early yesterday morning.

Information and Technology Minister John Barritt said Government had already set out its thinking in a position paper.

The most important issue, he said, was the creation of a regulatory framework to manage the transition of the telecommunications sector from a monopoly to a more competitive environment.

Mr. Barritt said the intent was to foster an increased reliance on market forces to change from a monopoly to a more competitive environment.

He said that there must be a period of transition to allow an orderly change and the bill aimed to establish the level of compensation that should be payable to carriers who originated and terminated calls.

New mechanisms for resolving problems would also be set up but he said he hoped that carriers would work out their own problems for the most part.

Mr. Barritt said carriers and regulations need to develop a system of accounting that would lead to a "made in Bermuda solution''.

Shadow Technology Minister Walter Lister said the need for new regulations was important because Bermuda was embarking on new ground regarding telecommunications which were growing at a rapid pace.

He said the time had come for Bermuda to get out of its monopolistic telecommunications practices but he hoped the competition would increase the level of quality of the service.

Dr. Clarence Terceira (UBP), meanwhile, said the development of the technology has been rapid and caution was needed. He said domestic telephone operator the Bermuda Telephone Company and Cable & Wireless, which handles international calls, had served Bermuda well and he did not automatically think competition would lead to lower rates.

UBP backbencher C.V. (Jim) Woolridge said he was concerned about the potential loss of Bermudian jobs once competition was brought in. He said this was important given that Cable & Wireless and Telco were 99 percent Bermudian.

Grace Bell (UBP) spoke of the problem of telephone calls going astray.

The biggest joke in Tucker's Town was the number of wrong calls from people ringing up for Four Star Pizza.

Mrs. Bell said the problem was a nuisance, and sometimes costly. And she looked forward to the new regulations, which would improve service for the consumer.

"This Country need competition.'' Shadow Minister of Health Renee Webb said she had no problem with opening up telecommunications to competition.

Ms Webb pointed out consumers could save money with long-distance calls by using the Internet or the "call-back'' system.

"How does the Minister think he is going to stop that,'' she asked.

Mr. Barritt said there were no guarantees in life and the same could be said of the telecommunications industry.

In the United States, small groups were starting to amalgamate, which meant companies were not chasing the same small market.

Mr. Barritt said nobody wanted to put anyone out of a job. But a certain degree of poaching of employees was likely.

The telecommunications revolution, added Mr. Barritt, could have the same profound effect as the industrial revolution.

On the "call-back'' system, Mr. Barritt said it had been decided not to allow it in Bermuda.

This type of system was "parasitic'' in nature, and could undermine Cable & Wireless.

The House moved into committee to discuss the bill clause by clause, before passing the legislation.