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The Long Lines Department manages the nationwide telecommuni- cations network which handles more than 30 million long- distance calls a day. It also serves as the private system manager for more than 8000 customer organizations. In this role, Long Lines performs the management tasks required to service 225,000 circuits, 1400 tie-line networks, and 25 common switching networks. BELL OPERATING COMPANIES - PRESENT SYSTEM The most visible element of the Bell System is the 23 Bell Operating Companies (BOC's) of which Pacific Telephone is part. Communications services and custom-engineered features are provided throughout regional operating areas by these companies. At the BOC level, the Bell System is the person- to-person user interface 'that solves communications problems, provides needed services, responds to disasters and supports the overall telephone needs of Government, the general public and the business community. Around-the-clock maintenance and administration assures continued operation at a high standard of performance. Pacific Telephone is particularly proud of its record in this regard. The restructuring of the Bell System agreed to by AT&T separates the local portion of the BOC from AT&T. In this arrangement, the local BOC's promise to give greater access to customers, to the benefits of the Information Age, and, in this regard, reaffirm their desire to proyide the most efficient and latest state-of-the art communications available to all of its customers. The BOC's are responsible for local transmission facilities and standard-engineered interfaces. These transmission facilities connect the millions of public telephone and private line users through switching systems or by direct connection at Central Offices. Facilities and standard-engineering interfaces connect intrastate services to interstate and independent telephone company services. This has created a telephone service that is unsurpassed in the world. THE PACIFIC TELEPHONE AND TELEGRAPH COMPANY (PACIFIC TELEPHONE) - PRESENT Pacific Telephone's organizational structure has undergone changes to respond to the dynamic nature of the communications industry and the continued growth in the State of California. Its present structure is designed to strengthen Pacific Telephone's marketing effort, to maintain its ability to provide high quality products, to take advantage of state-of- the-art changes and to permit effective communications operations with a strong, centralized staff. Pacific Telephone is committed to a sustained effort aimed at discerning the communications requirements of an increasingly diverse market and to the shaping of products and services matched to those requirements. The present organization plan is intended to provide a structure that will fulfill this purpose. By matching products and service to newly emerging customer needs, Pacific Telephone can insure that its