regulatory body to set guidelines on when rate restrictions on Cable & Wireless Plc should be lifted to allow full competition in the marketplace.

However, Sen. Richards' position is that rate restrictions on Cable & Wireless should remain in place even though competitor TeleBermuda International Ltd.

has captured about 25 percent of its market.

The rate restrictions are in place to prevent incumbent carrier Cable & Wireless from lowering rates below profitable levels so as to hurt TBI's revenues.

TBI is not subject to the same restrictions.

Sen. Richards' referral of the matter to the Commission is in response to Cable & Wireless request that it no longer be subject to rate regulation under the Telecommunications Act.

In a Royal Gazette report this week, Cable & Wireless stated it wanted to pass on savings to its customers by being able to lower international calling rates without being restricted.

In his referral letter to the Commission, Sen. Richards noted that in the US and Canada, "previously dominant carriers have been found to be non-dominant in circumstances where their market shares have been in the range of 60 percent to 70 percent, and the combined market shares of all of their competitiors have been in the range of 30 percent to 40 percent''.

He is asking the Commission to determine the minimum level of TeleBermuda market share over time would be necessary before Cable & Wireless is no longer considered to be dominant.

He also asked the Commission to determine "which services should be included and how should market share levels be measured and calculated''.

Lastly he asks: "What other criteria, if any, should be employed in coming to a determination regarding the end of the dominance of C&W in the international telephone services market in Bermuda?''