carrier Bermuda Telephone Co. (BTC), TeleBermuda International Ltd. has lowered rates in some time slots to the US, Canada, the UK and Ireland.

Competitor Cable & Wireless had previously cut its international phone rates a month ago by an average of six percent in anticipation of the lower fees the company will pay BTC.

As of today TeleBermuda's rates to the US, Canada, the UK and Ireland will fall by about two cents a minute from 7 a.m. to 10 a.m. and 6 p.m. to 9 p.m.

weekdays and between 7 a.m. and 9 p.m. weekends.

For example per minute calling rates to the US will fall to 74 cents from 76 cents. Rates during the other time slots will remain the same. For the US the regular rate during the day will remain at 89 cents a minute.

Rates lowered TeleBermuda general manager James Fitzgerald said the new rates brought the company's rates lower than Cable & Wireless' rates at all times. He said the rates were on average 8 percent lower. Cable & Wireless spokesman John Instone said the rate reduction was expected given that BTC was lowering its interconnect charge from 15 cents to 10 cents a minute on all international calls beginning today.

The charge is what the international providers pay BTC for handling outgoing and incoming calls. The charge was lowered in two stages beginning this year as ordered by the Telecommunications Commission. To offset the loss in revenue BTC is increasing the monthly charge for a residential phone line to $26 from the current $21. The charge was raised from $16 to $21 earlier this year as part of Government's plan to end the international subsidy of local telephone costs. TeleBermuda stated that since the company came into operation international telecommunications costs have dropped between 18.5 percent to 46.7 percent depending on the country and time of day the calls are made.

John Instone: `Rate reduction expected'.