evaluating the consequences of being thrust into a competitive environment.

But officials will speak out shortly on the news that there is a new long distance company in town, said spokesman John Instone.

TeleBermuda International were granted a Public Telecommunications Service License on January 10 and will begin an information campaign aimed at prospective customers soon.

The move by Government brought long-awaited competition to the long distance telephone market for the first time.

TeleBermuda International chairman Mike Kedar said: "Competitive phone services are good for Bermudians, good for business and good for the future of the Island's economy.'' The Royal Gazette reported last month that Cable & Wireless have threatened to sue Government over the move.

The organisation was incorporated under the Cable & Wireless Public Limited Company (Consolidated Licence) Act 1985.

This gave it the exclusive rights to provide the island's long-distance service, international telephone and associated voice services, and entitled it to three years' notice before other companies could offer competing long distance services.

It is understood that Cable & Wireless may wish to hold Government to the three-year grace period and could sue for monetary damages -- which could run into millions of dollars.

Cable & Wireless is also believed to be furious over delays to plans to bring down the price of calls to a total of 80 overseas destinations. It had planned to introduce the lower rates by the start of November.

So far Cable & Wireless has declined to comment on the legal move and Technology Minister John Barritt also said he could not comment on the situation.