Quantum Communications despite widespread speculation to the contrary.

Chief executive Peter Durhager revealed to The Royal Gazette the company had initially considered buying Quantum when it was offered for sale in March but dropped out in April.

Mr. Durhager said Logic drew up a preliminary review of Quantum, its network and its various assets to see if it offered any value or opportunities for Logic's customers and stakeholders.

"But at the end of April I can confirm we subsequently decided not to pursue that avenue since it was not advantageous.'' The Island's largest Internet service provider, Logic, is owned by KeyTech Ltd. which also owns Quantum's arch-rival BTC.

Some pundits suggested this week that if Logic was successful in its bid for Quantum it would throw into question the Government's efforts to introduce competition into the local market.

But Mr. Durhager's denial of interest in Quantum means the market may open up yet -- and pro-competition observers can breathe a sigh of relief.

His remarks followed one day after a similar denouncement from Cable & Wireless -- leaving mystery shrouding the identity of the companies still keen on snapping up Quantum.

A spokeswoman from major Quantum shareholder, Belco Holdings, has insisted two parties are still "taking part in the confidential bidding process'' -- down from five originally.

Early in March Quantum announced its major shareholders wanted to sell up after only 50 customers -- all corporate -- signed up during its first 18 months despite the $15 to $20 million injected into the company.

Legal squabbling with BTC over the wording of the telecommunications legislation continued throughout that period, holding Quantum back from getting connected with the rest of the Island's telephone network.

Belco Holdings Ltd. and C&W hold about 45 percent and 35 percent respectively of Quantum.