an "illegal'' telecommunications licence which is threatening to delay Hamilton's CCTV project.

Telecommunications Minister Sen. Bob Richards confirmed he had received a top-level appeal by the Bermuda Telephone Company and was hoping to settle the firm's row with Quantum Communications.

Quantum -- due to link 30 hi-tech surveillance cameras with the Police control room at Prospect -- have been accused by BTC of not operating under the correct licence.

The cameras are due to be in place by October and the Corporation of Hamilton has insisted the controversy will not stall the $1.25 million project. The Telecommunications Commission ordered BTC to connect Quantum to their telecom network by July 15. But BTC do not want to link up Quantum, because they say the new firm has the incorrect licence according to the Telecommunications Act.

BTC said yesterday that Quantum could still go ahead with the CCTV project without linking up to their network.

But uncertainty surrounding Quantum's licence may still leave the CCTV scheme grounded, because the legal basis of Government's contract with Quantum would be questioned if the licence was found to be wrong.

BTC filed their appeal against the Telecommunications directive on Tuesday -- and have given Sen. Richards until the end of today to respond.

Otherwise, BTC and the Minister could even end up in Supreme Court tomorrow.

GOVERNMENT GVT