the Bermuda Broadcasting Company's fee schedule.

And more than one ad executive said the agencies may decide to take action as a group.

That could mean pulling ads from BBC operations, according Ms Emma Mitchell, partner at Harris & Mitchell Associates.

BBC operates ZBM TV channel 9, ZFB TV channel 7, and radio stations 1340 ZBM 2, 1230 ZFB AM, ZBM FM89, and ZFB FM95.

"These rates are unacceptable. Any kind of increase is a natural course of action but this is totally out of line with the rest of the media,'' said Ms Mitchell.

BBC's rates vary depending on frequency, length, and on during which show the ad airs.

Advertising agencies contacted by The Royal Gazette pegged the increases from 27 percent to 71 percent when comparing old and new rates.

One ad agency claimed the BBC's radio and television rates were increased 50 percent and 80 percent respectively.

"I wish they were,'' said BBC marketing manager Mr. Wynn, cautioning The Royal Gazette on how it proceeded on this subject.

BBC is not required to tell the Press why the company has changed the rates, said Mr. Wynn, who would not discuss the changes.

"All (advertising agencies) have written BBC independently and we've compared notes,'' added Ms Mitchell.

Mr. John Elsegood, assistant managing director at Aardvark Communications Ltd.

said: "I have a feeling the advertising agencies will gather to respond.

"We have to get the best buy for our clients whether it means switching stations or buying more print media. There are other options, other media.'' The changes at BBC mean clients will get less exposure for the same money but the ad agencies will not likely be affected this year as companies have already set their advertising budgets for 1995, according to Mr. Elsegood. The hikes, effective mid-February, also mean every agency will have to re-work every clients advertising package as clients have already budgeted how much they will spend in 1995 on advertising, said Ms Mitchell.

"Clients considering television are going to have second thoughts,'' said Rhona Emmerson, president of Creative Dimensions.

"We knew newspaper prices would go up and we budgeted two to five percent for that, we also budgeted about four percent for television and radio price increases,'' she continued.

"The (radio and television) rates have gone back to a frequency discount format. There is discussion of responding as a group,'' she said.

According to Mr. Wynn, the changes announced to advertising agents have not prompted a big response from the company's customers, only from the agencies.

"We have only distributed information regarding rate increases to the agencies,'' hesaid "We have had a few letters.''