subscribers 15 percent savings on all overseas telephone calls.

The MarketPlace was the first customer. Executive vice president Allan Doughty cut a symbolic ribbon.

Bewildered mid-morning shoppers in Hamilton were pitched US-style marketing, as long distance telephone service competition was offered within the next 30 days.

The benefits of competition were immediate and clear.

Within hours, Cable & Wireless Bermuda (C&W), in response to questions from The Royal Gazette , said it would lower its long distance rates to key market countries.

A statement from C&W manager, John Tibbles, said, "We will be introducing a range of new pricing and incentive initiatives in the near future. We would naturally hope that these benefits can be rapidly introduced through the approval process to the consumer with the minimum of delay. These initiatives will impact all major routes.'' A recent reduction in C&W's long distance rates to many coun tries did not include Canada, the US and the UK.

TBI said it has spent the last fortnight testing the service with live traffic, making use of satellite technology. Later this year, it expects to begin using the most modern submarine fibre optic cable.

The cable is expected to be operational in October, providing TBI with far more flexibility for business connections. Construction of the cable started last May, and cable laying is to begin at the end of April.

In the interim, the company said it will use a digital satellite with a very high signal level that will provide a service which will be indistinguishable to long distance callers.

The man credited with making long-distance competition happen in Bermuda is TBI chairman and CEO, Michael Kedar, of Canada. For the first time in three years, Bermudians can expect significant and continuing reductions in the high cost of telephoning Canada, the US and the UK, the most used long-distance links. There were indications today, that costs could eventually drop further, while service improves.

Mr. Kedar said, "Over time, prices will continue to come down. But Bermuda is a small market on a small Island in the Atlantic, which is being inter-connected by fibre optics and satellite. For a small market the cost ratio is a lot higher than it would be for Canada or the US.

"So you are always going to see a higher price here, but over time, yes, prices will continue to drop.'' He said, "With TeleBermuda, you will never again see long-distance rates as high as they have been in the past. This is great news for consumers, great news for local businesses, and great news for the economic future of Bermuda.'' Yesterday, many shoppers taking advantage of the supermarket chain's regular Wednesday five percent discount loosened their grip on cereal boxes long enough to sign up for the alternative long-distance carrier. They only needed to hear the magic 15 percent figure.

TBI director, Kenneth Spurling, said, "Even though we are getting into service a lot faster than most people expected, we have already been swamped with requests to sign up. In spite of the backlog, someone signing up with TeleBermuda this week, can expect to start saving on long distance charges within 30 days.'' The simple message that got 500 subscribers to sign up immediately was this: "There are no sign-up charges. There are no extra digits to dial. No technicians will visit your home. Your local service, including your phone number, will remain the same. You will save 15 percent over and above even the lowest rates currently provided by any other licensed long distance carrier in Bermuda.'' And then the guarantee: "If you can find any other licensed long-distance carrier, offering lower rates on any call, on any day, at any time, to anywhere, TeleBermuda will credit your account with double the difference of the call. If you are still not satisfied, we will help switch you to the carrier of your choice.'' It was enough for a lot of people to suspend shopping for the 60 seconds it took to fill out the form and drop it in the box at the supermarket. In fact, it has been much the same in other MarketPlace stores across the Island, journalists were told.

TBI launched its long-awaited service in the middle of the express lanes of the Island's busiest supermarket. Shoppers with ten items or less paid the cashier and ducked past the television cameras, stepping over equipment, and snatching TBI brochures which were being distributed.

LONG DISTANCE SMILES -- Executive vice president of The MarketPlace Allan Doughty (left) and chairman of TBI, Michael Kedar.