BTC has been given the green light to put up the cost of payphone calls and directory assistance ? but not to the levels it had initially wanted.

The Telecommunications Commission approved a hike in the cost of payphone calls from 20 cents to 35 cents and directory assistance from 75 cents to $1.

BTC had been looking for approval to raise the charges in two waves ?first to 35 cents and then to 50 cents for payphone use and to $1 then up to $1.55 for directory assistance ? citing that the costs for the service had been too low for too long.

The rate hikes will be implemented as of March 1, 2004, according to a statement by BTC.

But yesterday Bill Frances, acting director of telecommunications at Government said that the Commission had met BTC half way way on the wanted increases.

"The commission has requested additional information to to able to justify further increases," said Mr. Frances. "We have to work out if the increase is fair, and on the information we were given we approved the increases to 35 cents for the payphone and $1 for directory assistance. We have asked them to come back with more information for before any further increases can be approved."

BTC spokesperson Ona Fletcher said: "BTC appreciates the recent decision of the Telecommunications Commission to raise the rates charged to the public for payphones and directory assistance to 35 cents and $1 respectively."

She added that rates for payphones had not been raised since 1983 and continued to be non-profit making due to "lack of demand for this type of phone service".

BTC said last year, when it put in a public notice about the proposed price hikes, that it hoped to increase the cost of local calls on payphones and directory assistance because these services do not pay their way.

BTC said that the 640 payphones on the Island continue to lose money and blamed high maintenance costs and decreasing call volumes due to increasing cell phone usage.

BTC is required to provide this public service and the payphone call rate has not been increased since 1983.

"In addition BTC is exploring other ways to generate revenues such as advertising and improving internal efficiencies to mitigate continuing losses in this business area for our shareholders while meeting the requirement of providing this public service."

BTC also claims that directory assistance rates do not cover the costs associated with providing the service.

In April 2002 BTC tried to increase the cost of payphone calls ? by more than doubling the cost from 20 cents to 50 cents and increasing the charge for directory assistance from 60 cents to $1. But these proposals were not carried through, and only directory assistance charge was increased to 75 cents.

When the cost of payphones rose last in July 1983 the cost rose from ten cents to 20 cents.