Upstart phone company TeleBermuda has objected to plans by Cable & Wireless to offer discount periods for calls to the US, UK and Canada, and rebates.

The news came yesterday from TeleBermuda International director Kenneth Spurling after Cable & Wireless spokesman John Instone said the organisation had delivered its proposal to the Telecommunications Commission as required.

On May 8, C&W announced plans to introduce extended economy and discount periods for calls to the US, UK and Canada, as well as a six-percent rebate for its loyal customers between June to August.

The announcement appeared twice in the Official Gazette and the plans are now subject to the Telecommunication Commission's approval.

Meanwhile TeleBermuda International Ltd. started up its operations on May 21 and shattered C&W's monopoly on long distance service.

Mr. Spurling said it was up to the Telecommunications Commission to determine whether or not C&W's discounts fell in the realm of predatory pricing, which would be contrary to Government policy.

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

It would only be proper for TeleBermuda -- in the interest of sustaining competition -- to be involved in the process, he continued.

So TeleBermuda would be making "the proper representations'' to the commission.

"We owe it to our customers to be involved in the process,'' added Mr.

Spurling.

But Mr. Instone replied: "Extended periods for reduced rates have been under study and negotiation for some time. The wholesale side of our business today provides us with increased pricing flexibility and our policy has always been to pass resulting savings on to our customers.'' C&W customers who stayed with the firm in the times of change should not be denied the improved rates or rebate, he added.

"We do not consider this to be predatory pricing and we are sure the Telecommunications Commission will continue to put the public interest uppermost when considering our proposals.'' In April, C&W launched a lawsuit against Government and TeleBermuda.

The suit questions the validity of TeleBermuda's telecommunications licence.

C&W claims it was not given three years notice of competition under the Cable & Wireless Public Limited Company Act.

Also in April, C&W lawyers wrote to the Bermuda Telephone Company Ltd.

charging the domestic carrier would be in breach of contract if it connected TeleBermuda's international calls.