marketing of EDI (electronic data interchange) technology, eventually bringing scores of businesses on line.

Telco is incorporating a new firm to be called Onlines Systems Ltd. which will market and distribute EDI products.

It will be overseen by Mr. Grenville Lines, who is dismantling his dormant company On Lines Ltd. to pave the way for the new venture. It is understood that there are opportunities for Mr. Lines, who will become president of the firm, to eventually obtain equity in the new company.

Telco assistant general manager Mr. Gary Edwards, said: "We are now at the stage where we can move ahead and try to develop this market in Bermuda. EDI is a business way of handling purchasing, ordering, final payment, acknowledgement of receipt and that sort of thing. It is done electronically rather than by using paper.

"It will be done over telephone lines with a personal computer on the end of it. It requires software and a network. We are signing network and software agreements with a company called Sterling Software, a US company.

"Onlines Systems Ltd. will not be a company that will require a whole lot of retail space. It's more oriented toward software development, tailoring customers' computer needs to fit in with the system, so they can transact business. It's for repetitious type transactions. The food industry, the wholesale industry want to get on with EDI as well.

"Eventually, people will be doing their ordering and settling of bills through EDI. Mr. Lines and his staff will be involved in the development of the software and the marketing of the services.'' Telco has already seen interest in EDI from the the transportation and health care industries as well as the reinsurance industry.

Transportation companies dealing with Customs clearance are already convinced that time, energy and money can be saved through the use of EDI.

Health care professionals have staff dealing with a lot of paperwork, especially when it comes to insurance claims settlement.

Telco is also aware that the Bank of Butterfield is EDI capable and firms are eager to come on line to take advantage of that for financial transactions.

Gorham's has been busily making strides in EDI, especially for product ordering from thousands of suppliers. Mr. Lines was instrumental in establishing EDI at Gorham's.

Last month, Telco introduced Sterling Software products to selected industries. Sterling is a Dallas-based company that trades worldwide, offering computer software and services.