international calls.

Cable & Wireless Bermuda Ltd. announced reductions by 10 cents a minute in international telephone calling rates. The cut means reductions of up to 13 percent for some rates. The cost of a telephone to the US will drop to a minimum of 65 cents a minute. Calls to Canada will go down as low as 85 cents a minute. Those calling the UK will pay as low as $1.15 a minute.

The new rates are a result of a Government mandate that local carriers Bermuda Telephone Co. Ltd. (BTC) and Quantum Communications Ltd. reduced their fees for interconnecting long distance carriers by 12 cents to 15 cents a minute from yesterday, and to 10 cents a minute by July 1.

"We are pleased to be able to pass on these cost savings to our customers which have come about as a result of the Minister of Telecommunication recent directive on interconnect charges,'' Cable & Wireless general manager Eddie Saints stated in a press release.

To make up for the lost revenue BTC earlier this week announced it was applying to increase domestic telephone charges by 75 percent on January 1, and by 100 percent by July 1.

Standard residential line rates will rise to $28 a month from the current $16 charge. The charge will jump to $34 a month by July 1. A standard business line will rise to $24 a month from $12 on January 1, and to $30 by July 1.