Cable & Wireless to offer cut-price rates starting in January for a three-month period.

The hourly rate for video conference services to the United States will be reduced from $420 to $180, and the studio rental fee of $150 per hour is to be waived.

Also, the American telecommunications company, US Sprint, with whom Cable & Wireless jointly offers video conferencing, will reduce their rates from the US to Bermuda from $450 per hour to $180 per hour for the same three-month period.

Excluding the studio rental fee in the US, a one-hour video conference will cost a total of $360 -- 58 percent less than current rates.

Cable & Wireless manager of marketing and corporate affairs Mr. Cornell Fox said: "We have been offering a full video conference facility to the US from our studio at the Devonshire Teleport since June 1991 but, to date, the response from local businesses has been very disappointing.

"We have decided to make these quite considerable cuts in the price structure in an effort to stimulate the interest of the business community.

"We are convinced a market exists for this most convenient of services whereby business people can conduct face-to-face meetings with their overseas counterparts in real time without the need to leave the Island.

A notice giving the public an opportunity to object to the price changes has been published in accordance with the Telecommunications Act.

Cable & Wireless are promoting video conferencing as an alternative to the expense, inconvenience and stress associated with international business travel, said Mr. John Instone, the company's public relations officer.

"Video conferencing undoubtedly accomplishes this in many parts of the world.

"We think that many Bermuda-based businessmen may actually look forward to their overseas trips, particularly those which involve travel to destinations such as the US East coast,'' he said.

Some companies have invested in equipment which enables them to hold video conferences from their offices, said Mr. Instone. This may be one reason why businesses are not using the Cable & Wireless facilities, he said.