Telecoms giant Cable & Wireless has fired back at allegations from Logic Communications that it was pressuring Government over the company's cheap long-distance service.

The comeback is the latest in salvo of crossfire after Logic launched its LogicPhone service on July 23, following 18 months of planning and meetings with Government officials. The service, suspended on August 2, allowed customers to make cheap telephone calls using efficient Internet technology.

Logic kicked up after the company allegedly wrote a letter to the Minister of Telecommunications complaining about the service.

But C&W Marketing Communications Manager John Instone denied the allegations.

"It's insulting to the Minister of Telecommunications and her Commission to suggest that she would bow to pressure from Cable & Wireless or anyone else, although it's fairly obvious that Mr. Durhager and Logic are trying to do just that,'' said Mr. Instone.

"The Minister is quite capable of making her own decisions on this issue and we fully support her efforts to maintain a `level playing field'.

"Contrary to Mr. Durhager's statement, Cable & Wireless is not trying to influence the Minister by threatening to leave Bermuda. We've been here for over 109 years and we're looking forward to the next 109,'' he said.

Mr. Instone described Mr. Durhager's remarks as "deliberate misinformation designed to confuse the issue.'' "Mr. Durhager conveniently forgets that it is Cable & Wireless and TeleBermuda International who have the expense of operating the telecommunications infrastructure which Logic seeks to exploit for purposes other for which it is licensed.'' And Mr. Instone accused the Internet company of unfair play.

"It's ironic that while Logic is lobbying hard to break into the international phone business, they are lobbying just as hard to stop other players from entering the Internet business,'' he said.

"Obviously, as far as Logic is concerned, competition is only good if it's in their best interest.'' Minister Renee Webb said LogicPhone would open up the long-distance market to the Bermuda Telephone Company, Logic's sister company -- while long-distance carriers TBI and C&W would be barred from entering the local Internet market.

Logic president Peter Durhager told The Royal Gazette that Logic was prepared to fight what he described as "the lobbying power of Cable & Wireless'', which he says has pressured the Government to hold back technology and keep prices high.

But the Telecommunications Ministry maintains that Logic's license allows the company to provide data, but not voice services.