The Bermuda Telephone Co. Ltd. (BTC) has charged that international telephone companies are not passing on savings to the public.

A BTC spokesperson said BTC had cut $12 million from the total fees it received from Cable & Wireless and TeleBermuda International Ltd. for interconnecting international service with local service.

However, Cable & Wireless general manager Eddie Saints said the charges were unsubstantiated. He said Cable & Wireless has already responded by cutting 10 cents a minute from international calling rates, and had promised to pass on another two cents a minute through other savings programmes.

"It's unfortunate that BTC has taken it upon itself to comment about our business,'' he said. "They don't understand the big picture.'' The BTC spokesperson said of the $12 million in reductions, $8 million went to Cable & Wireless, and $4 million to TeleBermuda.

The $12 million loss in BTC's revenue is a result of a Government directive that local carriers BTC and Quantum Communications must reduce their fees for passing on calls to long distance carriers to 15 cents from 27 cents a minute on January 1, and to 10 cents a minute by July 1.

In an attempt to make up the anticipated loss BTC has applied to increase domestic service charges.

Until the application has been heard the company has embarked on a programme of cost cutting measures. Unscheduled overtime and overseas travel have been banned and the company has suspended charitable donations. The company will also not supply repair service during the weekend. Other "non-essential'' services are also being reviewed for cuts.

"Customers are likely to see some degradation for certain services,'' she said. "We are looking at cutting costs without losing staff until we get a clearer picture.'' The company recently met with staff and the union to explain the effect the changes were having on BTC's operations.

"We have met with all our staff to explain the issues facing them and the impact on the company in relation to this directive,'' the spokesperson said.

"We believe they understand the issues.'' Yesterday The Royal Gazette reported a source as stating BTC was considering cutting some of its lines of business with a possible loss of about 100 jobs.

DENIAL -- Eddie Saints, who rejects allegations by BTC of not passing on savings.