on when price control policy will be lifted to allow it to compete with TeleBermuda, reports Ahmed ElAmin With the loss of between five to 10 percent of its customers to the competition, Cable & Wireless Plc is looking at cutting costs in Bermuda.

General Manager John Tibbles said the restructuring of the company could eventually mean there will be some staff losses unless Cable & Wireless was able to lower prices to match the competition.

Government policy in introducing competition into the Bermuda telecommunication marketplace has been to keep price controls on the already existing players for a transitional period until new entrants get up to speed.

"The loss of customers has been significant,'' Mr. Tibbles said. "We are having a hard look at our costs and the way we are going to structure the company going forward.'' Cable & Wireless, which prior to this year was the only provider of Bermuda's overseas telecommunications link, is now in competition with TeleBermuda International Ltd.

While the company is studying ways of operating more efficiently, it is also looking at cutting down its workforce. Cable & Wireless employs 120 people in Bermuda.

Mr. Tibbles said a number of positions would not be replaced as people retire from the company. He also did not rule out layoffs if revenue continues to decline.

"We can't just sit here and see our market share decline,'' he said.

A submission to extend discount calling periods and give customers a rebate for three months was turned down by the Telecommunications Commission earlier this year.

Cable & Wireless has appealed the decision to Telecommunications Minister John Barritt. It has also submitted a plan for new extended discount calling rates to the Commission.

Mr. Tibbles said Cable & Wireless was being prevented from passing on savings it was making in the international wholesale market -- where rates have been falling -- to its Bermuda customers.

"We have a strong desire to compete,'' he said. "...We have got room for further reductions in different routes and different markets.'' TeleBermuda entered the marketplace offering customers rates 15 percent below those of Cable & Wireless. Mr. Tibbles estimates calling rates to the US and to the UK could eventually be lowered by about 50 percent from what they are now.

He called for more clarification on when the price control policy would be lifted so Cable & Wireless would be able to determine when it would be able to lower its prices to compete with TeleBermuda.

The Government telecommunications policy paper issued last year states regulation will be used as a tool to "ensure a level playing field between incumbent carriers and new entrants and to prevent the abuse of market power by those possessing it.'' "It will likely take a period of years for competition to replace regulation as a reliable mechanism to prevent abuse of market power and protect the public from possible over-charging,'' the paper states.

Cable & Wireless is also concerned about a recent policy clarification issued by Mr. Barritt which states international carriers will not be allowed to enter the local market in the provision of Internet services.

The company had made plans to go after the international business market by providing high speed Internet service.

In an interview Mr. Barritt said it was Government's policy to keep in place the distinction between the international players and the local marketplace.

Government has allowed Cable & Wireless to provide certain services like telex and leased lines directly to the local market. However Mr. Barritt would like to keep Internet service off that list of direct services for now.

He said Internet Bermuda Ltd. and North Rock Communciations Ltd. had made their applications to provide Internet service on the basis that they would not have to compete against big players like Cable & Wireless and TeleBermuda.

He said submissions by the business community would be considered during any review of existing policy.

John Tibbles