The new shareholders of Quantum Communications Limited will include a Paragon Technology Group consortium and a Fort Knox Bermuda Ltd consortium.

Speculation has been rife concerning the identity of the telecommunication company's new shareholders since co-founder, Belco, sold their share three months ago.

Cable & Wireless have retained 40 per cent of Quantum, but the balance of shares have been in legal limbo for the past three months, with 60 percent held by the trust company, Globe Trust Ltd.

Graham Pearson of the Paragon Technology Group confirmed yesterday that the Paragon Technology Group has an interest in a consortium which also includes businessman Charles Marshall. That consortium now owns a 35 percent share in Quantum.

Troy Symonds confirmed that his company, Fort Knox Bermuda Ltd, is interested in the remaining 25 per cent, but the ownership issues are not likely to be completely finalised until May.

Mr. Symonds and Mr. Pearson confirmed that a ten-year licence was issued in September by the Telecommunications Ministry.

Mr. Pearson said that completion of the deal had been delayed pending an extensive due diligence exercise: "We had to understand what we had in terms of existing assets, as well as what we would need in terms of future funding."

He said the new Quantum is due to be fully launched in May and new chief operating officer, Edgar Dill is currently seeking a new base for the company's operations.

Future plans for Quantum will require a multi-million dollar investment, however, and each new shareholder has had to come up with a proportionate amount on a direct ratio to their shareholding in the company.

"The next phase for Quantum will include updating the infrastructure to provide broadband services." said Mr. Pearson.

He said that the original fibre optic loop constructed by Quantum for the corporate sector in Hamilton would be capable of providing services to companies that do not require broadband services, but it needs to be updated in order to provide the latest broadband internet access and networking potential.

According to Mr. Pearson, Quantum's infrastructure originally accessed 32 buildings in Hamilton, but two new buildings, the Waterfront and the Bermuda Commercial Bank Building on Victoria Street, have recently been added.

Mr. Pearson said that Paragon's interest in Quantum stems from its wholly owned subsidiary Ignition. Ignition is an outsourced IT provider whose clients include Rothschilds, HSBC, Newstar Fund Management, the Bermuda College and Ernst & Young.

"We needed access into our clients' offices and the only way to get that was through BTC. That was a problem for us because our business relies on service level performance. If we don't perform we actually have to pay the clients. BTC were unable to provide us with a guaranteed service level... and that was a fundamental problem for Ignition's business plan."

He explained that Ignition initially looked at acquiring part of the fibre optic network from Belco, until BTC could provide them with the guaranteed service level. "But all the fibre got purchased; we followed the trail and that got us back to Cable & Wireless."

Asked about the failure of Quantum's initial foray into telecommunication services in 1997, Mr. Pearson said that the Paragon consortium have acquired an interest in a new company which has not inherited a legacy of problems relating to its previous operations.

He added that the "new" Quantum's vision for the future will provide an "agnostic network" available for companies other than Paragon and Fort Knox:

"It's for Northrock too if they want it. It's to be an independent infrastructure for metropolitan Hamilton."