Local media company Hardell Cable has hit back at claims from Bermuda Hospitals Board (BHB) that it did not have a contract to supply a television service to King Edward VII Memorial Hospital.

Patients have been without television services at the hospital since last year, when a deal with Defontes Television ended.

BHB put out adverts last week seeking bids to provide the service after talks with Hardell fell through earlier this year.

Hardell issued a writ against BHB in July for alleged breach of contract and a court date is to be set for a hearing.

At the time BHB chief executive officer Stephanie Reid said Hardell did not have a contract.

But Hardell spokesman Corey Butterfield has shown The Royal Gazette correspondence between the company and BHB which he says is proof of a contract.

"They (BHB) gave us an offer in a letter of intent last year with certain terms. We agreed the terms and wrote to them and accepted their terms," said Mr. Butterfield.

"Having accepted their offer, we think we have a contract. BHB went further and confirmed their acceptance of our offer - that's why we believe we have an offer."

A letter from BHB to Hardell on May 31, 2001 sets out four conditions for the board to accept the Hardell offer of a television service of at least 20 channels.

"Upon receipt of your written acceptance of the contents of this letter, we will discuss drawing up the written contract," wrote then board chair Ianthia Simmons Wade.

Hardell responded on July 27: "We accept your confirmation of our offer to install a television system at the King Edward VII Memorial within three months on the terms set out in our letter of intent dated 31 May, 2001."

Mr. Butterfield also accused BHB of stealing Hardell's "intellectual property" by stating in the adverts for tender that the provider must give at least 20 channels - which Hardell had proposed.

He questioned why BHB, which in 1999 was given a Parliamentary exemption from the Telecommunications Act so that it not require to have a licensed provider for its television services, is now stating in its advert that the company must be a "licensed telecommunications company".

"If they don't need a licence, why are they now asking for a licensed company? The only reason is they are restricting who can bid," said Mr. Butterfield.

Telecommunications and E-Commerce Minister Renee Webb said on Wednesday, however, that there were a large number of companies, including telephone companies and Internet service providers, who are classified as "licensed telecommunications companies".

BHB chief executive Mrs. Reid has not responded this week to calls from The Royal Gazette about the contract for the new television service.