The Island's oldest overseas telephone service provider plans to set up a five-storey office building in the heart of Hamilton.

Cable & Wireless has submitted a proposal to the Planning Department to demolish its current facility on Church Street and replace it with 20 percent more office and retail space.

The plans also call for more customer parking spaces which will be located underground.

In an in principle application, submitted by architects Barker and Linberg, Cable & Wireless proposed that the new building -- with a retail, lobby area on ground floor, underground parking and basement area -- would have 1,458 square feet more site area than at the current building.

Current customer parking for five cars and 15 bikes would be increased to space for 14 cars and 30 bikes.

And a decorative gate for parking access will be set up adjacent to the Washington Mall parking ramp "to minimise sidewalk interruptions''.

"Our design endeavours to mesh the natural lighting requirements of the modern offices with the charm and character of Bermuda's architecture,'' the architects wrote.

"The landscaped atrium at the back will bring natural light to the rear part of the building. The open floor layout will ensure the long term viability of the project.'' Cable & Wireless spokesman John Instone said he was not prepared to discuss the plans with both the general manager and the manager of marketing off the Island.

But The Royal Gazette understands that the current building is unsatisfactory for the company's usage.

And the ideas may have been submitted as an alternative to initial plans to consolidate Cable & Wireless offices at the Devonshire facility.

The company has recently warned that a shrinking market share, caused by deregulation of overseas telephone services, may force it to cut jobs.

It accused Government of tying its hands and not allowing it to cut rates and compete with newcomer TeleBermuda.