rates were stymied by an opposing phone company's last minute move.

TeleBermuda International Ltd. mounted the offensive against its competitor with a late objection to the Telecommunications Commission over its plans.

C&W said on May 8 that it intended to introduce extended economy and discount periods for calls to the US, UK and Canada and a six percent rebate for its customers from June to August.

These plans were advertised in the Official Gazette twice and then delivered to the Telecommunication Commission last Friday after a 21 day waiting period.

TeleBermuda's objection "was lodged at the eleventh hour on Friday'', said C&W spokesman John Instone.

"The new calling periods on Sunday, June 1, have had to be postponed.'' C&W was stunned by TeleBermuda's objection, said Mr. Instone.

"We're a little surprised that this objection should have been lodged by our competitor given his recent public statements to the effect that competition would bring lower rates for all Bermudians.'' On May 21, TBI director Kenneth Spurling told Hamilton Lions that "the introduction of competitive telecommunications will have a profound impact on every Bermudian resident, every Bermudian business and virtually every sector of the economy''.

It would even be good for "our competitors'', he added.

"Truth is, they have nothing to fear from competition. First, there is ample room in the Bermuda market for two competitors. And second, everybody wins from competition.'' Mr. Instone noted the objection from TBI was not a one-off: "Objections came from the same quarter last November when C&W moved to reduce international rates to over 80 countries.' The Commission overruled this objection but denied Bermudians the reduced rates in time for Christmas.

The latest objection asks the Commission to determine if C&W's plans are "predatory pricing'' from which TBI is protected.

Mr. Spurling said last week that he felt this was a case of predatory pricing as C&W made the announcement before his company was up and running.

He argued that it was only proper for TeleBermuda -- in the interest of sustaining competition -- to be involved in the process and make "the proper representations'' to the commission.

Mr. Instone said C&W rejected the suggestion their plans constituted predatory pricing.

"Our proposal simply involved extending our discount and economy calling periods to make it more convenient for C&W customers to take advantage of our existing lower rates for off-peak calling.'' C&W cannot implement the advertised calling periods until the Telecommunications Commission reaches a decision.

Commission secretary Ted Pitman said the Commission was set to meet and discuss the matter at the end of this week.