SOME senior private sector officials are objecting to the steep increases in phone bills proposed by the Guyana Telephone and Telegraph Company (GT&T), which one described as "pretty dramatic and unreasonable".

The Chronicle yesterday spoke with at least three private sector officials, all of whom requested not to be named, on the proposed increases by GT&T.

One pointed out that the economy is on the decline and people are already crying out about increases in water rates, rent, transportation, electricity and food bills and this latest proposal by GT&T, which enjoys a monopoly on the local market, is "very unreasonable and an added burden".

Another felt it can impact very negatively on the society, indicating that telecommunication, including the Internet, has become basically an integral part of the society.

"From the surface of it, it's horrendous...," one official said, adding the entire situation has to be looked at from a "holistic point of view".

He said such increases will put a lot of pressure on the exchange rate which Guyana can hardly bear right now.

"I am not in agreement (with) any raise unless it is justifiable," he said.

The official said the Government and GT&T need to negotiate the rate of return on investment to arrive at an amicable solution with the consumer's interest at heart.

"...it's almost a 2,000 per cent increase to consumers; nowhere in the world is such an increase happening," the businessman said.

President of the Guyana Consumers Association and Chairperson of the Consumers Advisory Group, Ms. Eileen Cox told the Chronicle on Monday that the organisation is against the steep increases proposed by GT&T.

According to Cox, the $5.5Bln increase stipulated by GT&T in its proposal to the watchdog Public Utilities Commission (PUC) is in excess of what the company stands to lose in the settlement rate change.

GT&T had enjoyed a US85 cents rate on international calls which ended January 1 this year when the order from the Federal Communications Commission (FCC) kicked in, bringing the rate U.S. carriers pay to Guyana down to US23 cents.

The company had made a rate-filing with the PUC with the expectation that there will be some proper rate structure or variations thereof that will come into effect with the FCC order. The reduction has brought with it a significant reduction in revenues, GT&T said.

GT&T is therefore proposing to increase the domestic telephone rental from $250 to $1,500 and business/commercial rental from $1,000 to $3,000 a month.

It wants to increase calls within exchanges from 20 cents to a whopping $4 per minute during the day, and from 10 cents per minute to $2 per minute at nights. It is also looking for an approximate 75 per cent increase for out-of-exchange-calls.

In terms of international calls, it proposes that rates for all countries except the U.S. and the United Kingdom remain the same but that there be one off-peak rate. The rates to these two countries would be reduced with one rate being applied to both locations - $136 during peak hours and $123 during off-peak hours.

The company also wants Internet users to pay for line service, which is currently not paid to GT&T, but Cox has pointed out that it only stands to lose from this move.

According to her, GT&T is taking advantage of the opportunity to squeeze consumers in Guyana more.