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US firm bids to end Telco monopoly

International Discount Telecommunications claims it is now concentrating its efforts on Bermuda after successful drive in the US.And IDT is offering business customers in Bermuda a free month of international long distance calls.

international telephone calls.

International Discount Telecommunications claims it is now concentrating its efforts on Bermuda after successful drive in the US.

And IDT is offering business customers in Bermuda a free month of international long distance calls.

But Telco general manager Mr. Ernest Pacheco said that interested parties should carefully examine what IDT is offering.

IDT president Mr. Howard Jonas said: "New technology and the falling dollar have combined to enable our company to undercut the state telephone monopoly by over 50 percent.

"For years the national carrier in Bermuda has been overcharging customers for long distance service, because they had a monopoly.

"We have ended this state telephone monopoly by letting users make calls to America and other overseas countries for less than half of their current charges.'' The system involves a caller in Bermuda dialling a special number in the US and then hanging up after it has rung once. This sidesteps Telco because the call is technically never answered.

However within seconds they are called back from the US and receive an American dial tone allowing them to call anywhere in the world.

Mr. Jonas said: "But the best part is, because the calls are now originating from the USA, they only pay low competitive American rates rather than the high monopolistic rates in effect from Bermuda.

"And now the weak dollar has made these rates ever lower for customers in Bermuda.'' IDT set up their office in former funeral parlour in Hackensack, New Jersey, earlier this year.

Mr. Jonas claims they have already broken national telephone monopolies worldwide by drastically cutting prices.

But he said: "Now, because of the very high telephone charges in Bermuda we have decided to concentrate our sales effort in your country.

"For this reason we are offering a month of free calling for up to $10,000 for any new clients who sign up with us.'' In the US, IDT charges a rate of $250 per month for the service.

Mr. Pacheco said: "If anyone wishes to avail themselves of the service that IDT is offering they should closely examine all the aspects.''