I'm sure Telecommunications Minister Renee Webb is full of good intentions in trying to please everyone -- the consumer and the warring industry alike. But her recent decision regarding the Internet is a mind bogglingly backwards step that does nothing to encourage people to get connected at home.

She has pleased only those who want continued protectionism -- that is most of the industry depending on whether their piece of the pie is being cut into. As reported Ms Webb has opened the door a little by now allowing the long distance carriers to offer Internet service to businesses. That's good. At the same time she granted a concession to local Internet Service Providers (ISPs) by allowing them to offer long distance service using Internet technology.

That's also good.

The ISPs, namely Logic Communications and North Rock Communications, were afraid of heavy competition -- meaning better service and lower prices -- in Internet provision from Cable & Wireless and TeleBermuda International. The long distance companies were afraid voice-over-the-Internet services would harm their main revenue stream. Well in return they got the juiciest chunk of the market, a move adding to Bermuda's attraction as an offshore centre.

Local service provider Bermuda Telephone Co., which collects Internet revenues through Logic, will also benefit by being allowed to collect a chunk of the long distance market.

However, what about the poor home user who is currently stuck with one of the highest Internet connection rates in the world? Ms Webb seems to have forgotten the ordinary man, woman and child in this equation.

Let's compare rates for a family whose members might use a total of 75 hours a month. A North Rock connection would cost $125, Logic would cost $89. This is apart from the charges collected by Bermuda Telephone Co. Ltd. for excess calls and time (and believe me these add up). These are horribly backward rates.

What's the comparison? Well the US has led the field with rates at about $20 a month for unlimited usage. Europe has been lagging but is catching up fast. In France it cost me about US$100 to put in an ISDN 64kbps speed line which came with two other regular telephone lines. Up until last week it cost me about $83 for 75 hours of use. In the UK, France and other EU countries you can sign up to a free Internet provider but pay per minute phone charges averaging about $1.10 an hour.

However, last week my costs dropped dramatically when I signed up to a new all-you-can-eat service which charges a flat $23 a month with unlimited time and no per minute phone charges. This continual drop across the board in telecom charges is a direct result of the opening up of competition in Europe spurring the previous monopolies to awaken from their slumber.

Previously Bermuda's high telecom charges were roughly comparable with the rates in Europe. Now France and the UK have opened the doors and prices are dropping dramatically. Hence my new flat $23 a month rate.

Well, the Bermuda telecom companies, and I include the ISPs in that description, will argue that you can't compare Bermuda with larger places. The answer is: Of course not, because there they have competition. If they mention `economies of scale` I'll just say so what? That's a process of the market and not of regulation and so is of no concern to I'm sure their well meaning regard for Bermuda's welfare.

In the Cayman Islands and British Virgin Islands Internet users pay the usual exorbitant rates as they do in Bermuda. Cable & Wireless charges Cayman residents about US$109 for 75 hours and BVI residents $120 for 120 hours (the cheapest package for the 75-hour user). I note that Barbados Cable & Wireless recently announced a drop in their Internet charges. For about US$34 a month residents get 100 hours a month .

What the Bermuda Government has done, with this recent judgment, is ensure that Internet rates won't come down soon for the average home user. The introduction of affordable ISDN service will also not be encouraged by the status quo.

Ms Webb should have bitten the bullet and allowed all to offer Internet service, and perhaps gone even further and allowed Cable and Wireless and TeleBermuda to offer local service. That decision would have been the real e-revolution on the Island. But perhaps the winging by the telecoms companies got to her.

Tech Tattle deals with topics relating to technology. Contact Ahmed at ahmedelamin yhotmail.com or (01133) 467901474.