Nortel which will benefit local users of hand-held telephones.

From the beginning of February, 1993, Telco will offer an Island-wide digital mobile cellular telephone service.

It should lead to the elimination of noise, interruptions and other problems currently being experienced with hand-held telephones when they are used while travelling.

Mr. Ernest Pacheco, Telco's general manager, said: "This will strengthen our position as the Island's telephone service provider.

"Digital cellular service is going to give our customers improved service and allow the company to provide other value-added services based on digital technology in the future.

"We're proud to have taken the lead in providing service of this calibre to Bermuda's residents and visitors.'' Mr. Stan Robitaille, vice president of Motorola Nortel, said Telco would be among the first companies in the world to offer its customers an advanced digital cellular service.

The new technology will bring the quality of service to Telco's hand-held telephone users into line with that of its fixed car phone clients.

Mr. Eugene Saunders, Telco's assistant general manager of services, said: "The existing service, which was designed in 1985/86 and put into service in February, 1987, was designed for three-watt telephones, which are the standard models fitted to cars.

"More recently, there's been a trend towards hand-held telephones, which have a reduced power of 600 milliwatts.

"As a result of the reduced power, people were experiencing a few problems when they used these hand-held sets while they were travelling.

"A re-engineering was required with the establishment of additional cell sites.'' Motorola Nortel, which is based in Illinois, designs, sells, services and supports cellular telephone networks in the US, Canada, Mexico, Central and South America, Bermuda and the Caribbean.

NEW CELLULAR PHONE DEAL -- Pictured (left to right) are (seated) Mr. Stan Robitaille, president of Motorola Nortel Communications; Mr. Ernest Pacheco, general manager of Bermuda Telephone Company, and (standing) Mr. Collington Perinchief, Telco's assistant general manager of operations; Mr. David Mello, Telco's senior manager of switching services; Mr. Eugene Saunders, Telco's assistant general manager of services; and Mr. Al Swazey, Motorola Nortel Communications' sales director for the Caribbean and Bermuda.