water, it emerged yesterday.

The Telecommunications Commission still had not ruled on whether it will permit C&W to offer the lower rates and this has executives squirming.

C&W spokeman John Instone said: "We have yet to hear from the Commission as to whether we can proceed with the Thanksgiving Special.

"The deadline looms for advertising the plan and for notifying the Bermuda Telephone Company who act as our billing agent.

"It may be that even if we are granted permission there will be insufficient implementation time.'' C&W has proposed the Thanksgiving discount over November 27-30 during which time customers will be charged 75 cents per minute regardless of the time of day.

C&W has already had to deal with criticism from its main rival TeleBermuda International who earlier this week suggested incorrectly that the Thanksgiving discount pledge was not viable.

But Mr. Instone said C&W had checked and received assurances from the Telephone Company that its billing software could be adjusted to accommodate the three-day discount period.

Mr. Instone also said that while TBI pointed an accusing finger at the Thanksgiving special because of its short duration, nothing was said about C&W's proposal to permanently extend its discount calling periods to North America, the United Kingdom and the Caribbean.

Telecommunications Director Ted Pitman could not be reached for comment yesterday.

In Monday's Royal Gazette , TBI executive Ken Spurling claimed C&W's Thanksgiving discount scheme was little more than a "red herring'' because BTC, the billing agent, did not have the ability to switch to a lower rate for a day or two.

But BTC spokeswoman Mrs. Lacey Minors said: "That statement is simply incorrect. That is something that Cable and Wireless would have had to know before they could even put in for the rate reduction.'' The ongoing battle over phone rates took on a fresh twist yesterday when a well-placed source said the present bickering over phone rates, is just one example of C&W trying to "ambush'' the Telecommunications Commission into seeing matters its way.

Instead, the source said it has always been Government's intention to ensure that TBI is properly prepared before the two companies can do battle.

He said: "There has been no defined period. When are they going to be defined as on their feet? "They have got a fibreoptic cable now which they say is superior to ours.

They have a satellite dish. We have a fibreoptic cable and a satellite dish.

"They are running a full service international service and so are we. So when are they going to be defined as ready?'' Mr. Instone said it was unfair that C&W was not able to offer its loyal customers the best deal possible.

"We want to do things for our customers but we are being prevented from doing so. For how long is that going to go on? Why should our people be disadvantaged?'' He also dismissed suggestions that C&W should come up with a "comprehensive rate package.'' "TBI want us to share that with them,'' he added. "Is that real? Business is business and business is competitive.'' Mr. Instone however did concede that the Telecommunications Commission had requested more comprehensive rate revisions from C&W and they are contemplating it.

Cable and Wireless also proposed a "Best Friend'' international discount calling plan for residential customers whereby customers will get nine percent off monthly overseas calls made to their single most called number.

And it has also proposed a two-tier volume discount plan for businesses based on their monthly spending on international voice services.