Bermuda's competitive edge was sharpened yesterday with the awarding of three new telecommunications licences - including licensing of two new Internet service providers (ISP).

The granting of the class C (Internet) licenses - which brings the number of operating local ISPs up to six - went to local ventures iTech and Fort Knox while BTC Mobility was granted a licence to separate from BTC and operate as an independent cellular service provider.

Telecommunications Minister Renee Webb, in giving out the new licences, said the Ministry was focused on Bermuda having a competitive telecommunications environment whilst encouraging business opportunities for Bermudians.

On the Internet front Ms Webb said the market now had "enough players", although she did not rule out letting additional ISPs in to the marketplace. And she added there was still room for the lowering of Internet access rates: "On the Internet side, we still get complaints on it being far too expensive in Bermuda."

Ms Webb also said yesterday's granting of the class C licences to Fort Knox and iTech should be seen as encouragement of smaller Bermudian companies participating in the telecommunications market.

The licenses were issued after the Telecommunications Commission held public hearings in November of last year. At least one application - from the Bermuda Land Development Corporation (BLDC) - did not receive approval. Although Ms Webb said that application has been deferred, not denied.

The BLDC had applied for a class B licence to set up a neighbourhood fibre-optic network at Southside. BLDC consultant Claude Bourque told The Royal Gazette last year that buildings were being fitted with cabling to allow new companies moving in to get started immediately but a licence was needed to link up the network.

Meanwhile, Fort Knox and iTech joined the Island's existing Internet providers Cable & Wireless and TeleBermuda International, who are limited to the corporate market, and Logic and NorthRock who provide both corporate and residential Internet access.

It is understood that Bermuda Computer Services has also held a class C license for some years, but has not actively offered Internet service.

Both iTech and Fort Knox are looking to harness the satellite technology of Virginia-based company iDirect and are licensed to provide Internet access to both commercial and residential clients.

iTech partner Greg Woods, who launched the company about a year ago along with businessman Wendall Brown, said the company had a number of interested clients. The company said its target market would be international business, local business, government, education institutions and "high-end" residential. The company also stated its intention to have 35 subscribers up and running in the first year. The company proposes to mount a 1.8 metre VSAT satellite on each client site, and run a coaxial cable to a modem, which is then integrated with the local area network (LAN) through a standard ethernet connection.

Fort Knox plans to deploy iDirect's technology in another way with the mounting of a VSAT satellite on its St. David's building. From there it can "dynamically manage" Internet traffic through a Bandwidth switch. Fort Knox CEO Troy Symonds cited the ability to provide Internet to its clients as key to its "disaster recovery" services.

The satellite technology is understood to allow for video, voice and fax capability.

Meanwhile BTC Mobility general manager Stanley Wright said being granted its own licence, rather than as a department of BTC, will allow it to operate on the same footing as its competitors. He said one example of this is the ability to "come to market" with new products without a 21-day advertising requirement.