competitor Quantum Communications Ltd. the Minister of Telecommunications has come down in favour of the new upstart.

Telecommunications Minister Senator E.T. (Bob) Richards yesterday ordered BTC to connect Quantum to its telecommunications network by September 3 or else.

In the background lies the threat of a $5,000 a day fine if BTC continues to resist the order.

Quantum, a new company which began offering data telecommunications services in Hamilton earlier this year, has been prevented from offering voice services to its customers due to the dispute with BTC.

Without the hookup Quantum is unable to connect its customers with BTC's customers. Once an interconnection is in place between Quantum's Hamilton network and BTC's network the company can start competing for customers in the voice market.

A delay gives BTC more breathing space to gear up for the impending competition from Quantum, a company which is majority owned by the Bermuda Electric Light Co. Ltd.

BTC had originally been ordered by the Telecommunications Commission to make the connection by July 15. At the time the Commission accused BTC of delaying tactics.

However BTC appealed that decision to the Telecommunications Minister, stating that since Quantum didn't actually own its fibre optic network it was in breach of its license. Quantum leases its network from Belco.

Yesterday Senator Richards dismissed all of BTC's objections. In a seven-page release he stated Quantum meets the definition of a "carrier'' because it owns "significant telecommunications facilities'' including a leasehold interest in the fibre optic network.

And in a slap in the face to BTC he told the company to stay out of the Ministry's affairs, stating that in his view "BTC has no business concerning itself with whether or not Quantum is in breach of its licence''.

He said it was up to him to decide such matters.

"The Minister is provided with complete discretion as to whether or not to cancel the licence for non-performance of any covenant in the licence...That determination is for the Minister to make,'' he stated.

In another paragraph he mentions that BTC would be subject to prosecution for failure to comply with the Commission's order and be subject to a $5000-a-day fine.

"I suggest that if BTC wants to be part of the telecommunication industry in Bermuda there are certain rules of the game with which it must abide by and one of the most important rules is the one which requires it to interconnect with another carrier when requested to do so,'' he stated.

BTC President Lorraine Lyle said the company would be making a statement about Senator Richard's decision next week. The company has the option of taking the dispute to the Supreme Court in an appeal against the Minister's decision.

Quantum chief executive officer Jim Sullivan said the delay had set the company six months behind in its plans and had cost it a "substantial amount'' in lost business.

"We are extremely pleased,'' he said yesterday. "We are looking forward to completing the interconnection agreement and providing services to customers in Hamilton that they have been waiting for.''