North Rock Communications say hundreds of customers of have signed up for its local telephone services since it went into competition with Bermuda Telephone Company last month.

BTC's monopoly on local telephone services was broken two weeks ago when North Rock began offering a rival service.

The internet provider said "several hundred" people have signed up and the company is hoping to win a sizeable chunk of the Island's 23,000 home customers.

But the company's sales and marketing manager Vicki Coelho said she did not anticipate prices to fall because she said Bermuda was too small to make the economies of scale necessary to slash costs.

"The demand has been very, very positive," she said on Friday.

"We knew another choice for customers would be good, but we didn't realise the demand would be this high.

"Just after Fabian there were folks with no service, and now they think it is great that there is an alternative service.

"We have a site assessment team going out to sites to ensure they can get the service then we are installing it within ten business days."

For $79 per month, North Rock customers can get unlimited local calls - and for an extra charge they can get high speed broadband internet access.

For a minimum of an extra $55 a month, they can get 25 hours internet access. For $75 a month extra they get 50 hours internet, and $89 per month gives unlimited internet access.

North Rock is also charging a set up fee of $350.

So for a customer looking to have unlimited local calls and unlimited internet services, their first monthly bill - including the $350 set up fee - will be $518.

On top of that, customers will need to sign up to a provider - such as North Rock, Cable and Wireless or TeleBermuda - for international calls.

BTC customers pay $26 a month for local access, which allows up to 50 free locals. For $89, BTC customers can get unlimited local calls, and the ability to get hooked up to high speed DSL internet access at an extra cost.

BTC's Velocity service ranges from $89 to $119 a month for unlimited local calls and the installation of a high speed internet line. The company has waived its $100 installation fee for the service.

On top of that, BTC customers need to sign up to an internet service provider, such as North Rock or Logic, to sort out an internet access package. And for overseas calls, customers will need to sign up to a provider.

Mrs Coelho said she did not believe prices for local calls will drop as a result of the competition with BTC.

"I don't see the prices coming down because of the economies of scale. It costs the same for a voice switch for 23,000 people as it is for a city of one million people," she said.

A BTC spokeswoman said: "BTC supports fair and even competition in the telecommunications sector, and that stands for any company."