Describing the situation as grey, he noted that arising new technologies have now made it possible for persons to make overseas calls not necessarily by bypassing the local phone company's system, but by using it.

Several Internet cafés operating around the country are offering the public cheap rates for calls overseas and the Guyana Telephone and Telegraph Company (GT&T) said its cries for them to be regulated are going unheard.

Computer users with Internet facility can also make calls for as low as US four cents per minute, according to an advertisement in the newspapers earlier this week.

The operation, known as Voice Over the Internet Protocol (VOIP), is affecting both the phone company and the Government - the latter receives 10 per cent on each international call, Public Relations Officer of GT&T, Mr. Robert Bazil said Monday.

GT&T earlier this year accused the Government and the regulatory body of encouraging illegal voice over the Internet operations here, claiming that it violates the company's licence and undermines the international telecommunications business that the company has been made to be inordinately dependent upon.

It said the networking firm, I-Net Communications, by offering for resale international satellite services that bypass GT&T's facilities, continues to operate in violation of its own, and GT&T's licence.

An advertisement was placed in Monday's edition of the Stabroek News, marketing calls by computer users with Internet facility to the United States, United Kingdom and Canada for as low as US four cents per minute.

GT&T said there are several places in Guyana offering such services, but nothing is being done to regulate them.

The advertisement was placed by Wintel Guyana Inc., as the local agent, but no address or telephone number was published.

Prime Minister Hinds, who has responsibility for communications, however, explained that people can argue different positions on this matter, noting that present regulations do not specifically address GT&T's concerns. He said that is why there is need for a reform/modernisation of the telecommunications sector.

He said Internet users might argue VOIP does not infringe GT&T's licence because it can be used through the existing GT&T system. But some might say it infringes the licence because it was not anticipated to be used that way.

Mr. Hinds said a decision will have to be made as to whether VOIP is illegal or not, but opined that it is difficult to separate VOIP from other uses of the Internet.

At the same time, many callers welcome the use of the facilities, noting that they get the same services for so much less.