Logic Communications president Peter Durhager has warned Bermuda is in danger of falling behind in the technological field.

"Other countries have embraced innovation through advanced data services such as LogicPhone and their residents are reaping the benefits.

"In Bermuda we are not embracing it. In fact, what we are doing here is worse than ignoring it. We are penalising it and halting progress.'' He told Hamilton Rotarians that the Island had enjoyed a good start in quickly taking to the Internet after it was first introduced in 1995 but that the advantage would be thrown away if business failed to keep investing.

He said: "Some months ago Ira Magaziner, President Clinton's Senior Advisor on Electronic Commerce, said Bermuda wasn't competitive internationally in telecommunications and he questioned our ability to adapt quickly enough to avoid giving up our advantages in international business. "At that time I disagreed with him. Now, since the forced discontinuation of the LogicPhone service I may have to change my mind.'' He said Bermuda must learn the lessons of the past.

He explained: "In the 1950s and 1960s Bermuda was a leader in Tourism worldwide. It was the mainstay of our country. We set the standard.'' "Then somewhere along the progress continuum we stalled, allowing the Caribbean and other destinations, no more beautiful and no more welcoming that our own to move ahead in developing their tourism product.

"We didn't innovate, reinvest and redevelop our product in the face of increased competition.

"The number of visitors dwindles. Only recently has it received our full attention.'' He said international business was now of greater value to the economy.

"Between 1985 and 1995 the number of international companies in Bermuda grew on average at a rate of 3.7 per cent.'' "Competition is fierce. We must stay abreast of innovation and show real progress or those companies, like the tourists will go elsewhere -- all in the push of a button as the barriers to exit are blasted away by technology and communications.

"Penalising efforts to move our country forward in this sector means others will get there before us.

"It means we'll be much further behind in the race to capitalise on an e-commerce industry that will be worth $400 billion to the global economy in 2001 and in the trillions by 2003.'' He said Logic had invested wisely and that other Bermudian firms should take advantage of the level playing field that the digital age provides.

Peter Durhager