a minute from today -- and they have pledged they will be around 30 cents a minute by next September.

Residents signing up to the new 20/20 service pay $20 a month and can ring Canada for 63 cents a minute, the UK for 84 cents a minute, and the Caribbean for 66 cents a minute.

Calls to elsewhere in the world will be at a 20 percent discount.

But Cable and Wireless spokesman John Instone admitted: "Because of the $20 monthly fee, 20/20 is likely to be more attractive to the high-end user than the person who makes only one or two international calls a month.'' Eddie Saints, Cable and Wireless's general manager in Bermuda, said the call cost cut was part of a general trend He said: "Competition is working, we're deriving benefit from this and we will continue to reduce prices.'' He said business international call rates had dropped by 33 percent since the company received a new licence in November while residential rates had fallen by 45 percent with more price drops to follow.

"By this time next year call rates to the US will be down from 52 cents to the high twenties or low thirties.'' Mr. Saints told Hamilton Rotarians yesterday that his firm has been forced to work harder and smarter after facing declining profits caused by increased competition and price reductions.

Buildings had been sold and staff numbers had fallen from 124 to 90 in the last year as the company sought to rationalise and improve productivity.

He said: "We needed an improvement in skills and the temptation is to bring in rather than train, but our track record on training speaks for itself.

"We have Bermudian management and staff.

C&W cut call rates to US "We have made a commitment to corporate sponsorship and quite a few Bermudians are shareholders.

"We have had a 15 percent increase in productivity in the first six months of the year. Over 40 percent of our staff are involved in planning exercises.'' Mr. Saints said the company had worked with the Bermuda Public Services Association to set up a performance-related pay scheme.

He praised Telecommunications Minister Renee Webb for being committed to necessary reform across the industry.

And he called on her to pick the brains of established communications firms such as Global Crossing and Southern Cross by putting them on the Telecom Commission.

Mr. Saints denied his firm was seeking to eliminate its main competitor TeleBermuda from the international market by using funds from overseas.

He said: "There's no intention to eradicate competition. There is no leverage, we operate in our own right in Bermuda.'' But Mr. Saints added that a quickly changing market needed massive investment to keep ahead of the game.

He said: "We installed a new cable system nine years ago. It hasn't reached its half life yet but we are now looking at a new cable system.''