The stand-off between CableVision and the Bermuda Broadcasting Company appears to be over.

The cable company and broadcaster have reached a preliminary agreement on how to resolve their differences over Channels 7 and 9.

CableVision customers will have to pay for ZFB and ZBM but the fee will be decided by the Telecommunications Commission.

In a joint statement last night, a spokeswoman said: "The agreement is subject to approval by the Telecommunications Commission but both parties are hopeful that such approval will be given.

"The agreement protects the interests of all the parties including Cablevision's customers and is based on the principle of customer choice.

"While customers will have to pay a fee for watching these channels, that fee will be determined by the Commission and customers can decide for themselves whether or not they want to pay for the convenience of watching these channels on Cablevision's system."

CableVision general manager Terry Roberson said: "We are very pleased that these discussions have taken place with Bermuda Broadcasting. We are grateful to the Commission and the Department for their assistance in this process.

"I would also like to assure our customers that they remain our first priority and we look forward to keeping them updated with further information as soon as we know whether the Commission has approved these commercial arrangements."

Rick Richardson, of BBC, said: "We believe this is a very positive step and we hope the Commission will approve this preliminary agreement.

"Bermuda Broadcasting Company looks forward to bringing such things as West Indies cricket and other special programming to cable subscribers in the immediate future."

Government is to hold a public inquiry into CableVision's rates and charges this Wednesday at Cathedral Hall.

It follows the Telecommunications Commission's successful application for a court injunction on January 22 which ordered the cable company to reinstate channels 7 and 9 to its schedule.

CableVision removed ZFB and ZBM on January 21 after a ruling 12 days earlier that it did not have to seek the Commission's permission prior to taking them off air. At the time the Commission said it would appeal Chief Justice Richard Ground's ruling.

The dispute began on November 30 when CableVision announced plans to drop Channels 7 and 9 because BBC now wanted a fee.

In August the Cable Television Service Regulations 1987 were amended to allow broadcasters to choose between a 'must carry' service, i.e. free, or to become a 'retransmission consent' service. BBC opted for the latter and entered into negotiations with CableVision.

According to Bill Craig, BBC President and CEO, the company asked CableVision for a retransmission fee of $1.50 per channel per subscriber equating to $3 a month for ZFB and ZBM. He said this was "in line" with a similar deal with WOW.

But CableVision said that just as the new law allowed BBC to demand payment, it also allowed CV to remove the channels from its line-up.

CableVision boss Mr. Roberson said the company did not want to pay for ZFB and ZBM because these channels were still free to people using antennae.

The company currently charges its customers $30 a month for a basic package which includes local broadcasters such as BBC.

The inquiry into its rates and charges takes place this Wednesday at 5.30 p.m. at Cathedral Hall, Church Street.