business opening up the market and sweeping aside existing monopolies.

Four telecommunication firms are to be given a licence including one offering international calls and another centred purely on Hamilton.

However, a bid by the Bermuda Telephone Company to provide long distance calls was deferred, prompting a disappointed reaction from the firm's bosses.

Telco board director, Dr. James King, said: "This company has prided itself on the level of communications it currently provides. Through these changes we are concerned that could be placed in jeopardy.'' The company feels that in one swoop the Government has blocked a chance to increase its income through international calls and threatened business by introducing competition within Hamilton, the hub of the telephone business.

In introducing the new Telecommunications Policy yesterday, Dr. Grant Gibbons, the Minister of Management and Technology, said he recognised the need for de-regulation in the telephone business.

He said benefits would include lower prices, increased investment and growth in national income.

"I believe this policy will allow the competition needed to keep Bermuda at the cutting edge of technology, yet will offer sufficient protection to the consumer and fair access to the market.'' He added there were four principles underlying the policy: Promoting competition; encouraging investment; increasing reliance on market forces and enabling Bermuda to take advantage of future technological changes.

In the near future, legislation will be introduced to support the policy.

TeleBermuda International Ltd., which is proposing a connection to a new cable being built between the United States and Nova Scotia, and Bermuda Digital Communications Ltd, will be given licences. Telecommunications (Bermuda and West Indies) Ltd. and North Atlantic Telecommunications, which will lay a fibre-optic ring in Hamilton, will also be given licences.

They will have 12 months to implement their plans, when the Government will examine their progress before issuing a final licence.

Applications by Global Access (Bermuda), Bermuda Global Access Ltd, Island Bell and Bermuda International Telecommunications Ltd were turned down.

Telco's request to provide long distance calls was deferred until the Government is "comfortable that a reasonably level playing field has been created''. International calls currently go through Cable and Wireless.

Monopoly broken up Dr. Gibbons added: "One of the important aims of this policy is to allow for the orderly development of the telecommunications sector in Bermuda from a monopolistic to a competitive environment.'' After the announcement, Telco General Manager, Mr. Ernest Pacheco, said he understood the need for competition, but felt the Government had inadvertently created new imbalances favouring Cable and Wireless.

"Effective competition will not occur for at least two years as we believe TeleBermuda cannot immediately meet the necessary operating requirements.

"The Minister is also allowing the new domestic competitor, North Atlantic, to focus on only the most profitable sector, Hamilton, without requiring them to carry full responsibility to offer competitive services to the entire Island.'' Over the next few weeks Telco will put together an action plan it believes will enable the Minister to grant it an international licence.

Dr. King said he believed the de-regulation of the telephone business would not benefit the ordinary telephone user although business in Hamilton should see the effects of increased competition.

"An international licence would give us the opportunity to generate new sources of revenue. If we do not have that opportunity, competition locally is going to get a foothold and if it is aggressive, will divert revenue to its own coffers.

"The market share will shrink and if we have no opportunity to expand, then we have to ask ourselves what is the future for us?''