I have made a long distance telephone call from my regular telephone handset over the Internet to a friend in Canada. I've heard the sound of the Internet and it is clear.

Yep, the end is nigh for long distance telephone companies as we know them.

Sorry if I sound so breathless, but it felt good to stick it for once to the long distance companies which have been sticking it to us for a very long time.

Logic Communications Ltd. let me use their Internet telephone service, which the company has been testing with a number of customers. The technology allows one to talk over the Internet without going though a computer. Due to the more efficient way in which voice is transformed into data and back to voice using the Internet system, the service has the potential to significantly lower the cost of long distance calling.

Check out Net2Phone's Internet site (www.net2phone.com /english) for calling various countries around the world. Note this is not handset to handset service, but from sound equipped computer to any handset telephone in the world. Still from the US to Bermuda it's 20 cents a minute.

Unless governments get in the way of technological innovation Internet providers are on the verge of introducing the net telephone to a wider public.

The Telecommunications Department seems pretty set to stamp it out as can be gathered by its pronouncement on the subject.

"The Department's view has always been and continues to be that a carrier authorised to provide data only services is not authorised to provide telephone service,'' officials stated on September 10 when informed about Logic's tests.

Telecommunications Minister E.T. (Bob) Richards has said Government, in dealing with the issue, will consider the huge amounts of money the long distance providers had invested.

But legislation squashing Internet providers from selling telephone services will be a mistake. It will eventually be steam rolled by technology and customer demand. Don't do it Telecommunications Department, Telecommunications Commission and Senator Richards.

Senator Richards has to tread carefully through the legal quagmire. It's an issue bedevilling politicians and officials elsewhere. Cable & Wireless has, of course, filed an official letter of complaint over what it sees as encroachment on its market.

Cable & Wireless claims Logic is not licensed to provide long-distance voice service. Logic president Peter Durhager, playing with gusto the role of the little guy out to do good for the community, is standing his ground. "We will continue to push the envelope,'' he said. ".. .We have also made a huge investment in technology. They (long distance providers) want to be in my business but they don't want me to come into their business.'' Worldwide, long distance providers are facing off with Internet providers over the same issue. In many instances the Internet providers are their customers, providing an ever increasing source of revenue. Witness the $10 million deal Logic struck with TeleBermuda International Ltd. to lease even more capacity.

For net telephony and other competing services with TeleBermuda.

But the companies don't want the Internet providers to then steal away their revenues from their long distance revenues. As has constantly happened throughout history, technology has upset the system and it's going to be a while before balance is restored.

Stuck in the middle is the poor legislator, beset by powerful and conflicting demands. Read the US Federal Communications Commission (FCC) working paper on the subject "Digital Tornado: The Internet and Telecommunications Policy''.

Another working paper by Barbara Esbin discusses the Internet over the cable issue, another area that's a minefield of competing interests. "Internet Over Cable: Defining the Future in Terms of the Past'' and the telephone over the Internet issue are both available at fcc.gov /Bureaus /OPP /workingp.html. Ms Esbin states the boundaries between basic regulated telecommunications services and Internet services have blurred enough to need new regulations.

"Ultimately the FCC (and perhaps Congress) may need to develop a new regulatory paradigm and language that fits the new global communications medium known as the Internet.'' Hey, no kidding. Read the Digital Tornado paper. It's a great update on what's happening and FCC counsel Kevin Werbach writes with clarity on the issues. In the paper, he advocates a mostly hands off policy while recognising the legitimate concerns and rights of the traditional providers.

"Because it is not tied to traditional models or regulatory environments, the Internet holds the potential to dramatically change the communications landscape,'' he states. "The Internet creates new forms of competition, valuable services for end users, and benefits to the economy. Government policy approaches toward the Internet should therefore start from two premises: avoid unnecessary regulation, and question the applicability of traditional rules.'' Mr. Werbach is not calling for no regulation. Government, of course, has an important role to play in influencing the evolution of technology and telecommunications, and the setting of technical standards -- and restricting anti-competitive behaviour. Over the past three years the Bermuda Government has shown it is progressive in opening up the telecoms market. Don't stop now.