After launching a media campaign to defend its turf in the local telecommunications market -- and crying poverty -- the Bermuda Telephone Co.

Ltd. is itself under attack.

Yesterday, long distance provider TeleBermuda International Ltd. criticised BTC for attempts to rally public and union support against Government moves to lower Bermuda's telecom costs.

After a recent directive from the Telecommunications Minister ordering the lowering of fees charged to interconnect long distance companies, BTC stated it was reviewing its lines of business to cut costs. Discussions with union bosses and membership were held on Thursday.

In the background loomed possibile job cuts due to a fall in the company's revenues after a directive from the Minister of Telecommunications ordering the lowering of interconnection fees for long-distance calls.

Yesterday BTC chief executive officer Lorraine Lyle said discussions with the Bermuda Public Services Association and the Bermuda Industrial Union were still ongoing.

In a story yesterday, The Bermuda Sun claimed an agreement had been struck not to lay off workers in return for not making 35 staff redundant. Ms Lyle refused to confirm or deny the story.

BTC claimes it will lose $1 million a month under the directive and has filed an appeal in Supreme Court against the decision.

The company sparked a furore in the community when it applied to raise local rates by 75 percent, rising to 100 percent by July 1, to replace its lost revenue.

The company has attacked Cable & Wireless and TeleBermuda, claiming the long distance providers were not passing on savings to the consumer. Cable & Wireless has announced it will lower its long distance charges by 10 cents a minute.

BTC also attacked Government, claiming the cut in its revenue from long distance calls was "economically disruptive'' and needed to be done in stages.

Yesterday, TeleBermuda lashed out at the company, disputing the claims.

TeleBermuda stated it had introduced lower long distance rates in the Bermuda market since it began business 20 months ago in the belief BTC's would cut its rates.

TeleBermuda general Manager James Fitzgerald said BTC was on a "scaremongering'' campaign and since 1997 had delayed a process executives knew was coming.

BTC under fire He said TeleBermuda was not making a profit off long distance based on its assumption the interconnect rate would be lowered.

"The rates provided were based on cost estimates generated from the understanding that BTC's inflated long distance access charges would be reduced over a three year period beginning in 1997,'' he said. "It is now 1999 and BTC continues to drag its heels on this matter.'' Mr. Fitzgerald claimed BTC was still dragging its heels on the matter: "BTC is clearly putting greater effort into its `woe-is-us' advertising and public relations campaign than working to genuinely drive down the costs of its operation, improve quality and generate revenue through new service offerings.

"They have chosen the easier route simply to raise the local network access charges to its own customers and blame others for the situation they now find themselves in.''