Government licence to do business, it was revealed yesterday.

Global Access Bermuda, which claims savings of up to 60 percent on overseas calls, applied for a licence after a judge ruled it was operating illegally.

But yesterday UBP MP the Hon. John Stubbs, chairman of the Telecommunications Commission, said Government permission was only one hurdle for the new service.

As well as applying for a licence, GAB would have to "work out a satisfactory business relationship'' with Telco and C&W.

"I think they could come to some kind of relationship,'' he said. Before the court case C&W blocked calls going through GAB, saying the operation was "illegal and fraudulent''.

Two other local phone firms are also applying for licences, said Dr. Stubbs.

He didn't believe they were offering similar services to GAB. Government is not revealing the firms' names, but GAB believes one of them could be Brooklyn-based International Discount Telecommunications, which signed up local businesses last year.

Telecommunications Minister the Hon. Michael Winfield is expected to send the GAB application to the commission, who would have 60 days to hold a hearing.

The process could take until September or October, said Dr. Stubbs. But he added that in the meantime GAB could negotiate with C&W.

GAB boss Mr. Michael Leverock said he was waiting for a response from Government.

He has not had to lay anyone off yet, he said.

Most of his salespeople were "on hold'', but they were independent and many of them had other work.

The company could manage for about another two months, he added. "After that I think it will get a little bit tight.''