Cable & Wireless was granted permission to activate its new fibre optic cables, which will improve service to the Island.

The company, which has been in Bermuda for 118 years, already spent $22 million laying the 800-mile long next generation fibre optic cable system, known as Gemini-Bermuda.

It will run from Bermuda to Manasquawa, New Jersey where terminal equipment will be based and will provide 700 times more capacity than the cable it is replacing.

Yesterday the company received permission to activate Gemini-Bermuda from the US Federal Communications Commission.

Cable and Wireless already runs two other fibre-optic cables to Tortola and then on to the US and from St. David's to Tuckertown, New Jersey.

The new line will help give the company back-up should one of the lines fail and provide the Island with diversity by creating a 360 degree network in partnership with the existing off-Island cable which links Bermuda with Brazil.

Eddie Saints, chief executive of Cable & Wireless, said: "Through the Gemini cable project, we are demonstrating our desire to invest in Bermuda's future.

"Bermudian businesses and residents want and need high speed, reliable data and broadband services which put them on a par with the world's major financial centres.

"This 22 million investment in cabling and infrastructure will help provide that.

"In addition this next generation fibre optic link to our global network will promote new technology, competitive pricing and entrepreneurship which will be a boost to the whole Bermuda economy."

Mr. Saints said the company chose a fibre optic cable system that provided the most environmentally sound solution and reused part of the existing cable route so as not to damage Bermuda's reefs or marine ecosystem.