Communications has dismissed threats made by Cable & Wireless that it would withdraw investments in infrastructure after Logic was allowed to market its cut-rate long distance service, LogicPhone.

In a press release entitled "The Sky Won't Fall When LogicPhone Rings'', Logic President Neil Speight said: "There's nothing surprising in what's been said. These are big companies doing what big companies do when their revenues are threatened. But Bermuda's sky isn't falling! "It's laughable to suggest, as (C&W general manager Eddie Saints) did, that the long-term future of Bermuda's telecommunications industry is in `big jeopardy'. Investment in Island infrastructure will continue unabated, but in the new environment, it may be new players that make these investments, and they'll probably make them faster and in more efficient technologies,'' he said.

He noted that Logic had invested more than $12 million in its capabilities over the last five years, the majority in network connections provided by Cable & Wireless and TBI. He referred to the new Internet-based telephony service as "a natural evolution in network services that world markets already accept''.

"The Minister's decision makes it clear that Logic can provide a practical, cost-effective and reliable alternative to conventional long distance service'' said Mr. Speight.

"Presumably these providers have met their profit objectives with these leases, and yet there's still room for us to make a reasonable rate of return while at the same time offering lower rates.'' said Mr. Speight.

Logic dismisses C&W threats But Cable & Wireless and TeleBermuda International have complained that Logic has made a comparatively small investment in an infrastructure less secure than their own. TBI general manager James Fitzgerald said his company had spent $55 million to lay a fibre-optic cable between Bermuda and America and that Logic's contract with the company did not permit them to resell voice services.

In yesterday's Royal Gazette , C&W general manager Mr. Saints said the manner in which Logic was working its initiative was "If our system breaks down, you've always got Cable & Wireless to back you up''.

But Mr. Speight said the changes were inevitable and "in line'' with market demand.

"We're moving toward a set of services tailored to give consumers and businesses every advantage in the global market,'' he said.

"It's clear the Ministry does `understand the long-term implications' for Bermuda.'' The press release said Logic's business plan supports Government's objective of elevating Bermuda's status as an international centre for e-commerce.

"The Bermuda public needs choice,'' continued Mr. Speight.

"Logic is ready now to offer those choices -- in fact, we've been ready for eighteen months. Others may follow, but we've done our homework and our resources and business plan are sound. Bermuda will win -- no question.''