service on July 23 with rates starting at 44 cents per minute for calls to the UK, US and Canada.

In comparison, the lowest rate on offer by another carrier at the time was TeleBermuda International's late-night rate of 63 cents per minute to the US.

However, LogicPhone was suspended on August 2 after threat of prosecution by Government.

Telecommunications Minister Renee Webb maintained that Logic was only allowed to provide data, but not voice services, under its licence.

However Logic said its licence allowed it to provide a service for the purposes of sending and receiving electronic messages and data and LogicPhone used exactly the same technology as sending an e-mail or downloading a picture.