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RCED-85-106 1 (1985-05-22)

handle is hein.gao/gaobabfcg0001 and id is 1 raw text is: REPORT BY THE US. RELEASED General Accounting Office Survey Of Small Businesses' Reactions To Changes In The Costs Of Telephone Service t the request of the House Committee on Small Business, GAO nt a questionnaire to a representative sample of small businesses asking them how they have been affected by changes in the costs of telephone service. The survey results project to over 2 million business establishments. One-fourth said their total monthly tele- Shone bills had increased by more than 25 percent since January 984. About 39 percent reported increases of less than 25 percent. 9nly 3 percent saw their bills decrease. The remaining businesses Saw little change (27 percent) or did not answer the question 6 percent). Most of the businesses reported that they had neither ncreased nor decreased the number of their telephone lines nor )assed higher costs on to their customers. This report provides tetailed information on questionnaire responses and GAO's Snalysis. 3AO's questionnaire was designed to gather general information )n how changes in telephone costs are affecting small businesses. 3ecause of the limited scope of the questionnaire, GAO's survey results must be used with caution. AO also reviewed a 1984 report by Bell Communications Re- earch, Inc., on the effect of changing telephone rates on small businesses. GAO found that the report, while providing detailed iata on small businesses' telephone expenditures, should have ncluded additional information on its methodology and limitations :o help readers avoid drawing any improper conclusions. 127070 U GAO/RCED-85-1 06 '4 MAY 22, 1985

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