schedule despite new threats against its operation, the company said yesterday.

Scott Socol, TeleBermuda's chief operating officer, also claimed the legal battles were pushing customers his way as people became disenchanted with Cable & Wireless.

"We are watching what is happening with interest, but we are proceeding as normal,'' said Mr. Socol.

Last week, Cable & Wireless lawyers Hallett, Whitney and Patton wrote to the Bermuda Telephone Company saying it would be in breach of contract if it connected TBI's international calls.

They also said there were a series of issues, such as billing arrangements, to be sorted out and if TBI began operating before they were settled, Cable & Wireless could suffer losses -- for which TBI would be held responsible.

Mr. Socol added: "We still have things to do but we are processing new orders and demand.

"It seems the more Cable & Wireless complain, the more they push their customers our way. We are proceeding ahead as we said we would all along.

"This is nothing but a threat as far as we can tell and we are proceeding full steam ahead with our plans.'' Mr. Socol declined to say how many people had contacted the company to be linked up and he also declined to say exactly how TBI could be affected if Telco did not supply a link.

All international calls have to be routed through Telco to either TBI or Cable & Wireless, which says its contract forbids a link between TBI and Telco.

It is understood that the situation regarding issues such as billing arrangements will have to go before the Telecommunications Commission for settlement.

Cable & Wireless has also issued writs against Government and TBI questioning the validity of its operating licence.

The British-based company claims that under the terms of the Cable & Wireless Public Limited Company Act, it is entitled to three years notice of competition being introduced in Bermuda It is understood, however, that Government believes the Act only stipulates the amount of notice required if Cable & Wireless is to be asked to cease operating.

Last night Technology Minister John Barritt admitted he was disappointed by the legal disputes, but said it was almost to be expected.

"These are hurdles which we will have to get over,'' said the Minister. "I am disappointed that it has gone this way, but no-one thought it would be easy.'' BUSINESS BUC