service if an agreement with local phone service provider, BTC, gains regulatory approval.

The Internet Service Provider has signed an interconnect agreement with BTC -- also owned by Logic parent company KeyTech Holdings Ltd. -- which would make it easier for its customers to use their long distance service.

Competitor North Rock Communications is unfazed, saying the development may make it harder for Logic to lower rates.

Currently customers have to dial a seven digit code (20-20-220) to gain access to Logic's network -- before dialling the long distance number.

But the agreement will make it possible to dial direct -- without the seven digit code -- making Logic as convenient as long distance providers TeleBermuda and Cable & Wireless.

Interested parties have another two weeks to file their submissions before the Telecommunications Commission reviews the agreement for approval.

According to officials of BTC, which filed on April 30 the mandated notice announcing the agreement, the approval process should not be contentious.

"It's standard practice among carriers,'' said BTC spokeswoman Monique Bois.

Logic launched its long distance service, trading as LogicPhone, last summer.

The development came after a challenge by the traditional long distance providers and after Telecommunications Minister Renee Webb said ISPs would be allowed to offer long distance service using Voice Over Internet Protocol (VOIP) technology.

Logic bids for BTC link North Rock, the Island's second ISP, was soon to follow with its own long distance service 20-20-321.

With a starting rate of 44 cents a minute, LogicPhone spawned a new round of rate reductions.

Logic later offered a series of packages which offered limited free Internet access for LogicPhone customers.

Ms Bois told The Royal Gazette that North Rock had not yet approached BTC about an interconnect agreement.

North Rock's Vickie Coelho told The Royal Gazette that an interconnect agreement was not necessarily all good. Initial thoughts at North Rock indicated that it may not bring too many competitive benefits, she said, because of BTC's seven cents a minute access charge.

It is unclear what effect, if any, the interconnect agreement would have on rates or demand for LogicPhone.

But Ms Coelho said that her company's 20-20-321 service had exceeded expectations since launch, an indication, perhaps, that the convenience factor may not be a major draw for long distance callers. The Telecommunications Commission will give final approval to the access charges, and other details of the agreement. Certain modifications would have to be made to Logic's equipment.