area code could shut the Island off from many long distance calls.

Spokesman Mr. John Instone said Cable & Wireless did not anticipate "any problems whatsoever'' with regard to incoming calls.

He was responding to an article in The Royal Gazette which noted the difficulties encountered in the US when new area codes were introduced.

Many large companies in the US did not have switchboards to accommodate the new codes.

Therefore, some US companies had to scrap their entire switchboard (PABX) system and buy a new one, costing some $100,000.

Some who did not lost several incoming calls.

But yesterday, Mr. Instone said the introduction of Bermuda's new area code -- in October -- was deliberately timed to take place some months after the introduction of similar new codes in the US.

"This was to allow sufficient time for automated switchboards in the US to be updated and all problems addressed well before the planned change to Bermuda's number,'' he said.

From October 1, callers will be able to reach Bermuda by dialling either the new 441 area code or the old 809 number.

However, Mr. Instone noted, callers will not be obligated to use the 441 area code to call Bermuda until September 30, 1996.

"By this time there will be more than ten new area codes in use in heavily populated areas within the United States,'' he said. "We are quite confident that this situation will have created sufficient pressure to ensure that all PABXs have been updated well before that date.'' Mr. John Jainschigg, editor of the New York-based trade publication Teleconnect also told The Royal Gazette that the only people who were expected to be affected with especially high upgrade costs were large companies that use very expensive systems.

"Corporate USA is not screaming bloody murder yet,'' he said. "But upgrades must be made at costs of hundreds of dollars per company.'' While Mr. Jainschigg could not say how many companies must upgrade, he said: "People are upgrading everyday, they owe it to themselves and their customers.'' Mr. John Instone.