the telecommunications industry, reports Mairi Mallon . Now North Rock is considering legal action. by Mairi Mallon Local Internet provider North Rock could challenge Government in court over allowing Cable & Wireless into the Bermuda market.

And the company has asked Government to sort out what its policy is with the 60/40 ownership laws in respect to local and international companies and not bow to threats from Cable & Wireless.

North Rock, one of the Islands two Internet providers, is crying foul that it has been put in direct competition with telecommunications giants Cable and Wireless and TeleBermuda (TBI).

And it says that small local providers will have a hard time competing with companies with that kind of capital.

The comments came after Cable & Wireless filed a writ on Tuesday against the Ministry of Telecommunications.

C&W have repeatedly said the move could lead to them pulling out of a $110 million proposed investment in their facilities in Bermuda.

Director of North Rock, Erich Hetzel, said: "What we feel, and probably most Bermudians feel, is that Cable & Wireless can compete best in the court room.

So our concern is that these threats will be taken seriously and they end up getting what they want. That would be the wrong reason to make a decision.'' He said that the company's point all along had been that the problem was not simply about telecommunications but about the broader 60/40 ownership issue.

He added: "You have to ask the question do you want foreign corporations in Bermuda. You cannot look at it industry by industry and cherry pick.

"You have to look at the whole picture. If the people of Bermuda want big corporations running things, then we will go along with that, we have to. But we feel it is very dangerous for telecommunications and pivotal for Bermuda.'' Controversy has surrounded the decision earlier this month of Telecommunications Minister Renee Webb that Government was changing the law to allow local Internet service providers to provide long distance calling facilities using the World Wide Web, and giants Cable & Wireless and TeleBermuda to enter the Internet market by allowing them to provide services to businesses.

Ms Webb said she had given something to everyone and taken away something from everyone, but all sides, bar Logic, have violently complained about the deal.

Govt. may face legal fight Cable & Wireless has threatened to scrap plans for a $110 million investment on the Island because of the new competition in the long distance phone market.

TeleBermuda complained that it was not a level playing field with Internet service providers having fewer overheads.

Logic are happy because they got what they wanted after a two-year battle for the right to use the Internet for long distance calls.

North Rock says it is not interested in voice over Internet protocol, and has only been given unfair competition from the two telecommunications giants.

Trevor Moniz, North Rock's legal advisor, said that the company was considering legal action.

He said: "At present time we are looking at the matter.'' Although the company would not be drawn on what grounds they would sue, it is believed that they could either tackle their band width provider for being over charged for their service under the anti-competitive clause in the Telecommunications Act or the Government for allowing C&W into the local market.

Tom Coelho, managing director of North Rock said: "I think that the minister has done the right thing by amending the licences. She has defined what people can do, and we applaud that. But there are still some grey areas.'' It is believed that North Rock already has a complaint against the Government before the Telecommunications Commission and any new legal action would not be taken until this matter is resolved.