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The Daily Tar Heel

Cell Phones Cut UNC's Profit

According to the Federal Communications Commission, roughly 61 percent of all people ages 18 to 24 depend on cell phones. And reliance on cell phones is costing the University by diminishing revenue that comes from long distance telecom services.

Most students on campus own cell phones and use them as their primary line, said Tom Horne, director of financial services for Academic Technology & Networks. "Cellular service has improved a lot, and packaging has gotten much easier than it was."

Sophomore Thomas McAbee is one of those students. "The dorm phone is too much of a hassle," he said. "I can just use my cell phone."

Only four years ago, the University was billing 10.4 million minutes per academic year of long-distance usage, and two years ago, the University billed more than 8 million minutes. But last year, that figure was cut to just over 4 million.

The number of minutes billed can translate almost directly into the revenue brought in by long-distance services, Horne said, implying that UNC's revenue has been cut in half.

The University offers its own long-distance services for 8 cents a minute on its telecom network, said Steve Harward, director of the telecommunications department. Most universities use services from major companies and then take a commission.

The profits from student phone bills help fund other communications, including high-speed Internet access. The revenue also pays for the salaries of the telecommunications staff, including Resnet supervisors.

Horne said long-distance service would not be eliminated entirely, but telecom officials are considering ways to compensate for the lost revenue.

In addition to minimizing costs, officials are working to develop a new product that will provide students with mobile service while connecting to already existing campus features.

Harward said his office is developing a mobile device, such as a cell phone or a pager, that will also connect to student voice mail and possibly e-mail accounts.

Still, Horne said there are benefits to signing up with Student Telecom Services. "We offer the best land line rate, and it's secure," he said.

But the University isn't consistently losing money because of cell phones. UNC earns a commission on all calling plans sold on campus by Cingular Wireless -- in return allowing Cingular exclusive rights to market cell phones on campus.

The University Editor can be reached at udesk@unc.edu.

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