company's plans for lower rates met approval with a rival company yesterday.

Cable & Wireless (C&W) had sought permission to give its customers a six percent rebate for international calls made in June, July and August.

It also wanted to expand its regular discount calling periods to the US, the UK and Canada but both plans were denied.

TeleBermuda International (TBI) director Kenneth Spurling said: "We are absolutely pleased to see the Commission being supportive of Government's effort to maintain sustainable competitive rates.'' He added that this was all the company wanted when it objected to the proposal. "Going up and down is not in keeping with Government's strategy,'' he said.

Government has warned that it will not allow "predatory pricing'' by competing companies attempting to drive each other out of business.

C&W acting general manager John Fuge said: "We are very disappointed with the Commission's decision.

"The proposed rebate plan is consistent with the long-held practice of C&W to pass on savings to customers while providing Bermuda with a first class international telephone service.'' The Commission decided that C&Ws' proposal did not satisfy Government's policy of opening up the local and international telephone market to competition.

However it said C&W should submit a "comprehensive'' rate package and the commission would establish a range within which C&W could set its rates.

Mr. Fuge said C&W is in the process of developing this for the commission. The interim rates were submitted because developing the rate package was estimated to be a lengthy process.

"The proposed reductions would have been an important step toward lower rates and would have been available directly to the public, thus avoiding the delays that are likely to be involved in the consideration of the more comprehensive rate proposal.'' TBI is understood to have been the only objector to C&Ws' application.