telecommunications cable to Teleglobe Canada Inc.'s North American line.

A crucial deadline with the cable's supplier, AT&T Submarine Systems Inc., looms but C&W lacks Government approval needed to make the capital expenditure on the cable.

Teleglobe vice president Andre Bourbonnais said on Friday that Teleglobe has an option to build the cable with AT&T but AT&T, which has been extending the option for about 20 months, will not accept further delays which translate into higher costs.

C&W would own and build the Bermuda branch.

Teleglobe is currently negotiating what is likely the final option extension.

The crucial date will fall within the next couple months, Mr. Bourbonnais said.

He declined to estimate how much it would cost to renegotiate the option if it expires.

Despite the threat of the option expiring, Technology Minister John Barritt said Friday he has referred C&W's request to the Telecommunications Commission.

He made the move after learning C&W was "up against a deadline'' in their efforts to build a Bermuda spur to CANUS-1.

C&W and Teleglobe, which owns the Canadian end of CANUS-1 and 20 percent of the US end through its US subsidiary Optel Communications Inc., started talks almost three years ago on building the spur.

To join Bermuda with CANUS-1, C&W needs permission from the Minister for the capital expenditure.

Telecommunications Inspector Ted Pitman said on Friday that the commission first saw the request last Thursday and further meetings have been slated for this week with recommendations pending.

"Government's policy has always been that it wouldn't make a decision with respect to CANUS-1 in isolation of its new telecommunications policy,'' Mr.

Barritt said. "Rather than make a decision in isolation, I have referred that matter to the Telecommunications Commission to allow for further comment.'' Mr. Barritt also said he wanted input on how the spur would affect plans to open up the telecommunications market in Bermuda.

C&W is Bermuda's lone provider of international telecommunications services through the PTAT cable but Government has offered TeleBermuda International Ltd. a conditional telecommunications licence.

TeleBermuda expects to complete its fibreoptic cable to Bermuda from New C&W deadline looms Commission next month. The FCC recently approved a modified request from Optel to expand its CANUS network to include Bermuda.

"TeleBermuda is a development stage company which was offered a public telecommunications service licence by the Government of Bermuda on July 26, 1996 which the company has accepted,'' the company said in its prospectus. The grant of the licence is subject to the company complying with certain conditions whereupon TeleBermuda will become the second international telecommunications carrier originating and terminating traffic in Bermuda in competition with Cable & Wireless.'' "A licence will be issued once they've fulfilled the conditions. They anticipate (fulfilment of the conditions) in November,'' Mr. Barritt said.

In the interim, TeleBermuda is exploring use of C&W equipment or satellite links to provide limited temporary service.

The $30.9 million IPO closes August 31.

The offering's agents guaranteed Bermudians who subscribed prior to last Friday that they would receive their full amount of shares requested.

It is not known how many investors have subscribed for shares in the company.