Bermuda has failed in its bid to thwart the Isle of Man switching its satellite frequency, which could mean the Government will lose out on millions of dollars in potential revenue.

Despite taking its battle all the way to London's High Court, Bermuda failed to show that a frequency change of the Isle of Man's satellites would cause Bermuda's satellite communications to suffer "excessive interference".

Previously the UK Office of Communications (Ofcom) had ruled the frequency change was allowed, despite concerns raised by the Bermuda Government.

However, the battle continued as Bermuda alleged Ofcom had not taken the Island's interests into account, as they are supposed to do, when making the decision and took it to court. The concern was a change in the frequency of Isle of Man's satellites could impinge on Bermuda's slot, and thus its potential revenue.

Bermuda's QC Richard Gordon, argued the technology used by Ofcom, which led it to believe Bermuda's satellite coverage would not be impacted by the frequency change, was not adequate because it did not take into account our small land mass.

But the High Court ruled on the side of Ofcom, the online newspaper Isle of Man Today reported.

Mr Justice Goldring said the correct procedures had been followed and added that the technology used was "the accepted international standard".

Bermuda was allotted two satellite slots in the 1980s by the United Nations, one of which is close to the Isle of Man's slot. Government officials have previously said each of Bermuda's satellite slots could bring in annual revenues in the region of $850 million through licensing them to a company which could beam satellite coverage into the US.

The court heard that the Isle of Man must now get the International Telecommunications Union — who have the final say — to accept the new frequency assignment, and start making use of it, before a strict deadline on June 25, 2010.

If that deadline is missed, the court heard Bermuda is "next in line" and would be able to put forward its own proposals for frequency changes to the ITU.

The Ministry of Telecommunications declined to respond to requests for comment on the outcome of the case, nor did they say how this could impact future plans.