Minister Renee Webb has alleged.

Now she has fired off a letter telling them to stop their cut-rate long distance service.

Forty-four cents per minute for long distance calls to anywhere in the world has seen Logic Communications inundated with applications.

Logic customers were notified of the trial period last weekend and many signed up.

The rate is far lower than the lowest one currently offered by Cable & Wireless or TeleBermuda International -- but concerns were raised that the service was in contravention of Bermuda's telecommunication laws.

Ms Webb revealed on Wednesday evening that a letter informing Logic to cease the service would be delivered by the end of the working day and she held that the company knew they were breaking the law.

"This is the second time they have done this. They have no permit from us to operate the service and it is being done outside the law.'' she said. "A letter is being sent to them today.'' Sabrina Phillips, head of Logic's public relations, refused to comment on the legality of the service or to release how many customers have signed up.

Ms Webb also revealed, however, that the Telecommunications Ministry is moving toward the type of service Logic has offered.

"We have been in meetings with Logic, North Rock, and others,'' she said.

"and have been looking at the possibility of some sort of voice over the Internet service.

"But the law has not been changed.'' she added. "There is no legal framework in place to take advantage of the new technology.

"We recognise that the present law is restrictive in this regard and we plan to implement a new structure. We are currently grappling with this,'' she admitted.

It is understood that the multi-national company, Cable & Wireless, are annoyed with Logic's latest move and are pushing efforts to ensure the service is stopped.

Logic Communications fall under the umbrella group Key Technologies, of which the Bermuda Telephone Company is also a part.