Bermuda.

The company, working with the Bermuda Telephone Company to provide Bermuda with telecommunications at home and abroad, has come under pressure from a New Jersey firm which claims it can undercut the monopoly.

IDT Communications claims to have at least two dozen customers in Bermuda, including hotels, that are using its system to bypass the C&W/Telco "monopoly.'' Telco general manager Mr. Ernest Pacheco has already warned people to look carefully at what IDT are offering. And Cable & Wireless public relations officer Mr. John Instone said yesterday: "We feel that given the size of our market and the economies of scale, our rates are reasonably competitive.

"This does not mean that we will not seize opportunities to lower our rates even further.'' In reply to a rumour that price cuts on foreign calls have been discussed in Bermuda, Mr. Instone said: "Possible rate reductions are a regular topic for discussion between ourselves and Telco.

"Conversely, we believe Bermudians recognise that a first class communications infrastructure requires the constant investment of millions of dollars to ensure that services are reliable and secure.

"Quite frankly, excellent communications is one of the main reasons many international companies establish offices in Bermuda.'' A nine percent rate reduction was made in April to a number of European destinations, and C&W have also restructured and reduced charges in their International Database Access Service.

Mr. Instone said: "As a result we expect some users to benefit by savings in excess of 25 percent.''