service is allowed to sell advertising, the Telecommunications Commission has been told.

The Royal Gazette Ltd., the Bermuda Sun, and the Bermuda Broadcasting Company were all objecting to an application for a Public Telecommunications Service Licence by Hardell Entertainment Ltd.

Hardell wants to provide a 22-channel basic television package, with options for other premium channels, the commission was told.

Mr. Delroy Duncan, lawyer for Hardell, said the fact no wire would be used to transmit a microwave signal would improve picture quality. Hardell's plan, known as a "wireless cable system,'' would be on "the cutting edge of technology,'' he said.

Subscribers to the service -- which would be cheaper than current cable TV service -- could also use it to rent movie videos, he said.

The objectors had no quarrel with a new "cable'' service. It was Hardell's plan to sell three minutes of advertising for each hour of programming which concerned them.

Hardell's orginal application showed advertising revenues of $1.7 million.

Yesterday, Mr. Duncan also submitted an alternative financial plan which would include no advertising revenues but increased subscriber fees.

In a letter to the commission, the Bermuda Sun said it could not object to Hardell selling ads if the company was using the revenues to provide local services, like news and programming. But Hardell would only be using the money to reduce overhead in the importation of foreign programmes.

Mr. Keith Jensen, general manager of The Royal Gazette , said the Bermuda advertising dollar appeared to be dwindling.

"A successful application along these lines would have a severe impact on some of the news organisations, and an adverse impact on others,'' he said.

Mr. Rick Richardson, chief executive officer of the Bermuda Broadcasting Company, said: "Our company's position isn't as lucrative as it used to be in years gone by.'' If the advertising dollar in Bermuda was eroded further, "it will mean...the demise of the facility that we are providing -- a facility that culturally lends itself to what the community needs.'' "What I'm hearing is people basically asking to be protected,'' said Mr.

Harold Darrell, president and chief executive officer of Hardell.

The commission, which for the Hardell hearing was chaired by the Hon. Charles Collis, reserved its decision.