30, a small gain of 1.4 percent compared to the same period in 1997.

Operating revenues increased $8.6 million to $42.6 million over the same period. However, expenses increased by a similar amount to $35.3 million, according to BTC. The holding company, which included Logic Communications Ltd., has been renamed as KeyTech Ltd.

"The results for the six months are satisfactory,'' a press release from the company stated. "However the BTC group of companies faces a future with change and uncertainty.'' The company was referring to the recent directive from the Minister of Telecommunications ordering local providers to reduce their charges for connecting the long distance companies, as part of the move toward cutting international calling rates.

BTC has said the reduction will mean the company will lose $12 million a year in revenues. The company has applied to increase the costs it charges for local service, a controversial move that has sparked criticism in the community.

The Telecommunications Commission is currently due to review the application to see whether the substantial price hike is justified. BTC, meanwhile, has filed a Supreme Court appeal against the Minister's decision and has asked for a stay of execution, claiming it's losing $33,000 a day in lost revenue.

"While the company does not disagree with the objective of the commission, which is to move the price of services close to cost, what is evident here is `rate shock' and therefore unreasonable for both the customers and the company,'' BTC stated in a press release. "The large imbalance that exists today between prices and costs needs to be corrected over time with several orderly rate changes. What has been proposed is economically disruptive for all concerned.''