Full commercial service for residential and business customers has been launched by Bermuda's new long-distance phone company.

TeleBermuda International Ltd. director Kenneth Spurling made the announcement yesterday during luncheon speech to Hamilton Lions.

He said half of TBI's new residential and commercial customers had been switched over to the network.

"As of today, I am happy to announce that Bermuda has officially given birth to its first, fully operational, fully licensed, competitive long-distance company in the Island's history.

"As of today, TeleBermuda's new customers are on-line, in service and merrily making calls all over the world...saving themselves a lot of money on their long distance bills.'' He refused to say how many customers had signed on with his firm but noted: "We are extremely pleased and encouraged with the response to date.'' The remaining customers are set to be switched over within the next week in anticipation of a second rush of customers joining TeleBermuda now it is operational.

"Competition in long-distance services will be good for Bermudian consumers, good for Bermudian business, and critical to the future economic growth and prosperity of Bermuda,'' he continued.

"As you all know, the mere threat of TeleBermuda entering the market caused overseas calling rates to fall significantly in the past year.

"As of today, you can officially add another 15 percent savings on top of the other guy's rate cuts. That's a lot of cost cutting in one year.'' These savings on all overseas calls from Bermuda take effect when the customer is switched to the new network. TBI contacts customers as this happens.

The 15 percent reduced rates were "just the beginning'', with TBI committed to further reductions over time, said Mr. Spurling.

Cost declines would occur as the company grew and implemented new pricing packages designed to fit specific needs and calling patterns of individual customers.

The lower overseas calling rates mean savings for consumers and businesses, said Mr. Spurling.

This would see more money in the economy which could lead to more jobs and businesses being able to compete better internationally.

Long-term benefits, he continued, would be the enhancement of Bermuda as a centre for international business.

It also had the potential to make it a worldwide, high-technology hub for international data transmission and storage.

TeleBermuda was not just about cheaper international telephone calls, he stressed.

"We are talking about a 21st Century infrastructure today, that will link Bermuda to the world with the latest fax, data, video and internet communications.'' Early in the summer, he continued, a cable ship would begin laying the company's fibre-optic cable to New Jersey.

By early autumn, Bermuda would be linked to the rest of the world "with absolutely the most modern, state-of-the-art telecommunications technologies''.

When "the switch was thrown'' on the new system, Bermuda would have a fibre-optic system with 16 times the capacity of the largest existing link.

Third long-distance company eyes Bermuda: Page 13