The Bermuda Telephone Company has been slammed by an independent board of inquiry after it lodged a complaint against a rival.

The company complained to the Telecommunications Commission after rival company Quantum Communications hired a fibre optic cable from BELCO.

BTC argued that the contract was illegal because Quantum's licence stipulates that the firm has to use its own equipment.

But yesterday the Telecommunications Commission confirmed that the licence was upheld.

And, in a report to BTC, the commission blasted BTC for what it describes as "delaying tactics'' by not cooperating with Quantum to allow it to launch a full voice service.

"The Commission expresses its considerable displeasure at what it can only interpret as delaying tactics by BTC,'' the report said.

"The Commission is most concerned that the required central office interface equipment between the BTC network and the Quantum network has not been ordered.

"The Commission therefore directs that BTC take all necessary steps to provide the connection by no later than July 15 and provide evidence that all necessary equipment has been ordered.

"After making its own inquiries the Commission is of the view that Quantum is a carrier as defined in the Telecommunications Act 1986 and as contemplated by its licence.'' The ruling means Quantum will now be able to start providing a full range of data and voice services.

And it sets a timeframe for an interconnection agreement which is vital to facilitate the flow of voice communications from Quantum's network to BTC's network and vice versa.

Quantum President Jim Sullivan said he was extremely pleased with the ruling.

"We're pleased to get this issue behind us, although we were very clear on our position from the outset that the company set up is legal and proper and meets the requirements of our licence,'' he said.

"The decision gives Quantum the freedom to utilise its new technology to the fullest extent possible in bringing new products and services to the business community of Bermuda.''