Two of the three companies battling to provide a controversial vehicle tracking system to Bermuda?s taxis may decide to join forces next week.

Radio Cabs and another firm, an amalgamation of Co-op Taxis and the Bermuda Central Dispatch Company, have been in talks for some time about whether to merge.

The two companies are currently in direct competition with one another and BTA (Dispatching) Ltd. to provide GPS systems to the Island?s 600 cabs.

Last night, Alaine Mouchette, president of Co-op Taxis, told that the decision on whether to amalgamate would be taken at a meeting of drivers and shareholders on Monday night.

?I can?t say whether it will be yes or no at the moment,? she said. ?Actually, our options are wide open. We will have the meeting on Monday night and the drivers and shareholders will make the decision.?

Edward Darrell, CEO of Radio Cabs, said he was confident the amalgamation would take place.

But George Scott, who has a stake in the Co-op and is chairman of GPS equipment firm Advanced Tech Solutions, said: ?I don?t think it?s going to happen, not if I have anything to do with it.?

The move seems likely since it is widely believed that three firms offering GPS could not all stay in business on the Island.

Transport Minister Ewart Brown told he did not believe Bermuda could sustain all three.

Dr. Brown said: ?There are three companies who are attempting to operate as dispatch companies under the new legislation, three companies trying to attract sufficient support of taxi owners in order to make their businesses viable.

?I expect we will have no more than two companies when all is said and done because of the size of Bermuda and the number of taxis. I could be wrong but I don?t think I am.?

He said he was impressed by the progress of BTA, which claims to have signed up 280 cabs for its system.

All the taxis on the Island need to have a GPS system installed by February 6 under the new law.

Dr. Brown admitted that a 100 percent take up by the deadline was unlikely but added: ?We do not intend to focus on the ones which don?t comply. We are hoping we will have the majority of them complying.

Michael Ray, of BTA (Dispatching) Ltd, said: ?Our cars are being installed and we are about two weeks away from launching. We are not going to have all our cars done but we are going to have a large percentage.?

Veteran taxi owner Junior DeSilva, who has pushed for a centralised GPS system run by one company for all cabs, agreed that three companies could not survive.

He said: ?There are three outfits and I just don?t think that three outfits can remain. All three definitely won?t survive because of the cost of the operation and the cost of breaking even.? He estimated that just 50 percent of the Island?s cabs would have the system by February 6.