Supreme Court chambers today over the legality of a Telecommunications Commission ruling.

It is understood the civil legal action relates to a writ which BTC filed last week against the Commission's January 27 ruling and today's application is the first step in the telephone company's attempt to reject the decision.

But BTC chief executive officer Lorraine Lyle last night said the action could not be called an "appeal''.

Ms Lyle would not comment on what was at stake in the writ, claiming ignorance of the correct legal term.

It is understood the telephone company's legal representatives from the firm Diel & Meyers will argue that the Commission acted outside its legal powers so its decision should be thrown out.

On January 27 the Commission ruled that BTC could not jack up its local monthly line rental fees drastically, as the company had proposed.

Instead the company was allowed only relatively modest hikes -- $2 for homes and $10 for businesses -- to offset a Government directive last month which ordered they cut the fees international carriers were to be charged.

BTC management have claimed that move slashed their revenue -- costing them $33,000 every day and could result in $12 million being sliced off their next annual profit statement.

In the same ruling the Commission also ordered BTC to maintain current staffing levels unless it first proved that any cuts would not adversely affect service to customers.

Telecommunications Minister Renee Webb has said the company has 21 days from the date of the Commission's decision to file an appeal against any part of it.

She has declined to become embroiled in the dispute as she would have to rule on any appeal filed.

Lorraine Lyle: No comment Graphic file name: LORLYLE