whether they can operate, says Telecommunications Minister the Hon. Mike Winfield.

Four discount long-distance services, hoping to rival the partnership of Telco and Cable & Wireless, have applied for Government licences.

Global Access Bermuda, one of the four, already has more than 1,000 customers.

They have been unable to use the service since July, when C&W won a court ruling that Global Access Bermuda was illegal because it did not have a licence.

GAB says its customers have been deprived of more than $1 million in savings so far.

They have been demanding Government action on granting a licence.

But Sen. Winfield said applicants for licences had to abide by the law. "It wasn't Government that stopped GAB operating, it was the courts,'' he said.

The process took time because so many details had to be collected from applicants.

Although some details were still not in, he had decided to refer the matter to the telecommunications commission, headed by UBP MP the Hon. John Stubbs.

The matter had "total priority'', and the commission would "very shortly'' start hearing the applications.

Each application would be "judged on whether it is in the best interests of Bermuda and Bermudians''.

The hearings would be in private to preserve business confidentiality.

Government was working out a five-year plan for the industry with Telco and C&W, said Sen. Winfield.

That plan might welcome other telecommunications operations.

The four applicants for licences were offering slightly different services, he added.

The Minister said in a small country it was necessary to balance the need for competition with the need for continued investment in the industry.

Otherwise Bermuda risked losing its advantage in high-tech communications.

He said Government had been successful in cutting Telco and C&W prices, although rates still needed to be more competitive.

C&W has reported a 35 percent leap in half-year profits worldwide. Pre-tax profit for the six months to the end of September jumped to $752 million from $558 million.

"The strength of our performance is all the more pleasing against the background of the increasingly competitive nature of our markets,'' chairman Lord Young said.