Codetel announced that as of January, residential telephone service will be increased by 10% to 20%. The additional revenue will be spent on investments and projects that in 2004 will require US$220 million. The charges for the R1 service will increase from RD$275 to RD$330 per month. Codetel said that the devaluation of the peso was a significant factor in the increased costs, in addition to inflationary pressures. Codetel noted that during the year 2003, the peso depreciated 65.1%, while the accumulated inflation ranged from 35% to 42% for the same period.