Government is set to seek a court injunction today to block CableVision's bid to blackout its service from tomorrow after the company got angry about only being given a one-year licence renewal.

Telecommunications Minster Renee Webb said any further renewal would depend on improvements in service but CableVision wanted 15 years and have rejected the deal.

It is set to pull the plug at midnight tomorrow when its current 15-year deal expires saying it cannot afford to keep investing millions on such a short-term contract.

However Ms Webb said she would not give into threats and would probably go to the courts today.

“We have to take steps in case they are foolish enough to try to close it down on Saturday.”

CableVision issued an ultimatum late yesterday to have “meaningful discussion and resolution” by the close of business today to resolve the situation but Ms Webb said there would be no talks.

Instead she said Government would go to the courts because the company could not just stop service as people paid their bills in advance.

She said of CableVision's threat: “It's like Belco threatening to turn off everybody's lights. People are really into their TV here. They don't have a lot of entertainment so they get very upset when they lose their TV. They can't just decide to shut down operations. They have 40 workers. It's a bit dramatic.”

Ms Webb said she would not be threatened by people who thought it was a right to do business in Bermuda.

“It's a privilege and not a right.”

She said: “I got a call at 11 o'clock from the chairman of the CableVision board saying he had flown down and was coming to see me. I had a busy schedule and said I couldn't see him. Then at four o'clock he calls me and threatens me that he would do whatever, whatever. I said I don't have anything to talk about. Then at 4.10 p.m. we get this letter.

“At no time did the Ministry state to CableVision we would not provide further renewal to the Company's licence. In fact just the opposite.”

She said the Ministry had been in talks with CableVision for a year about the new licence.

“We are trying to get them to improve their service. If CableVision is off for three days you should get a rebate. People should answer the phone. They are making efforts.”

However she said complaints continued to pour in about the company which serves about 16,000 of Bermuda's 22,000 homes. “I get calls to my home, my office, I get letters and e-mails. You name it, we get it.”

She said the company was behaving in a bullying fashion only possible with a monopoly and she said two companies had applications before the Telecommunications Commission to get cable licences.

The companies had majority local share holders with overseas backing, added Ms. Webb. She added: “I hope these foreigners act more reasonably.”

Last night CableVision chairman Rod Hansen said: “We deeply regret the position in which we find ourselves. And we are especially sorry for the consequences to our customers. We never thought the situation would reach this point.

“Over the past 18 months, we have been diligently at work to make improvements across the board at CableVision.

“This includes hiring more employees, making improvements to customer service and of course our ongoing commitment to the Ministry and to the Bermuda public to build a state-of-the art cable system.

“We realise we still have more work to do, and it is precisely for this reason that we are investing close to $8 million to build a world-class cable system and another quarter of a million dollars on a training programme for our employees. The new cable system is now 60 per cent complete and many customers have been expressing satisfaction with the improved service. Given the depth of our commitment and the magnitude of these investments, we were confident of receiving a longer-term commitment on the part of the Ministry.

“We were also quite surprised that the news of such a short renewal period reached us at the 11th hour, with no apparent room for discussion.

“We made a formal request in April for the renewal of our licence, and have heard nothing since then to indicate that the renewal period was in question.

“I am sure the Bermuda public can understand that neither CableVision's board, nor its shareholders nor its employees can accept the offer that has been extended to us. It is completely unrealistic to expect a capital-intensive company such as ours to continue to inject millions of dollars into a company that only has only a one-year life. Indeed, when advised of the Minister's decision, CableVision sought in vain to meet with the Minister and her technical officers.

“As a result of telephone conversations last evening and this morning, CableVision was scheduled to meet with the technical officers at 2 p.m. this afternoon.

“However, that meeting was cancelled by the Minister later this morning.In a subsequent telephone conversation between the Minister and the Chairman of the Board of CableVision, Mr. Rod Hansen, the Minister indicated that there was no useful purpose to be served in her or her technical officers meeting with CableVision representatives and, as a consequence, CableVision is unable to embark upon any meaningful discussion with a view to resolving the licence issue.

Mr. Hansen continued: “It is very unfortunate that Minister Webb should target me as an American, suggesting I was making a threat. I have come to Bermuda at the request of the Board of Directors of CableVision, which is vastly majority-owned by Bermudians.

“I have also come because Minister Webb's director told me a meeting could be arranged.

“I have even advised that we are fully prepared to put conditions on our licence so that if we don't perform, the licence can be revoked. Even that offer was rejected. We are certainly prepared to continue the provision of our service for a short term if we could be assured that meaningful discussions and resolution would be achieved by that. However, no such assurance has been forthcoming. Accordingly, as a consequence of the commercially unacceptable terms of the offer of renewal of its licence, CableVision has no alternative but to discontinue and possibly cease forever the provision of the current cable television service.”