media campaign aimed at the hearts and minds of the Island's residents, who may be a bit confused by the competitive battle being waged in the sector.

The company, which lost its monopoly on long distance services in Bermuda last year, is taking the Bermuda Government to court over what it alleges is unfair treatment allowing the competition to take 25 percent of the market.

A media packet pulling together the company's position was released yesterday in Cable & Wireless' latest salvo against Government. The packet is a prelude to a wider public campaign in which Cable & Wireless will advertise its position in local media.

"We think Bermudians should be angry,'' Cable & Wireless spokesman John Instone said yesterday. "There should be competition. This is not true competition. The majority of residents who are our customers are being denied the benefit of lower prices.'' Rival TeleBermuda International Ltd. began operations last May by offering rates at 15 percent less than Cable & Wireless prices.

Under Government's policy allowing competition in the telecommunications sector Cable & Wireless has been specified as dominant carrier in the market.

The specification means the company must submit any proposal to lower its prices to the Telecommunications Commission.

Government intended the specification so as to protect new entrants against incumbents such as Cable & Wireless from engaging in predatory pricing to undercut new players in the market and possibly drive them out of business.

In the media release Cable & Wireless outlines a two pronged attack against Government. The company is claiming monetary damages for loss of its monopoly, and it wants to be despecified so it can lower rates to compete with TeleBermuda.

The company is claiming a reported $100 million in compensation for not being given what it says was the required three years' notice before "loss of its exclusivity'' as guaranteed under its 1985 licence.

Government was required to give notice prior to "withdrawal of the licence, authorisation, permissions, rights and privileges'' Cable & Wireless states.

Government disputes this claim.

On the second front of attack Cable & Wireless claims Government has refused to allow the company to "compete on a level playing field with the new entrant, by failing to respond to CW's numerous applications to introduce reduced rates and new services which would benefit the Bermuda user.'' The company states Government's "transitional'' period before allowing Cable & Wireless to lower rates without requiring permission has not been defined.

Cable & Wireless wants to: Extend the discount and economy calling periods to the US and the discount calling periods to Canada, the UK, Ireland and the Caribbean; Introduce a "best friend'' discount calling plan in which residential customers would receive a nine percent discount on international calls to their most called number; Introduce volume discounts of between seven to nine percent for business customers; Reduce prices by 11 percent for international private leased circuits to the US and UK, and by three percent to European countries, and by up to 12 percent to the Caribbean; Reduce data service rates by 10 percent to the UK, by 27.5 percent to the US and Canada, and by 25.7 percent to Europe and Hong Kong; Introduce volume discounts on data service by between five to 10 percent.