A new group is interested in constructing a global submarine fibre optic cable that would provide an alternative telecommunications link to Bermuda.

Neptune Communications, L.L.C. has just been formed as a privately-held, Delaware-based, submarine cable project development company.

Neptune president and CEO, Donald J. Schroeder said yesterday, "Submarine fibre optic cable technology continues to advance at a rapid pace. Maximum design capacity today in long haul cable system applications is four times what it was just nine months ago.'' He said he is aware of the need in Bermuda for competing telecommunications links at reduced costs and believed the well-intentioned telecommunications de-regulation policy of the Bermuda Government may have inadvertently caused TeleBermuda International to proceed with plans for an expensive facility to connect Bermuda, before they established the required on-Island facilities.

Neptune has plans for the Atlantic Express Cable System, comprising two lines of cable crossing the Atlantic from the US to the UK. Licences were obtained from the US almost a year ago.

Drawings also show the plans for cables crossing the Pacific Ocean, and the potential for a link to Bermuda from the Atlantic system. The company has no agreements in place from Bermuda.

Mr. Schroeder said, "We happen to think that our solution is the best for Bermuda. We know that 85 percent of the Bermuda traffic goes to the US and the UK. The TeleBermuda system will go to the US only, and then will have to interconnect with another trans-Atlantic system. It will be more costly for them.

"In the Cable & Wireless situation, the connection off of the CANUS cable system has always been the most economic second facility to Bermuda, but technology has moved quite a bit past those systems and I feel our design would be the most network efficient and cost efficient. The savings could be passed on to the customer.'' Neptune was formed by Neptune Ventures I, L.L.C. and the Carlyle Group, and already holds seven US Federal Communication Commission (FCC) cable landing licence authorisations, each on a non-common carrier basis.

It has been formed expressly to arrange the financing, planning and development, sales and marketing, implementation, operation and maintenance for a portfolio of state of the art submarine fibre optic cable systems in the Atlantic and Pacific Ocean regions.

The company said it also intends to secure strategic relationships with selected project participants.

Mr. Schroeder said, "The US telecommunications Act of 1996 and the implementation of the World Trade Organisation Telecommunications Agreement will result in rapid and meaningful deregulation, faster liberalisation of international markets, a significantly increasing number of new international market entrants, as well as the reduction of international accounting rates.

"These market conditions, combined with the increased demand for high bandwidth service applications, especially Internet and other data related services, make this the ideal time to proceed with Neptune's complete portfolio of Atlantic and Pacific region state-of-the-art submarine, fibre optic cable systems.''