Communications, which has a licence to offer data and local telephone services, the Financial Times said in a special Bermuda report on Monday.

Logic, a computer technology firm and the Island's largest Internet service provider, is owned by Keytech, the same company that owns Quantum's competitor, the Bermuda Telephone Company (BTC).

Any purchase of Quantum by Logic would throw into question the Government's efforts to introduce competition into the domestic telecommunications market.

The FT quoted Logic boss Peter Durhager as saying, "We are in the market for Quantum.'' The newspaper went on to say several companies were "queuing to purchase Quantum Communications''.

The FT report added, "While some countries are uneasy about increasing the rates for domestic services to compensate for a cut from international telephone calls, Bermuda has rebalanced charges with little apparent pain.'' The report goes on to say new long distance phone call provider TeleBermuda International now has a 30 per cent market share, while new local service provider Quantum is up for sale after an investment "at between $15m and $20m'' but only being able to offer a limited service.

BTC's president Lorraine Lyle is quoted as saying demand for telecommunications is much higher than Bermuda's population would suggest.

She said residential demand has risen from 1.5 lines per household to 2.5 lines.

Resident technology guru Dr. James Martin, meanwhile, said more needs to be done to encourage technology use by Bermudians.

He suggested the government give computers to single mothers so they could work from home and teach their children about the Internet.