiently. A study of overall data for the communications
sector has revealed that 16.2 percent of the capacity of settlement tele-
phone exchanges remain unused, even though 32 percent of the pairs in tele-
phone circuits are free. Meanwhile, the need for telephone sets remains
high.

27


The Accounts by Branches

A study of the PIT management's proceeds and expenditures as a whole does
not make it possible to assess the actual results of postal, financial and
telecommunication activities. The commentaries accompanying the data given
below in figures tend to define them better in relation to the over-all
enterprise or to one or another sector of activity.

The Postal Service

The returns from its operations have recorded an increase of 1,953.4 million
and amount to 14,585.4 million francs; compared with the agency's receipts
as a whole, the postal service's share represents 31.7 percent. The increase
in rates which became effective on 2 August swelled receipts in a moderate
way because of the slowing down of industrial and commercial activities.

Postal expenditures were 15,076.1 million and wage costs 11,717.4 million
francs, respectively. Personnel costs, in comparison with the previous fis-
cal year, increased by 1,692.4 million and represented nearly 78 percent of
costs while the share of wages was 47 percent of the PIT's entire expendi-
tures.

Operational yields boiled down to a debit balance of 490.8 million, a deficit
rising to 530.9 million taking into account the operations going back to
previous fiscal years or those of an exceptional nature.

Financial Services

Operational receipts amounted to 10,366 million as opposed to 8,995.5 in
1975 and this increase was attributable to the growth of financial proceeds.
In reality, the average returns from funds on deposit in current postal bank
accounts rose to 4.19 percent whereas they were 3.56 percent during the pre-
vious fiscal year, and the investment of funds entrusted to the CNE came to
6,808 million francs exceeding by 647 million the returns estimated at the
time the budget was drawn up.

Costs amounted to 11,759.2 million as opposed to 10,430.1 million in 1975
and were the result of the increase in financial costs (interest paid out to
the CNE's depositors), the furnishing. of services by the PIT and personnel
costs.

A new operational deficit of 1,393.2 million was recorded adding to those
registered every year since 1966. The increase since 1977 in profits from
funds on deposit in the current postal bank accounts should make it possible
to improve the financial situation of this branch.

Telecommunications
Telecommunications' share in the operational receipts as a whole was pre-

ponderant; the postal service brought in 31.7 percent, the financial services
22.6 percent.

93



Japanese Mainframers and Their Affiliation

AlL:Amdaht International Ltd,
CCI:Consolidated Computer Inc?
COC:Contro! Date Corp.
FH:Facom Hitac K.K,
HIS: Honeywell Information
Systems Inc,
IPLS:IPL Systems tne.
MO:Melcom Okitac K.K.
MPI:Magnetic Peripherals Inc.
NEC:Nippon Electric Co,, Lid,
NPL:Nippon Peripheral Inc,

Group A

VLSI Joint R&D.

NTIS:NEC-Toshibe tntormation
Systoms Ine,
NU:Nippon Univac Kaisha, Lg
OU:0ki Univae KK,
SECISA:Sociedad EspaAola de
Communicaciones «
Informatica, S.A.
SNTPC:Spain Netional Tel
Public Corp. (ransated)
Toshiba: Tokyo Shibaura
Electrie Co., Ltd,

Group 8

LU

Fujitsu

Amdahl,

(m3) .

=== Capital Tieup.

Sales Tie-up
mee Technical Tie-up

oO

Canadian Gov't

SNTPC

Source: The Ministry of International Trade and Indust'Y



amount of operations (4,916 billion francs) increased by only 12 percent in
contrast to 30 percent in 1975.

Financial Services' Activities

Types of Operations Volume of Percentage
Traffic of Change
in 1976 1976/1975

Post Office Checking Accounts
Current accounts as of 31 December.............. 7,225,000 + 0.8

Total assets of all accounts (in billions
Of ELANCS). cee eee cee cence eeseeeeeeee . 57.3 + 5.3

Total number of operations (in millions)........ 1,690 + 3.5

Total amount of operations (in billions of
ELANCS) oo. cece eee eee reece reece eeereeseeses 4,916 412

Postal Savings Bank

A and B pass books' assets on 1 January 1977
‘ taking into account capitalized interest (5,667
million francs) in millions of francs........... 100,488 418.6

Home Savings

Number of pass book accounts... . 128,085 +10

Assets (in millions of francs)........e.seeeeeee 1,977 427
Number of plans. ..cccccceccccccccceccccccevceees 158,842 4-20
Assets (in millions of francs)........ 2,726 +43
Postal Money Orders

Money orders issued (internal system) in millions

Of UNITS. cer ceeeeereeeesenccnnecceresesecreeeoes 232.9 + 4.9

76


Equipment Sectors Program Program Permits Percentage
Permits Granted for 1976 1976/1975
1975 (millions of francs)
(millions
of francs)
Road materiel:
Vehicle replacements..... 56 78.0 + 39
Service equipment........ 6 14.5 +140
Total... sss sees eee eee ee eee 62 92.5 + 49
Railway and transshipment
MALELICL sc. eee ee cece eeeeee 58.40 62.00 + 6
Equipment for garage
WOLKSHOPS..... cece ee es ee eee 4.70 5.00 + 6
Building Operations Carried 1975 1976
out by PIT Directorate General
Number M2 Usable Number M2 Usable
Surface Surface
Building Work Begun During
the Year
Constructions. cecrseveseeee 72 200,274 68 223,361
Extensions-floors added.... 18 11,766 21 9,496
Improvements.........-.--+s 66 13,721 118 17,072
Total 156 225,761 207 243,929
(-14.29%) (+33.29%) (+32.69%) — (+10.71%)
Work completed during
the year
Construction. ...e.seeeeeeee 83 110,844 85 265,773
Extensions-floors added.... 21 10,437 15 8,688
Improvements, ......--+- eee 70 15,387 87 19,047
Total 174 136.668 187 293,488

(-4.92%)

(-15.36%) (+7.47%) (+114.75%)

Work Under Way as of
31 December 1976

Construction. ....cecceccuee 91 299,467 74 274,035
Extensions-floors added. 22 22,845 29 23,156
Improvements. ...........006 42 21,239 71 11,974
Total 155 343,551 174 309,165
(-13.89%)  (+33.17%) (+12.26%) (-10.01%)

82



Prices of four medium-size models, It
is reported to be an “E Series.” This
series, when marketed, will probably
deal a heavy blow to domestic manu-
facturers again. Has IBM really begun
taking these measures especially to
cope with Japanese manufacturers?

Fujitsu “Runs at Full Speed”
in Computer Business

IBM Japan is well known for its
total secrecy, Its balance sheets have
been made public for the past five
years, and annual sales circulating the
business community are nothing more
than presumed figures. The president
and other executives rarely speak pub-
licly of their business, as though they
were manipulated by “invisible hands
from New York.” Therefore, we can
not get any comment on the latest
moves. But IBM itself admits that its
view about Japan has changed.

Five years ago, T. J. Watson, then
Board Chairman of IBM, told a share-
holders meeting that IBM. Japan was
doing very well and that its future was
promising. At a similar meeting last
year Chairman F.T. Cary referred to
Japan and said that Japan was as high-
ly competitive a market as the United
States and Europe. This change in tone
may show the change in IBM’s recog-
nition of the Japanese market.

Some people of the industry say
Fujitsu probably has a view different
from other makers as to the IBM
offensive on the Japanese market.
Fujitsu is affiliated with Amdahl Corp.,
a plug-compatible mainframer, which
is successfully emulating with IBM
machines on the American market.
They argue that IBM, which regards
Amdahl as a “new enemy” in the
American market, sets Fujitsu as its
target of offensive in Japan, since
Fujitsu is a major shareholder of
Amdahl (28.7 percent), pursuing the
same business policy as Amdahl,

Une source of this contention is
that the software developed jointly
with Hitachi for FACOM M Series is
said to have the same functional capa-
city as that of IBM. Putting up this for
a sales point, Fujitsu has made an all-
out effort to erode IBM users since the
liberalization of the computer indus-
try, spearheading the campaign tv
teplace IBM products with domestic
ones. Fujitsu is a leading communics:
tions equipment manufacturer which
started out as a telephone maker, and
there is no change in this status. How-
ever, the computer business now ac-
counts for 72 percent of its total sales,
and it may be considered to be the
only specialized computer maker in
Japan. It tops domestic makers with a
market share of 19 to 20 percent, and
is approaching that of IBM. Fujitsu is
staking its future on computers as seen
in an executive’s statement that
Fujitsu is “running at full speed and it
will collapse if it stops running.”

The trouble of Fujitsu’s computer
business is that it has to run constantly
to expand the scale of sales. This is
because the business division stands
first among the six domestic computer
manufacturers and because it also
telies heavily on the rental assets of
Japan Electronic Computer Co., Ltd.
(JECC), a specialized computer rental
company. Last year Fujitsu established
a subsidiary for the lease of small com-
puters which are not handled by JECC.
But Fujitsu continues heavy depen-
dence on JECC because it mainly tums
out large and medium-size computers.

JECC serves like Computer Leasing
Ltd. (CLL) of Britain, a subsidiary of
International Computers Ltd. (ICL),
and Commercial Credit Co. (CCC) of
USA, a subsidiary of Control Data
Corp. (CDC). Established in 1962, it is
owned jointly by the six domestic
computer makers, Low-interest loans
from government-financed institutions


A special service of prepaid responses with allowance for refunds, has been
set up for first class letters. It is meant to respond to the needs of
clients who receive more than a million pieces of correspondence per year
and who want to pay the postage costs normally carried by the sender. At
the present time, we handle 71 million letters per year within the frame-
work of this service.

Our marketing personnel constantly try to come up with new services to sa-
tisfy the needs of our clients. The most important new demand to be identi-
fied during the last few years may well have been that for a reliable night
mail service for the transportation of urgent dispatches (for example, data
intended’ for computer centers). We call this service "Datapost" and its
receipts are currently higher than b 7 million (59 million francs) per year.

An enumeration of our marketing activities would not be complete if it did
not mention stamp collecting. Commemorative stamp issues, special stamp
cancellations, etc., yield approximately b 7.5 million (63 million francs).

We limit the number of special issues to six, plus one issue for Christmas,
because this number is the maximum the market can handle.

Table 6,
Philatelic Receipts (in millions of &)
1972-1973 1973-1974 1974-1975 1975-1976 1976-1977
Receipts.....ee- 3.1 34 4 6.4 2.5
(forecast)
Expenditures.... 2 262 3 3.7
PrOfitsssescseee 1.1 1.2 4 24

In millions of
francs 9.3 10.4 8.4 20.2

During the last few years, the efforts of our marketing agents have allowed
us to substantially increase our receipts. The results of their achieve-
ments are closely checked and, in 1976-1977, the contribution of marketing
to the receipts reached & 86 million (725 million francs).

Table 7.

Contribution of Marketing to Receipts (in milliorsof B)

1973-1974...
1978-1975.
1975-1976... 0.00,
1976-1977 (estimate)...

30.6 (257.7 million francs
vee 42.9 $2323 million francs
tee 75.3 634.0 million francs
seeee 86.4 (725.0 million francs

110


Postal Savings Bank

Ordinary savings’ cumulative surplus of deposits versus withdrawals (in bil-
lions of francs)

°

=

.

JFMAMJJASOND

Various Financial Services

Treasury Bonds

During 1976, 4.2 million treasury bonds (+4.3 percent in comparison with 1975)
were issued by the PTT cashiers in the amount of 7.6 billion francs.

80


Table 4,

Rates (Initial Rate, 60 grams)

ist Class end Class
In Pence In Francs In Pence In Francs

1973. ceccncevevevvece 345 0.29 3.0 0.25
19M ae eveee aeee 45 0.38 3.5 0.29
1975 (March). . 7.0 0.59 5.5 0.46

(September)..... 8.5 0.72 6.5 0.55
1976 ce cesveaeeee . No change
1977 (June)... 9.0 0.76 2.0 0.59

1 penny: 0.085 francs

Since the time of Rowland Hill, in 1840, our postal rates have been the
same for the whole country. In order to safeguard this system, we have a
monolopy for the transportation of letters. Without this monopoly, there
would be a risk that competitors might accept to deliver mail locally at
prices lower than those of the Post Office, while refusing to handle letters
to be delivered in far away places.

But the parcel post service is not a monopoly and we are thus competing
with other carriers who can make a choice concerning the merchandise to be
transported and the destinations to be served.

Our trump cards are convenience, the quality of the service (75 percent of
the mailings are delivered on day C) and the low level of losses and
spoilages.

The parcel post service shows a deficit which we are constantly reducing.

Our windows handle all operations of the postal service and the postal
money orders and ensure payment of the numerous social allowances which
exist in Great Britain: retirement benefits, family allowances, unemploy-
ment benefits, etc. We are agents of the National Savings Bank, of the
Service of Television Licensing, of the passport service. We draw an income
from advertisements posted in our own offices as well as from photograph
booths and photocopy machines which are set up there, and for everything
which the government might want distributed from time to time (gas stamps,
butter stamps, etc.).

Our workweek amounts to 5 and a half days. There is no pick up on either
Saturday afternoons or Sundays. Our windows are open from 0900 until 1730
hours, except for a few special windows such as those on Trafalgar Square. -

We ensure two mail deliveries a day from Monday through Friday and one on
Saturday. In the cities, the national normal timetable for the first

106


Proceeds and Operating Expenditures
(in millions of francs)

150.000

145.000

149.000

execs

wmos recettos wm dépenses

(Amounts expressed in millions of francs

Debit
Capital assets
Buildings 5.4
Technical materiel 4,912.
Work project advances 200.0
Total 5,118.0

91



During the tenth quinquennium, the 15Q kw DSY transmitter PDSV-150 will be
installed in central, republic, kray and oblast' radio broadcast transmit-
ting stations, and for local broadcasting the 50 kw SV transmitters supplied
by the Czech firm "Tesla" is one example of the realization of the policy
of socialist economic integration.

During this quinquennium, new medium wave synchronous broadcast networks are
being created using 5 kw SV transmitters of the PSV-5 type, which have been
specially developed by the communications industry for installation at oper-
ational television transmitting relay stations. This makes it possible with
minimal expenditures (since industrial space and buildings already on hand
are being used) to achieve significant technical and economic efficiency.
The 7 kw SV transmitters SRV-7 (a product of the CSSR) will also find wide
application.

The distribution of PSV-5, SRV-7 and other transmitters directly in the cities
ensures that the field intensity of the active signal will significantly sur-
pass the noise level which allows for a qualitative improvement in medium
wave reception of radio broadcast programs in the cities.

One of the main trends in technical progress in the area of providing high
quality radio broadcasting is the creation and expansion throughout the coun-
try of a network of multi-program radio broadcasting stations operating in
the meter wave length with broad band frequency modulation (MV-CHM stations),
During the tenth quinquennium, approximately 100 new MV-CHM stations will be
constructed and in general by 1981 they will number nearly 450. This will
provide the cities and their surrounding agricultural regions with quality
broadcasting and they will encompass more than 85% of the population of the
USSR. This aspect of broadcasting has very great significance since the meter
wave band is practically insensitive to atmospheric influences or industrial
interference, and therefore can achieve excellent broadcast hearability.

The MV-CHM stations are used to transmit central broadcast programs I ~ IIT,
and also for local broadcast programs conducted in the national languages of
the peoples of the USSR.

Within the first two years of the tenth quinquennium, over 30 new MV-CHM sta-
tions have been put into operation. However, all the capabilities incorporated
within the MV-CHM broadcast transmission network have yet to be discovered.
The decisions of the 25th KPSS congress require broader adoption of stereo-
phonic broadcasting which can be accomplished only by utilization of MV-CHM
stations.

The stereophonic reproduction of sound improves its quality and gives the
listener additional information on the location of the sound sources along a
line "from left - to right", and the sound of the voices and musical instru-
ments, at the same time, takes on a more natural character with the percep-
tion of their spatial arrangement. In 1977 stereophonic transmissions were
already being produced in 25 cities through MV-CHM broadcast stations --
Moscow, Leningrad, capitals of the union republics, Gor'kiy, etc. Between

59


SOUTH AFRICA

BRIEFS

RECORD SALES FOR ICL-~-BRITISH computer company ICL is racing towards
another record sales year in South Africa. By the end of April, seven
months into the current financial year, hardware sales of R35,1-million
were more than two-and-a-half times as great as in the same period of
1977. With a target of R52-million for hardware sales this year (compared
with R4l-million achieved last year), ICL is already two-thirds of the way
there. Total South African turnover last year, including software, servicing
and bureau operations, was R67-million, which was 10 per cent of ICL's
world-wide turnover. One reason for the boom, according to small systems
brand manager Graham Bendell, is the company's good stock position. ‘Some
of our competitors have been extremely active with new products," he sald.
"This stimulates interest in computers, but people don't always want to
wait eight months for supplies--and we can supply ex-stock." Mr Bendell
also feels that there has been a return of business confidence upon which
British companies, so far unaffected by serious sanctions threats, have
been capitalizing. ICL South Africa is 93 per cent held by ICL of Britain
with the rest held locally. ICL Equipment Finance, which finances equip-
ment purchases, is quoted on the Johannesburg Stock Exchange and 74 per

cent of the equity is locally held. [Text] (Johannesburg SUNDAY TIMES
in English 21 May 78 p 1]

cso: 4420

55



of computer power at lower cost, The
Series 90 computer system was added
in 1974,
Nippon Univac has played a major
* ole in the advancement of the use of
computers in Japan. It was in 1964
that the first successful on-line, real-
time trial in Japan was carried out
with the UNIVAC 490 at the Japanese
National Railways, and in 1967 Fuji
Bank inaugurated its on-line banking
system by using UNIVAC 418s. This
opened up a new era of on-line opera-
tions in the banking field, and major
city banks quickly followed the lead
set by Fuji Bank and established their
own on-line systems with UNIVAC
computers.

And in 1967, Ishikawajima-Harima
Heavy Industries started the first suc-
cessful Time Sharing Operations. This
not only showed Univac’s superior
technology, but also led to the rapid
computerization of industry. In 1970,
the company introduced to the market
several new computer systems which
gave them leadership in real-time and
TSS operations. In 1970 the UNIVAC
1110 Series, along with low priced
UNIVAC 1106 was introduced. NUK
now has two major product lines,
the UNIVAC 1100 Series and the
OUK Series 90. The UNIVAC 1100
Series consists of 1100/10, 20 and 40,
and its most recent entry on the
market is the 1100/80. There are four
sub-models in OUK Series 90. They
are the 90-300, 90-600, 90-700 and
the most powerful 90-800.

In 1977, the company opened its
new headquarters building in Tokyo
with offices and 229,000 square feet
of floor space and a large computer
center. The headquarters also houses
an information center and other
facilities for user services. The
UNIVAC Education Center has also
moved to the new Toho Life Insurance

17

Building trom NUK Headquarters ana
has a total floor space of 2,475 square
meters which is about twice as much
space as the center had before, com-
puters are installed there for training
purposes and are connected on-line to
the UNIVAC 1100 Series computer in
the Data Center at NUK Headquarters.
And with a deluxe facility at Izu
overlooking the Pacific Ocean, manage-
mert seminars are held at the Izu
Executive Center. The Center is
utilized for training top executives
of NUK users and prospects in the
use of operating computers, and about
1,000 attend these seminars each year.

It was pointed out that new soft-
ware must be developed in order to
create more demand for computers
and equipment, and that computer
users must participate in this develop-
ment of demands by creating wider
applications. Both customers and sup-
pliers must develop new computer
application and computer users must
consider software, hardware and per-
sonnel in order to make better use of
electronic computers. Nippon Univac
feels that with a firm base the
company will be able to meet the
increased competition in the computer
field, and continue to offer services to
its users,



Actually the ground station is a complex consisting of the antenna proper,
an operations building, administrative offices, and a power building.

The most spectacular part of the station is obviously the antenna itself

with its parabolic reflector (gigantic ear for listening to the world...)
which has a diameter of 32.50 meters. In normal operation it is automatically
aimed at the satellite by means of a system that detects the tiniest changes
in the position of the INTELSAT. In case of failure of the satellite used,
the antenna could be reaimed in a few minutes at a backup satellite.

Directly beneath the antenna is the building housing the receiver and trans-
mitter amplifiers as well as the antenna control devices.

The installations in the power building include, in particular, two automatic
generator units which insure a continuous power supply and thus prevent any
interruption in station traffic.

The station is connected to the terminal center situation in the building of
the Congo International Telecommunications Office (INTELCO; director, Jean-
Gabriel Okeli), located in the center of Brazzaville, by a microwave link
which provides telephone and television connections at the same time. The
television is then transmitted to the television studios by a special micro-
wave link.

What Can the Ground Station Be Used For?

Priority is given to the use of the Moungouni ground station for inter-
national communications by telephone, telegraph, and telex. This station
has two channels. The first one is assigned solely to the types of communi-
cation that we have just mentioned; the second channel, called emergency
channel. is used to transmit television signals. It is by this channel that
the Congo can receive broadcasts from the entire world and transmit Congolese
telecasts worldwide (this is what is called mondovision). However, since
this station has only two channels, assuming that the regular channel
becomes unusable, the telephone communications (telegraph, telex) auto-
matically go through the emergency channel for they take priority over any
telecast, which then becomes momentarily impossible.

We said that the INTELSAT satellite simultaneously has at its disposal 6,250
communication circuits. Out of this total, the Congo has reserved 24 for
itself, and it "rents" them by an annual fee paid to the international organ-
ization INTELSAT.

On the other hand, telecasts are paid for item by item. It is necessary to
pay at the same time for rental of the satellite and retransmission rights
to the telecast, which may belong to a particular state or to an organiza-
tion. So it is that a large portion of the money collected by the city of
Montreal, Canada, to pay the costs of the last Olympic Games came from

television retransmission rights to the Olympic Games throughout the world

46



GHANA

BRIEFS

PAN AFRICAN TELECOMMUNICATIONS--Accra, 17 May--Within the next few months
Ghana will begin construction work on its section of the Pan African Tele-
communications network that will link all the African states. This was
stated on Tuesday evening by Mr E.R.K. Dwemoh, Ghana's commissioner for
transport and communications. He was speaking on the occasion of the tenth
anniversary of International Telecommunications Day and he said that the
Ghanaian section extended from the border with the Ivory Coast to the West
and the border with Togo in the East, but he gave no exact details about
the length of construction work. The scheme is under the direct control of
the International Telecommunications Union, and apart from this Ghana has
already begun construction work on an earth satellite center that will im-
prove communications. [Text] [Accra GNA in French 1530 GMT 18 May 78 LD]

csO: 5500

50



In addition, taking capitalized interest into account, by 1 January 1977 the
assets of A and B pass books had risen to 100,488 million francs, i.e., an
increase of 18.6 percent as compared with the previous year.

Home Savings Accounts

Effective 17 March 1976:

The maximum amount for pass book and plan deposits was increased to 100,000
francs (an amount that may be exceeded by capitalizing interest) and that of

principal and complementary loans to 150,000 francs each;

The savings premium ceiling was raised from 5,200 to 7,500 francs for pass
books and from 6,750 francs to 10,000 francs for plans.

Postal Savings Bank (e,igse NATIONALE D'EPARGNE
Epargne ordinaire. Avoir des déposants au 31 décembre
(y compris les intéréts capitalisés).

Jen milliards de francs

100

90

84,711

70 68,327

a

60. 57.487

Ea 50,523

44939 fa
40 39,694

(34.461
30 30.182 PTT
7,654

T T T T T T T T T
PF oF at ot gt oF gt gt gt

*ordinary savings. Depositors' assets as of 31 December (including capital-
ized interest). In billions of francs.

79


buying through terminals in depart-
ment stores, faster checkout at super-
market counters and 24-hour banking
at sidewalk teller machines,

IBM does business in 127 countries
outside of the United States, and does
more business in Japan than any other
foreign-owned company. Through the
years, it has become practically a
Japanese enterprise in its operations
and administration. IBM Japan's
president Takeo Shiina ex ains that
the company’s business practices are in
principle the same as they are in all
counttics where the company
operates, but that certain modifi-
cations required either by law or
customs are made to meet the needs of
smooth operations in different
countries, Such adjustments are made
in Japan's operations so that manage-
ment practices conform with local
customs and legal requirements.

This means that some local
practices are quite different from what
is normal Japanese practice. For
example, an applicant is screened and
the final decision regarding hiring is
made by the manager of the section
where the applicant will be assigned
after joining the company. This differs
from Japanese practice in which a
person is hired by the Personnel
Department and placed in a certain
section to work.

IBM Japan has assembled an
impressive staff and its performance
has been equally impressive. For
example, in fiscal 1976, running con-
currently with the calender year, the
company chalked up net income after
taxes of ¥26,701,498,861 on gross
revenue of ¥275,492,085,228,
including export —revenue of
¥39,378,997,789, or 14.3 percent of
the total, And taxes paid amounted to
¥51,498,895,956.

Former IBM Japan President Sanae
Inagaki is now Chief Executive
Officer and Chairman of the Board,
and fonner Vice President Takeo
Shiina is IBM Japan's President. Its
staff of nine directors include such
internationally known scientists as
Leone Esaki, a Nobel Prize winner in
1973, and Tadashi Ueno, former
Director of the Bank of Japan, who is
now Director of Financial Operations
for IBM Japan.

An IBM spokesman reported that
in addition to supplying users in Japan
with data processing systems and
related services, IBM Japan exports its
products to over 65 countries. IBM
Japan manufactures products at two
plants. The Fujisawa Plant is located
about 32 miles southwest of Tokyo
and has 55,820 m? of floor space. And
the Yasu Plant in Shiga Prefecture
covers 45,250 m? and is devoted to
manufacturing card, board and
modules, and assembles = IBM
System/370 Models 115 and 125, and
the new 3033 and 3032 processors
with their new and innovative features.
The Fujisawa Plant produces process-
ing units, data storage units, printers,
communications controllers, and SNA
terminals, IBM Japan has data centers
in eight cities in Japan, and some 40
sales locations scattered strategically
throughout the nation.


Sanctions Ineffective

Johannesburg SUNDAY TIMES in English 21 May 78 p 9

[Text]

cso:

4420

IN THE EVENT of sanc-
tions being imposed would
South Africa be able to
meet its computer industry
needs locally?

“Up to the mini-computer
level, yes, without a doubt,”
says Peter Abery, general
manager of Messina Elec-
tronics.

“Beyond that, however,
the complexity of comput-
ers increases exponentially,
making it difficult to go fur-
ther in terms of local manu-
facture.

“This would not leave
South Africa vulnerable,
however. Most defence ap-

ications could be within

e capacity of a locally
made mini-system. - The
same applies to industrial
applications including pro-
cess and numerical controls
for the production of vital
equipment.”

‘Mr Abery said cost and
low volumes precluded Mes-

_ sina, from_ going much be-
1 yond the 85 or so per cent of
| local content currently

54

“Achieved in iis Commander
system, although in the
event of sanctions the stra-
tegic considerations would
override those of cost.

“The Commander was de-
signed by Messina’s engi-
neers and the only items not
produced locally are the
more sophisticated integrat-
ed circuits. Given the nec-
essary incentive and re-
sources, however, South Af-
rica could make its own
computer chips.

“The other essential
items such as printers and
off-line storage could simi-
larly be produced here," he
said.

One year after Start-up
Messina has an order boo!
of more than R600 000.

The company has just in-
troduced an upgraded ver-
sion of the Commander, and
was recently able to reduce
its prices by between 10 and
15 per cent. This brought a
typical standard system into

e R15 000 to R20 000 range.


IBM, JAPANESE COMPUTER INDUSTRY

JAPAN

Tokyo INDUSTRIA in English Vol 8 No 5, May 78 pp 6-10

[Text]

NEC-Toshiba Group Strengthens
Cooperation

On February 25, 1978, the Japanese
computer industry rocked all day long
with one topic,

On that morning Japanese news-
papers reported that Tokyo Shibaura
Electric Co,, Ltd. (Toshiba) would
separate its business division for large
and medium-size computers from
the company. One. paper headlined:
“Toshiba is withdrawing from large
computer business.” The point of the
news was that “Toshiba and Nippon
Electric Co., Ltd. (NEC) agreed that
Toshiba’s sales division for large and
medium-size computers would be
transferred to NEC-Toshiba Informa-
tion Systems Inc. (NTIS), their joint
venture for the development of Very
Large Scale Integration circuits, The
news shocked the computer industry,
because the agreement practically
means that Toshiba, ranking fourth
among Japanese computer makers, will
withdraw from the large and medium-
size computer market, and because it
could mean limitation in the develop-
ment of the domestic computer
industry with support from the
Ministry of International Trade and
Industry (MITI).”

Stunned by the word “withdrawal,”
Toshiba filed a protest with the news-
paper which had reported the news.
President Kazuo Iwata of Toshiba
said, “That’s not withdrawal but an
advance.” Supporting the latest deci-
sion, MITI described it as “stepped-up
cooperation in marketing betweer
Toshiba and NEC.” NEC, the partner
of cooperation, also aired “stepped-up
cooperation,” saying that “weakening
of Toshiba would mean that NEC
would also get weakened.”

More time is needed to know the
credibility of the news. The top man-
agement of Toshiba was apparently
looking for an opportunity to an-
nounce a plan to separate the business
division for large and medium-size
computers. Since Toshiba emphasizes
that it will continue to be a “main-
framer,” it is inconceivable for Toshiba
to withdraw from all fields of large
computers, including the development
and manufacture in the near future.
However, it can not be denied that
Toshiba, in reaching the latest decision,
read coolly the diversifying trends in
demands for computers as represented
by the distributed processing system,
in addition to the chronic deficit in
the large computer business.



FRANCE

PIT'S 1976 ACTIVITIES, FINANCES REVIEWED
Paris REVUE DES PIT DE FRANCE in French No 1,1978 pp 49-61

[Text] The Secretariat of State for Telecommunications has
just published its activities report for the year 1976.
The limited number of copies printed of this brochure leads
us each year to publish excerpts on the most significant
activities of our department.

Our readers will recall the modernizing and equipping efforts made over the
past 3 years in the field of telecommunications and to a different extent in
the postal sphere. It is appropriate to endow France with a telephone net-
work responding to the requirements of the modern world and to adapt the
postal service better to the needs of private individuals and enterprises.

Nineteen seventy-six was an exceptional stage in the realization of this
major plan. The government decided to give first priority to our country's
telephone equipment and to pursue these efforts throughout the Seventh
Development Plan. The 1976-1980 action program provides for the installation
of 8 million new main lines and steady improvement in the quality of service,
whether it be a matter of subscribers’ lines or of communications, the aver-
age time lag for installation is to be reduced to 3 months.

As for the postal service, priority has been given on a national basis to
the automation of operations. The launching of 49 new building plans and

the acquisition of 128 machines for sorting letters and parcels in the course
of the next few years will speed up modernization of the routing network and
improvement of the establishments' productivity and of the postal employees!
working conditions.

The other commitments concern the presence and quality of the postal service.
In urban areas the establishment and construction of a greater number of
offices are intended to bring the post office "windows" closer to the con-
sumers and to reduce the size of the establishments; in the rural areas, the
administrative presence will be maintained and gradually diversified and
improved,

71



These are matters which the management of our construction organization
should deal with and resolve.

1 suggest that the lineman who installs a box should leave in it his calling
card. This way, 50 years or 5 days later, if necessary, we would see who
and what organization are responsible for the assembly. Why not issue
guarantees for each project? This would upgrade the role and responsibility
of the technical managers and technological discipline. All construction
workers well know that technological discipline is being violated. We
decided to observe the necessary depth of the trenches. For the past seven
to eight years, however, no one has mentioned the depth as we deliver a
project.

Some organs are interested only in the implementation of the volume plan.

In their case no one keeps track of the way we work, the working conditions,
and the rating of the acceptance commission. Yet, form No 16 represents a
rating of several years of work of a given collective. The telegram of
thanks which the management of the construction organization sent to tech-
nical manager Levunliev and his group for the Samokov-Borovets Project played
a positive role. However, this was the only case of its kind in 10 years!
Why not make it a practice for the trade union management?

It is of interest that in the past five years no single manager from Isstroy
and, presently, Telekomplekt has visited my area or even gone to the okrug
people's council to meet with local city and okrug managers. This would have
been useful and would have consolidated our authority, for the solution of
many problems involving the living conditions of the group depends mostly

on the local management.

The fact that no one gives a thought about the prestige of our people is
confirmed by yet another example: We received a letter summoning our people
to attend a training course. This was good. They showed up. However, no
other personnel showed up and the course did not take place... yet, new
developments in communications construction are numerous and should be
studied continuingly. Therefore, both the training and retraining of cadres
is unsuitable.

I am writing about such things with a feeling of pain and dissatisfaction.
We are asked to insure prompt and faultless construction. This is proper.
However, let us not forget that the quality of a project. and its completion
deadline do not depend exclusively on the construction workers.

5003
cso: 5500

26



access systems were introduced in which separate carriers were used for
each station. These systems are simpler, but their capacity is degraded
because of transient interference. With time access, at each moment in
time only a single signal is being transmitted through the retransmitter
and the retransmitters capacity is increased by 2 - 3 times. However, time
access requires more complex channel formation equipment and an increase of
power by the ground transmitter. Both principles are used in existing sys-
tems -- frequency access for low-channel communications stations with small
amounts of traffic, and time access for stations with requirements exceeding
24 channels.

A distinguishing characteristic of the telephone transmission system men-
tioned is the use of the modern digital transmission techniques KIM-DFT
(pulse-coded modulation and two-stage phase telegraph), which permit opti-
mal usage of a satellite trunk's capacity. With time access, digital trans-
mission provides a capacity°of 600 telephone channels to a trunk line, and
with frequency access only 200 - 400 channels.

The significance of creating communications satellite systems is great not
only of our nation, but also for numerous other countries of the world

which have the capability to conduct communications over tremendous distances
through ISZ.

In the interests of international cooperation, back in 1971 the "Intersputnik"
communications satellite system was created (membership includes Bulgaria,
Hungry, GDR, Cuba, Mongolia, Poland, Rumania, USSR, and Czechoslovakia).

This system is used for the transmission of television with accompanying
sound and for telephone-telegraph communications.

COPYRIGHT: Izdatel'stvo "Svyaz'", "Vestnik svyazi", 1978

9082 :
cso: 1823

69


The most important task in developing and improving the radio installation in-
dustry during the tenth quinquennium is automation of the numerous rural RTU

oe will sharply improve the technical-economic features of the rural net-
works.

At the present time, more than 7,000 rural broadcast centers have been auto-
mated, thus allowing over 10,000 station operations personnel to be freed.

There are two automated systems for rural RTU. First, the radio channels of
MV-CHM stations are used to provide broadcast programs to the radio centers;
secondly, this is accomplished through cable channels. for rural telephone commu-
nications. The automated 500 watt TUPV-0.25x2 transistorized radio center has
achieved broad distribution throughout the rural radio relay networks. The
TUPV-0.25x2 equipment is installed within the reception zone of MV-CHM stations
where the effective field intensity is no less than 50 microvolts/m. A special-
ized monitoring and backup control apparatus (AKRU) which operates on the rural
telephone network is being manufactured to monitor the operation of automated
radio centers. The system for automating radio relay centers by using cable
channels for supplying broadcast programs and remote signals, and for adopting
the AKRU equipment is being distributed to the RTU's which are loacted outside
the positive reception zone of MV-CHM stations, and are also positioned close
to operating radio relay and cable lines.

During the tenth quinquennium, new automatic, transistorized amplification equip-
ment of the 1 kw TUPV-0.5x2 model will also be introduced at the RIU's.

The primary thrust for development and improvement of PV during the tenth quin-
quennium is the potential acceleration for transferring it to a domestic three-
program broadcast (TPV) system. This is not only a technical-economic task, but
it is also one of socio-political import. At the present time, over 30 million
radio relay points within the cities can already provide reception for three-
program broadcasts. However, it is necessary to sharply reduce the gap between
the radio networks’ capabilities and its satiation with the three-program loud-
speakers which the radio industry is currently producing in insufficient quanti-
ties.

The advancement of TPV into rural localities is an important measure. During the
tenth quinquennium, TPV will be introduced here primarily at the automated RTU's
which are located within the operating zones of MV-CHM stations.

The greatest achievement of science and technology in the 20th century is tele-
vision. Television broadcasting is one of the most effective and efficient means
of getting information, propaganda and communist training to the working masses.
The television transmitter network in our country is the most diversified and one
of the most powerful in the world. The total number of television broadcast sta~
tions in the USSR at the present time is nearly 2,400.

A branched Central Television network, which since 1967 has begun equipping itself

with operational television systems using artificial earth satellites (ISZ), has
been organized within the country. As a result, the positive reception zone for

62



general electric and electronic equip-
ment manufacturer.

Toshiba is featured by its develop-
ment of systems. A good example is
the traffic control system delivered to
Tokyo’s Metropolitan Expressway
Public Corp. Using the control com-
puter, TOSBAC-700 Model 25, and a
graphic panel of 3 m by 10 m, this
large-scale system controls traffic on
about 100 km of highways in Metro-
politan Tokyo.

At the same time, Toshiba is the
top maker of ME (medical electronics)
equipment. Since the present factory
on the site of 65,000 m? has become
too small for the production of such
equipment, the company is construct-
ing a specialized ME plant on the site
of 165,000 m? in Tochigi Prefecture,
north of Tokyo. With the systemati-
zation of ME equipment going on, the
company has delivered an emergency
medical treatment information system
to the Medical Center of Ibaraki
Prefecture, north of Tokyo. The trial
manufacture of computed tomography
system for medical use has just been
completed, and the products are to be
put on the market in summer this
year. Toshiba will continue to grow by
meeting the needs of the new age with
its computers,

cso: 5500

19



/inswer] A great many countries have made studies of color TV, on the basis of
Which Several systems have been developed. It took a long series of internati-
onal conferences, which I attended myself on behalf of Romania, to facilitate
the international exchange of programs. They decided to give international re-
cognition to only three systems, namely the NTCS, SECAM, and PAL systems devel-
oped by the United States, France and the FRG respectively. Personally I pre-
fer the first system for its outstanding technical qualities.

[Questionf As a TV subscriber myself, I am curious to know when we shall have
Color TV.

/Enswer7 All our studies at the institute on the subject of color TV were fore-
warded some time ago to the industry and Radiotelevision. All the arrangements
have been made to start color telecasts, and even though I cannot give you a
definite date, you may be sure that it is not far off.

[Question] I would like to know when there will be more nationwide TV programs,

[inswer] It is true that we now need more TV programs for all Romania. But
this would be very expensive with conventional techniques (by radio relays and
surface transmitters), However the extraordinary progress made in space tech-
nology may permit nationwide TV programs from a satellite transmitter.

{Ruestion7 In what stage are the studies for adopting this new technique?

/Knswer7 A broad research program for implementing the new technique has al-
Teady Started, But there are many unsolved research problems and we have to
prepare the best possible models, because no hasty solution can be corrected
in progress, National transmissions by satellite have already been regulated
by international treaties. The Geneva Conference of February 1977 determined
for each nation the position its national satellite may occupy in the equator-
ial plane. The maximum number of channels per country was regulated at the
same time, Romania was allocated five TV channels, which can also be used for
high-quality radio broadcasting, on a satellite placed in the position 1 degree
west. At certain points up there in space it has become so crowded that there
is almost not enough room left for all nations, so that Romania is in the same
position as some 10 more countries in approximately the same latitude.

[Ruestion/ You represent Romania at international conferences like the ones

you mentioned, In what stage are the agreements on satellite transmission of
international TV programs?

/inswer/ The first steps are being taken, but quite hesitantly. Think of the
Propaganda power of TV and you will realize that this idea cannot yet take ef-
fect in a world with so many interests in dispute. But I do not think interna-
tionalization of TV programs can be held up forever. It is in the nature of
things. There will be a veritable information revolution. Let us imagine for
example that a citizen of Tahiti presses a button and receives the programs of
the USSR, the United States or other nations by a simple maneuver. With three
or four satellites all national telecasts can actually be transmitted from any
country to any country. For the time being this is meeting with serious

36


USSR

* CURRENT BROADCASTING DEVELOPMENTS AND GOALS DISCUSSED
Moscow VESTNIK SVYAZI in Russian No 4, Apr 78 pp 2-5

[Article by Ye. Ye. Dobrovol'skiy, Deputy Chief of Main Control for Space
and Radio Communications and associate professor: "Radio and Television
Broadcasting and Space Communications in the Tenth Quinquennium"]

[Text] At the 25th communist party congress, in his report "An Accounting

of the Central Committee of the KPSS and the party's next tasks in the area
of internal and external policy," General Secretary of the KPSS Central Com-
mittee Leonid Il'ich Brezhnev stressed, "The orientation of all branches of
the economoy and the work of each ministry and enterprise towards a determined
improvement in efficiency and quality is now, comrades, of greatest import-
ance." This program position of our party has direct application to the de-
velopment of all the media of the communications field.

Radio and television broadcasting, and in recent years also space communica-
tions, have permanently entered the life of our nation. And that's not sur-
prising -~ why our country is radio's native land. Radio Day has become a
holiday for all radio operators now. Noting this holiday, we once again de-
sire to examine our achievements and decide which tasks remain to be completed
during the tenth quinquennium.

The ever growing role of the communications media, radio and television broad-
casting has been reflected in the new constitution (Basic Law) of the Union
of Soviet Socialist Republics (USSR). Article 46 states, "Citizens of the
USSR have the right to use cultural achievements. This right is guaranteed
«+e. by the development of television and radio." In article 50, it says
that, "Citizens of the USSR are guaranteed the freedoms of speech, press,
assembly and meetings.... The attainment of these political freedoms is in-
sured by giving the workers and their organizations public buildings, streets
and squares, through the wide dissemination of information, and the opportu-
nity to use the press, television and radio."

“The primary course of development for the national economy of the USSR be-

tween 1976 and 1980," as affirmed by the 25th KPSS congress, "is provided
for by ensuring the future development of radio and television broadcasting,

56



BULGARIA

MINISTRY OF COMMUNICATIONS REVIEWS 1977 ACTIVITIES
Sofia IMPULS in Bulgarian 28 Mar 78 p 1
{Report on ministry collegium meeting]

[Text] A joint meeting between the Ministry of Communications Collegium
and the Bureau of the Central Committee of the communications workers trade
union, chaired by first deputy minister engineer Stoyan Markov, was held on
24 March. The annual report and balance sheet of the ministry covering its
1977 economic activities were considered and adopted. The meeting was at-
tended by representatives of the BCP Central Committee, the Council of
Ministers, and all functional ministries and departments observing the
ministry's activities.

It was reported that all economic units fulfilled their state and counter-
plan for the volume of output. The good economic results are due, above
all, to the active participation of all collectives in the implementation
of the plan, developing socialist competition on a higher level. The measures
for the modernization, reconstruction, and development of the material and
technical base of communications were the factual base for the implementa-
tion of the plan. Thus, in the course of the year another 1,933 automated
interurban telephone lines were installed. The number of automated tele-
phone exchanges was increased by 115 while the capacity of the exchanges
rose by 104,710 sets. This created conditions for the installation of
93,165 telephone sets to meet the needs of the population and the national
economy. The number of telex units was increased by 160. These successes
contributed to the fulfillment and overfulfillment of all economic quality
indicators such as profits, profitability, production cost, net output,
and others. Along with positive results, a number of weaknesses were al-
lowed by the collectives pertaining, above all, to the quality of popula-
tion and state enterprise services. The attention was directed to the
still high number of breakdowns and their duration, delays in the replace-
ment of telephones which, together with breakdowns in interurban communica-
tions, caused billion of leva's worth of losses. The collegium and the
bureau resolved to accept the ministry's report and balance sheet for 1977
and to continue the work on the overall assessment of the functioning of
the communications system and of its contribution to the implementation of
the national economic tasks. Such an assessment should be made by all en-
terprises within the communications system.

22



Expenditures

These came to 43,871.3 million francs; the increase as compared with 1975
was 17.4 percent and less than the increased percentage of receipts which
amounted to 18.9 percent.

For their part, personnel costs (20,616.2 million) made up the major opera-
tional expenditures: 47 percent.

In relation to the previous year's operations, the increase of nearly 3 bil-
lion was attributable to the successive wage increases, the addition for the
full year of jobs created in 1975 and new jobs approved in 1976.

The other categories of major expenditures were, respectively:

The financial outlay made up in part of the sums paid out to financing firms,
the interest on and costs of loans, and the balance of the interest paid out
to: the CNE's depositors;

Amortizement which is naturally related to investment efforts;

and though not affecting the balance of the working account since it is made
to agree with the proceeds, the providing of official interoffice delivery
service.

Capital Transactions

The accounting of capital transactions brings out the major variations af-
fecting the agency's holdings before their transfer to the credit and debit
sides of the balance sheet; amounting to 15,765 million, they declined by
nearly 600 million as compared with 1975.

Employment

Outside of the investments realized through budgetary credits, the sum of
which exceeded 11,200 million francs (purchases of technical materiel repre-
senting 8,142 million), it is appropriate to mention the repayment of loans
(577 million) and the advances made by public organizations (464 million)
and the increase in stock on hand (460 million), raising the total value of
the materiel stored in the regional and departmental warehouses and those of
the special services to 3,998.2 million francs.

The equipment placed at the disposal of the PIT by the financing firms are
not included in the investments appearing on the capital working account; it
is nevertheless entered on the balance sheet; on the credit side the means
are recorded, and on the debit side the entire long-term debt:

89



--the international outward dialing code (99 for SFRY)

--the code of the country to which we are placing a call (in this case the
code for Switzerland)

--the network area code of the called central office (number 31 in our
example)

--the called party's number (12-34-56 in our example).

International direct dialing will be available to subscribers in the follow-
ing central offices.

Ljubljana: area code 061; district exchanges and subexchanges in the local
network of the City of Ljugljana.

Maribor: area code 062; district exchanges in the local network of Maribor
and exchanges Fram, Hoce, Lovrenc na Pohorju, Orehova vas--Slivnica, Pekre--
Limbus, Pernica, Pohorje, Race, Ruse, Sentilj v Slovenskikh Goricah,
Zgornja Kungota, Lenart v Slovenskig Goricah, Prevalje, Crna na Koroskem,
Mezica.

Celje: area code 063; exchanges Celje, Dobrna, Rimske Toplice, Strmec pri
Vojniku, Store, Vitanje, Vojnik, Sempeter v Savinjski dolini, Petrovce,
Polzela, Prebold, Vransko.

Nova Gorica: area code 065; exchanges Nova Gorica, Anhovo, Branik, Dobrovo
v Brdih, Dornberk, Kanal, Kojsko, Kostanjevica na Krasu, Cepovan, Miren,
Sempas, Sempeter pri Gorici, Trnovo pri Gorici, Volcja draga, Ajdovscina,
Col, Crnice, Dobravlje, Podnanos, Vipava, Tolmin, Bovec, Breginj, Kobarid,
Klavze, Most na Soci, Podbrdo, Tolmin, Cerkno.

Koper: area code 066; exchanges Koper, Ankaran, Crni kal, Dekani, Marezige,
Slovensko Gracisce, Skofije, Smarje pri Kopru.

Postojna: area code 067; exchanges Postojna, Hrusevje, Kosava, Pivka,
Planina na Rakeku, Prem, Prestranek.

Subscribers in Ljubljana can obtain information on how to place internation-
al telephone calls by dialing 901 or 988 and subscribers in Maribor, Celje,
Koper, Postojna, and Nova Gorica by dialing 988.

International telephone calls to other countries and from places in Slovenia
where direct dialing is not yet available should be placed in accordance
with the previous procedure, i.e., by dialing 901 in Ljubljana, Maribor,

and Nova Gorica and 900 elsewhere.

The public will be notified by information media as other places in Slovenia
are gradually included in the international direct dialing system.

12070
cso: 2800

43



Telecommunications Summed Up in a Few Figures”

Telephones

All types of telephones (as of 31/12/76).......eeeee05 sees 15,656,000
Principal subscriptions (as of 31/12/76). see 8,270,000
Automation rate (as of 31/12/76)... eee 97.4
Principal lines connected in 1976 (new subscribers and

transfers)... eseseeeeeeee Oe eee e new c eee ewer cnene eee eeee 1,716,000
Over-all applications for principal lines received in 1976
(met AMOUNE) .. ee eee cece eee e eee cence eet eeeseeeceecees 1,986,000

Total outgoing traffic (in millions of basic charges) in

L976. cece e eens eeeee seeee 33,987
Telex
Private subscriptions (as of 31/12/76) ......cccecceesvesses 60,996
Total outgoing traffic (in thousands of communications

Un 1976. e eee cece eee cece eee e cence eer en ence eesenees 83,042
Telegrams
Outgoing telegrams (in thousands):

DOMESEUC. eee eee cece cece eee r eres eee eseeeeeeeeeeerenee eee 12,404

International 3,599
Teledata Processing
Number of terminals installed (as of 31/12/76)......cseeees 30,291

¥ 7 A
France itself, overseas departments and territories

On the other hand, in comparison with 1975, telegraphic traffic recorded a
reduction in the international sphere and stagnation in the domestic sphere.

Teledata Processing
During 1976 it stabilized its growth rate at about 33 percent, the number of
terminal installations increasing from 23,300 at the end of 1975 to 30,921.

The increase in its specific services should be especially noted:

The Caducee [Caduceus] network had 1,034 subscribers at the end of 1976 as
opposed to 800 in 1975;

The Transplex service attained its goal: 320 channels leased as compared with
151 in 1975;

High output transmission connections rose with the opening of the network con-
verted to 2,400 bits/s.

84


capacity of the radio stations, and consequently also to improving labor
productivity.

The new "Regulations tor Technical Operation of Radio Broadcasting and
Communications Installations" (Moscow, "SVYAZ'", 1977) which were developed
by the Chief Directorate for Space and Radio Communications and have been
in effect since August 1977, take the new technology, the increased quality
requirements and operations efficiency all into account, as well as the ex-
perience of the leading collectives of scientific labor organizations. The
high level of professional training and the specialized knowledge for main-
taining and managing a radio broadcasting network, as set forth in the reg-
ulations, are the requisite conditions which guarantee the effectiveness of
the specialists' labor in a radio enterprise.

Cable broadcasting (PV) together with radio broadcasting comprise the nation's
unified broadcast network. The PV system provides for the reception and
boosting of broadcast programs as well as their distribution with the assist-
ance of the cable network through a subscriber arrangement. The combination
of the powerful radio broadcast transmitting network which has more than 70
million wireless receivers with the branched PV network which also exceeds

70 million radio relay points resolves the country's radio installation prob-
lem with great efficiency and high quality. At the present time, more than
97% of the country's populace are reached by cable broadcasting.

The popularity of PV is explained by its ease of operation, the reliability
and low cost of its subscriber arrangements, its anti-interference feature,
good quality indices, and also the capability for transmitting local infor-
mation. Presently, all the public and residential buildings under construc-
tion are being equipped with PV broadcast networks. In recent years, radio
relay points have increased at a rate of 3.5 million a year. The total
length of the radio relay network's cable lines comprise about 2 million
kilometers.

At the present time, approximately 50 million radio relay points are oper-
ating in the cities. The automation of technical processes is being intro-
duced at the municipal broadcasting centers to make the PV system highly
profitable as well as significantly reduce its labor intensity.

Standard amplification equipment of the UPY-5 type with 5 kw rated power
and the 15 kw UPV-15 are prevalent at the municipal radio relay centers
(RTU). The operational reliability of the PV system in the cities is at-
tained through redundancy of the system's most important components.

More than 20 million radio centers are now operating in rural radio relay
networks. The feature of radio installation in rural localities is the
small number of radio relay points required for each kilometer of line,
as well as the prevalence of manual labor. Hence, rural radio relay cen-
ters have a low profitability.

61



Telephones--Automation Growth Rate of Principal Telephone Lines (as of. 31/12/
76) in percentages
|

Commercial Activities

During the year 23 agencies were established raising their number to 109 by
31 December 1976.

In addition, the first "teledata processing shops" were opened.

85



HUNGARY

OLD STUDIOS, TRANSMITTERS TRANSFERRED, NEW ONES PLANNED
Budapest NEPSZAVA in Hungarian 29 Apr 78 p 4

{Article by T. M.: "The Lakihegy Transmitter; It Belonged to Kossuth, It
Belongs to Petofi; A studio in a Moving Van; Sound War: Only Resting, not
Farewell; New Transmitters; Telephone News and Stereo"]

[Text] There is a mountain in Hungary which is really a plain but everyone
knows its name--Lakihegy. When the site was selected--just 50 years ago--
the postal authorities were trying to pick a place to which it would be easy
to "transport" the electric power and where mountains and hills would not
interfere with transmission.

The truth is that Lakihegy was not the cradle of Hungarian radio. The first
step was the telephone-news service and then when radio transmission began
the studio was at number 22 Rakoczi ut. The program was transmitted from
Csepel with a power hardly exceeding that of 6 lightbulbs. Broadcasting
has an adventurous history for the first studio was in a moving van but they
also held concerts in the Zoological Garden.

Building a "real" transmitter became ever more urgent in the second half of
the 1920s, The decision was made on the basis of an international competition
and Telefunken got the commission. The transmitter was placed into operation
in ceremonies held on 29 April 1928. At that time they built a cigar shaped
tower 150 meters high. Lakihegy has been reborn and rejuvenated many times
since. Most recently, about a decade ago, they set up two transmitters of

150 kilowatts each so that Kossuth should be stronger. But its voice was
increasingly lost in the international ether war; in the 1930s transmissions
could be received 6,000 to 7,000 kilometers from Budapest. After the war,

in 1948, the medium wave frequencies were divided up among the various countries
at Copenhagen. The operation of 100 to 120 transmitters was authorized,

In contrast to this, in the second half of the 1960s, more than 3,000 trans-
mitters were broadcasting in the medium wave with ever greater power, drowning
one another out. Frequently, the voice of Kossuth could not be heard 100
kilometers from the capital while transmitters from the Middle East could be
heard, Sunspot activity plays a role in this also.

30



NEC “pursues business policies
aimed at IBM and has no intention
of becoming a specialized maker.”
(Computer now accounts for 25 per-
cent of its total sales.) It established a
wholly-owned local venture for com-
puter business in the United States last
year and plans to export small com-
puters, starting next year.

The Weak Fall a Prey to the Strong

The computer was reported to be
a major subject of discussion behind
the scene when Japan’s surplus in
trade with the United States tumed
into a big political issue from the end
of last year to the beginning of the
year. The fact that tariff cuts in com-
puters was not mentioned in the joint
communique issued on January 13
could mean that they were carried
over to negotiations in autumn. The
industry is dissatisfied that the com-
puter is used for political purposes and
has become an especially sensitive
issue since the problem is now left toa
highly political settlement, transcend-
ing economic principles and business
interests. Under the circumstances, it
is quite difficult to foresee the future
of the Japanese computer industry.

The MITI and the Industrial
Structure Council once projected the
Japanese computer industry in 1985 as
follows:

Domestic output will total
¥2,488,200 million, of which 16 per-
cent will be exported. Multi-purpose
computers to be delivered in 1985 will
total ¥1,875,900 million (annual
growth 10.3 percent). Growth of large
and small computers, terminal equip-
ment for on-line systems and mini-
computers will be particularly big.

cso: 5500

On March 15, the VLSI Technology
Research Association announced that
the development of Very Large Scale
Integration circuits had become
certain, They are considered essential
for the development of a new com-
puter series to counter IBM’s new pro-
duct for the 1980s, which is called the
“Future System.” After the Very
Large Scale Integration circuit is deve-
loped by 1979, MITI apparently plans
to weaken its administrative interven-
tion in the industry and considers it
inevitable to allow somewhat the
principle that the weak fall a prey to
the strong. Since it is difficult to estab-
lish a cooperative set-up among do-
mestic makers at present, the com-
puter sales business will sooner or later
enter an era of competition when “the
strong will win.”

The decision by Toshiba to separate
the sales division for large- and
medium-computers will probably
induce an era in which computer
manufacturers will live on their spe-
cialties under market principles.
Fujitsu, the nation’s top computer
maker, says suggestively that “the
reason why we are doing our best is
that we have a super giant rival, IBM.”


But there are two drawbacks. The airwaves are very congested, and it is
difficult for radio waves to clear a path for themselves. Then during the
day and especially during intense solar activity, the upper atmosphere under-
goes changes that partially absorb the waves and do a poor job of sending
them back toward earth. On the other hand, everyone has noticed that dis-
tant radio reception is much better after sunset.

For that reason, for continuous intercontinental communications it seemed
necessary to use ultrashort waves and communication satellites. In fact,
ultrashort waves pierce the upper atmosphere and reach a satellite which
sends the broadcast back to earth. To do so, it is necessary to have
satellites. This is very expensive and is beyond the capabilities of most
countries. On the other’hand, it becomes possible if everyone bands to-
gether. Therefore, the Congo joined the international organization INTELSAT
which has a whole chain of satellites. INTELSAT now has 101 member states;
the Congo has belonged to it since 26 October 1977.

This organization places several geostationary satellites at the disposal
of the user countries. What does this involve?

At a distance of about 35,800 km from the earth, a satellite possesses a
velocity that keeps it in balance at that distance in the earth's gravita-
tional field. It orbits the earth in 23 hours 56 minutes, which corresponds
to the time that it takes our globe to make one complete average revolution
about its axis. If an object is placed in orbit at that altitude above

the line of the equator, it will appear to observers to be stationary with
respect to the earth (geostationary).

Now intercontinental communications are facilitated by this system to the
extent that they become theoretically continuous. In fact, it is sufficient
to place satellites in 120-degree orbits with respect to each other (the

360 degrees of a circle divided by three) for every point on the surface of
the earth to be within the cone of action of one or the other of these relay
satellites. In reality there are more than three of them. INTELSAT has
three or four of them above the Atlantic Ocean alone.

The INTELSAT satellite to which the Congo is linked is of type IV a; it
weighs 798 kg and can relay 6,250 telephone communications and two tele-
vision programs at the same time.

This satellite is in contact with 68 ground stations which, like the
Congolese station at Moungouni, have their antennas continuously aimed in
its direction.

An Antenna That Is Somewhat Special

The Moungouni ground station is therefore nothing more than a gigantic
antenna that receives or transmits broadcasts through an INTELSAT satellite.

45


form JECC’s rental funds which have
helped greatly domestic makers short
of funds.

JECC now rents 125 computer
models. When a provisional contract is
made on a rental between the manu-
facturer and the user, the computer is
sold to JECC and then put out to rent.
Therefore, the manufacturer can put
the product on the sales list and get it
paid immediately. This is a big merit
for manufacturers, but there is a
pitfall.

For example, annual sales of IBM
Japan are estimated at ¥300,000 mil-
lion which may be considered a net
amount, since IBM Japan rents its
products on its own without relying
on external sources and carries actual

earnings on the book. On the other
hand, Fujitsu with annual sales of

about ¥240,000 million carries the
total amount of a rental contract on
the book, even if it is paid over a
period of more than one year. In other
words, IBM Japan has a large amount
of rentals coming in automatically.
For the above-mentioned reason,
Fujitsu needs to seek large-scale busi-
ness and tends to cut prices to expand
sales. This business behavior could be
posing a growing obstacle to IBM.

Hitachi Holds the Key to Moves
of Domestic Makers

Hitachi, ranking second among the
domestic computer makers, is Japan’s
largest heavy electric machinery
producer having annual sales of
¥1,300,000 million and also one of
the largest manufacturing firms in
Japan. The computer business ac-
counts for around 13 percent of the
total sales. The dominant view within
industry circles, including those with
foreign capital investment, is that
“Hitachi will not aim at a specialized
computer manufacturer.” However,
there is a view that Hitachi holds the
key to future moves of the domestic
manufacturers, since it is superior to

others in total computer technology,
being especially strong at semi-
conductor techniques. [ts market share
is about 15 percent, still below that. of
Fujitsu. Some firms with foreign
capital investments holds the view that
Hitachi will be more menacing than
Fujitsu in the future.

Hitachi’s HITAC M Series incorpo-
rates a unified architecture developed
jointly with Fujitsu. But they are now
at odds as widely known within indus-
try circles. So, there is no prospect of
forming a group as in the case of
Toshiba and NEC. Having contributed
greatly to the development of the
nation’s computer industry, both have
confidence in their computer business
and have their own established poli-
cies,

Hitachi now earns 50 percent of its
computer sales through its own rental
system like that of IBM. It is reported
that Hitachi has switched to the rental
system of its own after having recog-
nized that dependence on JECC’s
funds is financially unhealthy. The
JECC rental system not only results in
consuming future sales but also
reduces profits. Under the system (in

many cases), the computer is directly
returned to its manufacturer, when the

rental contract is terminated before its
completion. In such cases, the manu-
facturer must buy it back at a price
after depreciation. This means the dif-
ference in the two prices will be a loss
in sales. Some highly rate Hitachi’s
own rental system, saying that “big
business as it is” or that “the manage-
ment really knows the computer
business.”

The last of Japan’s Big Three is
Nippon Electric. Although NEC was
once the nation’s biggest computer
maker, it now ranks third with the
market share of about 12 percent. It
tums out ACOS 77 Series, a full-dine
system developed jointly with
Toshiba, which has a high cost per-
formance,



YUGOSLAVIA

NEW INTERNATIONAL TELEPHONE EXCHANGE OPENED IN LJUBLJANA
Metaconta 10-C Automatic Exchange in Operation

Ljubljana DELO in Slovenian 26 Apr 78 p 1

{Article by Ilija Bregar: "'Faster' Telephony"]

[Text] Ljubljana, 25 Apr--Yesterday Ljubljana received
an international telephone exchange directly connecting
with 18 European countries. With today's official dedi-
cation of a new international automatic tandem telephone
exchange of the Metaconta 10-C type [combination rotary
and crossbar exchange developed by ITT] the Slovenian
capital obtained direct telephone connection with 18
European countries. The opening formalities were
attended, among others, by France Popit, president of
the Central Committee of the League of Communists of
Slovenia; Mitja Ribicic, president of the Republic Com-
mittee of the Socialist Alliance of the Working People;
Zvone Dragan, vice president of the Executive Council

of the Socialist Republic of Slovenia; and Vladimir
Logar, vice president of the SRS Assembly.

The international automatic telephone exchange in Ljubljana is the third of
its kind in Yugoslavia, the other two are in Belgrade and Zagreb. From now
on more than 70 percent of telephone subscribers in Slovenia can direct dial
telephones in Greece, the Netherlands, Belgium, France, Spain, Hungary, the
GDR, Switzerland, the Czechoslovak Socialist Republic, Great Britain, Denmark,
Sweden, Norway, Poland, the FRG, Luxemburg, Finland, and Malta. By the end
of July direct dialing to Austria and Italy also will be available.

A section of the exchange is designed to handle 3,534 toll calls simultaneous-
ly but at present its operational capacity is 1,760 toll calls. The interna-
tional part of the exchange is designed to handle 324 international circuits.
International toll charges will be 55 para for 2 seconds to neighboring
countries and 55 para per second to all other countries.

39



Tokyo Shibaura Electric Co.,Ltd.

On February 27, 1978, Tokyo
Shibaura Electric (Toshiba) and
Nippon Electric Co. (NEC) announced
their basic agreement on strengthening
their business tie-up regarding the large
and medium-size computers of the
ACOS Series which they had develop-
ed jointly. Under the agreement,
Toshiba’s sales division for the ACOS
Series is to be transferred to the NEC-
Toshiba Information Systems Inc.
(NTIS), and NEC will also dispatch
some personnel to the joint company.
Toshiba and NEC are making arrange-
ments for implementing the plan early
in April.

The two companies developed the
ACOS Series under a business tie-up
agreement in November, 1971, and
jointly established NTIS in March,
1974, for cooperation and adjustment
of their business related to large and
medium-size computers and for the
development of VLSI. The ACOS
Series on the market covers computers
of all sizes ranging from the large
System 900 to the small System 200.
In addition, Toshiba produces process
computers, TOSBAC 7000 Series;
minicomputers, TOSBAC 40 Series;
small business computers (office com-
puters), TOSBAC ‘System 15, 35 and
55; desk-top and pocket-type calcu-
lators and microcomputers to meet
any need of customers.

Minicomputers, small business com-
puters and calculators, in particular,
are selling well, bringing in large
profits.

The total number of office com-
puters shipped so far has exceeded
10,000, About 250 sets of ACOS
Series have been sold, including those
yet to be delivered. And recently, one
set of the ACOS 600 was exported to

18

the Construction Public Corp. of Iraq.
However, the business on large and
medium-size computers is still in the
ted. The above-mentioned step is being
taken to strengthen business in this
field. Although NEC will retain its
ACOS sales division, it will send re-
quired personnel to NTIS. This means
that Toshiba has made a step closer to
NEC in the field of computers for
general purposes. Toshiba continues to
produce and develop ACOS Series
computers, but the division in charge
of ACOS Series will amalgamate with
the one in charge of office computers
to form a strengthened computer
division.

Toshiba is one of the Japanese
companies which started the study of
computers at an early date. Since the
completion of the computer, TAC, in
1954 jointly with Tokyo University, it
has developed various sorts of com-
puters carrying the TOSBAC brand to
meet the varied needs of customers.
Toshiba, one of Japan’s leading manu-
facturers of electric and electronic
equipment, is in business tie-up with
General Electric (GE) of the United
States. Toshiba has domestically pro-
duced computers of the GE 400 Series
and marketed the TOSBAC 5400.
After GE’s computer division was
transferred to Honeywell Inc., Toshiba
concluded a technical tie-up arrange-
ment with Honeywell Information
Systems. Toshiba also produces semi-
conductors and ICs. The company has
high-standard computer technology.

Toshiba’s sales of computers total
about ¥60,000 million a year, which
do not account for a big portion of the
company’s annual turnover of about
¥ 1,000,000 million. But the computer
business is an important one for this


Mitsubishi Electric Corp.

Mitsubishi Electric Corp. is a
Mitsubishi Group member manufactur-
ing general electric and electronic
equipment and is highly reputed for its
capabilities to provide technology-
intensive industrial plants, While de-
veloping technique on computers for
plant system controls, it tured out
the medium scientific calculation
computer MELCOM-1101 in 1961. Its
research activities of computers soon
extended to general-purpose large-scale
units and various computers for
control use.

From an early date Mitsubishi
Electric has promoted the develop-
ment of an office computer (small
business computer) that can be used as
a computer and a cash register. On the
way of its development, the company
conducted all-out surveys on users of
registers at 500 places across the
nation. The office computer MELCOM
80 Series made its debut in 1968. With
its elaborate efforts, Mitsubishi
Electric has gained control of more
than 20 percent of the office com-
puter market, the largest for a
Japanese computer maker, As much as
30 percent of Japanese-made office
computers’ sold at home carries the
Mitsubishi brand.

Mitsubishi Electric, also a house-
hold electric appliance maker, began
marketing furon (sleeping mat) drying
machines in January, 1977. The
company first intended to sell the
machines to the areas along the Japan
Sea coast having heavy snow in.winter,
but they are selling well also in large
cities. Mitsubishi sold a total of some
700,000 units as of the end of last
March, Mitsubishi’s talent to sense user
need properly brought the success in
marketing its office computers,

13

Mitsubishi Electric has a business
affiliation with Westinghouse Electric
Corp. It started to develop ICs (inte-
grated circuits) in 1960 on infor-
mation of the world’s electronic tech-
niques supplied from the American
company, At present, Mitsubishi is a
major manufacturer of semiconduc-
tors, nearly 80 percent of which is sold
to other companies. While widely used
as parts of electronic equipment, semi-
conductors play important roles in the
development of computers.

In the field of large and medium
computers, the company has develop-
ed the COSMO Series on business
tie-up with Oki Electric Industry
formed at the guidance of the Ministry
of International Trade and Industry
(MITI). The company is currently
marketing the MELCOM-COSMO
Series, ranging from the large Model
900 unit having memory capacity of 4
megabytes to the medium Model 300,
with combined shipment totaling 170
units at the end of last year. It is also
selling the control-use computer
MELCOM 350 Series whose sales are
growing along with its industrial
plant business,

Shipment of the office computer
MELCOM 80 Series rose steadily from
850 units in 1975 to 1,550 units in
1976 and to 2,100 units in 1977. The
computer series is marketed through
its sales agents just as its household
electric appliances. Of the sales
volume, 350 units have been shipped
to Europe since 1969. Full-fledged
exports to the United States are
expected to start soon through
Melcom Business Systems Inc.; its sales
outlet was set up in the United States
last December. It is also turning out
the minicomputer MELCOM 70 Series



The latest news seems to have pro-
vided a chance for computer makers to
“move.” There prevails the view that
the Japanese computer industry has
entered the era of “Domestic Big
Three,” namely Fujitsu Ltd., Hitachi,
Ltd. and NEC, following that of
“three groups, six makers.”

Domestic Mainframers Doing Well

Tt was in 1961 that Japan’s com-
puter production took the form of an
industry. Recognizing the importance
and the future of computer, the
Government had been considering for
many years the introduction of com-
puter technology from the United
States. Against this backdrop, the
Government asked _International
Business Machines Corp. (IBM) to
open its patents for computers in ex-
change for approval of its computer
production in Japan.

It was in January, 1961, that IBM
made its basic patents public in Japan,
opening the way for Japanese manu-
facturers to turn out computers on
their own. In other words, the
Japanese computer industry would not
have existed without IBM. Ever since
then, domestic computer makers have
continued business, constantly recog-
nizing the existence of IBM.

The Government envisioned a plan
to establish a computer company
which would pursue its policy. MITI
tried in vain to consolidate into a
national policy company six manu-
facturers (three general electric makers
— Hitachi, Toshiba, Mitsubishi Electric
Corp. and three communications
equipment makers — NEC, Fujitsu,
Oki Electric Industry), because it
thought the six companies were too
many to develop large scale computers
and compete with IBM. But this plan
did not materialize in the: face of stiff
opposition from all the manufacturers.

MITI’s next protective measure was
to subsidize the computer industry for
research and development. Subsidies
provided for development during the
1972-77 period totaled approximately
¥70,700 million. This amount, how-
ever, was considerably small, com-
pared with IBM’s investment in re-
search and development.

The Government has considered it
wise to concentrate subsidies on a

group as small as possible in order to
effectively compete with IBM, and
begun secret moves to re-organize the
computer industry. Consequently,
three groups were formed during the
period between October and Novem-
ber, 1971. They were the Fujitsu-
Hitachi Group, Mitsubishi-Oki Group
and Toshiba-NEC Group. Even after
the reorganization, the Government
tried to delay the liberalization of
computer imports and of foreign
investment in the computer industry
as long as possible with a view to
strengthening the competitiveness of
the domestic manufacturers. All these
government efforts came from the
determination to prevent the “Giant
IBM” from dominating the domestic
market and the recognition of the im-
portance of the information industry.

During this period, however, IBM
(in fact, IBM Japan, Ltd., totally
owned by IBM of USA) had gone its
own way in Japan, paying little atten-
tion to Japanese manufacturers. But
the share of IBM in the Japanese
market continued declines, contrary to
its expectation. Domestic computer
makers have demonstrated _ their
strength competitive with IBM and
other foreign manufacturers, by mar-
keting a series of new products, since
imports and foreign capital invest-
ments were liberalized in December,
1975.


- a reduction in the quality of second class service, the delivery of which
is put off from day C to day D, which allows its sorting to be done outside
the periods during which the remmeration rates are higher (41900 hours) ;

- closing of the windows on Saturday afternoons.

Thus, thanks to a few service reductions, to collaboration of the personnel
with regard to the acceleration of the reappraisal of the services we men-
tioned above, to the largest savings campaign the postal service has ever
known, to rates moving toward an economic appraisal, and to the important
new marketing department, we have brought the postal service into a profit
showing situation.

The Marketing Department -

A positive step in the right direction was taken with the establishment of
our marketing organization. While the Post Office was an administration,
we were anonymous, timid and more concerned with regulations than with
commercial possibilities. Now, this attitude has changed completely. We
have taken the place on the market which rightly belongs to us. Our repre-
sentatives visit all the large companies in the country. There are close
personal relationships between our representatives and our clients from the
business world. And we all get out in the field to sell our services.

The postal service Marketing Department-is placed under the authority of a
specialized director from the Central Administration. He is supported in
the field by a commercial service, including:

- 10 marketing directors (one per region);

- 17 district sales directors;

- 130 postal service representatives, having a car at their disposal like
travelling salesmen.

This Marketing Department has two main tasks:

1) To elaborate policies which would allow for the fulfilment of the current
and future needs of both the business customers and the private customers;
2) To maintain the present volume and attract new volume at rates which the
users will agree to pay and which will cover the operational costs and
produce a profit.

Information concerning our services and on the best way to use them is an
important element of the art of selling in the commercial sector. We have
set up a central file on the most important companies in the country to which
we send our information pamphlets, designed to facilitate the sale of our
services. For the personnel of interested firms, we also offer a course on
how to manage a mail room efficiently.

As far as the parcel post service is concerned, for which we do not have a

monopoly, nearly 50 percent of our volume is currently ensured by contract.
This helps to maintain the volume when rates go up.

109



Fig. 1 - Receiving antenna
for the "Ekran" system

Fig. 2 - Type PP receiving instal-
lation for the "Ekran" system

Fig. 3 - Type PA receiving in-
stallation for the "Ekran" sys-
ten

grams to local radio centers and to the transmission of newspaper pages for
printing in regional publishing houses. With this objective, the systems
for supplying radio broadcast programs and transmitting newspaper pages si-
multaneously with television on a carrier frequency of 7.5 mhz were developed
and are being used. The class I radio broadcast signal has a frequency band
width of 50 - 10,000 hz, while a newspaper transmission signal ranges from
50 - 60,000 hz.

The "Mayak" program is presently being transmitted to 150 stations and by
1980 their number [will encompass] the nation. The transmission of news-
papers to the city of Khabarovsk allows subscribers in the Far East to re-
ceive 10 central newspapers on the day of their publication.

In addition to television reception, the "Orbita" stations are used for
satellite telephone-telegraph communications. A new generation of receiving
and transmitting equipment is under development using modern components for
providing high reliability, the capability of operating in any trunk line, etc.

The specific task in creating telephone-telegraph communications systems is

providing multi-station access, i.e., the operation of many stations through
a common relay trunk without mutual interference. Originally, frequency

68



The report stresses the great personnel turnover which would require of the
okrug communications administrations to make a detailed study of the reasons
with a view to reducing it to the normed limits.

The collegium also considered information on the implementation of the com-
prehensive program for the development of telephone and telegraph communica-
tions in the Seventh Five-Year Plan. A basic feature of the information was
the question of improving the quality of telephone services with the gradual
conversion to and installation of new switching equipment.

Also considered was the matter of condensation equipment and the possibility
to increase the handling capacity of existing exchanges using symmetric
cables. This measure will yield major economic results, bearing in mind
the shortage of cables and the urgent need for the more effective utiliza-
tion of existing cable circuits through the use of condensing equipment.

The problem of relations with the Ministry of Electronics and Electrical
Engineering, which is delaying the procurement of the necessary equipment of
the development and modernization of the material and technical base of -
communications wes considered as well.

Ano less interesting problem was that of the collective labor contracts and
their implementation in 1977. It was noted that along with good results
enterprises and branches still exist which pay little attention to collec-
tive labor contracts.

The problems jointly considered by the ministry collegium and the bureau of
the trade union's central committee and the decisions made will make possible
to improve production-economic activities in the field of communications and,
particularly, the quality of services by improving the maintenance of the
existing equipment and the installation of new one.

5003
cso: 5500

23


Another noticeable product of the
company is the “V” Series office
computer, which utilizes the same
technology as the “M”’ Series. It func-
tions as a stand-alone small-scale
processor or a node computer in a
larger data communications network,
This system was introduced in January,
1977, and the company expects the
demand will increase steadily.

Although the computer business
stands out in all operations of Fujitsu,
it may be too much to say that the
company is a specialized computer
producer. Its communications group
engaged in the production and sales of
telecommunications equipment is also
expanding its business gradually. Its

telephone switching. carrier transmis-
sion and radio communications

equipment and systems are gaining
high reputation of overseas customers.

For example, the first FETEX-100
electronic switching system designed
for the overseas market was delivered
to the Telecommunication Authority
of Singapore on a semi-tum-key basis
in May, 1977, The company received
orders, on a full turn-key basis, for
two FX800 international telephone
switching systems to be installed in
Uganda and Tanzania. Also in 1977,
the Empresa Nacional de Telecomuni-
caciones of Chile granted Fujitsu an
order for microwave radio communi-
cations system. It was the first order
that Chile has placed with a Japanese
company.

Now, the company is placing
emphasis on the development of
equipment and systems which com-
bine its technologies on computers and
telecommunications equipment, and
its advanced LSIs will promote this
line of business, Those equipment and
systems include controlling systems
operated by computers for tratfic,

building maintenance, pollution sur-
veillance and meteorological observa-
tion by means of satellite communi-
cations, As for overseas business,
Fujitsu will intend to increase exports
of computer technology, with its over-
seas affiliated companies as strategic
bases,

Hitachi, Lid.

Hitachi, Ltd., Japan’s largest general
electric and electronic equipment
manufacturer expanding its business
activities through high technology and
sound management, completed its first
computer model HIPAC-1 in 1957.
The company also opened the Musashi
Plant specializing in semiconductors in
the suburbs of Tokyo in 1958 and put
on the market the general-purpose
computer HITAC 301 in 1959 to
become a major Japanese computer
maker.

At the instruction of the Ministry
of International Trade and Industry
(MITI), Hitachi, in tie-up with Fujitsu
Ltd., developed the large computer M
Series, followed by new large com-
puters in place of the HITAC com-
puter series since November, 1974, In
the field of large-scale computers.
currently turning out a variety of
computers ranging from the HITAC
M-180 with memory capacity of eight
megabytes to the HITAC M-150 with
one megabytes, and is developing units
with much larger memory capacities.

As for medium and small com-
puters, the company is marketing the
HITAC 8000 Series, and its small
office computers include the HITAC
20, HITAC 10 and HITAC 5, Hitachi
is producing the HITAC L Series for



A similar situation prevails in the rate utilization of interurban telephone
communications. Their condensation coefficient from 7 am to 10 pm does not
exceed 24.2 percent. Compared with international practice this is a very low
figure.

The automated telegraph office capacities are also used inefficiently. At
the end of 1977 31.4 percent of the stations' capacity were unused. Is every—
thing necessary being done for the opening of more telex units?

Some management cadres and specialists of the communications subunits should
amend their style and method of work and think and work in a new way, for
possibilities for upgrading the results of economic activities in communica-
tions and drastic improvements in the quality and standards of services
largely depend on the subjective factor. It is imperative to increase the
exactingness toward all specialists and workers and to upgrade the feeling
of responsibility for the successful implementation of assigned tasks.

Some chief specialists of the okrug administrations must abandon their for-
malism and inertia in their work. The struggle for high effectiveness and
high quality must become their daily concern. Bottlenecks in the utiliza-
tion of the capacities of settlement telephone exchanges and cable networks,
interurban telephone communications, and telegraph centers must be found
through systematic studies of the condition in the field of communications.
Bottlenecks in the organization of the work must be found and breakdowns of
equipment and circuits must be eliminated on time. Weaknesses in communica-
tions traffic and service standards must be removed. This is only one as-—
pect of the matter.

Effective measures must be taken to improve the work and insure the fuller
use of discovered possibilities for increasing revenue with minimal labor,
material, and financial outlays per service unit. This will convert the
chief specialists into effective associates of the okrug's management in

the struggle for high effectiveness of economic activities and high qualities
of services.

Departmental financial control audits have revealed that income is lost as

a result of wrong billing for various services. In 1977 such losses totalled
almost 600,000 leva. Unpleasant omissions were noticed in Vidin. An addi-
tional amount of 110,000 leva was collected as a result of wrong billing

for services. Similar weaknesses were noted in Kurdzhali, Blagoevgrad,
Kostenets, and others.

In Vidin improper control led to the charging of wrong fees for the mainte-
nance of 15 office telephone exchanges. The stipulation that the fee must
be based on the installed capacity of office telephone exchanges was vio-
lated. Also wrongly billed were the telephones of 59 enterprises and es-
tablishments outside settlement limits, even though the ministry has re-
peatedly issued instructions on this matter. Such weaknesses were allowed
in Razlog as well--the telephones of four enterprises were billed erron-
eously.

28



*suoTqQeNzoN{J queolsTustsuy
Co
*qunoose [eUucT}Jeredo [][e-JaeAO 9Yy3 Jepun poszeq
-ue (SouezZ UOT[TTW Z/[‘1) Sspeed0aid TeuoTyezredo Fo [e}0} [ver BY} oUTWIEJep 07 Tepro UT perepuSr
SooTALSS [eTOUPUTJ OJ JUaaSAnquTe1 a4 WoAF Sposcord 9yy (UOTTTTW gEg) Spesdoid TeucTZe19d0 943
03 ppe 03 tedoad sz0fer0y2 ST AI *(3e3pnq ay FO O/ pur OY V TOOL UOTIDeS) Speed0rd [euctqzeiedo
SNOTAPA OF puke SeZxeYO ,;SeodTAISS TeTOURUTY ey} wory Spescord ayz 03 ATUO Aezer UeATS SoANSTZ oul,

[e8ed snoqtaszd wozy saqjoN]

97



Resources

From an analysis of the financing of capital expenditures, it is evident that
the capital acquired by the agency on a permanent basis amounted to 6,762.4
million taking into account various equalization entries whereas borrowed
capital came to 6,220 million francs.

Basic funds consist mainly of the operational surplus allocated to invest-
ments, 2,058.6 million, of the amortizement annuity in the amount of

3,885.8 million, of reserves: depreciation of the CNE's portfolio, the value
added tax on leasing operations.

External capital was secured from two public loans of 956.2 and 792.4 million
issued in April and November 1976 and mainly through borrowing from the
National Telecommunications Fund:

The balance of the 1975 loan;

900 million secured from the domestic market;

2,664.2 million obtained from the international market.
The Balance Sheet

Presented in the form recommended by the general accounting plan, the PTT
management's balance sheet now comes to 271 billion and covers the holdings
and over-all resources placed at the "enterprise's" disposal to fulfill its
mission. Fixed assets in service are separated from those being realized
and, moreover, the equipment owned by the five financing firms have been in-
cluded.

Assets

The continued investment efforts especially noted in the telecommunications
sector have led to an unprecedented increase in the total amount of fixed
assets in that their gross amount comes to 86 billion francs; the amortize-
ment rate is 37.6 percent and attests to the holdings’ relatively long-
lasting nature,

The equipment provided by the financing establishments amounts to 14.7 bil-
lion francs.

The activities of the financial services and more especially the management
of the postal bank accounts and the CNE have meant a perceptible increase in
available funds which amount to 212.3 billion francs.

Not taking into account the assets of the PTT's cashiers on deposit, the total
of the sums entered into the post office's current bank accounts comes to 71.5
billion and is mainly to be found in the treasury's current account (65 bil-
lion) and in cash (2.9 billion).

90


scatter processing, the HITAC com-
puters for terminal processing and
other computers for control use. For
instance, Hitachi will newly put on the
market next October the Hitachi
automatic cash handling unit HITAC
T-5865, capable of handling cash with-
drawals and deposits at unmanned
terminals, Its semiconductor depart-
ment is also turning out micro-
computers,

With its variety of computers,

}, Hitachi meets almost all needs of
users, It has made remarkable progress
in the development of large-scale com-
puters, gaining some share of the
market so far dominated by American-
made computers. Hitachi's high tech-
nique for large-scale computers drew
world attention when it won orders
for three huge units from the Central
Meteorological Bureau in Peking in
July, 1976, Their delivery has not
been recognized until _recently,
however, due to opposition from the
United States.

Hitachi began to offer its com-
puters to users through its own rental
system in 1972, Until then Hitachi’s
computers were offered through JECC
(Japan Electronic Computer Co.)
rental system, This was only possible
for a large corporation enjoying
a sound business performance and
having plenty funds, At present,
Hitachi offers 50 percent of its
products through its own rental
system, sells 47 percent and offers the
remainder through other firms’ lease
or rental system.

Hitachi’s sales of computers in
1976 business year ended March 31,
1977, amounted to ¥160,000 million,
The sales are estimated to come to
¥190,000 million in the 1977 business
year, accounting for some 15 percent
of its total sales. The company ran the
computer business in the red at the
time when it began to offer computers

10

by its own rental system, Computer
sales have now been growing to be a
major pillar of the company’s business
with their earning ratio standing at a
little higher than the total.

In July, 1977, Hitachi concluded a
contract on sales tie-up and joint de-
velopment of a huge computer system
with Itel Corp., a major U.S. computer
leasing company. Hitachi accordingly
shipped sample units to Itel and is
expected to export computers to the
United States as well as to Europe
through Itel. At home, Hitachi has
begun to place emphasis on marketing
of medium and small computers, It is
promoting the development of VLSIs
(very large scale integration) by estab-
lishing a new firm, Computer Devel-
opment Laboratories Ltd., jointly with
Fujitsu and Mitsubishi Electric,

Hitachi, which is already gaining
competitive power against IBM in the
field of computer hardware, intends to
strengthen its computer software field
to mect demands in the coming age.

IBM Japan,Ltd.

IBM Japan, Ltd. is a wholly-owned
subsidiary of the IBM World Trade
Americas/Far East Corp. which co-
ordinates IBM activities that extend
across four continents. IBM products
became a part of the Japan scene in

1925 when the first IBM machine was
imported from the United States and

the demand for business machines has
continued to grow with the country’s
industrial expansion,

Japan’s requirement for business
machines led to the establishment of
the Watson Business Machine
Company as a subsidiary company in
1937. The company was capitalized at
¥500,000. Business continued to


89 +

B9E°T- 9ZE7'T-

aourleg 4Ipeag

| TeqOL
| StyTt te‘ T+ Lov*OT s80‘6 qezeued = 6" IT HSZ°T  -SLLSTL «12S OT [eI] Tersuep
exo Anqeu
yetoeds yo
20 sivok
yetoueu sag2tNFeU TBUOTA
-TF snota ~deoxe Fo 10 sivofk
-ead worz yepToueutFy snopta
~ 64 - 17 06 spos00ig - GL - 91 16 -oad FO saanqtpuedxg
suotje
Z's Tle‘ T+ 99€°OT S66‘S -a0dO TeI0L  L*ZI 6ze‘l 6SLTL O€v‘OT suotqzeredo [eIOL
sex PBOO
- zZ  - 02 ze oid 9430
HNO 303
seaAros
-o2 wory
- 9E€S = - 9€S sSurmeag
BOTA
-29s [Tew
SS+ € + 8g Ss sotgyorequl
spoaoo0id - 982 99€ og sa,5 9809 20YIO
HOt OIT*6 = 1Tz6e pepoueuty ~ aoTA
sopouase Tel ote eeL'@ LTH‘ Z~— -AOS [TU BdTZZOTOqUT
SNOTAPA 07 LLt vase €6 6L queuezTIiowy
SeoT ATES 9°9 Tes 99S°9 $409 $3s00 [eToURUTg
6° 67+ HEE LSZ yo queukedey sottddns pue sao
xSpescord L°tl 9% 4 70% -TAIES epysyno ‘sy10Mm
€°8 - ses 716 TeuctjezedQ ng 98T TLL°T__go9't $3800 JTeuuosizeg
ose ase
quoted oun{oOA 961 SL6t ~-JUsD10g sUNTOA 9L61 CL6T adky,
suotjzeraeA SuoTJeTae A
(soueaz JO SUOT]{[TW UT UaATS squnowe) sadtTAIag TeToOURUT A

96


UNITED KINGDOM

BUSINESS POLICY, ORGANIZATION OF POST OFFICE DETAILED
Paris REVUE DES PIT DE FRANCE in French No. 1,1978 pp 62-72

[Summary of two lectures given by Messrs K. Gowen, senior director in
London, and D. Loosemore, regional director in Bristol, at the Congress
Hall of the State Secretariat for the PIT in Paris, on 18 May 1977: "Com
mercial Policy and Organization of the British Post Office" |

[Text] The Past -- Statute of a National Corporation

Prior to 1969, the British Post Office was a state administration. It was
headed by a minister -- the Postmaster General -- who was directly account-
able to Parliament for daily management. The main branches -- the postal
service and telecommunications -~- were run as a single organization.

But this administration had turned into a very large business with very
extensive commercial activities and a manpower of more than 400,000 postal
employees.

In 1966, the Post Office handled:
~ 11,300 million letters;
- 6,900 million telephone communications.

The average number of letters mailed per person per year has gone up as
follows:

-. 13 in 1839;

- 66 in 1914;

- 127 in 1920;

- 198 in 1977.

Its investment program was superior to that of all the other enterprises,
with the exception of the electric company.

Its personnel represented nearly 2 percent of the working population of the
United Kingdom. This represented half of the number of public officials
and the size of the civil service always gives rise to criticism in our
country.

101



In the lead article of the 1 March 1978 issue of "PRAYDA" is stated, "Presently,
already a major portion of the population of our country receives Central Tele-
vision's Program I. The time has come for the practical resolution of another
important task -- the production and gradual introduction of a second all-union
television program." This task will be resolved during the tenth quinquennium.
Already many residents in more than 20 oblast's of the RSFSR, as well as in the
Ukranian, Belorussian, Latvian, Lithuanian and Estonian SSR's, are now watching
two Central Television programs.

This noteworthy technological progress in television was achieved thanks to the
development within the Ministry of Communications of the principles and technical
programming plans for the television broadcast transmitting networks and the
series production by the radio industry of the necessary television sets and
equipment. At the present time, new frequency bands are being used for television.
In the 48.5 - 230 mhz band, RF television channels 1-12 have been totally freed,
and the new decimeter frequency band at 470 - 638 mhz, where television channels
21-41 are located is beginning to be used. During the tenth quinquennium, the
introduction of the new, powerful automated meter band television transmission
station of the ATRS-5/1 type with a rated power of 5/1 kw will begin operations
on television channels 1-12. In place of the "Ladoga" television station, intro-
duction of the new television transmitting station "T1'men'", which is made with
klystrons, will begin for the decimetric wave band.

In addition to the powerful television stations, low power television retrans~
mitters are receiving wide distribution. At the present time, a new automati-
cally operated, low power color television retransmitter of the RTSTA-70-R/12
type which is intended to relay color as well as black and white television trans-
missions is under production. The RTSTA-70-R/12 retransmitter is serially pro-
duced in two versions -- first, for dnstallation at intermediated points along
radio relay lines, and second, for wireless reception of the powerful television
stations with RTU receiving equipment. For operation in the satellite commu-
nications system the RISTA-70-R/12 retransmitter is completed with antenna feed
and receiving equipment.

Successes in the development of satellite communications have been noteworthy.
Experiments have been completed and operation of the system has begun using the
multi-barreled geosynchronous “Raduga" satellite. Now for better television
broadcast coverage of our country's territory, satellites of the "Molniya" series,
located in high elliptical orbits and the "Raduga" series in circular equatorial

orbit, are used jointly.

Since 26 October 1976, tests have begun on a principally new geosynchronous tele-
vision broadcast satellite "Ekran", which differs from existing satellites by

the presence of on board retransmitting equipment with increased power, which pro-
vides for the transmission of color or black and white Central Television programs
to a network of simplified television receiving facilities of the "Ekran" system
which are positioned in the population centers of Siberia and the Far North.

64



USSR

BRIEFS

NEW TELEVISION, RADIO STATION--In the maritime town of Dalnerechensk,

a radio-television station has been rebuilt. It has been equipped with
up-to-date Soviet apparatus and a new 250 meter antenna tower has been
built. As a result, the power of the station has increased tens of times
insuring stable reception of television broadcasts from Moscow and
Vladivostok and providing pictures for the remote villages of the Kray.
[Moscow Domestic Service in Russian 1400 GMT 17 May 78 LD]

cso: 5500

70



nary people without the knowledge of
computers. For efficient operation,
users have only to add their own
programs to the ready-made ones.
NEC also played the role of a pioneer
in this field of business. The NEAC
System 100 marketed in 1973 has
been popular among users and the
company booked orders for 3,205
machines by the end of September,
1977, shipping 3,805 of them and
exporting 90, NEC is in business tie-up
with Ricoh Co., Ltd. on office
computers.

While Honeywell Inc.’s technologi-
cal assistance has greatly contributed
to the development of computers by
NEC, NEC can now produce com-
puters with its own technology alone.
It will concentrate its efforts on how
to increase sales, while promoting
technological development. This is
because the larger the sales of com-
puters, the more become profits.

Although the Japanese computer
industry has been under direct or
indirect government protection, it
cannot expect much assistance from
now on. Each producer has to make its
own efforts for expanding sales.

NEC’s sales strategy will call for
winning new clients in Japan. The
company will also make efforts to
improve basic software and minimize
changes in users’ programs. NEC
considers that latent demand for com-
puters is still large.

Meanwhile, further efforts will also
be made for increasing exports. Last
year NEC established NEC Computers
Singapore Pte., Ltd. in Singapore, and
NEC Information Systems, Inc, in the
United States. For the time being. the
former will serve as the base of com-
puter sales to Singapore, Indonesia,
Malaysia and Thailand, and the latter

15

will sell office computers and memo-
ries in North America.

NEC executives have this to say
about exports: “We should not export
surplus products originally made for
the domestic market. We have design-
ed products fit for use in importing
countries (not meaning changing the
shapes of products) and have given
similar consideration to software and
peripheral equipment.”

The company’s turnover for the
business year ended in March, 1978, is
estimated at about ¥540,000 million,
of which the sales of computers
(including office computers) are
believed to have reached about
¥140,000 million.



Telecommunications
(Amounts given _in millions of francs)

Variations

Type 1975 1976
Volume Percent-
age

Personnel costs 8,054 7,128 1,074 17.7
Works, outside services and supplies 1,763 2,191 428 24.2
Amortizement 2,704 3,492 788 29.1
Interoffice deliveries 800 914 114 14.2
Second section expenditures involving 1,445 1,581 136 9.4

operations
VAT for leasing operations 138 186 48 34.8
Other costsTM 1,079 1,544 465 -

Total Operations 13,983 17,036 3,053 21.8
Expenditures of previous financial 386 292 - 94 -

years or of an unusual natureTM

General Total 14,369 17,328 2,659 20.5

Credit Balance 4,098 3,957 - 141
Operational proceeds 15,671 19,404 43,733 +23.8
Secondary proceeds 190 250 + 60 +31.6
Works done by agency for itself 502 589 + 87 +417.3
Interoffice deliveries 97 1443 + 46 447.4
Amortizement of leasing debt 227 278 + 5] +2225
Services to be billed 354 33500 = 19 - 5.4
Other receipts” 1 10 + 9 -

Total Operations 17,042 21,009 +3,967 +22.7
Proceeds from previous financial years* 1,033 10 -1,023 -
Exceptional proceeds 391 267 - 124 -

General Total 18,466 21,286 +2,820 415.3

“Insignificant change

8094
cso: 3100

98


JAPAN

VLSI RESEARCH AND DEVELOPMENT MOVES AHEAD
Tokyo INDUSTRIA in English Vol 8 No 5, May 78 pp 22-23

[Text]

Cooperative Laboratorics of the VLSI
Technology Research Association, en-
gaged in technological development of
VLSI (Very Large Scale Integration
circuits), announced in March, 1978,
the development of an electron beam
writing system in which microscopic
patterns needed for VLSI production
can be drawn with high precision and
speed. In completing the system, Co-
operative Laboratories set specifica-
tions; Tokyo Shibaura Electric
(Toshiba) designed and manufactured
the equipment; and the Laboratories
added functions and summarized the
system.

In VLSI production, it is necessary
to draw far more complicated circuits

on small semi-conductor tips. The line
width of the pattern drawn on the
LSI tip was approximately 10 microns
at the smallest in the past, and an
optical pattern generator was in use.
But the line width of LSI is being
reduced to a scale ranging from two
to four microns. The light beam,
therefore, requires quite a long time
for pattern drawing, and the accuracy
of work is not high. That is why the
development of electron beam writing
systems is popular in many countries
today.

20

The system newly developed by
Cooperative Laboratories adopts a
Raster scan system, being a high per-
formance device whose electron beam
current is more than ten times that
of the conventional type. and is capa-
ble of drawing specdily patterns whose
minimum line width is one micron
with errors of about 0.1 micron.

For high-speed processing of pat-
tern data, the system employs the
magnetic disc of 160 M bytes and
TOSBAC 40D, a minicomputer. The
writing speed has also been raised by
incorporating a data compression sys-
tem. It is capable of drawing a pattern
having minimum line width of two
microns on a mask substrate of 125
mm? in 50 minutes. It is also in-
corporated with new technological
developments such as a unique tem-
perature control system.

Cooperative Laboratories developed
an electron beam writing system of
variable beam size in the spring of
last year. By combining this with
the latest device, the Laboratories
will pursue practical use of micro-
scopic processing technology by use
of electron beam.

The VLSI Technology Research
Association was established in March,


In addition to viva voce communications, there is, of course, communication
by satellite! Let's see if it is working! Yes, it's functioning perfectly!
Capt Goma-Foutou demonstrated it by calling his French counterpart in

Paris, Mr Norbert Segard, secretary of state for post and telecommunications.
This call was received in France by a ground station of the same type as

the one at Moungouni, situated close to the city of Troyes, at Bercenay en
Othe, and it was officially opened by that telephone call from the Congo...

7428
cso: 5500

49


Operational proceeds alone amounted to 19,403.8 million francs and telephone
charges (17,227 million) mounted steadily because of the increase in the
number of lines and the rise in traffic per subscriber.

Among the expenditures which came to 17,035.9 million, personnel costs re-
mained the largest component (7,128.3 million), but it is obvious that the
almost total automation of the technical services is tending to reduce the
increase in costs of this nature. Amortizement took second place amounting
to 3,492.1 million francs and representing the normal expenses of replacing
the materiel in service.

The surplus of the returns recorded in 1976 (3,957.3 million) differed only
slightly from that noted in 1975 and makes rather substantial self-financing
possible. In fact, it will be seen that resorting to outside capital came
to only 4,471 million whereas the cash flow (i.e., the surplus of receipts
added to the amortizing) was 7,450 million francs.

Commercial Profits Per Branch of Operations (in millions of francs)

4000 3972
. Key
13500.
1. Postal branch results
'3000 2. Financial services' results
2683 osat 3. Telecommunications results
2500 2460 49h oe 4 4. Over-all results
2370 ae 7
oo, 257 Fw 2088
12000 1951 te
1766 ve
x *
soo 176 1608 4 “1688
1460 131
000168 Er)
500 689 749

vt
1696 1438

A & OP B® ah Do ah 92
LL &
FEEL SELLS S

seen résultat de la branche postel: resultat densembie|4
# m resullal des services financiers
= & résultat des Télécommunications

94


HUNGARY

NEW, EXPANDED TELEPHONE DIRECTORY TO BE PUBLISHED
Budapest NEPSZABADSAG in Hungarian 7 May 78 p 16

[Article by Gyula Fejer: "Telephone Subscribers, Attention: The New
Telephone Book is Being Prepared" ]

[Text] There is no survey to prove it but we can still believe the rumor
that the most often read book is the telephone book. But it also causes
much anger because it contains regiments of invalid data. The private
Budapest telephone book now in circulation was prepared in 1971 and the
press had been working on it for a year so it is no wonder that it could
not be called perfect even when it appeared. Since then, the thick
volume containing 280,000 items became obsolete at a swift pace and
today at most, 80,000 items are correct.

Many Numbers Have Been Changed

"the reason for this," Mihaly Torok, chief of the Telephone Information and
Directory Editing Office, explained "is that every day an estimated 150
private and 50 public telephone book items change in the capital, partly
because many change residences or get new degrees or professions, A greater
role is played by the swift development of technology; the postal authori-
ties have placed into operation the Inner City Telephone Center and have
modernized the old ones so that many telephone numbers have changed. We
have installed tens of thousands of new sets in past years and these do not
appear in the directory."

Why is publication of a new telephone book being delayed if the existing
one cannot be used? The question is just but there is a satisfactory
answer to it. It is simply because even this year new sets are being in-
stalled at many places in the city and for technological reasons many
numbers will soon be changed. The new directory of private subscribers
now being prepared will contain these also. If the book had been published
last year it would be crawling with errors. In accordance with the guiding
principles of the postal directorate number changes intended to aid service
were completed by 30 April this year so that the editors of the telephone
book could finally begin their last adjustments. The experts are being so

32



Nippon Univac Kaisha, Ltd.

Nippon Univac Kaisha, Ltd. was
established in 1958 and is one of the
leading industrial enterprises market-
ing a wide variety of computers and
related materials, and offering services
to Japanese industrial and institutional
organizations. The compnay has some
4,330 employees and capital of
¥3,684,564,000. Its net profits for
fiscal 1976 were ¥1,236,000,000, and
annual revenue for the same period
reached ¥70,797,000,000. Jiro Fuku-
naga is the company’s president. He is
former Executive Vice President of
Mitsui & Co., Ltd. and Chairman of
Europe Mitsui.

It is often said that the history of
Univac is the history of electronic
computers throughout the world and
this is true in Japan. It was in 1923
that the Powers Punched Card Systems
were introduced by Mitsui & Co. to
the Ministry of Railways, the Customs
Department and the Cabinet Statistics
Bureau as the first data processing
systems in Japan. And by the begin-
ning of World War II, more than 600
sets of PCSs had been installed.

After the war, the Yoshizawa Ac-
counting Machines Co. became the
agent for Univac and in 1955 the
company installed UNIVAC 120s at
the Tokyo Stock Exchange, Nomura
Securities and other Japanese enter-
prises. Thus, the UNIVAC 120 became
the first computer operation in Japan
and one of the original UNIVAC 120s
can be seen as one of the permanent
exhibits at the National Science
Museum in Tokyo to commemorate
the beginning of computerization in
Japan.

In 1958, Nippon Remington Univac
Kaisha, Ltd. was established as a joint

16

venture with Mitsui & Co. and Sperry
Rand Corp. This was the predecessor
of Nippon Univac Kaisha, Ltd., and
Oki Electric Industry Co. joined the
venture in 1963.

Nippon Univac has among its
customers many of the best known
industrics and organizations in Japan
and last year installed 37 sets of
imported super-large size computers
of UNIVAC 1100 Series, three sets
of imported large computers of
UNIVAC 400 Series, and 106 sets
of domestic computers, the OUK
Series 90 and OUK 9000 Series.

Shortly before the partnership
venture of Remington, Mitsui and Oki,
Nippon Remington Univac (NRU)
imported four sets of UFS’s and about
50 USSC’s and these computers, along
with the UNIVAC 120, in which more
than 30 were already operating,
generated strong ardor for computeri-
zation of business areas in Japan.
The introduction of the UNIVAC
1004 in 1962, followed by the 1050
in 1964 and 1040 in 1965, was the
beginning of NRU’s strong penetration
of the computer market, and the 1004
became the best selling computer in
the history of NRU. Securities firms,
government agencies and public
utilities firms became users of the
1004.

Preparations were completed in
1963 to produce domestic electronic
computers under the brand name of
OUK at Oki Univac Kaisha, Ltd.,
another joint venture of Sperry Rand
and Oki Electric. The joint venture
firm began to produce the 9200, 9300
and 9400 and peripherals. And in
1971, the OUK 9700 Series computers
were added and provided a wider range



1978-1980, stereophonic broadcasting is scheduled to service another 14 cities
of our nation.

One should note that the development and refinement of the technical means
for a low-frequency radio broadcasting channel had a significant influence in
improving the sound quality of radio broadcasting programs in all radiowave
bands. At the present time, 171 radio studios are operating in the country.
They all possess the necessary studio equipment complexes. More than 80 of
these studios have been totally reconfigured with new transistorized equip-
ment.

In the Olympic television building which is presently under construction in
Moscow, the development of new radio broadcasting studios is envisaged.
During "Olympiad-80," the transmission of 100 international radio broadcast-
ing programs will be provided.

The branched network of cable and radio relay lines which has been created
permits the transmission of central radio broadcast programs from Moscow to
many of our nation's cities on special wideband radio broadcast channels and
further relays them through local radio proadcasting stations. Future gains
in reliability and improvement in radio broadcasting quality depend primarily
on ensuring the continuous operation of wideband channels for supplying audio
broadcast programs to the nation's radio broadcasting stations.

The highest quality and most promising channels for providing central broad-
casting programs, especially to the country's remote regions during the tenth
quinquennium, will be to an ever greater degree satellite radio communications
systems’ channels. Since 1977, the "Mayak" radio broadcast has been trans-
mitted regularly on satellite radio communications channels to a number of
remote areas throughout the country. By the end of the tenth quinquennium,
the "Mayak" broadcast, as well as the First Program, will reach practically
the entire population of our nation.

During the tenth quinquenniun, the task of introducing equipment into the
radio broadcasting stations to a significant degree must be accomplished
through reconstruction and power amplification of the radio stations’ oper-
ating equipment, with the adoption of progressive technical decisions and
concurrent support for raising the sound quality of radio broadcast trans~
missions. In many radio enterprises, power amplification of DV, SV and KV
(short wave) transmitters will be accomplished with the installation of new
technical equipment in the space freed as a result of reconstruction at the
radio transmitter sites.

Transmitter power amplification has a significant technical-economic effect
in that it raises the price per transmitter channel hour, but it results in
a significantly improved product in monetary terms. The number of service
personnnel, at the same time, remains unchanged or increases insignificantly
so that growth in production leads to a sharp improvement in labor produc—
tivity at a given enterprise. The installation of new transmitters in the
freed space at the radio enterprises also leads to growth in the productive

60



Changes Within the Service -

The future diagram of our services is liable to be changed as the balance
between price and service brings changes. The client is very much aware

of the cost price. A price hike is always unpopular. However, there comes
a time when a choice must be made between a price increase and a reduction
in service. At the time when we became a national corporation, the law
imposed the creation of a National Council of Post Office Customers, which
was meant to look after the interests of the clients. We are legally bound
to consult it each time we plan changes in the service or rate increases.

Thus, there is an easily available body to let us know what the preferences
of the customers are. Most of our services have already seen their cost
price submitted for evaluation and they have either been made profitable

or been abolished, so that the range of possible new changes has been reduced.
At the present time, studies are being made on the possibility of reducing
the costs of delivery services through the possible use of the following
means:

~ reduce the number of deliveries to one per day, which would represent a
savings of approximately b 38 million (320 million francs), and of 10,000
postal employees. This solution might possibly be applied in the future,
but it would result in a much later delivery for many inhabitants and the
unions are strongly opposed to it;

- put up mailboxes along the highway when the houses have long driveways
(more than 15 meters from the highway). Their installation could produce
a savings of b 7.5 million (63 million francs) per year. However, in Great
Britain everyone has received his mail in a mailbox since the era of Queen
Victoria and it is hard to get rid of a facility which has existed for so
long.

Measurement of Volume Flow -
A more sophisticated formula for measuring the volume flow will be applied
to provide a viable base for the profit payment systems which will probably
characterize the following stage of the wage policy in the United Kingdom.

Mechanization -

Future developments will most certainly bring us into an era of higher
mechanization in the handling and sorting of mail.

We have made progress in the application of ovr national plans concerning
the sorting of letters and parcel post which, not so very long ago, were
being sorted in 1600 offices.

According to the plan for letter mail, all the sorting of the category

"letters" will ultimately be concentrated in 80 mechanized letter sorting
centers. At the present time, 19 offices have been equipped and 10 more

113



other than those relevant to Postal Service and Telecommunications. For
example, we could not provide travel agency services at our windows, nor
use the reserve capacity of our transportation vehicles repair shop. We
are bound to deliver the mail to every address and new legislation would
have to be enacted to allow us to deliver the mail in mailboxes located
along the highways or in centralized mailboxes in apartment buildings.

We are bound by law neither to provide illegitimate priority nor to discrin-
inate in the performance of our activities.

It is true that our new statute as a national corporation has created a
freedom of thought and changes in attitude, and that Parliament no longer
so closely examines the manner in which we perform our daily activities.
However, ultimately the degree of commercial freedom which is given us is
still as much dependent on the economic and financial policy of the govern-
ment and on legal restrictions as on our change in statute.

I will conclude this description by reaffirming my
conviction that, in spite of the problems of the past
and the difficulties to come, the postal services of
the United Kingdom can function in a profitable manner.
However, the maintenance of the viability of the
"Postal Service" branch will depend primarily on a
reasonable degree of commercial freedom.

8463
cso: 5500 END

115



‘Gulliver - IBM’ Stands Up

In Japan there are eight computer
manufacturers at present. They are the
already-mentioned six —_ domestic
makers, IBM Japan and Nippon Univac
Kaisha, Ltd. In addition to these,
National Cash Register, Burroughs,
Control Data Corp. (CDC) and other
firms are marketing imported products.

According to available statistics for
1976, the output of computers and
related products totaled ¥617,000
million, up 14.0 percent over the
previous year. Reliable sources say the
1977 output increased by about ten
percent over 1976, while the total
amount of installation showed only a
slight increase (the amount for 1976
was ¥731,528 million of which do-

mestic products accounted for 57.5
percent). The discrepancy, as some

industry sources note, reflects a situ-
ation in which manufacturers are
forced to cut prices to survive fierce
competition.

Under these circumstances, the
mainframers, including Nippon
Univac, have come to harbor a com-
mon recognition since last year that
“IBM of today is no longer like the
one in the past.” To be sure, IBM had
been carefree, going its own way in the
past. But IBM has turned ominous,
aimed at the Japanese market. It ap-
pears that “Gulliver - IBM” has finally
stood up.

For IBM, which holds 60 percent of
the world’s computer market, ‘the
Japanese market is less than ten per-
cent of its total share. IBM Japan says,
“IBM is not a share-oriented business.”
However, it may be proper to take
that the statement is a comment from
someone conscious of the Japanese
Anti-Monopoly Law. The only thing
IBM is afraid of is possible violation of
the anti-monopoly law. The U.S. fair
trade act is directed only at unfair
competition, such as obstruction of

business or dumping. Under the
Japanese law, however, it would be
considered as a monopolistic state if a
business held a market share of more
than SO percent.

IBM Japan was thought to have a
market share of 30 to 35 percent five
years ago, But its market share is now
estimated at about 26 percent. If the
Japanese market is really promising for
future expansion, as IBM says, it will
be natural for IBM to exert efforts to
recover its “lost land.”

The offensive by JBM began with
the announcement of a series of new
products and price reduction. It made
public IBM-3033 in March, 1977, and
1BM-3031 and IBM-3032 in October,
1977, They are of the IBM 370 series
and have internal data processing capa-

cities of 1.6 to three times those of the
conventional models, At the same

time, it carried out rate cuts ranging
from six to 35 percent on the pretext
of establishing worldwide unified
rates, This series of moves by IBM in-
flicted damage on domestic producers.
Especially, the rate reduction which
centered on purchase prices served as a
strong rolling-back operation to do-

mestic manufacturers, This is because.

they had pursued a policy of replacing
IBM products with their own by put-
ting up the sales point that the cost
performance of their products is 30
percent higher than that of IBM. In
other words, their competitiveness in
price weakened. Furthermore, it be-
came difficult for domestic users to
replace IBM products with Japanese
products, since many of businesses
using rental IBM products had pur-
chased them,

Since the beginning of the year
there had been a rumor within the
computer industry that IBM would
announce shortly a new series of
medium-size products. This was
proved correct by the announcement
on March 10 that IBM would cut



Credit

Repayable on long-term basis

Tax Excluded VAT Total

Finextel 377.4 49.3 426.7
Codetel 508.1 61.6 570.7
Agritel 547.9 120.1 668.0
Creditel 571.0 76.6 646.6
Francetel 2,432.1 -- 2,432.1
Discharge of advances 373.9

Total 5,118.0

The CNE's depositors’ assets added to the capitalized interest come to 105
billion which have as counterpart the stocks and bonds on deposit with the
CDC [Court of Accounts] and the returns receivable from accrued, not for-
feited interest.

Finally, it is appropriate to note the reserves derived from the value added
tax relating to the leasing operations, the growth of this category being
tied in with the total amount of the PTT's commitments vis-a-vis the five ex-
isting firms.

Liabilities

Standing capital having made the investment financing possible is broken
down into wholly owned capital, 17.4 billion, and outside capital, 43.2 bil-
lion.

The increase in outside capital is attributable to the new PIT loans issued
to the public in 1976, 1,748.6 million, raising “repayment on a long-term
basis'to 11 billion francs.

The activities of the National Telecommunications Fund are directly linked
to investment efforts and since its establishment 57 loans have been floated
(28 new loans during the past fiscal year). ‘The debt amounts to 13 billion
francs.

Finally, the commitments to the financing firms come to 14.7 billion francs.

As for repayments on a short-term basis, the current post office accounts'
assets, 94 billion (the average increase is 5.7 percent), and those of the
CNE's depositors, 105.2 billion, though lower than that seen in 1975 (24.7
percent), the increase of nearly 20 percent has as can be noted, remained
very active.

92


political obstacles, and I think the only solution now is to refer this pro-
blem to the United Nations and to put it in charge of the international ex-
change of TV programs transmitted by satellites, for the benefit of all nations.

/Guestion? I am sorry to hear what you say. Apparently we have unlimited pos-
‘Sidilities today but science must often await the results and verdicts of trea-
ties.e.s But tell me, do we still have telephone communication with America by
cable?

/Rnswer7 No, we no longer talk by cable, Now a space telecommunications sta-
Zion, connected to the international INTELSAT system, is operating very effici-
dently on Romanian territory. It enables us to talk directly by telephone
across the ocean and with the countries in the Near East. These communicati-
ons have a high fidelity.

/Question/ Before coming to the department I took an interest in your works.
fs any student here knows, you are the author of the two volume work,
“Theory of Data Transmission." Please tell me about these works, which are con-
sidered basic in their field.

/Knswer7 I wrote them rather late, you see. For all these years I had to con-
Sider practical problems first, although I was educated as a theorist original-
ly. I was asked for practical solutions in the fields of TV, radio relays and
the various transmission systems, and all these invariably involved me in in-
tensive theoretical studies. At one point I was considered for admission to
the Academy but I was rejected then because I had published no theoretical
works. It was an irony of fate, but also quite true. This infuriated me and
I got out the first volume of the said work in record time. I wanted to show
all I had learned during the years when I was asked to find so many solutions
to complicated problems. The first volume was published in 1965 and the sec-
ond one shortly afterward. To my astonishment, and I say it in all sincerity,
the book was a great success. It was hard for me to believe. Soon the work
was printed in France, the FRG and the GDR, and then T was pleased to find
that some reknowned polytechnical institutes in Switzerland, Italy, the FRG,
France, Algeria and other countries were guided by my treatises on this sub-
ject. I think the work enhanced my international prestige. I ama consultant
of the International Telecommunications Union under the United Nations and a
member of the management of the International Council for Communications Be~
tween Computers.

[Question/ What are you doing now?

/inswer7 I am working on problems of rationalizing the data transmissi~

‘on systems in their entirety and on processes of modulation, codification and
statistical decisions, including in these efforts some aspects of long-distance
data processing and of condensing data.

[Question] You were speaking of an inevitable information revolution. Are
There already any indications of it?

[answer The volume of information transmitted today is already vast. Speci-
alists are now confronted with the complicated problem of condensing the data.

37


SWITZERLAND

SWISS PARTICIPATION IN WEATHER SATELLITE PLANNED
Zarich NEUE ZUERCHER ZEITUNG in German 10 May 78 p 17

[krticle by U.M.t “Better Weather Forecasts From Space -- Swiss Participa-
tion in Meteosat I Satellite Project"/

ffext7 Bern, 8 May -- Switzerland is also planning to participate in the
utility phase of the Meteosat I weather satellite. The Federal Council
is therefore asking the confederation's councils to ratify an appropriate
international agreement.

The Meteosat I weather satellite was launched successfully on 23 November
1977 by NASA(National Aeronautics and Space Agency) at Cape Canaveral
(United States) and was placed in orbit 36,000 km above the Gulf of Guinea.
Every half hour since then it has sent back to the earth pictures that
allow a comprehensive cloud survey and provide data on temperature, humid-
ity and wind conditions.

To Switzerland Via Odenwald

The photographs transmitted by Meteosat I are first received by an instal-
lation of the European Space Agency (ESA) in Odenwald in the FRG and pro-
cessed in the ESA's meteorological data processing center in Darmstadt.
The pictures prepared in Darmstadt are received in Switzerland by Radio
Switzerland, Inc at the receiving station in Colovrex by authority of the
Swiss Central Meteorological Institute; they are then forwarded via tele-
phone lines to the Central Institute in Zurich and to its annexes, Zurich
4s scheduled to receive its own receiving installation in 1980,

Information for the Weather Service

The Meteosat data provide the Swiss weather service with a continuous and
comprehensive picture of weather conditions over a large area. In con-
trast to traditional means, the satellite makes it possible to obtain
clearer knowledge than ever before of the inception, development and move-
ment of such important weather phenomena as tornadoes, thunderstorms,

storm fronts and fog banks. For Switzerland the newly acquired data permit

99



The campaign for construction of the new Ljubljana exchange began as early
as 1970, The original plans called for completion in 1974. It should be
mentioned, however, that this term was unrealistic because Iskra, which con-
tracted to supply to the Yugoslav Posts, Telegraph, and Telephones 13 out

of 17 of the Metaconta 10-C type tandem exchanges, first had to set up a
new factory in Kranj before these semielectronic computer-controlled ex-
changes could be manufactured.

The building housing the new international automatic tandem exchange has an
area of 4,500 square meters and cost almost 103 million dinars. The exchange
alone cost 140 million dinars so that the total investment amounts to 243
million dinars. Another way to express the value of this exchange is to say
that it is worth as much as 270,000 telephone services. (How calls to
foreign countries are placed is described on page 11 of DELO.)

Dedication Speech by Zvone Dragan

Ljubljana DELO in Slovenian 26 Apr 78 p 6

[Text] Ljubljana, 25 Apr--The achievement of Iskra is
important not only for the development of telephony but
also opens development opportunities to all economic

and social activities. "Today's dedication of the tele~
Phone exchange type Metaconta 10-C which was manufactured
mostly in Elektromekhanika of Kranj under the licensing
agreement with the Belgian firm Bell is an example of the
unexpected technological development achieved by Slovenian
industry in the field of communications equipment," said
Zvone Dragan, vice president of the Slovenian Executive
Council, at today's dedication of the new modern transit
and international telephone exchange in Ljubljana.

"At the same time it is proof that an even more intensive orientation toward
professional electronics outlined in the society's plan of SR Slovenia for
1976-1980 is an unquestionable necessity if we want to remove slowdowns in
development as well as in completion of the telephone network in SR Slovenia.

"Dedication of the telephone exchange in Ljubljana is thus primarily the
beginning of an era in which we wish to achieve a modern concept of commu-
nications as well as the beginning of an era in which we shall utilize tech-
nological advances to an even greater extent than has hitherto been the case
so that we may with the computer-controlled switching system Metaconta 10-c,
mastered and further developed by domestic industry, open even wider the
door to our telephone communications which connect all points of the world
with satellite links. The Metaconta 10-C program is of great importance not
only for the development of telephone communications to which it opened new
horizons, it also enabled Slovenian industry to master the most demanding
technology in the production of processing computers of considerable capa-
bility. Its importance thus extends further than PTT communications and

40