Dave,
Your recollections of POTS (Plain Old Telephone Service) is surely dependant on your location. Yes, there were things wrong, but in some respects this was because of the underlying pay structure. I lived and worked in the Huddersfield/Bradford/Leeds areas where our pay was relatively good for those areas. Unfortunately, even with Inner & Outer London Weighting Allowance, pay in London was poor with the inevitable result that the better technicians left the GPO to work for any of BBC, IBA, computer fims and got an immediate good pay rise. Of those that didn't leave, they either gained early promotion and thus were lost to exchange maintenance, or transferred away from London, leaving the city to be run by lower class technicians. I remember a colleague who temporarily transferred to London for 2 years, with, I think – as much overtime as he could handle, free lodgings and free travel home. He told me that he made in excess of £30K during his stint. This was in the 1980's I believe.
Another problem was that the GPO was a Civil Service department and was thus financially under the control of the Treasury, and certainly in the 1950's/60's, they used to limit how much money could be spent on capital projects, hence the restrictions leading to, as you correctly said, – party lines, old, aging equipment etc. I believe that one of the reasons for this was lease-lend and the need to pay back the Americans. Possibly another problem may well have been the choice of technology back in the early days of automatic telephony when Strowger was deemed to be better than the other systems then available, and as we all know, this view was eventually proven to be wrong.
Yes there were some dead-eyes, at least one character I knew who should have been sacked, but at the same time there were some very knowledgable technicians about, technicians who looked after the equipment under their control as if it was their own personal equipment.
Yes, I am well aware of the reputation Post Office Telephones had, and it sickens me that those good technicians I knew and respected did not earn the respect they deserved because of that reputation.
Nevertheless, today's systems where control is centralised does mean that whereas 50 years ago, a failure was limited to a small area, today, that area can be very large indeed.
Incidently, don't hold it against the technicians, or even the GPO/BT about the physical state of telephone boxes. Instead, think sympathetically about those poor technicians who had to clean it up, just because some people had no respect – been there, seen some of it, fortunately not too bad, but…
Cheers,
Peter G. Shaw