Government yesterday accused a company offering telephone callback services of "blatantly defying the law'' after it bombarded customers across the Island with voicemail messages touting for business over the weekend.

The Senate yesterday affirmed a bill passed by the House of Assembly in November which will outlaw overseas firms offering cheap callback services for international calls.

Government lawyers have contacted New York-based Globaltel warning them to stop their services, but over the weekend the company carried out an aggressive marketing campaign to drum up new business.

Acting Telecommunications Minister and Senate Leader Milton Scott said yesterday he was concerned by Globaltel's "belligerent'' attitude even though MPs had passed the legislation outlawing the services -- which are said to "skim'' $3 million a year out of the economy.

Globaltel contacted customers across the Island over the weekend to sign up, saying it was licensed by the United States Federal Communications Commission (FCC), and charged 19 cents a minute to the US and 20 cents a minute to the UK and Canada.

Sen Scott said: "I am concerned about the belligerent attitude, as expressed (by GlobalTel) in The Royal Gazette today.

"We will be making a response to this event because I don't want to see anyone caught up in a situation where they are blatantly defying the law.

"Everyone in the telecommunications business has been consulted and its time for them to fall into line.'' The Telecommunications Amendment Act -- which becomes law when it is signed by Governor Thorold Masefield -- leaves companies operating the services without a licence in Bermuda liable to a $50,000 fine, and/or two years in jail.

The legislation covers any call which does not originate in Bermuda -- including electronic "switch'' services which would make a call outside the Island then connect it to a caller in Bermuda. Director of Telecommunications Gregory Swan said in a statement last night: "Lawyers for Globaltel have been contacted and been directed to give notice to their client to discontinue the provision of callback services to Bermuda.

"This recent wave of aggressive marketing, we believe, is direct retaliation against the legislation that was passed in the House prohibiting the provision of callback services.

"This action clearly demonstrates the lengths to which some businesses will go to attract new customers, with no regard for legislation and telecommunications regulations here in Bermuda.

"The Bermuda Government is committed to preserving the integrity of Bermuda's telecommunications infrastructure.

"This can only be accomplished by ensuring that those service providers that are only interested in skimming revenue from our economy, are prevented from operating locally.'' Globaltel is thought to have no physical presence in Bermuda. Mr. Swan said the legislation was the first step towards closing down the callback services.

With this in place, the FCC may consider helping close down the services of the American-based provider, said Mr. Swan.

Progressive Labour Party Sen. Michael Scott said the amendment would cover all callback facilities covering faxes as well as telephone calls.

But United Bermuda Party Sen. Mark Pettingill said it was doubtful whether the bill could be enforced because the operators were outside of Bermuda's jurisdiction. Sen. Michael Scott said the callback operators were "skimming'' millions of dollars a year from Bermuda's economy.

"It is a straightforward objective to introduce sanctions to contain this unwarranted and undesirable element in the telecommunications economy that's been the result of skimming off several million dollars from the economy of this Island,'' he said.

He said the bill was prudent because it introduced competition, but at the same time ensured the companies who provided the telecommunications infrastructure, Cable and Wireless and TeleBermuda, remained economically viable. This was important because they provided communications services that were essential for international business and tourism.

He said the FCC would not come on board until Bermuda passed this specific legislation.

"This is a first step and once we've introduced the legislation, the FCC has indicated they would support the legislation. It's little steps.'' Sen. Pettingill said he had been a "victim'' of the Globaltel voicemailling over the weekend and described the company as "blatantly defiant''. The legislation was trying to attack the callback companies overseas. "If we are not in a position to stop this blatant approach, what can we do? The answer, from a legal standpoint, seems to be nothing,'' said Sen Pettingill. "It's not a criticism of the bill, but it does nothing for the situation of trying to punish anyone trying to do this from overseas.

"How do we deal with this very real mischief, because it is blatant. Talk about in your face.

"It may happen again and again and people may take a bit of the gravy until it is stopped.'' Independent Sen. Walwyn Hughes said people used callback services because of the attractive rates, and though he supported the bill, he hoped there would be continued pressure to bring down prices. Opposition Senate Leader Maxwell Burgess said the bill was a simplistic solution to a complex problem. He said it was "politically expedient'' to target the legislation at overseas operators.