High flying plans by Bermuda Telephone Company Ltd. to operate a satellite telephone service have been shot down by Telecommunications Minister, Renee Webb.

BTC had applied to the Telecommunications Commission for approval to provide satellite telephone service through Globalstar's international voice service.

But the Commission ruled the business was outside of BTC's domestic telephone service licence and advised the company that it would have to pay local overseas service providers, Cable & Wireless and TeleBermuda, in order to offer the service.

BTC has now filed a Supreme Court appeal of the decision and in a statement yesterday said: "BTC had appealed to the Minister from a direction of the Commission providing that if BTC wanted the service to be approved, it would have to negotiate a rate to compensate C&W and TBI for any revenues they might loose as a result of customers using the new service.'' BTC obtained service provider rights from Globalstar in 1996 for the 200 nautical mile area surrounding Bermuda and the Azores.

BTC argues that the GMPCS service would complement its existing land-based voice and data telecommunication systems and give its customers the flexibility to make both satellite and cellular calls on one phone.