Stung by what it calls a Cable & Wireless "propaganda campaign'' full of falsehoods, TeleBermuda International Ltd. (TBI) has itself gone on the warpath.

The battle illustrates just how tough the competition is getting for the estimated $100 million in annual revenue generated in Bermuda's long-distance telecommunications sector.

In an interview with The Royal Gazette , TBI chief operating officer Scott Socol said yesterday Cable & Wireless was misleading the public by claiming it had lost 25 percent of its business to his company over the past year.

Mr. Socol said TBI had made revenue of about $6 million since it began operating in May up to the end of 1997. He estimates that TBI has therefore taken about five to 10 percent of the market.

"We are just beginning to scratch the surface,'' he said in arguing why restrictions should be kept on Cable & Wireless to prevent it from any possible attempt to engage in predatory pricing.

He said TBI is taking a more proactive stance since Cable & Wireless' public campaign because it is concerned the Commission members might be persuaded to relax controls on the company.

On one front TBI today launches a public campaign through the media to try and counteract a recent series of advertisements by Cable & Wireless which alleges Government is unfairly constraining it from competing in the marketplace.

TBI is also submitting a document to the Telecommunications Commission outlining reasons why the Government body should demand more information from Cable & Wireless before allowing the company to lower its long distance rates.

The Commission has in the past been at loggerheads with Cable & Wireless over its proposals to make a series of rate reductions for some of its services.

Under government's policy allowing competition in the telecommunications sector Cable & Wireless has been specified as a dominant carrier in the market. The specification means the company must submit any proposal to lower its prices to the Telecommunications Commission.

The Commission wants the company to submit a "comprehensive review of C&W's rates and the establishment of price ceilings and floors as soon as possible'' as called for in Government's position paper before it will allow rate reductions.

While Cable & Wireless says it has submitted the required documents, TBI disputes this version. Mr. Socol says Cable & Wireless has only submitted a document outlining its costs as justification for a series of proposed reductions.

He says the document is only part of what's required under the Government's position paper. Until Cable & Wireless submits the full plan, the Commission should not consider the company's rate reduction proposals, he said.

"Cable & Wireless is making a mockery of the process,'' Mr. Socol said.

During the interview he also unveiled TeleBermuda's plans to go after other pieces of Cable & Wireless' market. The company plans of doing its own billing services for commercial customers, a service currently done for both companies by the Bermuda Telephone Co. It's part of a strategy the company hopes to expand in the future when it attempts to market its services to startup European telecommunications firms.

TBI will also be introducing international private line services, more card products, 800 numbers, and high speed data transmission facilities over the next few months, he said.

In addition to its public campaign Cable & Wireless is claiming a reported $100 million in monetary damages from Government for loss of its monopoly position.