Plans to install 30 CCTV cameras in Hamilton could grind to a halt because of a legal battle between telecommunications firms.

The company due to link the hi-tech surveillance cameras with the Police control room at Prospect has been accused of not operating under the correct licence.

Quantum Communications signed a deal with Government to provide the $1.25 million hi-tech link-up and the cameras are due to be in place by October.

But the Bermuda Telephone Company has refused to link Quantum to its own telecom network because of a dispute about Quantum's licence.

Now the entire CCTV project could be put on hold until the matter is sorted out -- even though the Telecommunications Commission ordered BTC to connect Quantum by July 15.

Security cameras plan under threat BTC executives faxed an appeal against the order to Telecommunications Minister Sen. E.T. (Bob) Richards last night.

They fear they could be left with multi-million dollar bills if something went wrong with their deal with Quantum, because they say Quantum do not have a legal licence.

And Shadow Telecommunications Minister Sen. Terry Lister warned last night that the CCTV plan could "come to a standstill'' while the dispute rumbles on.

BTC have given Sen. Richards until tomorrow night to respond to their appeal.

Otherwise, they could take the battle into court as early as Friday. And BTC insist Quantum's licence contravenes the Telecommunications Act because the fibre-optic cable running underneath Hamilton is actually owned by BELCO and leased to Quantum.

BELCO hold a 47 percent majority stake in Quantum.

But BTC say Quantum should own the cable because they were issued with a licence as a "facilities-based carrier''.

The firm claims Quantum is a "reseller'' and believes BELCO should also have a telecommunications licence to own the state-of-the-art cable.

A spokeswoman also said Government had always banned "resellers'' of telecommunications services from competing in Bermuda.

She added: "BTC believes that the decision made by the Commission is contrary to law or policy, or both.'' Sen. Lister told The Royal Gazette : "This thing is really tricky and it is to do with getting the right licences. BTC have to be willing to co-operate with Quantum but at this point, what's unknown is whether or not all the licences which should be in place are correctly and properly in place. If the licences are wrong then the whole CCTV project will be slowed up or even brought to a standstill which, obviously, no-one wants.'' He said he was confident the Telecommunications Commission would make the right decision.

Sen. Richards was unavailable for comment last night and a BELCO spokeswoman declined to comment.

Roger Sherratt, Secretary of the Corporation of Hamilton which is overseeing the CCTV contract, said he did not anticipate any delay.

But Jim Sullivan, Chief Executive Officer at Quantum, said: "It seems odd that BTC would appeal this decision, only leading to a further delay.

"As for whether or not this could have an effect on the CCTV link-up, we will just have to wait and see. But it certainly could.'' The Telecommunications Commission criticised BTC for using "delaying tactics'' when they filed the original complaint against Quantum and called for a review.

But BTC President and CEO Lorraine Lyle denied yesterday's appeal was designed to delay the deal with Quantum.

She added: "We are confident that those who take the time to fully understand the issues involved will support our effort to have Government clearly define its rules and policies, and further, to ensure that policy is fairly and evenly applied.'' Roger Sherratt