a month from July.

But they are refusing to admit that the Telecommunications Commission backed down over an earlier decision on Bermuda Telephone Company access charges because of a possible legal battle with the company.

At a press conference yesterday afternoon Telecommunications Commission chairman Ellen Lim confirmed a report in Thursday's Royal Gazette that the Bermuda Telephone Company will be upping its monthly access charge from $16 to $26 from July 1 for both business and domestic users.

And she added that the Commission's first decision, made last January, to allow just a $2 increase was never final if BTC could show it was unjustified.

The breakthrough came just days before the original order was due to be appealed in the Supreme Court by BTC.

Instead Ms Lim said that the agreement would benefit the public by allowing competition to flourish.

"Our focus on the public's interest enabled us to put aside our legal wrangling and come to terms with the real issue of building a competitive environment that benefits consumers,'' Ms Lim said.

"Two outstanding issues were at the heart of this new decision: the lowering of BTC's interconnection rate to local long distance carriers and the subsequent request of BTC to raise their local rates to replace the lost revenue.

"The Commission had a responsibility to ensure that, in addition to addressing the public's needs, BTC was not stripped of its ability to stay competitive. To this end we have reviewed BTC's local access rates and have reached a new decision.

"What does this mean to the consumer? Three things: An opportunity for new competitors to compete fairly with BTC as cross subsidies are removed and new interconnection agreements can be signed. The legal obstacles that have prevented the execution of an interconnection agreement between Quantum and BTC have also been addressed by this agreement.

"BTC, a vital local company, is able to maintain its commitment to reinvest in its network and improve its service.

"And a $10 rise in monthly access rates for both residential and business customers and a five cent increase in the overcall rate.'' Referring to the January decision, Ms Lim said: "We issued an order which left a window open for BTC to come back to us.'' BTC Chief Executive officer Lorraine Lyle welcomed the agreement saying that it would allow the company to survive in the new competitive market.

"On a go-forward basis I believe that consumers will benefit from this decision as it reflects the changing competitive environment and our role in it,'' she said.

"This agreement ensures that BTC is not forced to fight for financial survival at the same time as it fights to adjust to the new order in the field of telecommunications.