Following Tuesday's announcement that Bermuda-based telecommunications company, Concert, is being disolved, it has been revealed that their Island office will be shut down early next year.

Concert - a $7 billion joint venture between British Telecom (BT) and AT&T - had 60 employees, in its Bermuda office, when it opened in May, 2000.

But, as of yesterday the office - in the Swan Building on Victoria Street - had 46 employees; 37 Bermudians and nine expatriates.

An announcement on the company's demise had been expected for some time. As far back as May of this year, Concert employees told The Royal Gazette they were anxious to know what their future holds.

There was no comment from the office yesterday, with all enquiries being fielded to a US based spokesperson.

Spokesperson Karyn Vaughn-Fritz said, as part of the company's "wind down", management is looking at where the assets of the company will reside.

In regards to the Bermuda office, Ms Vaughn-Fritz said: "In the case of Bermuda, we are looking at a conclusion of the assets there (in Bermuda), in the first quarter of 2002."

The venture opened last year, with great fanfare and promise of up to 150 jobs, including training opportunities for Bermudians.

Chief executive officer David Dorman, at the opening of the Bermuda headquarters, told The Royal Gazette the local office had 60 people on site, but would be looking to take that number up to 150.

Mr. Dorman added: "We would like those jobs to be filled by Bermudians where possible. Some of the jobs are very technical, but we are working with the Government and Bermuda College on training."

Yesterday, in regards to pending lay-offs, Ms Vaughn-Fritz said some people will receive job offers with either AT&T or BT: "In a generic sense, everyone will be evaluated on whether they will follow their work (with one of the parent companies), or if they will not be continuing with one of the parent companies."

She said she is in the same boat as everyone else", in not knowing if she will be offered employment with one of the parent companies - or alternatively, be out of a job. She worked for AT&T, before joining Concert.

Falling telecommunications prices and operational missteps have plagued the venture from the start, and are blamed for the company's failure. The company had two of its business units placed in Bermuda - its international carrier service (ICS) and network and systems (N&S).

BT and AT&T each will take back most of the assets they contributed to Concert.

Concert's local landlord Sir John Swan said: "The decision has been made by the respective partners... They had great plans, and had made a significant investment in technology, and it obviously has not worked as planned."

Sir John said he not had official notice from the company on when it will be vacating the building. He did say however that the phone has already started ringing.

"There has already been interest shown in the space, we don't expect any difficulty in getting a new tenant. But, we can't make any decisions, as we have not had any official notice," he said.

Telecommunications minister Renee Webb said the "unwinding" of BT and AT&T's joint venture was unfortunate. And while she realised it was a decision from the parent companies, she said Government's concern was for the 37 Bermudians who would be losing their jobs.

Ms Webb did say however that most of the jobs held by Bermudians, at Concert, are in the IT division and she expects they will be able to find jobs in other Bermuda-based companies, before the lay-offs take affect next year.

Speaking further, Ms Webb said Concert had been a "good corporate citizen," of Bermuda. And added that its dissolution does not reflect adversely on Bermuda as a jurisdiction for international business.

Ms Webb cited the announcement this week, that Ingersoll-Rand would be locating here, as proof that companies, of stature, are still coming to the Island.