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Internet fees too high, technology expert says

Bermuda must reduce its telecommunications charges to be competitive in both the business and private user worlds, an information technology expert has said.

IT professional Keith Forbes said the cost of using the Internet and other on-line computer services is prohibitive to those in their own homes and could also be a hindrance to businesses thinking of relocating to the Island.

He said: "What they really need -- urgently -- is dirt cheap telecommunications costs. Bermuda has to reduce its costs and Internet charges drastically before it will attract the type of reputable companies it wants.'' But Government Telecommunications Minister E.T. (Bob) Richards refuted Mr.

Forbes' claims.

He said costs would come down, but would take time as the gradual de-monopolisation work his department was doing took effect. He added that it would not be as quick as some people would like.

Mr. Forbes was speaking after it was stated that the Government hoped to attract hi-tech companies to its new business and technology park at the former Baselands.

He said Internet costs in Bermuda for one hour of access are equal to a month of cable television. And he lays the blame squarely at the Government's door for their charges levied on companies such as Cable & Wireless.

"The licence fees paid by Cable & Wireless and others for their external telecommunications services are mostly way Internet access costs for all in Bermuda are so high.

"The fees are by far and away the highest fees and taxes per square mile of territory imposed by any country for telecommunications alone.'' Internet fees too high, says expert He also cited the import duties on computer equipment as being some of the highest in the Western World.

"Few of us can afford to browse the Web for entertainment. Most of us have a maximum of only 30 or 60 minutes a day to make sure we avoid the Internet surcharges that apply in Bermuda.'' Mr. Richards said the success of the work they were doing with Cable & Wireless and TBI would result in lower costs and better services. "We think the best way of going about this is to get a competitive situation. But the transition we started a few years ago and where we want to be is not going to be easy,'' he said.

"It is a big job but it is not going to be achieved overnight.'' He refuted Mr. Forbes' claims over licence fees, saying the costs were affected by other influences. He admitted that Internet users had to use the provided pipelines, saying "they were pretty richly priced''.

But it was not fair to make comparisons between Bermuda and the US, because of the size of the countries. He added that Bermuda is at present at the same point the US was at in the 1980s.