Steady progress is being made on the installation of a new undersea Internet and telecommunications cable between Bermuda and the US to provide a more competitive marketplace and more customer choice.

That is according to Sheila Lines, CEO of KeyTech, who, in a dividend letter to shareholders, said the company was delighted that the cable tender award process had proceeded both quickly and efficiently and that they could now move to the implementation stage.

At the end of last year, Government granted Cable Co. Ltd. (the vehicle formed by KeyTech, Transact Ltd. and North Rock Communications Ltd.) the international Class A public telecommunications service licence needed to build the new submarine cable called 'Challenger' and thus end the current duopoly of Cable & Wireless and TeleBermuda International.

"We believe that Challenger will expand customer alternatives for international services, promote competitive pricing, and ensure redundancy and resiliency of key communications infrastructure for Bermuda and its residents," said Ms Lines. And she added that negotiaitions were at an advanced stage with various parties to get the work started.

"At this juncture, we are finalising contracts with our suppliers, refining construction plans, and securing the remaining permits and certifications required both in Bermuda and the USA.

"We anticipate being able to confirm our operational timetable for Challenger in the near future."

Also, in the letter, KeyTech declared a dividend of 15 cents per share for the third quarter ended December 31 to shareholders.