monopoly -- despite a looming legal dispute.

Yesterday it was revealed that Cable and Wireless is threatening to sue Government over plans to open up the international calls business to competition.

However TeleBermuda is recruiting new staff for its Island base and pressing ahead with a new telephone cable from Bermuda to the US as well as a new satellite link.

It is also expected that an announcement will soon be made on the services on offer in Bermuda as the company sees no further obstacles in its bid to open up the telephone market.

"We are confidant that our project will go ahead. We first approached Bermuda in November 1993 and remain as determined and committed now as we were then,'' said TeleBermuda president Mike Kedar.

Cable and Wireless, which currently operates a monopoly on international calls, wants three years' notice to prepare for competitors -- which its lawyers say is a legal right -- or damages which could total millions of dollars.

A spokesman for Cable and Wireless declined to comment on the legal move and Technology Minister John Barritt also said he could not comment on specifics in the letter or the legal threat.

The British-based company sent a letter to Government last Friday -- although the original announcement on deregulating the telephone industry was made last year.

Cable and 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.

TeleBermuda has won permission from the US State Department to lay a cable from North America to Bermuda and is advertising for about seven jobs for its Island operation.

Last night Mr. Kedar added: "The Minister, Mr. Barritt, has said this does not change anything about the introduction of competition.

"I am used to this kind of thing. I introduced competition in the telephone business in Canada.

"I am used to obstacles, but we are very confidant. We have complied with all the conditions for our licence, the cable will be installed and the satellite link is being installed.

"Soon there will be announcement about services and we remain confidant and committed to this project.''