Telecommunications giant Cable and Wireless looks set to drop its $100 million dollar lawsuit against the Government later this week after.

The company took legal action against the Government after price protection legislation for the company's rival, TeleBermuda International, was introduced.

But it now looks as though an agreement between the two warring parties has been reached.

Cable and Wireless chiefs claimed the protection -- which made it illegal for Cable and Wireless to slash prices in a bid to sink the opposition -- was unfair and created an unlevel playing field.

But now it would appear that, after extensive negotiations between Cable and Wireless bosses and the Telecommunications Commission, some sort of agreement has been reached.

Although details of the agreement have not been finalised, a source involved in the negotiations last night revealed to The Royal Gazette that a new settlement had all but been reached and the company would be pulling out of the legal battle.

An official announcement from both parties in the dispute is expected later in the week once the agreement has been officially signed.

Cable and Wireless, which has been operating on the Island for the last 107 years, was seeking compensation from the Government after losing 25 percent of its market share to TeleBermuda International.

The company was also forced to make 26 voluntary redundancies as its stranglehold on the market weakened.

Just two weeks ago it looked as though the row could drag on for several more years after The Royal Gazette revealed that TeleBermuda International was hoping Government would extend its price protection for at least two more years.

"We would like to have that guarantee for as long as we can,'' TBI vice president Jeff Conyers said.

Last night Telecommunications Minister Sen. E. T. (Bob) Richards was not available to comment on the latest development in the dispute.

GOVERNMENT GVT