announced yesterday.

The phones, which Telco will begin installing in Hamilton and the central parishes tomorrow, will offer callers more payment options.

In addition to coins and AT&T calling cards, the telephones will accept pre-paid "cash cards,'' which will be sold in $10, $20, and $50 values.

Starting early in 1994, the phones will also accept credit cards. By the end of next year, all 550 old pay phones in Bermuda would be replaced, Telco senior manager of marketing Mr. Gerald Mello told The Royal Gazette .

"We're looking forward to the introduction of this product,'' Mr. Mello said.

"It's going to give our residents and visitors the ability to dial direct and have a choice of payment.'' Purchasing and installing the new phones would cost "well over $1 million,'' he said. The old ones would be discarded.

They feature visual instructions in a 32-character display window, as well as voice-recorded instruction messages in English, Spanish, French, and German.

The cash cards, illustrated with Bermudian scenes, are available at Telco offices and at Cable and Wireless. Once the card is inserted, the telephone will deduct the cost of the local or long distance call from its remaining value.

The phones are supplied by Elcotel Inc. Communications Systems of Sarasota, Florida.