whether or not to allow BTC to double its standard phone charges.

The meeting could save thousands of dollars in phone bills across the Island.

But that could also cost around 35 jobs at the Bermuda Telephone Company.

BTC executives say they have lost $33,000 a day since January 1 because of a Government directive forcing them to reduce fees to international carriers.

Now they say the 35 jobs are on the line.

And the firm, already having cut the cost of international calls, wants to recoup funds by pushing up domestic rental charges from $16 to $28 a month.

The increases would be backdated to January 1 and then jump to $34 on July 1.

BTC initially claimed its financial dilemma could wipe out $10 million from the firm's revenue, projecting a loss of 100 jobs.

But that figure was readjusted -- with overseas operators' jobs now the first in line to be cut.

Other savings would be made with cutbacks in the truck fleet and repair crew.

BTC managers have already been called in for emergency talks with senior directors to discuss ways of keeping workers in their jobs during the costs crisis.

Jobs, telephone bills on line in BTC talks It is understood staff are being asked to work a ten-day fortnight for nine days' pay -- to save the jobs ready to be axed.

Bermuda Industrial Union President Derrick Burgess would not discuss details of labour negotiations with the firm last night.

But he said: "On-going discussions are taking place between the union and BTC.

"The last meeting was about ten days ago or so and we are arranging more talks to find a negotiated solution.'' Ed Ball, General Secretary of the Bermuda Public Services Association, was also keeping details of the talks to himself.

"There's really nothing we can say in advance of the Telecommunications Commission's report,'' he added.

The nine commissioners are due to give a final decision on the line rental proposals within days.

Telecommunications Commission Chairman Ellen Lim, speaking before last night's meeting, would not reveal her own views on BTC's plans.

But pensioners' group Age Concern have added to a growing list of complaints about the rate hikes which have already been filed to the Commission.

Ms Lim added: "It's just impossible to pre-empt what's going to come out of a meeting in which nine people have an input.

"We are going to work until we get to the point where we have some decisions against BTC's proposals or we decide to agree to them.'' Meanwhile, BTC's legal battle with new rival Quantum Communications began in Supreme Court yesterday before Puisne Judge Vincent Meerabux.

BTC is fighting a Government order forcing it to connect Quantum to its network.

The firm's bosses believe Quantum's operating licence is illegal and have accused the Telecommunications Commission of acting outside its powers.