An article in the business section of Tuesday's paper incorrectly stated that Bermuda Electric Light Company was the major shareholder of Quantum Communications. Belco Holdings Limited, the parent company of Belco, holds majority shares in Quantum Communications.

The collapse of telecommunications company Quantum Communications will mean substantial losses for the Bermuda Electric Light Company (Belco).

Belco is a major shareholder of Quantum who were aiming to compete with BTC to provide local phone service.

Although an exact amount has not been revealed, Belco noted in a letter to its shareholders: "A considerable loss will be realised in 1999 results but that amount cannot be determined until discussions with interested parties are finalised.'' Quantum disconnected their few remaining customers from the system after notifying them that operations would cease on December 31 1999.

The action was necessary after negotiations with potential buyer, Bermudian Alan Simmons, completely fell through in the third quarter.

But Belco report that all hope is not lost as the letter reads: "We are currently in serious negotiations with another interested party''.

Belco have a 45 percent interest in Quantum while Cable & Wireless have the other 35 percent.