The chairman of KeyTech, the owner of local phone company BTC and Internet service provider Logic, has urged the Government to continue with its changes in telecommunications laws to benefit Bermudians. And Dr. James King sai d that Bermudians could look forward to cheaper prices with more companies competing for business. Dr. King made the statements in the company's year end report published this past Friday. The report for the year end March 31, 2000 showed the company's net income had improved slightly on the year before, going up 1.5 percent from $14 million or $7 a share to $14.2 million or $7.28 a share. Dr. King welcomed the changes in the telecommunications industry in Bermuda and said that the company would now focus on its core business after settling court disputes. Dr. King said: "There are still many more benefits that can and will accrue. We are advocates of an open market and are confident of our ability to prosper in such an environment.'' He added: "The communications industry is continuing to evolve at a rapid pace. The changes that are occurring are indicative of the removal of the historic demarcations that separated various service providers. "The mergers have and are resulting in the formation of large multi-disciplinary communications companies. "In Bermuda, we still have distinct separations and we urge the Ministry of Telecommunications and e-commerce to adopt the necessary changes to our regulations for the benefit of all.'' The recent news that the Ministry of Telecommunications was to allow voice over Internet services by Logic has come as welcome news after international call revenue dropped by 35 percent to $21 million, despite an increase in volume of calls. Dr. King said: "Consumers can expect to see reduced international calling charges as a result of this action taken by the Minister.'' The annual report said that the strong demand for local voice, data, cellular and Internet services had led to operating revenues rise by 4 percent. Shareholders' equity rose to $91 million or $46.63 per share, up from $81 million or $41.22 per share. Dr. King praised KeyTech's smooth transition from 1999 to 2000, adding: "We recognised the importance of communications to Bermuda and thus we are proud to have met this challenge.'' On BTC, he praised the development of the network and said it would be two years before the upgrade project is completed. He said: "The development of an improved and more robust network continues and in the areas where this is complete, a much improved level of service is being experienced. "It is our estimate that it will require another two years before the project is complete. "We continue to focus on service delivery and making the necessary changes to achieve this. "We believe that it is necessary to have a stable and dependable fixed line network that will be capable of providing multiple services. Our wireless division is continually seeking to provide a high quality of digital service. Being safety conscious, we are constantly ensuring that cellular emissions are well within government regulations. "Technology is developing rapidly and more use will be made of the wireless technology. We have introduced a roaming service and are certain that this will prove to be an added bonus to our cellular customers. "The introduction of the Globalstar satellite services has been delayed because we have not yet received approval from the Telecommunications Commission for the rates and conditions for this service.'' Dr. King said that as traditional markets in which the KeyTech subsidiaries serve approach maturity, and subsidies in these markets are removed, the company hopes to expand and offer new technologies as they become available. He said KeyTech would focus on its cellular, data and Internet services to maximise potential earnings and said portability of communications was becoming prime for the consumer. He said: "To this end, KeyTech will spend $21 million by way of capital expenditure in 2001 and hence maintain or grow revenues. With tight control over operating expenses and a stable revenue stream, KeyTech expects to continue with a strong financial performance in 2001.'' PHOTO `We are advocates of an open market and are confident of our ability to prosper in such an environment.' -- Keytech chariman Dr. James King.