continues to bring cost and convenience benefits to residents.

Yesterday two companies -- TeleBermuda International and Cellular One -- upped the ante in their respective markets with announcements that are sure to bring a ready response from their competitors.

Cellular One's latest bid to expand its clientele -- prepaid calling cards for mobile phones -- targets Bermuda's younger residents.

Meanwhile the cost of calling long distance continues to plummet as provider TeleBermuda International announced that it has dropped evening and weekend calling rates and eliminated monthly charges for its long distance calling plan.

Cellular One yesterday became the first mobile phone service provider to launch a prepaid service in Bermuda. According to the company's marketing manager John Narraway that means using mobile phones is more convenient than ever.

The company will programme phones at no cost so they can accept the service.

Customers get to buy prepaid cards for $20, $50 and $100. The rate works out at 50 cents a minute.

"We want to make it as easy as possible for customers to have a cellular phone and do business with us,'' said Mr. Narraway. "This means there are no credit checks, no contracts and no deposits.'' It also means eating into BTC Mobility's market share -- any phone can be programmed for the cards.

Mr. Narraway told The Royal Gazette that the service will definitely increase Cellular One's clientele. He expects that young people - who are not legally allowed to apply for credit will be among the strongest supporters of the service.

"It makes it a lot easier for them,'' he said. Parents will be spared the headache of huge mobile phone bills when teens talk on the go, he added.

"Overall we expect a moderate increase.'' Cellular One is also offering a package deal which offers a digital phone and $20 worth of air time for $79.

In the long distance market competitors Cable and Wireless and TeleBermuda are both fighting for customer loyalty by projecting an image of market leader.

Cable and Wireless, for instance, is taking credit for TeleBermuda's move which brings rates to as low as 23 cents a minute to the United States, United Kingdom, Canada and Ireland during evenings and weekends.

Spokesperson Charmaine Burgess said that Cable and Wireless had anticipated TBI's actions.

"Cable and Wireless has led the market with aggressive pricing plans for our customers,'' Ms. Burgess said.

"We anticipated that TeleBermuda will act accordingly.'' But TeleBermuda's announcement comes with a comparative chart (against Logic, Cable and Wireless and North Rock) which shows by their calculations that, at current rates, their rates bring lower monthly bills if eight numbers are called to a variety of countries for eight minutes.

The chart shows a savings of over $55 with TBI. "TeleBermuda continues with its leadership position...'' concludes TBI president James Fitzgerald.

Asked whether Cable and Wireless will match the rate reductions, Ms. Burgess said that the situation was being evaluated.

The other carriers could not be contacted by press time.