later in the year.

New York-based International Discount Telecommunications (IDT) is in the process of appointing a marketing representative in Bermuda to promote its service.

IDT claims it can undercut Bermuda Telephone Company by more than 50 percent on some overseas calls using its unique service which allows foreign companies to make calls at cheaper US rates.

The company's president and founder, Mr. Howard Jonas, 36, said: "The days of having the phone company overcharge and mistreat international users in Bermuda are over. Competition is here to stay.'' The company says it already has several international business clients in Bermuda without proper marketing, but wants to grab a much larger share.

Several potential representatives are currently being interviewed and a local marketing deal should be signed by June 1, 1993.

IDT vice-president Mr. David Barth said: "It is expected that most large and medium-sized companies in Bermuda will be visited in person shortly after IDT's local offices open.

"They will be offered discounts of 58 percent on their international calling rates.'' The overseas telephone market was worth $20.5 million for Telco during 1992, accounting for 44 percent of its total operating revenues of $46.5 million.

Telco's general manager Mr. Ernest Pacheco said IDT had had no effect on his company's revenues so far.

"They've made a claim that they have several clients here but I don't know who's using the service or to what extent it's being used,'' he said.

"I've not been able to determine a single user myself. It's certainly not had an impact on our business at this time.'' Mr. Pacheco warned: "Before anyone avails themself of this service they should examine all aspects of it. They should analyse all the costs compared with the costs provided by ourselves.'' IDT, which began marketing its service in October, 1991, currently employs 25 staff in New York, but has representatives in approximately 30 countries.

The company has developed a system which enables telephone users all around the world to dial overseas at US rates, which are generally cheaper than other countries because of greater competition.

A customer in Bermuda wishing to dial overseas can dial an IDT machine in New Jersey, hang up and wait for it to call them back at a preset number.

Then, the customer instructs it via their phone keypad to place a call to call wherever they want, with the charge calculated at the US rate.

Customers pay an annual fee of $250 for their first line, and another $150 buys them an extra five lines.

Mr. Barth said the company has grown quickly and currently has revenues of over $1 million per year.

And he dispelled rumours circulating in some news media that the scheme may be illegal.

"There has never been a legal issue brought against us or any hint of it,'' he said. "The worst case scenario was that there was a war of words in the press and, in some cases, national phone companies have lowered their rates in competition with us.''