Last week's column about telephone over the Internet sparked off some positive reviews -- and some splenetic comments from the spokesperson of one of the long distance carriers. The normally mild-mannered representative called the column "shallow'', "superficial'' and "naive''.

Perhaps. But Cable & Wireless will have to argue its case before I eat crow.

And I'm quite willing if that's warranted. Tech Tattle has invited the company to argue its case for reasons why companies like Logic shouldn't be allowed to provide services such as telephone over the Internet.

The company is waiting for its new general manager to be installed first. The issue is before the Telecommunications Commission, which has yet to open debate. By the way, why is the Commission taking so long to meet over the issue? I love criticism, as long as it's honestly and openly said (and these were). Like other reporters I try to do as much research as possible and had written a lot more about the Internet telephone issue until I was forced to cut it down to fit the allotted space. However it was enough to make the point about the telephone companies and high charges. And I included all telephone companies, local and long distance providers.

The issue that sparked the comments is of course the interconnection or international access fees Cable & Wireless, TeleBermuda International and other long distance companies around the world pay local carriers like the Bermuda Telephone Co. Ltd. for passing calls along.

The long distance companies claim their rates are high because they pay the interconnect fees, while Internet companies don't. Hence in the US, local telephone companies, fearing a dramatic loss in those interconnect fees, plan to apply those fees to Internet companies offering voice over the Internet service.

Meanwhile AT&T's chief executive officer Michael Armstrong last week declared Internet Protocol (IP) as the future.

"There's a new standard, and it's IP,'' he said last week. "It gives a technological freedom that just didn't exist a few years ago.'' He also lashed out at the local phone companies, saying the plan to apply interconnect fees to voice-IP calls would "choke the development of this industry and stifle innovation''.

He's calling for a complete doing away of all access charges, for voice-IP and for conventional long-distance calls.

Here in Bermuda the roles are switched. It's the long-distance company that is crying foul and the local provider that's silent. The reason. Bermuda Telephone Co. Ltd. owns Logic.

In the US the Federal Communications Commission last week said it will review -- code for "cut'' -- the access fees long distance companies pay to local phone carriers to connect calls. The fees make up about 40 percent of the average $22.50 monthly residential long-distance bill in the US.

Reportedly Bermuda's Telecommunications Commission is due to begin similar hearings this week on the local access fees the long distance companies pay to the local providers.

This week Bermuda Container Line Ltd. (BSL) reports on how it's dealing with the Year 2000 computer problem. Company president Geoffrey Frith said BSL has had to tackle the problem on two fronts, in the office and at sea. The major issue lies inside BSL's container ship MV Oleander.

You don't want a mighty ship crashing around the ocean because its navigation system goes haywire due to the date change. Not only is it a safety issue, but there's a huge potential liability involved if something goes wrong.

In the office, the company spent the last 18 months updating its data processing systems. Money was spent on new systems to handle cargo documentation and container control. There was a major upgrade to accounting software.

Office systems are nearly 100 percent compliant. The critical and daunting task focuses on the Oleander . Since ships are not built as cookie cutter replicas but as unique to a company's specifications, the problem facing the industry is to identify where all the chips are, what they do, and if these are date dependent.

"Most ships are one off,'' Mr. Frith said. "It is a horrendous task for the shipping industry.'' Even if the chips do not need a date to perform their function, they might still fail.

"For example the chip that controls the fuel pump might have a date function,'' Mr. Frith said. "You don't want that to stop functioning just as you're coming into port.'' The company has appointed Bermuda Agencies Ltd. operations manager Bill Knowlton to lead its Year 2000 efforts on the Oleander . Bermuda Agencies is BCL's US-based subsidiary. Mr. Knowlton reports directly to Mr. Frith. The company plans on being compliant by the end of June 30, 1999.

BCL has an advantage in that the Oleander's senior captain and senior chief engineer oversaw the design and construction of the ship, so they know a thing or two in hunting out the embedded chips.

BCL has two approaches to dealing with the problem on board the ship. The company has written off to the suppliers of the various systems to determine where the chips are, if they are date dependent, and whether they're compliant. However some of the systems were sub-contracted out and the suppliers themselves may not know.

"One of the problems is getting assurances from the suppliers,'' Mr. Frith said. "We are still trying to identify all the systems.'' In the meantime, the company has jumped immediately to contingency planning, especially if it can't get assurances. BCL is determining how to manually run all the various tasks on the ship without the use of the computers. It's back to basics on the high seas.

Advertising in The Royal Gazette by US wholesaler Dell Computer Corp. does not contravene Bermuda's laws, according to the Finance Ministry. A local vendor complained about the advertising in which Dell was selling computers from overseas and inviting potential customers to telephone toll free to the USA.

The purchase would then be shipped to the consumer.

The Companies Act prevents overseas companies from carrying on business in Bermuda without a permit. However the prohibition has been taken to apply to companies having a Bermuda address or premises from which they're engaging in trade.

The Dell advertising doesn't meet the criteria, and are more like mail-order companies providing goods through catalogues on the Island. Good call, although I'm sure local vendors will disagree.

Tech Tattle deals with issues about technology. Contact Ahmed at 295-5881 ext.

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