Bermuda?s satellite filing regime, flexible regulations and location will likely attract more players in the satellite industry, according to the head of one such company which incorporated in Bermuda nine months ago.

TMI/Terrestar, an emerging provider of advanced mobile satellite service in North America, is building and plans to launch the world?s most powerful commercial mobile communications satellite in 2008.

Once in operation, TerreStar-1 will allow the company to offer a diverse mix of high-bandwidth services including voice, circuit-switched and packet-switched data, fax and paging to subscribers utilising movie receivers including handheld devices.

Ultimately, it will end the possibility of ?dead zone? cell phone coverage by transitioning seamlessly between satellite and terrestrial resources.

While Terrestar Networks Incorporated is responsible for North American operations, Bermuda was selected as the jurisdiction from which to run the company?s rest of world business.

While most of the motivations to come here originally are for tax reasons the consumption-based tax model is favourable to early stage growth companies as all revenue can be kept and re-invested in the critical early stages of development there are plenty of other reasons the Island is attractive including its geographical location and its position as a British Overseas Territory.

?It is in a favourable regulatory environment which means it is not unregulated but it is regulated with an eye towards what the business is,? said Robert Brumley, president and CEO of TerreStar Networks and Terrestar Bermuda.

As a self-governing jurisdiction it has been able to enact its own streamlined legislation favourable to the satellite industry, but Bermuda-based companies may still take advantage of the Island?s UK relationships with Ofcom and the UK Department of Trade and Industry for purposes of representation, policy development and market access.

?This a very ideal location, better than any of the other offshore locations to actually do rest of world, not only Europe but do Asia out of one place,? Mr. Brumley said.

He adds that Minister of Telecommunications and E-Commerce Michael Scott is also very forward looking in terms of next generation technologies and his desire to take advantage of Bermuda?s existing telecommunications infrastructure.

The presence of international business including the insurance industry are also ideal since his sector has significant insurance needs.

?It is not reinventing the wheel but actually bringing all those communities of existing telecommunications assets you?ve got, fibre applications, satellite, insurance bringing them together and looking at new businesses based on that existing infrastructure that will create high paying jobs in our satellite operating centre were they have to be certified,? he said.

There is potential for creating certification and testing centres which would draw application experts, followed by retail customers and providers of network infrastructure.

Terrestar is also ?fairly committed? to building an operating centre a command centre to monitor the efficiency of the satellite?s footprint in Bermuda which would create jobs for satellite engineers, communications engineers and other support staff.

?We have money to deposit in the Bank of Bermuda and the regulator has filed our necessary papers in the EU through the UK so we can participate in the European Union process and I would say we are here for the long-term,? Mr. Brumley said.

?When the satellite companies start clustering here in Bermuda as operating companies and not just as holding companies then the service base here changes.?

Mr. Brumley excepts other players in the satellite industry to follow his company?s move to Bermuda?s shores.

In fact, Mobile Satellite Ventures, the company from which Terrestar spun off, has already followed suit and incorporated its own company here. It is a move Mr. Brumley hopes to encourage further.

?We are going to do everything we can to encourage people we partner with because it makes it easier for us to operate with them.

?You are not just going to see mobile satellite service companies but you?re going to see other kinds of satellite service companies whether the equipment or application companies but you?re also going to see the insurance companies pick up a separate line of business and you?re going see the banking side of this.

?You may see some interesting public safety benefits that come out of this so in the near term Bermuda should be very pleased and we?re certainly happy to be here and we have been welcomed with open arms,? Mr. Brumley said.