going to be making on these services per month. The disadvantage of this is that they may not realize that if people are using these services a lot, there can be more revenue produced, versus charging a monthly rate. In Exhibit 1, page 521, it shows that the projected percent of lines using CLASS on a usage sensitive basis is much greater than the projected number of lines subscribing to CLASS on a flat rate or a subscription basis. The overall percentage difference over the five years is equal to 91% more lines using the usage sensitive basis. The main advantage is that this creates higher customer service value, because customers know what they are going to be paying for.The second alternative is to offer CLASS features on a usage sensitive pricing basis only. This method is considered a per use service. Everytime a customer uses one of these services, the customer is charged a given rate. The main advantage of this is that NPT will gain more incremental revenue, based on the increase in the number of lines using the CLASS features on a usage sensitive basis. Also, the number of activations (Exhibit 1) per month per line is expected to increase over this same five year period. Another advantage for using this alternative is that the customers that don't use these services very often are going to e paying for what they use, not paying for an amount that they did not use, the monthly rate. A disadvantage of this is that the customers who use the CLASS features a lot are going to be charged for every single time that they use the service. This can be rather costly and can turn customers away from using this company as its local carrier. Customers also have the ability to use the features immediately, meaning that all they have to do is type the correct code to activate the feature. They do not have to call up the telephone company and waste time waiting on hold just to change the features that they want.The third alternative...
