use credit cards in new pay phones for overseas calls.

"We have to come to agreement with various entities,'' said Mr. Ernest Pacheco, Telco general manager and secretary. "We are hoping to have that service in place before the end of the year.'' Telco has begun to replace its more than 600 aging public telephones with new Elcotel pay phones that will accept payment from credit cards and accept a new Telco cash or debit card that also can be used to make calls. The new phones are being phased in over two years. Seventeen are in place today.

Mr. Pacheco, said that instead of having money for a call from a public pay-phone, residents can carry cards of varying denominations starting from $10 that can be used for local or overseas calls. The computerised machine will be able to prompt the user on required charges and operation and how much credit may be left on the debit cards.

Mr. Pacheco said: "We're providing this facility to give those who want to call the US for example, but who have no other capability of doing this, an opportunity to do so. This would be useful for those arriving here on ships, or those who are staying at guest units that do not have overseas telephone capabilities.

"The card was designed for tourists, but we are sure that some locals will find it useful to keep in their wallet or purse, because you can also use it to make local calls from a pay phone.'' The cards will be available from Telco, Cable and Wireless and the Visitor's Service Bureau.

The new Elcotel public telephones, described by the company as "intelligent'', will include a central diagnostic unit which will automatically report faults. The company said that early detection will improve service.

The company is also hoping that vandalism, which costs the utility between $20,000 and $30,000 a year, will also be reduced through the introduction of the new Elcotel public payphones.

Coin-operated portable cellular pay phones are being used by the company for fairs, exhibitions and sporting events. The company's annual report notes: "No longer requiring wire installation, this technology is a very efficient way of providing quality service at major events.'' Meanwhile, after a year of discussions, the telephone company has paved the way for Bermudians to this week access the 1-800 numbers from the continental United States as of tomorrow.

But local subscribers still will not have toll-free accessibility and will have to pay the prevailing long distance charges.

They also would not dial 1-800 followed by the telephone number, but 1-400 instead.

Mr. Pacheco said that a caution was required: "Some suppliers of 1-800 numbers may not be permitted to transact business with callers from outside the US.

"Callers should save time and expense by satisfying themselves regarding this point as soon as contact is made. But callers must be aware that the prevailing long distance rates will apply.'' Mr. Ernest Pacheco.