Bermuda-based telecommunications group KeyTech Ltd. is investing around $2 million to extend its fibre optic network in the Cayman Islands as it seeks to boost its corporate data services business.

KeyTech is aiming to capitalise on its acquisition last month of Cayman-based Internet service provider (ISP) WestTel Ltd. The group had owned 67 percent of WestTel before buying the remaining 33 percent from WestStar TV.

Aquiring full ownership of the company has allowed KeyTech to rebrand, using the same name as its Bermuda Internet service provider (ISP), Logic Communications Ltd.

The name recognition may prove attractive to many of the companies used to dealing with Logic in Bermuda, who also have operations in the Cayman Islands, said KeyTech chief executive officer Sheila Lines in an interview with The Royal Gazette.

She said that KeyTech sees corporate internet and data services as a major growth area and wanted to add about four miles of underground fibre optic cables to its network in the Cayman capital of George Town to stage a major push into that area.

KeyTech first ventured into Cayman in 2004 through its partnership with WestStar TV and gradually built up its stake in WestTel.

"WestStar TV's focus was on the residential market and wireless services and they were not looking to make significant infrastructure investments," Ms Lines said.

"We felt it was appropriate to buy out their minority stake and push ahead with our plans to put down fibre in George Town."

An independently operated fibre optic network could deal better than wireless with the increasing demand for capacity that was likley to continue into the future, she said, since wireless was more prone to congestion.

Logic's chief operating officer Philipp Schmidt added that the company would benfit from synergies between the Bermuda and Cayman operations.

"It allows us to have redundancy between the two locations and back-up of data," Mr. Schmidt said. "It expands Logic's global footprint.

"Logic has moved beyond being a residential service provider. More than half of our revenues now come from the corporate side." Ms Lines said the corporate push into the Caymans may be helped by the large number of businesses with a presence in both jurisdictions.

"There are many business links between Bermuda and Cayman," Ms Lines said. "For example, Butterfield Bank, HSBC and BIAS [Bermuda Investment Advisory Services].

"Because Logic has been known for so long, the brand recognition by corporate customers is much better than it is for WestTel."

Mike Edenholme, CEO of Logic in Cayman, said: "This is good for Bermuda companies in Cayman, because Logic is an established provider in Bermuda and customers know they will be able to expect the same standards of service from Logic in Cayman."

Products that work well in Bermuda could easily be transferred to Cayman as Logic focused on creating a strong platform across the two jurisdictions, he added.

KeyTech owns a substantial fibre optic network in Hamilton, as well as in George Town. Ms Lines said the Cayman investment was a natural extension of the company's aim to build up its telecommunications infrastructure, exemplified by the Challenger undersea cable, which became operational in April last year.

Challenger has provided competition for Cable & Wireless and TeleBermuda International in providing international bandwidth, helping to lower costs for access to ISPs. This has helped to promote price competition between ISPs.