change to its corporate structure -- setting up a holding entity to position the company for possible future acquisitions.

BTC deputy chairman Cummings Zuill said while no acquisitions are planned at the moment, the board saw the need for a holding company structure during the purchase of Internet provider Logic Communications.

BTC, which is traded on the Bermuda Stock Exchange, bought Logic Communications from Millennium International Ltd. in February. Under the proposed structure a holding company called KeyTech Ltd. will be set up to hold BTC and Logic as separate subsidiaries.

"The key to expansion is to be fleet of foot,'' Mr. Zuill said. "This move will facilitate the formation of new partnerships and alliances, and allow us the flexibility required to grow and develop our core business.'' He said the new structure will allow the operating subsidiaries to focus on their markets and compete more effectively.

"This change will position us to be proactive in a rapidly changing environment,'' Mr. Zuill said. "While we are a Bermuda company, owned by Bermudians and focused on Bermuda, KeyTech will allow us to look at opportunities whenever they may apply.'' He stressed the company remained focused on the local market and the proposed change was simply a legal matter.

"We wanted to show change,'' he said. "We wanted to say `Let's break out of the mould and show that we are a proactive 21st Century company.' There are no changes planned at the moment but we want to be positioned in case an opportunity comes up.'' He said BTC was attempting to deal with improving its service provision. He said the company was aware of the letters appearing in The Royal Gazette complaining about delays in connecting telephone lines.

"Every major telephone company has the same problems that we do as an established service provider,'' Mr. Zuill said. "We are aware of the issues and we are working hard and making a lot more business.''