Salem Telephone Company

Salem Telephone Company was granted permission to start Salem Data Services who performed data processing for the telephone company and to sell services to others. Salem Data Services is an unregulated company who wasn’t being profitable enough for Peter Flores, President of Salem Telephone Company. Soon, Sale Data Services was no longer useful to the telephone company; however they were still needed to other companies. Because Salem Telephone was regulated by the Public Service Commission, they planned to start a new subsidiary whose rates were not regulated. This new company would allow Salem Data Services to race competitively with only one regulation on the monthly service charges. A few years later Salem Telephone Company was experiencing their lowest income in years. Mr. Flores was ready to drop the data service company and wanted to meet with its manager Cynthia Wu. Flores reviewed the reports and the numbers of Salem Data Services and wanted to close down the company. However because of the close relationship and connection the two companies had with each other, he believed the reports didn’t accurately account the benefits of the data service company and concluded it was too soon to give up on them. Salem Telephone Company was granted permission to start Salem Data Services who performed data processing for the telephone company and to sell services to others. Salem Data Services is an unregulated company who wasn’t being profitable enough for Peter Flores, President of Salem Telephone Company. Soon, Sale Data Services was no longer useful to the telephone company; however they were still needed to other companies. Because Salem Telephone was regulated by the Public Service Commission, they planned to start a new subsidiary whose rates were not regulated. This new company would allow Salem Data Services to race competitively with only one regulation on the monthly service charges. A few years later Salem Telephone Company was experiencing