inexpensive long distance phone service over the Internet went behind closed doors in Supreme Court Four yesterday.

The closed hearing before Puisne Judge Vincent Meerabux marks the next step in Logic Communications' fight with the Telecommunications Ministry for the right to have its online LogicPhone service.

Neither of the parties involved could be reached last night for comment on the first day of the hearing which is set to run all week. It was also not clear why it was being kept private.

Logic's service began on July 23, 1999, but was suspended on August 2 after threat of criminal prosecution by the Government.

However, during its short life it clocked up more than 600 customers. The Ministry maintains that Logic is only allowed to provide data services. The firm is arguing LogicPhone uses exactly the same technology for voice messages as it would for e-mail.

Logic chief Peter Durhager BUSINESS BUC