Wireless's new general manager, Edward Saints, believes the customer will be the ultimate winner. Ahmed ElAmin reports Bermudian Edward (Eddie) Saints, Cable & Wireless's new man at the helm, knows he has a tough task ahead of him in positioning the company in Bermuda's rapidly changing telecommunications marketplace.

He's hoping his tenure will mark a fresh start and an open dialogue and negotiation between all players in Bermuda's telecommunications marketplace.

But the past has not been on his side. The introduction of competition in the Bermuda marketplace has marked a period of turmoil, change and at times bitter rivalry, of which Cable & Wireless has played a part.

In his first month as general manager Mr. Saints is currently embroiled in negotiating the issue of settlement charges paid to Bermuda Telephone Co. Ltd.

and Quantum Communications for passing on overseas calls to their local networks.

Looming on the horizon is the building battle with other telecommunications companies over the issue of providing telephone over the Internet service in the local marketplace.

At least Mr. Saints' job has been made a little easier. His predecessor Colin Little helped set the stage for Cable & Wireless to go head to head in the coming war for customers before he left. Government backed down in the face of a $100 million suit by Cable & Wireless, and agreed to end rate protection of competitor TeleBermuda International Ltd.

As part of the agreement Cable & Wireless will become a local company next month and will be allowed to change its international calling rates without seeking permission from the Telecommunications Commission.

The move allows Cable & Wireless to compete head to head against TeleBermuda and attempt to gain back, or reduce the rate of loss of market share.

Eventually the company plans on selling part of Cable & Wireless Bermuda Ltd.

as a public share offering and listing on the Bermuda Stock Exchange.

The opening up of competition has been good for the company, Mr. Saints said.

"A competitive marketplace demands that companies make the best use of its resources,'' Mr. Saints said yesterday during an interview. "The new market has created cost and management issues.'' The company dealt with those issues by downsizing its work force by 25 jobs to about 87 staff, and has restructured operations. Sales and marketing have been combined into one unit.

In that unit four staff are wholly devoted to product management and development.

"We are working more efficiently, more effectively, with the goal of servicing customers better,'' he said.

Next on the table is the current negotiations over settlement fees paid to local carriers. The negotiations are being driven by the US Federal Communications Commission (FCC) deadline of January 1 concerning the rates US companies must pay out when passing calls on to overseas long distance companies.

While Cable & Wireless in Bermuda currently receives between 25 to 54 cents per incoming calls from US telephone companies, the FCC is mandating that rate must fall to about 15 cents next year. Cable & Wireless in turn pays 24 cents to Bermuda Telephone Co. Ltd. for passing calls locally. Once the US rates come into force Cable & Wireless can't afford to continue paying that rate out. Hence negotiations between the international carriers, local providers and the Telecommunications Commission.

Revenues from these settlement payments make up a major part of local carriers revenues, so while Mr. Saints hopes the negotiations will turn out amicably, there's a possibility of a deadlock.

"It's an issue in which everybody shares a common interest,'' Mr. Saints said. "I anticipate everybody is going to work to resolve it.'' Another potential flash point is the current dispute over the provision of voice over the Internet services in the Bermuda marketplace. Cable & Wireless recently complained to the Telecommunications Commission about Logic Communications testing of voice over the Internet service.

Mr. Saints said Government had turned down Cable & Wireless request to offer Internet two years ago. With the reincorporation as a local company Cable & Wireless will now go ahead with launching Internet services.

"The Internet provides a tremendous opportunity for us as a company and for Bermuda as a whole,'' he said. "Cable & Wireless is very committed to the Internet as a distribution and delivery system worldwide.'' He admits that advances in technology mean all of those in the industry will have to adjust. Internet technology will drive the cost of international telephone service down because it is more efficient. However a balance will have to be struck because the incumbents have made major investments in the infrastructure.

They don't want to see that investment eroded by competitors offering new technology.

"The Internet is going to be a challenge for all of us,'' he said. "We have invested $250 million in Bermuda over the last 25 years. We continue to make significant investments.'' Government's decision over the next few years will be to strike a balance between allowing new technology and competition to drive the marketplace, and to keep infrastructure development in Bermuda, he said.

TOUGH CHALLENGE -- Cable & Wireless's new general manager Edward (Eddie) Saints.