CableVision could have serious competition this year with Telecommunications Minister Rene Webb set to grant a licence to satellite TV company World on Wireless.

The Royal Gazette has learned that the Telecommunications Commission is to recommend the company, known as WOW!, dashing the hopes of fellow hopefuls SGC Ventures.

Last night Telecommunications Director Greg Swan said the Minister had not made a decision yet although he said the board had made its recommendation.

He said Ms Webb would be back at work on Monday and a decision was expected this month.

Both WOW! and SGC ventures wanted to use a new satellite technology, known as Multipoint Microwave Distribution System (MMDS).

Mr. Swan said it was possible to have more than one company using MMDS but it would limit the number of channels they could run.

He said: “It doesn't make sense to give out five licences if the carriers can only have 15 channels each.”

WOW! wants to run a high speed internet and phone link and a multitude of channels at a cut price.

The firm is headed by two CableVision founders - Bermudian Gavin Wilson and Canadian William Craig. Also involved in the venture are electrical engineer Troy Symonds and Meridian boss Shaun Davis, both Bermudian.

Last night Mr. Wilson said he was still in the dark about his bid.

He said: “If it were true it would be wonderful. It's very, very exciting. I can go head to head against my old alma mater, CableVision.”

He said the service could be running four to six months after getting a licence.

Viewers will have to fit a foot-wide dish on their homes to receive pictures on a set-top box.

The signal is likely to come from a receiver at Cable and Wireless's site in Devonshire.

Mr. Wilson said: “We have had discussion with Cable and Wireless but until you have the licence it's all talk. You have to be careful, it's not a foregone conclusion.”

Initially the service will cover 70 percent of Bermuda's households with complete coverage promised when five wireless repeater sites are added around the Island within two years, according to the company's bid.

Mr. Wilson said WOW! was hoping to share some of the 30 transmitters currently dotted around the Island because there was now a ban on new transmitters.

He said the extra sites were needed to help cover Bermuda's terrain. “You have to get beyond the hills.”

The company is hoping to get a Hamilton base to handle customers. Mr. Wilson said the project, which had taken him a year to put together, would cost $5-7 million to get up and running.

He said he needed to get around 30 percent of the market within 18 months to break even.

The firm will offer 80 channels at $50 per month or 40 channels for $30. This compares with CableVision which offers 12 channels at $20 a month, 40 channels at $35 a month and 55 channels at $43 a month with extra movie channels costing $10 each.

Installation costs $100 and consumers can get a TV, internet and phone package for $225 a month.

At the recent hearing of the Telecommunications Commission the company said they intend to provide the local market with up to 310 channels.

Once five wireless sites are placed around the Island, the company said it could penetrate 95 percent of Bermuda's households.

According to WOW! engineer Ralph Von Eppinghoven, up to five televisions per household can share the same signal.

WOW! hopes to undercut CableVision because it has no cable plant to maintain. CableVision has already announced plans for digital TV and more channels this year.

Currently CableVision supplies service to around 17,000 subscribers in the Island's 25,000 homes.

Set to lose out in the bid to get a licence are SGC Ventures Ltd. whose sole shareholder is Crystal Todd. On her project team are Cellular One Director Steve Rohnick, David Price who is Vice President of Harmonic Inc in California and lawyer and accountant Cara Lynn Greco who was the CEO of Antilles Wireless Cable in the US Virgin Islands.

The company has no location for its antenna but hoped to get a site in Hamilton and possibly St. George's.