raises concerns that consumers are at the mercy of TeleBermuda International and Cable & Wireless.

However Cable & Wireless spokesman John Instone yesterday denied that pricey long distance service was due to lack of competition. "We're doing all we can to reduce costs and we think our rates are competitive for Bermuda,'' he said.

And TBI general manager James Fitzgerald said the company was "continually looking at ways to drive down costs for customers''.

TBI is developing a second fibre optic cable from South America to Florida to meet its existing cable in New Jersey.

"When we put that service in, rates will fall a further 40 percent, or a percentage of that figure,'' he said.

Telecommunications Minister Renee Webb has asked the Telecommunications Commission to look into whether long distance rates were "just and reasonable'', according to Ministry spokesman Don Donovan, who noted in the last year and a half rates have been reduced by 35-50 percent. The Commission's report is due this week.