telecommunications company Quantum, The Royal Gazette can reveal.

Operations at the company have wound down in recent weeks with only four employees still working -- three in network services and vice president of finance and administration William DeSilva.

A spokeswoman for majority shareholder BELCO Holdings confirmed four groups made submissions before last Monday's deadline to take over Quantum.

She said negotiations were now taking place between Quantum, Belco and Cable & Wireless -- the other main shareholder.

If the talks do not result in a concrete deal, the company is headed for collapse -- a major hiccup for Bermuda's experiment with competition in local telecommunications.

Early last month the announcement was made that Quantum -- originally set up to compete with BTC in the supply of local telephone service -- was being offered by its shareholders.

Only 50 customers, all corporate, had signed up with Quantum in the 18 months since the company was set up.

During that time legal wrangling with BTC over the wording of the relevant legislation dragged on interminably.

Most of the company's 16 employees, 12 of them Bermudians, were given notice last month that their employment was to be terminated.

Belco Holdings Ltd. and Cable & Wireless hold about 45 percent and 35 percent respectively of Quantum equity.