Government's decision to open up competition in the local telephone market by granting a licence to North Rock Communications to provide wireless home service should be welcomed.

This will improve choice for consumers, should lower local phone prices and could improve quality.

That has been the case with the decision to expand competition for overseas calling, cellular phones, Internet access and the like.

Indeed, the only true monopoly remaining in Bermuda is Belco, where, at least with existing technologies, it would be difficult to authorise a second power supplier to do business.

Now Bermuda Telephone Company, which has had a monopoly on local phone service for decades, will face a challenge, and not before time.

It will be remembered that BTC energetically opposed the introduction of a fixed line service by Quantum (partly funded by Belco) for Hamilton and it will be disappointing if it attempts to similarly fight North Rock's service.

If North Rock gets off the ground, it will provide an alternative to BTC, which should help to reduce costs and improve quality for all consumers.

That will make Bermuda generally more competitive and it is to be welcomed.

It remains to be seen if two local service carriers can be viable in Bermuda, and the same restrictions on predatory pricing that were introduced when TeleBermuda first began offering a rival long distance service to Cable & Wireless need to be in place now.

The alternative would be to see BTC dig deep into its reserves to price its new rival out of the market.

At the same time, the Telecommunications Ministry will need to make sure that quality of service is maintained by both BTC, which went through horrendous service problems a few years ago and is still struggling with some of the same issues, and by North Rock, which is launching the service with a small staff and limited resources.

If Quantum gets back off the ground, Bermuda could be in the enviable situation of having three local service suppliers, and that is all to the good.