This type of magneto telephone became a standard telephone in with the formation of the PMG in 1901 when stocks were transferred from the previous colonial Post & Telegraph administrations. The No.2 telephone was the Swedish Ericsson AC120 and was used mainly in offices close to the exchange, as it could not operate satisfactorily over long lines. Although not used in large numbers, some No.2 were still in service as late as 1950.
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