A war of words broke out yesterday between the two long distance communications carriers over an advertisement claiming discounts of up to 37 percent.

And while TeleBermuda Ltd. are able to offer the discounts, they apply only to certain countries and not the ones which most Bermudians call.

The advertisement on page 11 in yesterday's Royal Gazette tells potential customers they could switch from their current long distance provider and get "every day, every week, every month'' up to 37 percent savings.

This news comes just over a month since Government backed down in the face of a $100 million lawsuit by Cable and Wireless and agreed to end rate protection for TeleBermuda.

TeleBermuda marketing manager Jim Ivey admitted the difference in the basic rate between Cable and Wireless and TeleBermuda was about 15 percent to 16 percent.

"There are however, some countries that the rates exist to which are as high as 37 percent,'' Mr. Ivey said. "Countries like Malaysia, the Canaries, the Balearic Islands and Monaco, to name but a few.'' He said his company was committed to providing the best rate possible to its customers in comparison to Cable and Wireless.

Mr. Ivey added: "We compared the rates on file and 37 percent is what we have for some countries.'' "And those rates are every day, and every week,'' he added. "Not just on Christmas Day.'' But Michael Jewett, Cable and Wireless' senior manager for customer relations and business development: "At the end of the day, phone traffic flow to countries outside the United States, Canada, and the United Kingdom is negligible. They account for more than 80 percent of the traffic.'' And he said Cable and Wireless often beat TeleBermuda rates during discount hours, adding: "Yes, their rates are about 15 percent below ours, but they are sometimes not under our discount rates.'' Mr. Jewett said: "There is nowhere else that we are 37 percent over their rates.''