Internet knew it was acting illegally, it was claimed yesterday.

And Telecommunications Minister Renee Webb accused Logic Communications and its boss Peter Durhager of trying to "jump the gun'' with its Internet phone service.

But Ms Webb added Government would not be pressured by PR blitzes designed to suggest it was blocking progress.

She said: "Mr. Durhager has made a series of statements which may have given some the impression that Government is trying to prevent the people of Bermuda from participating in the fruits of progress -- in this case, cheaper telephone calls.

"I do not want the public to be left with that impression because it is most emphatically not true.'' Logic was warned last week to withdraw its overseas phone service -- or be prosecuted.

Ms Webb insisted Government was keen to see Bermuda reap the fruits of hi-tech new technology -- and that her Ministry was busy rewriting the law to account of the fast pace of change in communications.

And she admitted: "Many people expect that, in the future, Internet protocol telephony will occupy a major place in the telecommunications industry, so I think there is no question that it will soon be available here in Bermuda.'' But she said "a level playing field'' had to be maintained -- and that Logic, owned by the same firm as BTC, which provides local calls, had not played the game.

Ms Webb added: "To allow Logic to provide an Internet protocol service would, in effect, allow Logic and BTC to compete with Cable & Wireless and TeleBermuda in the long distance market, while keeping C&W and TBI out of the local telephone market and unable to provide Internet service in that same market.'' She pointed out that Logic was licenced as an Internet provider -- which only allowed them to provide data services -- not voice.

Ms Webb added that the other two classes of telecommunications -- long distance and local voice services -- prohibited Internet access being offered as well.

And she said that Logic was told almost a year ago by the former UBP Government that it could not allow them to offer telephone calls.

She added: "The company was told then that Government would not allow them to offer this service, that what they intended to do was illegal and could result in them being prosecuted.'' Tech Tattle: Page 16 Webb hits back And Ms Webb said that when Logic went ahead and offered the service they "knew perfectly well what our reaction was going to be''.

But she insisted: "Bermuda would not be well-served by putting something on to the books which has been slapped together in a hurry because Mr. Durhager is impatient to get going.'' And Ms Webb appealed for telecommunications firms to "act responsibly'' until the new legal framework was finished.

She warned: "If the telecommunications field in Bermuda is turned into some kind of wild west show, we all stand to suffer. If we keep our heads, though, we all stand to gain.''