their monthly bills.

For a decision by the Telecommunications Commission to grant the Bermuda Telephone Company just a two dollar increase in access charges looks set to be overturned -- allowing the company to impose its own increase.

The matter was set to go before to Supreme Court next week after BTC argued that the order meant the company would lose thousands of dollars a day. The company was also disputing a second order from the Commission that a cost-cutting exercise at the firm, including possible job cuts, would not be allowed.

But The Royal Gazette understands the appeal will now not be taking place -- after the Commission decided to withdraw the order.

Although no increase has been confirmed, it is understood the company plans to raise its monthly charge by an extra $10 by July.

Last December the company announced plans to more than double its monthly domestic line rental fee from $16 to $34. It also wanted to increase business rates from $22 to $37, arguing the increases were needed to compensate for enforced cuts in long distance charges.

But the Telecommunications Commission ruled that increases of just $2 and $10 respectively would be allowed.

Last night officials from BTC and the Telecommunications Commission refused to comment on the increase, although they did confirm that a settlement had been reached.

In a joint statement, spokesmen from both sides said: "Officials of the Bermuda Government's Telecommunications Commission and the Bermuda Telephone Company today concluded ongoing discussions on the settlement of outstanding legal differences and to re-think the matter of telephone rate rebalancing in the light of recent decreases in long distance reconnect charges.

"A formal announcement on the outcome of the talks will be made tomorrow.'' Telecommunications Minister Renee Webb also refused to comment.

It is not known what prompted the turn-around.

But BTC lawyers were expected to demand that the order be quashed because it was unreasonable and exceeded the Commission's jurisdiction.

BTC wins rates victory The Royal Gazette understands that, had the judicial review found in BTC's favour, the company would then be entitled to sue Government for losses.

The reversal is bound to cause embarrassment to members of the newly appointed Telecommunications Commission. Just last month Telecommunications Director Ted Pitman said the nine member commission was confident the decision was lawful and would be upheld in any appeal.