Bermuda residents will be hit in the new year by a 75 percent increase in domestic telephone charges, effective January 1, that will climb to a more than 100 percent increase by July 1.

The new charges are expected to be levied by the Bermuda Telephone Co. Ltd.

almost immediately, and justified by a Government requirement that they price their interconnection charges at a regulated level.

The company said it was forced to take out costs that were previously contained in the old rate that related to non-interconnection charges and pick up the shortfall through other charges.

But standard residential line rates will be hit the worst, rising from the current $16 a month charge to $28 a month at the start of the new year. They would jump further to $34 a month by July 1.

A standard business line would rise from the current $12 to $24 on January 1, and to $30 by July 1. The company made an ex parte application to approve the changes effective January 1. If approved, the rates will be interim until the commission conducts an inquiry.

Blaming the Government directive, the company proposed the increased local network access rates and the introduction of international carrier charges as a separate rate.

The charges are paid by the Island's two international carriers, Cable & Wireless and TeleBermuda International.

Right now, BTC charges the companies 27 cents and 24 cents for outgoing and incoming long distance calls, respectively. A report of the Telecommunications Commission said those charges should be cut to 15 cents January 1 and to 10 cents by July 1.

BTC warned they'd have to make up the loss revenue somewhere.