THE phone company yesterday said its viability is threatened and jobs could be lost if it is not allowed to increase rates to customers.

Deputy General Manager, Public Communications and Employee Relations of the Guyana Telephone and Telegraph Company (GT&T), Mr. Terry Holder yesterday told the Chronicle that GT&T is being threatened by several local and external factors. He said if there is no positive response to the company's application for a tariff establishing new rates to prevent substantial revenue shortfalls, its viability will be threatened.

"Unless the company is viable, it cannot meet the demands of its customers and its commitment to employees. A reduction in staff, could be one consequence...", he stated.

GT&T is concerned about the impact on its revenues by the United States Federal Communications Commission (FCC) order that kicked in January 1, bringing the rates that the U.S. carriers pay to Guyana down from US85 cents to US23 cents.

The company had earlier made a rate-filing with the Public Utilities Commission (PUC) with the expectation that some proper rate structure or variations would have come into effect with the FCC order. It projected earnings at a 1.05% rate of return on its invested capital for wire-line services and said that to achieve the minimum 15% rate of return, it requires additional revenues of $5,556M by way of increased rates and charges.

Consumers groups and several senior private sector officials have come out against the steep increases in rates the company is seeking from the PUC.

The PUC held a hearing Wednesday with GT&T but the application for increased rates the company made in its quest to recoup revenue it says it expects to lose through the reduction of the international settlement rates, was suspended for six months.

The first hearing to fix temporary rates was set for January 15 at Hotel Tower in Georgetown at 16:00 hrs.

A large crowd of mainly GT&T employees turned up at the Supreme Court Library in Georgetown late Wednesday afternoon for the PUC hearing with GT&T.

Commissioner, Mr. John Willems said the large GT&T turnout might have been intended to intimidate the commission by causing an atmosphere of fear.

An employee of GT&T urged the commission to urgently consider temporary rates since there are hundreds of employees at GT&T who are depending on their jobs.

Among the gathering were Chief Executive Officer, Ms. Sonita Jagan, and other GT&T top officials. The room was packed with persons spilling on to the corridor. Even media personnel had to stand.

PUC Chairman, Justice Prem Persaud said the crowd was not expected as he referred to the poor turnout at PUC hearings, most of which are held at the Ocean View International Hotel at Liliendaal, East Coast Demerara.

GT&T officials did not appreciate Willems' remarks and Holder yesterday referred to an article in the Chronicle in which Ms. Eileen Cox of the Consumer Advisory Bureau and the Guyana Consumers Association had called on members of the public to turn out to the hearing.

Holder argued that a large turnout of members of the public could have been intended to bully the commission in terms of its judgement as he referred to the comments by Willems.

He said the GT&T employees who turned out to the hearing had a vested interest in the proceedings.

He said they have become aware of the implications the hearing could have on their livelihood and though they could have opted to engage in other activities at that time, they chose to attend the hearing hoping that the commission would have come to a positive decision.

The consumer groups are, however, unhappy that the commission will grant GT&T a hearing for a temporary order. Cox said this was "just as bad" as a permanent order.

Cox has told the Chronicle that the $5.5B increase stipulated by GT&T in its proposal to the PUC is in excess of what the phone company stands to lose in the settlement rate change.

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

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

In terms of international calls, it proposes that for all countries except the U.S. and the United Kingdom rates 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.

The company also wants Internet users to pay for its line service, which is currently not paid to GT&T and all international rates be rounded to the nearest dollar.

Cox claimed GT&T is taking advantage of the opportunity to squeeze consumers in Guyana more.