BERMUDA CableVision has plans to enter the Internet supply market - but right now its way is blocked.

The company announced yesterday that it had been in talks with officials from the Department of Telecommunications over the possibilitity of using its network to offer customers an Internet service in addition to cable television.

But Director of Telecommunications Gregory Swan said yesterday that a Government suspension over the issuing of any more Internet supply licences was in place and CableVision could not be given a licence at this time.

A survey of the Bermuda public carried out for CableVision showed that 59 per cent of those asked supported the cable company being authorised to become an Internet provider.

CableVision general manager Jeremy Elmas said the upgraded cable network, which uses fibre optic technology, would make numerous extra services possible, including high-speed Internet access.

"We have been keeping the Telecommunications department up to date with the progress of our new system and we have been keeping them in the loop about what services cable companies have been able to offer in other parts of the world," said Mr. Elmas.

The survey also revealed that if CableVision offered a competitively priced Internet service with guaranteed access speeds, nearly half those asked would be likely to consider signing up for it.

"The results of the research provide us with excellent feedback," said Mr. Elmas. "This initial interest is a good indicator that Bermuda residents welcome an additional high-speed Internet platform."

CableVision would be able to compete with the service offered by the Bermuda Telephone Company's high-speed DSL lines, which cost $99 a month, said Mr. Elmas.

"DSL lines are at about one-and-a-half megabits," said Mr. Elmas. "With our fibre optic network we could offer 37 megabits in theory, but the maximum we would offer a user is 10 megabits and the most that most users would need would be between one and two megabits."

Mr. Swan said there were six licensed Internet service providers (ISPs) in Bermuda and that the Ministry had imposed a tempoarary halt on issuing any more from the second quarter of last year.

North Rock Communications, Logic Communications, Transact-E-Biz and Fort Knox are lilicensed to provide residential and commercial services, while TeleBermuda International and Cable & Wireless offer commercial services only.

"One of the reasons that the Minister issued a moratorium last year is that the market is approaching saturation point," said Mr. Swan.

"I don't believe the Telecommunications Commission is looking to issue an ISP licence to CableVision at this point."

He added that the talks with CableVision had been "for information".

"The Commission is aware of the potential services that could be provided on CableVision's fibre optic network," said Mr. Swan. "And we will have to evaluate where there is a use for that network in terms of existing ISPs."

CableVision's $10 million upgrade will allow the company to offer up to 1,200 new channels as well as interactive services like video-on-demand, digital quality music services and interactive television.

The survey was carried out by Total Marketing & Comunications and involved telephone interviews with 404 residents.