A long distance operator which had previously enjoyed a monopoly in Bermuda will fight a Government decision to introduce a competitor, it was announced yesterday.

Cable & Wireless general manager John Tibbles said the company had lodged a Supreme Court appeal against Technology Minister John Barritt's decision to grant a public telecommunications service licence to TeleBermuda International Ltd. (TBIL).

"Obviously we have not taken this step lightly, but we have little option in order to best protect the interests of the company and its 120 dedicated Bermudian employees,'' Mr. Tibbles said.

Mr. Barritt said the move by the firm "was not entirely unexpected'' as Cable & Wireless had expressed reservations for some time about the introduction of competition.

Mr. Tibbles said the company was concerned that Government had not paid "due regard'' to the rights it granted under its own legislation.

The firm operates under an Act of Parliament -- the Cable and Wireless Public Limited Company (Consolidated Licence) Act, 1985 -- which grants it certain rights.

"Under the Act we have the right to appeal a decision by the Minister.'' said Mr. Tibbles. "We understand Government's policy to introduce competition to Bermuda but we think the grant of a licence to TBIL is premature and our concerns over the terms of competition are well known.'' Mr. Tibbles said Government's move was in no way equitable.

"As we see it, Government is seeking to restrict many vital aspects of our operation as a business in order to foster competition,'' he said.

"There has been recent comment about monopolies and pricing, however, if we cut our rates we cannot increase them again at a later date.'' Mr. Tibbles added: "This is perfectly adequate protection for the public consumer. In any event, Cable & Wireless has not increased prices in living memory.'' Compliance to the licence, continued Mr. Tibbles, came at very significant cost to the firm which was protected from the risk of these heavy investments under the exclusive licence.

"Maintaining these levels and services in a competitive environment is not economically viable and that is why there was a substantial provision incorporated in our license with regard to the notice required prior to the termination of our exclusivity.'' Mr. Barritt said Government was grateful for what Cable & Wireless had done but added that they were able to operate in Bermuda under "unique terms'' without the financial restrictions normally placed on a foreign company.

He noted that Government had also made it clear to the firm that if "they wish to renegotiate the terms of their licence, we would be more than happy to accommodate them''.

Mr. Barritt also pointed out that there was no provision under the Act for Government to give Cable & Wireless three years notice before introducing competition.

But it did state that Government had to give the firm three years notice if it intended to terminate its licence and force it to strip itself of its local holdings -- "quite a draconian step to take'', said Mr. Barritt.