In an effort to boost its controversial bid to offer voice over the Internet service in Bermuda, Logic Communications Ltd. yesterday hosted a talk by Level 3 Communications Ltd. president and chief executive officer Colin Williams.

In the audience were members of Bermuda's Telecommunications Commission, Minister of Finance Grant Gibbons, Deputy Premier and Development and Opportunities Minister Jerome Dill, and a phalanx of industry representatives.

Logic recently concluded months of testing its proposed service in the Bermuda market last week. Now the company wants to offer the service on a commercial basis.

"We are in the process of looking at what our options are,'' Logic president Peter Durhager said yesterday.

Standing in Logic's path to expanding its services are long distance provider Cable & Wireless Plc and the Telecommunications Commission.

After a complaint from Cable & Wireless about the testing the Telecommunications Commission, without referring to Logic, stated that a carrier authorised to provide data only services is not authorised to provide telephone services.

Logic, which is owned by local telephone provider Bermuda Telephone Co. Ltd.

(BTC), said last year it was planning on using newly developed technology to allow customers to talk over the Internet without having to go through a computer. The technology offers the potential for substantially lowering long distance calling rates.

Mr. Williams, who sits on Logic's board of directors, yesterday said Government would have to balance the investment of incumbents like Cable & Wireless with Bermuda's need to stay competitive.

"Today, Bermuda is in danger of not moving rapidly to grasp this technology,'' he said. "...It raises the question about historical economics and future economics.'' Level 3 is currently building a Internet-based network across the US that is expected to be completed in 2001 and will offer voice services.

Mr. Williams said he expected the battles between Internet providers and traditional telecommunications companies to be resolved by next year. Here in Bermuda the issues were more "subtle'', he said.

TALKING LOGIC -- Colin Williams