to a top telecommunications official.

Last night Bermuda Telephone Company finance and administration vice president Gary Edwards warned that the company could be wound up unless certain operation restrictions are lifted.

Mr. Edwards said the company predicts making a loss of about $2 million dollars by March, 2000.

And if there is no chance of turning a loss-making situation into profit, shareholders would have no alternative but to shut the company down, he said.

Mr. Edwards made his comments following a recent ruling by the Telecommunications Commission that only modest increases to the local monthly line rental would be allowed.

The company had asked for a massive hike in local call rates to compensate for increased costs in running the overseas network, which had previously subsidised the local network.

The Commission also ordered BTC to maintain staffing levels and capital expenditure plans. That ruling is now to be appealed in the Supreme Court.

Mr. Edwards insisted that he was not using scare tactics by highlighting possible job cuts but insisted that others were being too emotional.

"Under the current scenario we will lose $2 million by March next year so what's the point in staying in business,'' Mr. Edwards said. "If you cannot see a chance of making a profit then alternative solutions have to be found -- everyone's job is at risk from the CEO down.

"We are challenging the jurisdiction of the Telecommunications Commission which is instructing us how to run our business.

"We are not complaining about competition but we are being forced to sell a service below cost.

"I think the whole thing has become emotional -- people don't want to look at the economic reality. There's the question of whether the market in Bermuda is big enough to absorb all these new players and the answer is probably no -- we're just a big village.

"But economics will dictate how the company survives and will also dictate how other companies survive.''