Bermuda operations, new general manager John Tibbles said yesterday.

Succeeding Jeni Graham, Mr. Tibbles said the company is looking "very actively'' at incorporating locally, adding: "It would lead to more visibility for Cable & Wireless in Bermuda.'' Mr. Tibbles confirmed that such a local company, if realised, would eventually consider listing on the local Stock Exchange.

"It is a long and fairly complicated process to do that, but we have certainly started on the process, both in terms of talking to the Government about it and looking into the financial and legal requirements that we would have to comply with,'' he said.

C&W is also keen to provide input for new rules that should govern the unprecedented competition that is being brought to telecommunications in Bermuda.

Said Mr. Tibbles: "We have to start on the framework for working in the competitive situation. There have to be some rules about how competition will actually work. We would like to have a fair hearing on the matter. We will have our view, and I'm sure other players will have a view.'' He also noted: "We've probably got more experience in competitive markets than any telecommunications company. There are not that many countries around the world that allow competition in telecoms.'' C&W competes with long distance carriers in the US and has a substantial stake in International Digital Communications, one of the three long distance companies in Japan. It also has a stake in European telephone company Tele 2, and a presence in the Phillippines and Australia.

Mr. Tibbles is cautious about opening compeititon in the telephone business.

"Competition is a rather interesting thing,'' he said. "It's never worked out quite as anyone expected it in any of the markets it has been introduced.

It's been a Pandora's box. You can kick it off. I think most people say that competition is a good thing, but where it leads, no-one really knows.

"The Minister's got a really challenging, very difficult balancing act to make sure that the way it is developed does provide the right solution for Bermuda.'' One clear objective of the Bermuda decision is to seek a better service at a more competitive price. Mr. Tibbles said long distance prices have been reduced over the years. And there are extra costs related specifically to operating in Bermuda.

C&W is waiting on specific approvals from the Bermuda government as they near their latest deadline to have a Bermuda spur connect with CANUS-1, a fibreoptic submarine telecommunications cable connecting Canada and the US, and which eventually will be linked to submarine cable to Europe.

The new development is seen as an opportunity to prepare for future growth in telecommunications needs, especially with the anticipated growth in the use of the Internet and the general increase expected in the use of international telecommunication services.

C&W chiefs this week refused to discuss the matter, anxious over the delicate stage of their application.

Mr. Tibbles, in refusing comment, said: "That's at a very sensitive stage of discussion. But I would say that the spur to the CANUS cable is a very important thing for Bermuda, because it provides the ability to link Bermuda with three major business areas, the US, Canada and Europe.'' After more than a 100-year old connection to Bermuda, the international telecommunications firm is facing some harsh realities about the Island.

Those realities include Government's decision to open the doors to competition in telecommunications, but also surprising survey results recently which showed that some Bermudians saw the Bermuda office as just another exempted company. Some were unaware that you can't make a long distance call from Bermuda without involving C&W.

The results led to significant adjustments in advertising, including a new campaign.

The "Bermuda's Highway to the World'' slogan was replaced with a more basic one -- "Bermuda's International Telephone Company''. And no-one knew how C&W had poured nearly $3.25 million into the training of Bermudian technicians, engineers and managers in the decade to this March. Out of a staff of about 120, just three are non-Bermudian.

Among the bright spots in the survey results was satisfaction with the service by those in international business, many of whom require diversified and resilient communications.

John Tibbles