Digital TV offering more channels and better audio and picture quality will be available this spring from Bermuda CableVision.

Also available for the April/May launch date will be digital music channels without adverts, ten new immediately accessible pay-per-view channels and a data service to allow viewers to get the latest news, sports and weather.

However the company still has to work out how much the new service will cost subscribers.

TV games will also be available and the company hopes to add video-on-demand at a later stage while the new cable system could also be used to offer high speed internet access to home computers.

CableVision general manager Jeremy Elmas said: "Digital technology brings a number of benefits to customers including improved picture quality and reliability, the capacity to add hundreds of new channels as well as interactive services such as video-on-demand, digital-quality music services and interactive television.

"We are pleased to be able to make this move to digital, which is made possible thanks to the progress we have achieved on our new broadband network, which is now more than 60 percent complete."

He said the new cable network would be fully transformed by the end of 2003.

In February the company will install a new, all-digital control centre, supplied by American partner Scientific Atlanta.

CableVision expects to roll out the first new digital channels and services in the second quarter of 2003, starting with the customers in areas where the new fibre optic cable system is fully complete.

Project Manager Emmet O'Donnell of Scientific Atlanta said digital TV gave you picture quality similar to DVDs and sound quality comparable to CDs.

He said subscribers using a wireless keyboard and remote could get information on demand offering the latest news, weather and sports results.

They will be able to find out forthcoming shows seven days ahead as well as get games.

For now, digital services will be optional for CableVision subscribers but for the new service they will need a new set top converter box which will still take the old analogue channels.

Mr. Elmas said CableVision had learned from controversy when analogue boxes were introduced last year, and would phase-in the new boxes.

"If you do decide to go digital, the new box will replace the old one."

The upgrade is coming at a time when the company, a monopoly, is facing the threat of increased competition.

In September two companies launched bids to offer affordable and improved satellite television.

World on Wireless is applying to run a budget TV, high speed internet and phone link and SGC Ventures is offering a multitude of channels at a cut price.

Mr. Swan said Telecommunications Minister Renee Webb was very, very close to making a decision and an announcement could be made before the end of the year.

He said: "I feel pretty confident that at least one carrier licence will be granted but that's a decision for the minister."

Responding to a recent customer survey, Mr. Elmas said the company is now in discussions with the programme suppliers to provide the channels its customers have requested.

He said: "We plan to introduce about 40 new digital channels this spring, including ten new Pay-Per-View channels as well as multiplex screens of the top movie channels.

"We are also looking into rearranging our tiers so that customers can more easily choose the channels that interest them most.

"We also plan to offer around 35-40 digital music channels by the end of the year."

However, he said the company would still be putting channels in bundles rather than let customers pick the ones they wanted.

He said: "We have not seen a business model which works on that concept."

The new digital technology allows up to 1,200 channels though Mr. Elmas said it was very unlikely this many channels would ever be added.

The company is also considering whether to offer adult entertainment, said Mr. Elmas. "We did ask that in our survey and are taking that under advisement."

The technology will allow parents to block off undesirable channels they don't want their children to see.

Video on demand is also on the cards said Mr. Elmas. It allows customers to select the film they want, when you want and have all the VCR functions such as fast forward, rewind and pause.

However Mr. Elmas said it would cost the company a lot to install so CableVision would wait until enough customers had signed up to digital to make it viable.